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Marketing And Service Of McDonald

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Question:

Discuss about the Marketing And Service Of McDonald’s.
 
 

Answer:

Introduction

Marketing forms one of the most important strategies which is “used by the various business organizations as well as companies to bring about the overall growth and the development of their business organization” (Hill, Jones and Schilling 2014). It is noteworthy in the present whiles with the “advent of globalization and the developments in the fields of the recent technology as well as innovations the process of conducting business as undergone a drastic transformation” (Hill, Jones and Schilling 2014). It is reflected from this that every year thousands of “new business organizations come into existence and thus the level of market competition faced by the various business organizations as well as companies in the present times have increased exponentially”. Therefore, it is frequently seen that the numerous business administrations repeatedly take the help of several kinds of advanced strategies for the purposes of marketing (Hitt, Ireland and Hoskisson 2012). It is generally seen that “an effective marketing strategy can lead to the overall growth as well as the development of the concerned business organization or the company whereas a mistimed or an ineffective one can seriously hamper the prospects of the concerned business organization or the company in a significant manner” (Hitt, Ireland and Hoskisson 2012). The customers are often seen as the end users of the products or the services offered by the various business organizations and therefore they form one of the most basic entities of the numerous commercial administrations (Hitt, Ireland and Hoskisson 2012). The concept of marketing has gained special importance in the present day scenario as this particular process is used by the various business organizations to convey the relevant as well as essential information about the diverse goods or the facilities presented by them to the customers (Hill, Jones and Schilling 2014). The customers need to be constantly informed about the various products as well as the services offered by them to the customers as many people argue that if the customers are not provided with the required information about the various products and the services then how are they going to opt for the products or the services provided by them to the customers (Hill, Jones and Schilling 2014).

McDonald’s Australia

McDonald’s, one of the largest fast food companies of the world, was “founded by the brothers “Richard and Maurice McDonald” in the year 1940 in the region of San Bernardino, California, United States” (Mcdonalds.com. 2018). The company was initially called by the name of “hamburger stand” and a symbolic “Golden Arches logo” became the patent of the company in the year 1953 (Mcdonalds.com. 2018). However, the real change in the fortunes of the company with the taking over of the reins of the company by Raymond Kroc, who with his innovative as well as visionary leadership transformed the one outlet cafe into one of the largest food chains of the world (Mcdonalds.com. 2018). According to a recent data released by the company and has currently more than “36,900 outlets in different parts of the world and is the second largest private employer in the world employing more 1.5 million people on a global basis” (Mcdonalds.com. 2018). The following figure provides a few financial data of the company-

According to a recent data “McDonald's is the world's largest restaurant chain by revenue and it serves over 69 million customers daily in over 100 countries” (Mcdonalds.com. 2018). The first McDonald’s outlet which was started in the nation of Australia was in the year 1993 in the city of Melbourne and right now the company has its outlets in almost all the parts of the nation (Mcdonalds.com. 2018). The most significant part of the various McDonald’s in the nation of Australia is its association with the McCafé (Mcdonalds.com. 2018). It is significant to note that “McCafé is a café-style accompaniment to McDonald's restaurants and is a concept created by McDonald's Australia (also known, and marketed, as "Macca's" in Australia” (Mcdonalds.com. 2018). According to a recent data provided by the company under consideration here “most McDonald's in Australia have McCafés located within the existing McDonald's restaurant. In Tasmania, there are McCafés in every restaurant, with the rest of the states quickly following suit. After upgrading to the new McCafé look and feel, some Australian restaurants have noticed up to a 60 percent increase in sales. At the end of 2003, there were over 600 McCafés worldwide” (Mcdonalds.com. 2018). The success attained by the company in the recent times can be adequately summed up in the words of Eric Schlosser who in his famous 2001 book named “Fast Food Nation” wrote “nearly one in eight workers in the U.S. have at some time been employed by McDonald's” (Schlosser 2012). The company currently provides a much diversified menu at the current time than it used to offer in the earlier times and offers “hamburgers, cheeseburgers, chicken products, French fries, breakfast items, soft drinks, milkshakes, wraps, and desserts” (Mcdonalds.com. 2018). In addition to these, the company also provides vegetarian menu to the vegetarian people and offers various kinds of soft drinks as well as milk shakes to the customers (Mcdonalds.com. 2018). Therefore, it can be said that it is a reflection of all these that the company under consideration here “is not only one of the largest fast food companies of the nation of Australia but also of the world” (Mcdonalds.com. 2018).

