202209050113

1. SYAMMER AIMAN BIN ZULAIDIN

202209050126
2. OLAEIVY ONG WOAN MEI
202209050158
3. SUZEYATI SAWANGAN
202209050046
3. ARDELIA KORO
202209050259
4. ALYSSA VIVNY MATSALEH

FOUNDATION IN BUSINESS
Program / Group

Subject Code FDNB1074

PRINCIPLES OF MARKETING
Subject Title

Assignment Topic/Title ASSIGNMENT 1 (GROUP) – WORTH 10%

MAZNIZA BINTI JOE @ ABDULLAH
Subject Lecturer Date Received

MAZNIZA BINTI JOE @ ABDULLAH

Subject Tutor

Due Date 09th OF JUNE 2023 / FRIDAY

2231
Word Count
OFFICE USE ONLY:
This assignment was received:
• Up to ONE (1) week late (10% of mark deduction).
• TWO (2) weeks late (20% of marks deduction).
• THREE (3) weeks late (50% of marks deduction).
• Over FOUR (4) weeks late (no marks will be awarded).
FORMATTING and REFERENCING
Your assignment must meet the formatting and referencing requirements noted by the lecturer. By signing below, you are confirming that
you have met those requirements.

DECLARATION
This assignment is my own original work. No part of this work has been copied from any other source or person except where due
acknowledgement is made, and no part of the work has been previously submitted for assessment at this or any other institution. For the
purposes of assessment and standards, I give the University permission to retain this assignment; provide a copy to other assessors; and
evaluate its academic integrity through the use of a plagiarism checking service.
Student’s Signature Date

9 June 2023
TABLE OF CONTENTS

Table of Contents.................................................................................................................1

1.0 Introduction....................................................................................................................2

2.0 The 4Ps of Marketing Mix ............................................................................................

2.1 Product.....................................................................................................................3

2.2 Price.........................................................................................................................4

2.3 Place........................................................................................................................5

2.4 Promotion................................................................................................................6

3.0 Things that you like and dislike about the local brand..................................................7-8

4.0 Recommendations..........................................................................................................9

5.0 Conclusion.....................................................................................................................10

6.0 References......................................................................................................................11

7.0 Appendixes....................................................................................................................12-15

1
1.0 INTRODUCTION

McDonalds is a fast food restaurant chain that serves hamburgers, chicken, french fries,
salad, drinks and other items. It is the world's largest restaurant company by revenue, and one
of the most successful business ventures of all time. McDonald's Corporation is an American
multinational fast food chain, the idea of McDonald's began with the Richard and Maurice
McDonalds brothers, they created McDonald’s in 1940. They are two entrepreneurs who
wanted to create a restaurant offering the best in dining and service and who revolutionised the
restaurant industry. The McDonald's brothers were very forward-thinking and created a
restaurant concept that was ahead of its time. They created a restaurant that became a huge
success with their innovative business and customer service in San Bernardino, California,
America. Their innovative and successful restaurants have become the most succesful brand of
all America's fast food scene.

McDonald's is the world's largest fast food restaurant chain, serving more than 69
million customers every day in more than 100 countries at more than 40,000 outlets in 2021,
their best-selling licensed item is French Fries, followed by Big Macs. McDonald's is famous
for for their delicous food and the price because it is affordable especially for middle class.
McDonald's is also the second largest private employer in the world with 1.7 million
employees. As of 2022, McDonald's has the sixth highest global brand rating.

2
2.1 PRODUCT

Marketing Mix 4Ps

As a food service product business, McDonald’s has a product mix composed mainly
of food and beverage products. This element of the marketing mix covers the organizational
outputs (goods and services) that the company provides to its target markets. McDonald’s
product mix has the following main product line such as hamburgers and sandwiches, chicken
and fish, salads, beverage, desserts and shakes, breakfast, McCafé and Ice cream.

McDonald’s brand and business reputation are largely determined by its products,
which constitute one of the 4ps. Burgers are the company’s most well-known product. The
company, on the other hand, steadily extends its products variety. Customers may now order
other items such as chicken and fish, desserts, and morning meals. The product line featured in
this section of the marketing mix are influenced by McDonald’s generic competitive strategy
and intense expansion initiatives.

The corporation meets market demand, increase revenues, and spreads risk in its
business by diversifying its product line. A broader product mix decreases the brand’s reliance
only on one or a few sectors of the company develops new goods to gain more customers and
strengthen its financial stability.

