Marketing and Supply Chain Management of Mcdonalds

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Introduction

The company McDonald's Corporation is still the globe's largest fast food eatery
franchise, with over 34,000 local branches supplying over 69 million people daily in
119 territories. Independently run franchisees also own run more than 80% of
McDonald's restaurants internationally. Its income are derived from franchise
rentals, licenses, and charges, as well as customer acquisition in business
restaurants.

Critical analysis of McDonalds marketing and supply chain


management

In today's economic environment, organisations need inventory management not


only to gain a competitive advantage, but also to guarantee that their objectives are
delivered at the lowest possible cost. This will be a series of processes that will
translate input variables into commodities and services.
This study analyses McDonalds and the company's Program Management, Corporate
Strategy, procedure and product design, Supply Chain Management, inventory
control, Multi threading, and Quality Circles, which encompass all of the various
techniques and procedures used to increase the value of their products and services
provided to clients at an appropriate rate.
McDonald's is the world's largest fast-food retailer. The corporation has over 32,000
restaurants and serves over 60 million customers in over 100 countries.
The success of any project is determined by a variety of internally and externally
circumstances that are outside of the organisation's control. These are known as
environmental variables. These potential impacts are categorized into four groups
political, economic, social, and technological, and their evaluation is known as PEST
analysis. Corporations create numerous solutions to address the issues caused by
these elements.
The coronavirus pandemic had a seismic impact on McDonald's customer shopping
behavior. McDonalds marketing operations were under pressure, which had an
effect across its marketing and supply chain environments globally. The company's
focus over the last few months has been on adapting to changes while ensuring
continuous supply, adapting production capacity based on changing consumer
demands while dealing with logistics and lockdown restrictions through the
formation of a Coronavirus Taskforce.
The political, economic, social, and technological impacts were identified and
classified using a PEST analysis. The company encountered and recorded significant
impacts on direct suppliers and other supply chain factors, which were:

A. Politics: Instable political environments, such as Iraq and Pakistan, are major
challenges for the Corporation.
B. Economics: Instead of a socialist market economy, a market-driven economy or
profit - driven economy will be most accommodating and welcoming to this
Corporation, such as the United States, the European Union, Malaysia, India, the East
Asia, and other regions in the region of Asia-Pacific.
C. Socieaty: As a clashing society is constantly a contrary gaiety for business
expansion, a politically free and democratic society is preferred.
D. Technology: Technological advancement must be regarded as a natural remedy
for corporate development, and as such, McDonalds Corporation should incorporate
cutting-edge technologies into its technology development.

Critical analysis of McDonalds marketing mix

After analysing, identifying critical indicators, elements of the market, and


acknowledging consumer needs, every business must devise an offer or other type of
strategy to accelerate the company's growth. McDonald's employs the 5p's of
marketing mix, which are described as follows:
1) Products
2) Place
3) Price
4) Promotion
5) People

PRODUCT:

A product is an essential merchandise or a service that a company provides to its


customers. Certain facets of a product encompass packaging, guarantee,
appearance, and so on. This contains the product's and service's direct and indirect
components.
The important factor to consider when providing menu options to prospective
consumers is that those prospective consumers have a lot of options for how but
also where they put their money. As a result, McDonald's places a high priority on
creating a menu that customers desire. Market research determines precisely what
this entails. Customers' needs, however, evolve with time. What's really trendy and
appealing today may well be obsolete tomorrow. Marketing is constantly monitoring
user preferences. McDonald's has launched new products and discontinued out old
ones to confront these modifications, and will strive to do so throughout the future.
It is taken good care not to harm the sales of an established option by introducing a
brand-new option that will end up destroying its sales (trade off). McDonald's
understands that sales of its menu items will fluctuate at various stages of their life
cycle, as shown in the chart to the right. Obviously it depends on the phase of the
product, the type of promotion undertaken and the resources involved will differ.
A company will always have a collection of products, each in an unique phase of its
development.
McDonald's extensively investigated customer attitudes in the United Kingdom and
created menus that were completely different from its international offerings.
McDonald's constantly innovates its products in response to changing consumer
preferences and tastes. McDonald's brings a globally recognised brand, world-class
food quality, and outstanding buyer features of the product.

Place

Place, as a component of the marketing mix, refers to more than just a product's
specific address or distribution networks. It encompasses the oversight of a variety
of processes involved in delivering products to the end user. The location is primarily
made up of retail channels. It ensures that the product is available towards the
customer at the appropriate place, and quantity.