 

Present issues

It is true that the fast food company McDonald’s is “one of the largest fast food companies of the world in terms of the net revenue generated by it on yearly basis” and at the same it is the second largest private employer of the world” (Vitasek, Manrodt and Kling 2017). However, the company under consideration here is facing various kinds of problems not only related to the aspect of marketing but also to the aspect of services (Vitasek, Manrodt and Kling 2017). It is a reflection of this that in the recent times there have been various incidents when the various outlets related to the business organisations were not able to handle the inflow of customers at the various peak times of the day (Vitasek, Manrodt and Kling 2017). Furthermore, recently the some of the outlets related to the business organisation came under the heat for the use of the various kinds of chemical preservatives for the preservation of the meats which was served by them to the customers (Kotabe and Helsen 2014). In addition to these, the company in the recent times has also faced various kinds of problems on the score that they use various kinds of powders and instant milkshake preparation and ice-cream preparation powders for the preparation of instant milkshakes as well as ice-creams to the customers from the different part of the globe (Kotabe and Helsen 2014). Furthermore, the fast food chain has been also various issues related to the concept of hygiene which forms an important part of the fast food industry (Kotabe and Helsen 2014). It is a reflection of all these factors that the sales of the company in the recent times have dropped down a bit and also there has been various issues regarding the management of the various outlets related to the business organisation (Vitasek, Manrodt and Kling 2017).

Gap Analysis

The concept of Gap Analysis “involves the comparison of actual performance with potential or desired performance. If an organization does not make the best use of current resources, or forgoes investment in capital or technology, it may produce or perform below its potential”(Gerhardt, Hazen and Lewis 2014). In other words, “Gap analysis identifies gaps between the optimized allocation and integration of the inputs (resources), and the current allocation-level. This may reveal areas that can be improved. Gap analysis involves determining, documenting, and improving the difference between business requirements and current capabilities”(Gerhardt, Hazen and Lewis 2014). It is important to understand that this specific instrument is employed by the many business associations in the present times to measure the expectations of the customers and the standard up to which they are being able to live up to the expectations of the customers, who are an integral part of their business process (Gerhardt, Hazen and Lewis 2014). A gap analysis of the company McDonald’s reveals that the company at the current moment is not being able to fulfil all the “expectations as well as the needs and the requirements of the customers in the most effective manner” (Campbell, Coff and Kryscynski 2012). In the opinion of many people the major reason for the creation of these gaps between the actual performance level of the products or the services offered by a company and the anticipations of the consumers from the goods or the facilities which is being delivered to them are because of the “ineffective strategic, tactical as well as operational policies followed by the company or the business organisation under consideration” (Gerhardt, Hazen and Lewis 2014).

The various strategies which the diverse business organisations often resort are one of the most basic entities of their overall process of their corporate (Campbell, Coff and Kryscynski 2012). It is often seen that the “various business organisations or the companies often take the help of various kinds of effective as well as innovative strategies to bring about the overall growth and the development of their business organisation” (Campbell, Coff and Kryscynski 2012). However, it is also seen that “an ineffective or mistimed business strategy can hamper the interests of a particular business organisation or a company in a significant manner” (Jacobs, Chase and Lummus 2014). Moreover, the various business organisations before the designing of any particular product or a service should “analyze the needs as well as the requirements of the customers in the most effective manner as it is often seen that if the needs and the requirements of the customers are taken into consideration into a particular product or service the various customers do not like to opt for those products or service” (Jacobs, Chase and Lummus 2014). It is true that the company McDonald’s offers a wide menu to the customers of the country of Australia however the menu provide by them is not able to cover up “the needs as well as the requirements of all the customers in the most effective manner” (Campbell, Coff and Kryscynski 2012). 