3
2.2 PRICE

These elements of the marketing mix determine the price point and price range of the
McDonald's company's food and beverage products. McDonald's prices their food to appeal to
the middle and higher class because the price is very inexpensive. For example, the price of
McDonald ice cream sundae is RM1.95 each. And for the meal, you got 5 fried chicken and 5
cup of ice lemon tea just for RM51.45 which is pretty affordable. In addition, McDonald's
follows a comprehensive pricing mechanism for each country to set prices for designated
markets. Without compromising the quality of their products, they follow the following
strategies while setting prices such as determining price targets, identifying demand, estimating
costs, checking expenses, choosing pricing methods and finalizing the final price. The goal is
to use pricing to maximize profit and sales.

McDonald's uses a combination of pricing strategies called Bundle pricing strategies.

McDonald's actively uses bundle pricing when offering combo meals and other food packages
that fall at a discounted price and are cheaper than ordering a burger and drink a la carte or
buying items individually. For example, customers can buy a Happy Meal or Extra Value Meal
to make the price more cheaper because of the discount you get. With these discounted prices,
customers are more likely to purchase more items to maximize value and are also another way
to encourage customers to spend more in the future.

Other than that, McDonald’s also uses Psychological pricing strategy methods in its
marketing mix that seems reasonable to customers to ensure that they buy more things from
this company. McDonald's offers discounts or packages on certain items and combinations of
different menu items as part of its promotional pricing strategy. Their pricing approach has also
been tweaked to appeal to the lower middle class. For example, instead of rounding to the
nearest dollar, McDonald’s sets the price at RM1.99, instead of rounding to RM2.00, it looks
cheaper. This approach encourages customers to buy products based on perceived affordability
and encourages them to buy more.

4
2.3 PLACE

McDonalds has many branches in this state. Our group visited a McDonalds store in
1Borneo. McDonald's has number of locations in city centre and commercial malls, making it
very accessible. While McDonalds is best known for its restaurants, the company also offers
additional services such as dessert shops, Mc Cafe, and even Mc Delivery in various areas.
Some McDonalds locations are also open 24 hours a day, seven days a week, to serve
customers.

McDonalds operates a hybrid structure of franchised and company-owned restaurants

and McDonalds also has more than 37,000 locations in more than 100 countries. Their fun
amenities set up for children, grant families to primarily visit the outlets. The place and
distribution marketing strategy in the McDonalds marketing mix involves placing the
restaurants in strategically high-traffic locations like highways, schools, universities, shopping
centres etc. so that more and more customers can visit. McDonalds employs trained staff to
serve their customers efficiently.

Next, catering to the digital pace, McDonald's offers customers the option of ordering
food online via their website. Additionally, the corporation partnered with various leading
online food delivery services. McDonalds can be used as a place for celebrations such as
birthdays, wedding anniversaries and so on. This is because McDonalds has a very spacious
and suitable place for customers. McDonalds started from an ordinary store until it grew to be
big and famous in every state. There are many places that do business with this McDonalds
and its sales are high compared to local brands.

5
2.4 PROMOTION

The strategies that the company helps to convey with customers are defined by this
component of the marketing mix. This variable refers to marketing communications with target
consumers among the 4ps. To entice customers to buy new items, the corporation, for example,
give fresh information. In its promotional mix, McDonald’s employs the following methods,
which are listed in order of importance to the company such as advertisement, sales
promotions, public relations and direct marketing.

Advertisement is the most notable among McDonald’s promotion tactics. The

corporation uses TV, radio, print media, and online media for its advertisements. On the other
hand, sales promotion is used to draw more customers to the company’s restaurant. For
example, McDonald’s offers discount coupons and freebies for certain products and products
bundles, as a way of attracting more consumers. In addition, the company’s public relations
activities promote the fast-food business to the target market through goodwill and brand
strengthening. For instance, the Ronald McDonald House Charities and the McDonald’s
Global Best of Green environmental program support communities while boosting the value
of the corporate clientele, local governments or community events and parties. In this element
of its marketing mix, McDonald’s Corporation emphasizes advertising as its main approach to
promote its products.

6
3.0 THINGS THAT YOU DISLIKE AND LIKE ABOUT THIS LOCAL BRAND

Things that we like about this local brand:

As you guys can see, all customer have their own opinion on the quality of the product
from McDonalds. They also can have their own different tastes and preferences towards Mc
donalds.The community also often visits McDonalds store as a place for lunch, dinner and also
a place to celebrate events.McDonalds store is also very clean, comfortable, satisfied because
the store space is very large and the facilities provided are also very good. Besides that,
McDonalds chicken is also very big and profitable from a local brand company. The server's
service to customers is also very good and friendly. There is also delicious and cheap ice cream
in front of the McDonalds store.Next, the ingredients used such as meat, fish, chicken,
vegetables, potatoes, rice, etc. are very high quality and clean. They also use good equipment
to cook and their way is very organized and clean.They also display their dishes diligently to
increase their sales and hope that many visitors will come.Apart from that, their sauces and
toppings are also sourced locally and are of very high quality. The desserts are also very tasty
and do not contain a lot of sugar to keep the customers healthy.