Every visit to McDonald's is affiliated with a unique amount of fun and happiness. It
provides a clean environment, a pleasant atmosphere, and excellent service.
McDonald's has recently begun offering internet access in outlets that also play
music. They still provide areas for children to have fun while their parents spend
quality time together.

PRICE

The price charged is heavily influenced by the customer's perceived value.


Customers form their own opinions about the value of a product. A product is more
than simply a physical item for the consumer; it also carries psychological effects.
The risk of using low cost as a marketing tool is that a customer may believe that a
low price indicates poor quality. When making a decision on a price, it is critical to be
fully conscious of the brand and its authenticity. Another potentially negative effect
of reduction in price is that competing companies match the lower prices, actually
results in no additional demand. This means that the profit margin has been whittled
down while sales have increased.

Pricing must also be taken into account the likely reaction of the competitor. This is
the primary important component of the marketing mix because it is the only
component that generates money. The other four are all business-related
expenditures. The price should indeed account for the suitable calculation process.
McDonald's came up with an imaginative catch phrase. To massively increase sales,
McDonald's employs value cost of service and repackaging initiatives such as "happy
meal," "combo meal," and "familymeal."

Promotions

Promotions encompass all forms of marketing interactions. Advertising is one of the


methods used. Advertising is done on TV, radio, in cinemas, online, and so on.
Advertising differs from other forms of marketing communication in that media
companies are compensated before the advertisement can take up space in the
medium. Other promotional techniques include promotional strategies, point of sale
displays, merchandising, and so on.
The numerous advertising channels used by McDonald's to communicate properly
the p r o d u c t I n f o r m a t I o n an are outlined above.
People:

McDonald's recognises the importance of both its staff members and its patrons. It
recognises that a satisfied employee can provide excellent service, resulting in a
satisfied customer.
McDonald's personnel are listed in the following order:
1.Customers
2.Lineemployees
3.Middle-level executives
4.Frontline supervisors

Effect of Covid-19 on McDonald’s 4Ps

Products that meet customers' needs right at home are yet another groundbreaking
feature that has emerged. Enhanced global responsibility, in correlation with the
innovative materials implemented in purchasing behaviour, may also represent a
new element that ought to be an integrated component of the company's overall
marketing strategy. G greater sustainability practices in the face of the COVID - 19
pandemic is also reflected for global brands and purchase behaviour in general.
Such liability factors that influence other purchasing decisions, which constitute a
significant portion of consumers' market behaviour.
In addition to examining external modifications and making adjustments the
business strategy to user behavior, McDonalds had to examine micro environmental
elements. In responding to the COVID - 19 pandemic, the company created a flexible
framework and management structure that allowed for comprehensive strategic
planning. A completely seperate team COVID - 19 was a component of the group
structure and was directly subordinate to the company's top executives. The primary
objective of the team was to deal with rapidly evolving information and emerging
recommendations. The team structure also comprised a business-focused
subcategory whose goal was to optimise restaurant internal procedures as a
component of a rapid operations and maintenance transition.

McDonald’s supply chain management strategies

McDonald uses its Supply chain management to deliver the right products and
services toward the appropriate location at the appropriate time, in the appropriate
quantity and quality, and at an inexpensive rate. McDonald managing the supply
chain procedure entails managing the interactions between suppliers and
consumers, attempting to control inventory levels and conducting market research,
and receiving feedback on what is actually occurring in any connection of the chain.
The study examine how McDonald’s improves their marketing strategies through
various scheme that have been implemented during COVID-19 pandemic and to
identify the rate the strategies can increase or enhance the customer’s satisfaction.

Boost Food and Safety Measures

McDonald's has increased their food occupational health and safety programme to
ensure the physical wellbeing their residents and customers. Food safety has
emerged as a main consideration ever since COVID-19 pandemic, with consumers
concerned more about virus's possibility transmitted through food. The company has
imposed strict food quality and safety and expectations of hygiene in its restaurants.
They, like any other restaurant, must follow safety and hygiene regulations. They
must shut their outlet if their meals does not adhere to a particular regulation. The
first thing they did has been to issue a strategy mandating all employees and
customers to wear face masks before accessing any McDonald's establishments, and
it also necessitates each individual to be consigned to body temperature inspections
to determine whether their body temperature is increasing sufficient to be exposed
to the virus. Regardless of whether we are fit and active, surveilling our body
temperature can aid in the early detection of disease. Furthermore, during the
COVID-19 pandemic, maintaining clean hands is particularly essential in order to
avert the virus from spreading further. As a result, McDonald's guarantees that all
employees and consumer hands are sanitised prior to any purchasing or selling
business process. Furthermore, the rider and crew temperature measurements are
printed on the bag of take-away foods.