The operational strategies, on the other hand, “refers to the methods companies use to reach their objectives. By developing operational strategies, a company can examine and implement effective and efficient systems for using resources, personnel and the work process” (Jacobs, Chase and Lummus 2014). It is significant to note that “in the present day competitive business world the various operational strategies form one of the most important parts of their business process and helps them not only to reach out to a larger number of customers but also to reduce the level of competition faced by it on the score of its various competitors” (Hansson, Wrangmo and Søilen 2013). The company McDonald’s following the various precepts of the concept of operational strategy not only tries to “reduce the level of competition faced by them but also to reach out to a larger number of people” (Hansson, Wrangmo and Søilen 2013). It is a reflection of this particular fact that the company currently follows the concept of price competition “in a bid to reach out to a larger number of customers and also to earn their loyalty” (Hansson, Wrangmo and Søilen 2013).

 

Recommendations: Utilization of technology

The “recent advancements in the fields of technology as well as innovations” has made the various customers of the present day to become over-reliant on the various platforms of technology (Yeu et al. 2012). Therefore, it is generally seen that if a particular business organization does not takes the help of the “latest innovations as well as the technology” then the customers generally do not opt for the products or the services offered by them to the customers (Yeu et al. 2012). The company McDonald’s has a significant amount of presence over the various platforms related to the social media and takes the help of the various kinds of “technology to improve service delivery and the consumer experience” (Yeu et al. 2012). Therefore, by the use of the “recent technologies as well as innovations the company under consideration here” can further enhance not only the satisfaction level of the customers but also their experience (Yeu et al. 2012). The company McDonald’s just like the company KFC can take the help of the various kinds of drones to improve the quality as well as the speed of their delivery system (Tuten and Solomon 2017). Furthermore, the company can also enhance its online presence in a bid to reach out to a larger number of people and also to inform the customers about the products offered by them (Tuten and Solomon 2017). Thus, it can be said that if the various mediums related to the social media is used effectively them it can “bring about the overall growth as well as the development of their business organization” (Tuten and Solomon 2017).

Capacity demand issues

The capacity demand issue can be defined as the “purchasing option that allows companies to receive equipment with more computer processing, storage, or other capacity than the company needs at the time of purchase, and have that extra capacity remain unused and unpaid for until the company actually requires it” (Madsen and Walker 2015). It is noteworthy that the several business establishments in the current periods take the help of this exact method to handle not only the pressure the of the manufacture of the various products as well as the amenities which they offer to the customers but also to deliver the goods to the customers at the time stipulated to them (Madsen and Walker 2015). The company McDonalds in a single day has 3 peak timings, namely “8-10, 11am - 1pm and 5pm - 7pm” and the remaining working hours of the day are considered to be off-peak timings (Madsen and Walker 2015). It is significant to note that it is during these peak timings the various outlets related to the company receives the maximum number of customers and thus if the company procures extra number of equipments which is likely to help them to serve the customers in a much manner by reducing the time of the cooking or the preparation of the products ordered by the customers (Hansson, Wrangmo and Søilen 2013). Therefore, if the various outlets related to the company takes the help of the concept of “capacity demand” and gets extra number of equipments to tackle the workload during the peak timings then that is not only going to improve the experience of the various customers but would also help the various employees related to the various outlets in a significant manner as well (Hansson, Wrangmo and Søilen 2013).