7
Things that we dislike about this local brand:

As you guys can see, in my opinion their dishes are good but the price is expensive and
the quantity of water is also small and there are no glass covers and straws provided for
drinks.In addition, the chicken is also very spicy and not suitable for customers who do not like
spicy.The fried chicken is also rich in fat, almost 60% of calories are obtained from fat. Lots
of salt. It provides protein, niacin and vitamin B6. The coating contains MSG and chemical
dyes.French fries provide protein and Vitamin C. Too much fat and salt. The golden color is
artificial. Additionally, fast food is notorious for its excessive fat content. For cheese that is
garnished on top of food, it means more fat. In fact, it is not real cheese but pieces of cheese
mixed with salt, sugar, fillers, lactic acid, preservatives, dyes and other additives. Excess fat
and salt can cause high blood pressure and other related diseases.In conclusionSociety needs
to eat less fast food to avoid various diseases and eat more nutritious food such as vegetables
and fruits. Parents also need to reduce taking their children to eat fast food so that they stay
healthy and teach them to eat more vegetables and fruits.

8
4.0 RECOMMENDATIONS

As a result of our group's research, we found that Macdonalds is all modern and
luxurious. So we recommend some improvements that Mcd can do. One of them, in terms of
local brands, to increase purchases and attract customers. In addition, so that local brands are
not swallowed by the tide of time. Here are some recommendations from our group regarding
local brands. The first is Macdonalds should renewed area or place that is soacious and
comfortable. Also, using ornaments by combining some local brands such as tables and chairs.
Secondly, the employees of Macdonalds can using traditional clothes of various races such as
Murut, Chinese, Dusun, Indian and so on to attract customer, since most of customer like their
cultur and local brand. Thirdly, Macdonalds should display in the media that anyone who
comes wearing traditional clothes, will get more discounts so that customers are more
enthusiastic. Fourthly, the most important to get attract by customer, Macdonalds should
prepare or add various types of local food in the meal according to the suitability and create
new recipes based on local brands. As we can see, Macdonalds already put 1 type of the local
food such as Nasi Lemak, but it will be greak if we add more types of local food in the meal.
So, the customers will enjoy it. Lastly, Macdonalds should improve their places for storing and
preparing food such as the trays, spoons, cup and cooking

untensils with local motifs, so customer will fascinated by the equipment based on local
brands. Therefore, we hope that our recommendations can help Macdonalds to improve the
quality of their products and grow further and use more local brands.Therefore, we hope that
our recommendations can help Macdonalds to improve the quality of their products and grow
further and use more local brands. Therefore, we hope that our recommendations can help
Macdonalds to improve the quality of their products and grow further and use more local
brands. Therefore, we hope that our recommendations can help Macdonalds to improve the
quality of their products and grow further and use more local brands.

9
5.0 CONCLUSIONS

McDonald's has positioned itself in a way that is considered by the majority to be their
best fast food chain. Their food is curated to appeal to people of all ages, preferences and tastes,
the employees are also nice and friendly, and I must say I am very satisfied with the products
and services of this company. In addition, McDonald's is also very affordable and low-cost for
the middle class and high class and the food tasted very delicious, I would definitely buy their
food again in the future. With their carefully designed business plan and marketing strategy
that follows a country's priorities, it's no wonder McDonald's has grown to hold the largest fast
food corporation in the world.

10
6.0 REFERENCES

References
grinde. (2022, may 27). the service concept of mcd. Retrieved from grinde:
https://www.grin.com/document/493809

Meyer, P. (2022, april 27). Panmore Institute. Retrieved from panmore:

https://panmore.com/mcdonalds-marketing-mix-4ps-analysis

unknown. (2023, march 17). mcdonald. Retrieved from McDonalds menu and price lists:
https://www.lokataste.com/mcdonalds-menu-price-malaysia/

unknown. (2023, april 5). McDonalds. Retrieved from mcdonalds introduction:

https://corporate.mcdonalds.com/corpmcd/our-company/who-we-are/our-history.html

unknown. (2023, february 2). mcdonalds marketing mix. Retrieved from edrawmind:
https://www.edrawmind.com/article/mcdonalds-marketing-mix-analysis.html

11
7.0 APPENDIX

Figure 1: McDonald restaurant

Figure 1: McDonald restaurant

12
Figure 3: McDonald price birthday promotion

Figure 4: McDonald receipt

13
 Figure 5: McDonald price menu

Figure 6: McDonald price birthday promotion

14