UNIT 7 STRATEGIC MARKETING
MANAGEMENT
Submitted by Hamza khan
Table of Contents
1.1 DISCUSS THE ROLE OF STRATEGIC MARKETING IN AN MCDONALD’S ..................................... 3
STRATEGIC MARKETING ..................................................................................................................... 3
PRODUCT STRATEGIES ....................................................................................................................... 3
PLACEMENT STRATEGIES .................................................................................................................... 3
PRICING STRATEGIES ......................................................................................................................... 3
PROMOTION STRATEGIES ................................................................................................................... 3
1.2 EXPLAIN THE PROCESSES INVOLVED IN STRATEGIC MARKETING. .......................................... 4
THE MARKETING MIX AND MARKET RESEARCH ......................................................................................... 4
MEETING THE NEEDS OF KEY AUDIENCES ................................................................................................ 4
MARKETING OBJECTIVES .................................................................................................................... 5
THE 4PS ........................................................................................................................................ 5
I. PRODUCT ................................................................................................................................................ 5
II. PRICE ..................................................................................................................................................... 5
III. PROMOTIONS ......................................................................................................................................... 5
IV. PLACE ................................................................................................................................................... 5
1.3 EVALUATE THE LINKS BETWEEN STRATEGIC MARKETING AND CORPORATE STRATEGY .......... 6
2.1 ASSESS THE VALUE OF MODELS USED IN STRATEGIC MARKETING PLANNING ........................... 7
2.2 DISCUSS THE LINKS BETWEEN STRATEGIC POSITIONING AND MARKETING TACTICS ................. 8
MCDONALD'S STRATEGIC POSITIONING ................................................................................................. 8
MCDONALD RESTAURANT MARKETING IN UK MARKET ............................................................................ 8
2.3 ANALYSE THE MERITS OF RELATIONSHIP MARKETING IN A GIVEN STRATEGIC MARKETING
STRATEGY .................................................................................................................................... 9
3.1 USE APPROPRIATE MARKETING TECHNIQUES TO ASCERTAIN GROWTH OPPORTUNITIES IN A MARKET .............. 10
PRODUCT LIFE CYCLE- ................................................................................................................. 10
STAGES OF PLC:- ......................................................................................................................... 10
STAGE OF GROWTH: .................................................................................................................................. 10
MATURITY STAGE: ..................................................................................................................................... 10
DECLINE: .................................................................................................................................................. 10
3.2 PLAN HOW TO USE MARKETING STRATEGY OPTIONS IN A MARKET ....................................... 11
3.3 CREATE APPROPRIATE STRATEGIC MARKETING OBJECTIVES FOR A MARKET .......................... 12
PROFITABILITY ............................................................................................................................... 12
QUALITY SERVICE ........................................................................................................................... 12
CUSTOMER SATISFACTION ................................................................................................................ 12
REPUTABLE IMAGE ......................................................................................................................... 12
COMMUNITY OUTREACH ................................................................................................................. 12
4.1REPORT ON THE IMPACT OF CHANGES IN THE EXTERNAL ENVIRONMENT ON A MARKETING
STRATEGY .................................................................................................................................. 13
ECONOMIC FACTORS ....................................................................................................................... 13
SOCIO-CULTURAL FACTORS ............................................................................................................... 13
TECHNOLOGICAL FACTORS ................................................................................................................ 13
LEGAL FACTORS ............................................................................................................................. 13
ENVIRONMENTAL FACTOR ................................................................................................................ 13
4.2 CONDUCT AN INTERNAL ANALYSIS TO IDENTIFY CURRENT STRENGTHS AND WEAKNESSES IN A
MARKETING STRATEGY .............................................................................................................. 14
STRENGTHS OF MCDONALD’S ........................................................................................................... 14
WEAKNESSES OF MCDONALD’S ......................................................................................................... 14
4.3 PROPOSE STRATEGIC MARKETING RESPONSES TO KEY EMERGING THEMES IN A MARKETING
STRATEGY. ................................................................................................................................. 14
DATA .......................................................................................................................................... 14
IDENTIFYING AND ACTIVATING INFLUENCERS......................................................................................... 15
SIGNATURE ITEMS .......................................................................................................................... 15
GAMIFICATION OF LOYALTY PROGRAMS .............................................................................................. 15
ONE TO ONE ACCESSIBILITY .............................................................................................................. 15
COUPON PERSONALIZATION ............................................................................................................. 15
REFERENCES: ............................................................................................................................. 16
1.1 Discuss the role of strategic marketing in an McDonald’s
Strategic Marketing
Marketing is defined as the actions or business of promoting and selling products or
services, including market research as well as advertising. Strategic Marketing is a more
structured approach, it has feature that include customer orientation, input, and
accessibility in the fight to the top of the market. (Rocks, Gilmore and Carson, 2005)
Product Strategies
The firm has modernized itself in the fast food industry and positioned themselves as the
market leader with low-priced, good quality food and provides an entertaining ambience for
the children also.