 

Current standard of service

The “Zone of tolerance” can be defined as the “range of customer perceptions of a service between desired and minimum acceptable standards. In essence it is the range of service performance that a customer considers satisfactory”(Campbell, Coff and Kryscynski 2012). It is significant to note that in the present day this particular concept is used by the various business organizations to design products as well as service that would live up to the expectations of the customers  (Campbell, Coff and Kryscynski 2012). Therefore, the company under consideration here can take the help of this certain perception “not only to find out the various needs as well as the requirements of the customers in the effective manner but also to design or to manufacture their products as per the expectations and the requirements” (Gerhardt, Hazen and Lewis 2014). Furthermore, it is generally seen that if the customers are more satisfied with a particular product or service then they are likely to opt for that product or service more than once (Gerhardt, Hazen and Lewis 2014). Another important concept which the company under consideration here can take the help of, are the five elements of the “Servqual’, namely, “tangibles, reliability, responsiveness, assurance and empathy” (Gerhardt, Hazen and Lewis 2014). It is significant to note that these are five most basic entities of the concept of quality (Gerhardt, Hazen and Lewis 2014). Therefore, the company under consideration here can take the help of these five dimensions in a bid to deliver better quality of food items to the customers (Gerhardt, Hazen and Lewis 2014).

“Loyalty and customer retention programs”

The concepts of loyalty as well as customer retention had a considerable influence on the business processes of a number of business establishments (Campbell, Coff and Kryscynski 2012). It is significant to note that most of the business establishments in the contemporary times aspire to earn the loyalty of the various customers related to them as it is often seen that once the customers have developed a loyalty towards a particular brand or product they are likely to seek the help of their services even if the concerned company significantly raises the price of the concerned product or service (Hill, Jones and Schilling 2014). Another concept which has gained a considerable amount of significance in the recent times is the concept of customer retention (Hill, Jones and Schilling 2014). The various companies through the use of this particular concept develop various effective strategies as well as policies so that they can retain their existing customers (Hill, Jones and Schilling 2014). The company under consideration here McDonald’s can take the help of these two concepts not only to earn the loyalty of the customers but also to develop effective strategies so that they can retain their existing customers  (Jacobs, Chase and Lummus 2014). Furthermore, these two concepts will also help the company under consideration here to significantly reduce the “high level of threat which it faces from the various other companies operational in the same field of business” (Campbell, Coff and Kryscynski 2012).

 

Integrated marketing communication activities

The various “integrated marketing communication activities” in the present times have emerged as one of the most important kinds of promotional means which the various business organizations in the present times often take the help of, in a bid to increase the number of customers which they have (Hitt, Ireland and Hoskisson 2012). The company McDonald’s can also take the help of these “integrated marketing communication activities” in a bid to promote the products offered by them to the customers and also to attract a larger number of customers to their outlets (Hitt, Ireland and Hoskisson 2012). The business organization can organize some poetry reading sessions at their outlets where the top performers would be provided with free meal or some other thing (Hitt, Ireland and Hoskisson 2012). The various outlets related to the business organization can also take the help of several stages related to the social media for the process of the promotion of the goods as well as facilities offered by them to the customers (Vitasek, Manrodt and Kling 2017). Another significant activity which the various outlets related to the business organizations can take the help of is the organization of various kinds of community service activities or other kind of activities which are likely to make a positive contribution towards the society and the environment (Vitasek, Manrodt and Kling 2017). It is significant to note that in the present times the concept of ethical consumerism has gained a considerable amount of significance and therefore this particular activity is likely to attract many customers to the various outlets of the company (Jacobs, Chase and Lummus 2014).

Conclusion

To conclude, the concepts of marketing and service forms important aspect of the entire process of management of the various business organizations. Thus, the focus of the majority of the business organizations in the present times is on these two concepts. However, it is seen that with the “advent of globalization and the recent developments in the fields of technology as well as innovation has drastically modified the way the various business organizations transact their business”. It is a likeness of this that the various business administrations in the current times take the help of various kinds of advanced approaches not for the purposes of marketing but also for the purposes of serving as well. Furthermore, it is generally seen that there is a gap between the expectations of the customers from a particular product and the actual performance of the products or the services offered by them to the customers. Therefore, in the present times the concepts of “the use of technology, integrated marketing communication activities, customer loyalty, customer retention, customer satisfaction” and others and therefore the numerous business organizations often take the help of these entities to “bring about the overall growth as well as the development of their business organization”. It is significant to note that in addition to these the various business also use the various platforms provide by the electronic media for the purposes of promotion of the goods or the amenities offered by them to the customers.

