Solution
Anuja answered on
Jun 11 2020
Assignment 2
Introduction
This assignment deals with the elements of the marketing mix and how it has been implemented by McDonalds (henceforth refe
ed to as McD) to be successful in the United Kingdom. A
ief introduction to this company would start with its induction in the year 1940 in the Americas. It is an American fast food chain which has been very successful in leaving its footprints globally as well. The one thing about this company which is worthy or applaud is that it has managed to expand into different types of countries, adapted to their unique lifestyles and needs and made a place for themselves in this competitive environment. Such is the case with UK too. In most of the countries, they operate via the franchisee model, which makes it easier for expansion. They are cu
ently present and serving in over 100 countries. Presently, it is the leading fast food chain in UK (Statista, 2015) but the other tough competitors in line are Burger King, KFC, Pizza Hut, Domino’s and Subway.
1. McDonalds- Implementation of Marketing mix in the UK market
The marketing mix is a common plan used and implemented by companies, used as a tool of marketing for spreading the name and value proposition of the company. The modern marketing mix has 7 elements to it which are Price, Place, Product, Promotions, People, Process and Physical evidence. Now, to understand the marketing mix of McDonalds we will first understand the marketing strategy of McD in a
oad perspective. There are two terms which we will familiarize ourselves with. One is globalisation and the other is internationalisation. Now some companies spread across different countries, expanding their businesses and products but treat the entire world as one market. Some examples are Coca Cola, Adidas and Levis jeans. These companies sell in USA, UK, Russia, India and other countries but all of them have the same offerings for individual countries.
And there are food chains like McD, Burger King and KFC who have also expanded across different countries but they follow the practise of internationalisation. The simple explanation of this term is that they follow a “think global, act local” kind of a moto. In this situation they have a global formula for themselves, like McD sells their burgers and fries. But they customize their offerings according to the needs and trends of the country. Like Burger King has a product “Keema Crunch” in India which is made with chopped lamb meat and Indian spices. In this way they appeal to their customers as a global
and which means quality assurance, with a local offering which helps customers substitute their existing favourite places and purchase from the global
ands. This is generally more prevalent in food chains and retail stores.
1.1 Product- there are some products of McD which are standard across all countries while some products which are changed or modified according to the needs of the customers in the country. In UK, for example,
eakfast is focused on a lot, like pancakes with syrup and Mcmuffins. There are also baked and stuffed bagels in the menu. Since fast food chains are being shamed for their calories, McD has also introduced “below 400 kcal” and “below 600 kcal” healthy meal options like salads, white coffee and fruit or baby ca
ot bags. But some of its offerings have not been modified as it has universal demand like its chicken McNuggets and it signature long fries made from russet potatoes. These fries are accepted and eaten worldwide i
espective of the country and religion.
1.2 Place- McD generally follows a strategic expansion of around 350-400 stores per year in a particular. This may be good for some places as it keeps them ahead of their competition but it is also bad for some places because they could have gone well ahead in places where they do not have any competition. But this is a method which they have been following throughout. But nowadays they have started analysing beforehand and forecasting demand for a particular region beforehand. This applies for Britain as well. If they realise that competition has reached saturation and there is scope for growth they will go out of their plan and open more outlets. In Britain McD has a very good reputation and name, so growth prospect is high there.
1.3 Price- the pricing strategy of McD is also very adaptive in nature and is according to the country which they are operating in and their purchasing power. Naturally the price is the highest in the UK when comparing the prices of a big Mac in different countries. The basic objective, like every other...