The secret of McDonald's success is because of its readiness to innovate. For example, its
breakfast menu which has salads, Chicken McNuggets, and the McLean Deluxe sandwich
illustrate how t the company tried to appeal to a wider range of consumers. (Inc.com, 2019)
In addition to this the local flavours that have been created in the US, McDonald's
international restaurants are also conforming to local as well as regional tastes too. For
example, 'Maharaja McBurger' is a vegetarian burger that was introduced in India while
McDonald's caters to offer 'Halal' food in Muslim countries such as Saudi Arabia, UAE.
Placement Strategies
McDonalds also focuses on store placement always looking for the best locations such as
city centres. The company has made convenience a focus, not only through how fast it
serves its customers, but also takes into account location of its outlets. (Inc.com, 2019)
As McDonald's has pretty well flooded the U.S. market, now the real opportunities for
growth lie abroad, where the competition is not so severe. (Rocks, Gilmore and Carson, 2005)
Pricing Strategies
McDonald's strategy also offers quality food quickly to its customers at a good value. The
pricing structure for McDonald's has always supported their vision statement. (LaPlaca,
2007)The company strives to distinguish itself from other fast food chains by offering a
variety of menu items that would appeal to a variety of people from those who just want
great hamburgers, also to those who just want a quick healthy meal. In addition to this
McDonald's differentiates itself by offering a dollar menu, a combination meal, and a free
toy with Happy Meals for kids. (Bhasin, 2019)
Promotion Strategies
McDonald's marketing executives have come up with the phrase, "Have you had your break
today?" They continued to develop their phrased with phrases like “You deserve a break
today," and now currently "I'm Lovin' It!" mantra. McDonald's knows the use of these catch
phrases and the use of the Golden Arches will be very successful in differentiating
themselves from other restaurants. McDonald's has also modernized their advertisements
in the form of pamphlets, website that tend to include nutritional information and
addressing diet restrictions. (Grubor, Đokić and Milićević, 2018)
1.2 Explain the processes involved in strategic marketing.
McDonald’s is regarded as of the universal best-known brands. Marketing involves
identifying customer needs as well as requirements and meeting these needs in a way that
is better way than its competitors. In this way a company creates loyal customers, the
starting point is to find out who are the actual potential customers. (Rocks, Gilmore and
Carson, 2005)
The marketing mix and market research
Having identified its key customers, a company has to ensure a marketing mix is created
that will appeal specifically to the target audience. The marketing mix is a term that is used
to describe the four main marketing tools which are the 4Ps.
-Product
-Price
-Promotion
-Place
Accurate research is important in creating the right marketing mix, buying decisions can also
be affected by factors wider rather than just the product itself. Psychological factors are
quite significant, e.g. the image of a particular product conveys or how the consumer feels
while buying it. Through marketing, McDonald’s has been to establish an important position
in the minds of customers which is known as branding. (Grubor, Đokić and Milićević, 2018)
Meeting the needs of key audiences
Market research identifies several different types of customers. For example:
Children's: They come to McDonalds because it offers toys and also has a play area for
them.
Parents with children: They visit McDonald’s to give a treat to their children.
Business Men's: They are able to have a bite in quick and in an affordable manner.
Teenager's: They enjoys the Saver Menu which if quite affordable and offers free internet
facility.