 

References

Campbell, B.A., Coff, R. and Kryscynski, D., 2012. Rethinking sustained competitive advantage from human capital. Academy of Management Review, 37(3), pp.376-395.

Counihan, C. and Van Esterik, P. eds., 2012. Food and culture: A reader. Routledge.

Forbes.com. 2018. Forbes Welcome. [online] Available at: https://www.forbes.com/companies/mcdonalds/ [Accessed 5 Apr. 2018].

Gamble, J. and Thompson, A.A., 2014. Essentials of strategic management. Irwin Mcgraw-Hill.

Gao, Z., 2013. Revisiting the golden arches in China: The Chinese discourse on McDonald’s between 1978 and 2012. Journal of Macromarketing, 33(4), pp.288-305.

Gerhardt, S., Hazen, S. and Lewis, S., 2014. Small Business Marketing Strategy Based on McDonald's. ASBBS Proceedings, 21(1), p.271.

Hansson, L., Wrangmo, A. and Solberg Søilen, K., 2013. Optimal ways for companies to use Facebook as a marketing channel. Journal of Information, Communication and Ethics in Society, 11(2), pp.112-126.

Hearst, M.O., Harnack, L.J., Bauer, K.W., Earnest, A.A., French, S.A. and Oakes, J.M., 2013. Nutritional quality at eight US fast-food chains: 14-year trends. American journal of preventive medicine, 44(6), pp.589-594.

Hill, C.W., Jones, G.R. and Schilling, M.A., 2014. Strategic management: theory: an integrated approach. Cengage Learning.

Hitt, M.A., Ireland, R.D. and Hoskisson, R.E., 2012. Strategic management cases: competitiveness and globalization. Cengage Learning.

Jacobs, F.R., Chase, R.B. and Lummus, R.R., 2014. Operations and supply chain management (pp. 533-535). New York, NY: McGraw-Hill/Irwin.

Johnson, G., 2016. Exploring strategy: text and cases. Pearson Education.

Kanagal, N.B., 2015. Innovation and product innovation in marketing strategy. Journal of Management and marketing research, 18, pp.1-25.

Kotabe, M. and Helsen, K., 2014. Global marketing management.

Madsen, T.L. and Walker, G., 2015. Modern competitive strategy. McGraw Hill.

Mcdonalds.com. 2018. McDonald's: Burgers, Fries & More. Quality Ingredients.. [online] Available at: https://www.mcdonalds.com/us/en-us.html [Accessed 5 Apr. 2018].

Schlosser, E., 2012. Fast food nation: The dark side of the all-American meal. Houghton Mifflin Harcourt.

Seo, S. and Jang, S.S., 2013. The roles of brand equity and branding strategy: a study of restaurant food crises. International Journal of Hospitality Management, 34, pp.192-201.

Slack, N., 2015. Operations strategy. John Wiley & Sons, Ltd.

Tuten, T.L. and Solomon, M.R., 2017. Social media marketing. Sage.

Vitasek, K., Manrodt, K. and Kling, J., 2017. Vested: How P&G, McDonald's, and Microsoft are Redefining Winning in Business Relationships. Springer.

Yan, Y., 2013. Of hamburger and social space: Consuming McDonald’s in Beijing. Food and culture: A reader, pp.449-471.

Yeu, C.S., Leong, K.C., Tong, L.C., Hang, S., Tang, Y., Bashawir, A. and Subhan, M., 2012. A comparative study on international marketing mix in China and India: The case of McDonald's. Procedia-Social and Behavioral Sciences, 65, pp.1054-1059.

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