Boost the number of food deliveries.

Regarding COVID-19, with the government prohibiting restaurant and beverage


organisations from having to accept casual dining consumers as identified cases
increase, the food supply distribution business, including McDonald's, is getting
prominence. In fact, they have long provided courier services for their food.
McDonald's can provide more customers than their restaurant bandwidth during
rush hour by initiating the delivery service, thereby boosting profits and revenues.
However, also with introduction of COVID-19, they more than doubled the amount
of delivery orders to satisfy the needs of customers, and this approach is not limited
to the prevailing concentrated areas. Instead, they try to boost the amount of
McDonald's delivery motorcycle riders and expand the amount of distribution
centres to meet those demands. This strategy is used to guarantee that delivery
orders from consumers arrive on schedule at their doorstep while maintaining food
quality. McDonald's collaboration with GrabFood and FoodPanda aided the rapid
expansion of dispatch riders.

Upgrading the Drive-Thru System

Providing a drive-thru system during the COVID-19 pandemic assisted McDonald's in


remaining easily accessible to customers by restricting the number of interacting
directly between both employees and customers. During the pandemic most
consumers now purchase their meals more conveniently through a drive-thru system
than in a restaurant. As a result, with an increasing number of people using drive-
thrus, employers and technicians must recognize the importance of time.
Groundbreaking drive-thru technology is being implemented to be one solution to
the challenges of quick-service restaurants. Effectual application of the drive-thru
screen results in faster process, further customer service, and greater satisfaction
among customers. McDonald's upped the size of employees working at drive-thru
checkpoints to accommodate the increasing number of drive-thru customers. As a
result, various employees can take so much requests from various clients at the
same time, resulting in increased efficiency for consumers and preventing them from
being forced to wait long for their purchases to be prepared making them happier if
they purchase McDonald's products. Furthermore, to provide customers with an
effectively visual experience while waiting in line to ordering food, some McDonald's
locations differed their open air electronic drive-thru menu signage by displaying the
menu based on the time, climate, and full service restaurant traffic, in addition to
what menu was in demand. However, this development is restricted to a few
locations, and it is believed McDonald's will broaden this attribute to more locations
in the future.

Including Technology

Customers nowadays can buy food out from convenience of their own homes using
smartphone mobile apps, as a result of the upsurge in IT services. It corresponds to
today's way of life, in which individuals are preoccupied and do not wish to stand in
lines or queuing up for lengthy periods of time to purchase beverages and foods.
Routine McDonald's clients may be acquainted well with McDelivery phone app, that
is available for download from the Apple App Store, Google Play Store, and the
webpage. With the advent of the COVID-19 pandemic, McDonald's has been
improving the features and functions of their app in order to offer more information
to their customers and to develop a powerful revolutionary digital economic growth
that offers a quick and simple experience. They have developed a new system called
Contactless and Cashless Scheme for their McDelivery system. McDelivery stopped
accepting cash payments on March 27, 2021, and therefore only approved online
payments via Automated teller machine or credit card. Furthermore, at the end of
November 2021, they signed a collaboration with TOUCH'n Go eWallet to enable
digital payments to be performed via mobile phone and also at the facilities itself to
make sure that customers feel much safer by not needing any personal
communication with random people during the COVID-19 pandemic. McDonald's
hopes to enhance customer experience by integrating and developing new
technologies, and it is believe they have managed to succeed.

Boosting Digital Marketing

Because of its complete and accurate marketing and promotional strategy,


McDonald's has become one of the worlds largest most well-known fast-food brand
names. This brand reaches a large number of people by incorporating electronic,
print, and tv ads. As a consequence of the widespread adoption of social distancing
initiatives, the COVID-19 pandemic triggered an unprecedented increase in television
viewing for all. McDonald's has maximised their online marketing through numerous
channels, such as social media platforms to remain close with clients. Customer
feedback is essential particularly throughout this global epidemic, to ensure that this
massive corporation knows how content their customers are by the recent
theoretical system implementation created by McDonald's to adhere with the
changes occurring. Customers' responses, demands, and criticism can be replied
instantaneously and comfortably via social media platforms such as Twitter,
Facebook, and Instagram, allowing customers to obtain instant help. Furthermore,
by addressing the needs of customers in general populace, McDonald's can prove
customer experience and accountability. Due to the pandemic, McDonald's opted to
release a YouTube campaign commercial titled 'Delivery, Now Contactless & 100%
Cashless.' To date, this campaign commercial has received more than two million
views.
Impact of Covid-19 0n McDonald’s Supply chain management

strategies

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