In order to create a marketing strategy, the needs of the key market needs be met, the
strengths and weaknesses of the organisation must be identified and analysed. (Inc.com,
2019)
Marketing Objectives
Objectives tend to communicate what marketers want to achieve, guide marketing actions
that are used to measure how well a plan is working. They can be related to market share,
sales, reaching the target audience or creating awareness in the market place. Results can
be analysed regularly to see whether the objectives have been met or not. The type of
feedback allows the company to change their plans and also allows flexibility. (Rocks,
Gilmore and Carson, 2005)
The 4Ps
i. Product
McDonald’s places considerable emphasis on developing its menu according to the
customers wants. A clear market research establishes exactly what this is. However, it
should be taken into account that customers’ requirements change over time. What is
fashionable today may be discarded tomorrow, marketing continuously monitors the
customers’ preferences.
ii. Price
The customer’s perception of value is of great importance which acts as a key determinant
of the price charged. A product also has psychological connotations for the customer, the
danger of using low price may indicate that the quality has been compromised.
iii. Promotions
One of the methods employed is advertising, that is usually played on TV, radio, in cinema,
online, also using poster sites and in the press for example in newspapers as well as
magazines. What distinguishes advertising from other different marketing communications
is that media owners are paid before the advertiser can take space in the medium, thus this
way the marketing is quite effective. Other promotional methods re sales promotions, point
of sale display, merchandising, direct mail, telemarketing and so on.
iv. Place
Place is not just about the physical location or distribution points for products but also
encompasses the management of a range of processes involved in bringing products to the
final consumer. (Rocks, Gilmore and Carson, 2005)
1.3 Evaluate the links between strategic marketing and corporate strategy
A strategic marketing action plan will include PESTLE Analyses, SWOT analysis that
contributes to the McDonald’s co-operative strategy. Setting strategic marketing objectives
means setting those measures of actions and methods which will help the company to
achieve its overall mission in a certain timeframe. While on the other hand corporate
strategies are regarded as most basic planning tools underlying all planning and strategic
activities. (Rocks, Gilmore and Carson, 2005)
Taking into account McDonald’s, their corporate strategy is as follows
Establishing more than 30,000 franchising stores in 119 countries, as well as serving
more than 47 million people each day, and generating $15 billion revenues annually.
McDonald’s also seeks to continuously enhance its brand imagine by different social
activities as well as sponsorship of special events and sports i.e. as a major sponsor
of the world cup since 1994 and the Champions League football in England from
1996 to 2000.
McDonald’s business structure influences its strategy, their business structure is
based upon a geographic structure.
Well the corporate strategy and marketing strategies are directly related to each other as
McDonald’s indoor marketing strategies are considered as their corporate strategies. Also,
Corporate strategies help them to analyse where and when they should open new branches.
Corporate strategies are more likely to give direction with objective of achieving long term
goals. (Milisavljevic, 2013) Recently their approaches have focused on the need for companies
to adjust to and expect to new changes in accordance to business environment. Their
corporate strategy involves organization the purpose and scope of the organizations
activities as well as the nature of their business. Through the usage of SWOT analysis they
link their corporate strategies with the marketing strategies and then tend to analyse them
and then execute them accordingly. (Bhasin, 2019)
2.1 Assess the value of models used in strategic marketing planning
The model above explains the process which involved in strategic planning of an
organization. This model illustrates a goal-based process which allows organization to focus
on its mission and vision in order to achieve goals. This model will help an organization to
move forward and it will be a great practice to build a team because it will offer the
opportunity to let everyone in the company know that their thoughts and opinions are
being considered. It will let everyone know that they belong to the organization.
This model will also help the organization the size of the organization in term of human
resources which of course influence the main plan of the organization. It also helps
organization to physical goals that they are seeking to reach. Moreover it will provide a
proper planned structure which makes sure there is consistency across distribution and
each separation covers all the key aspect of the development process. (LaPlaca, 2007)
It will also make directors to understand the situation clearly because it provides a large
number of data that is gained through situation analysis, also improves marketing skills
within the company once benchmarked. It also increases the value to company’s data base
and marketing investment; thus implementation of marketing planning model gives an
introduction to organization in implementing the strategic planning process within an
organization. (Mattsson, 2008) The management is also dependent on the high-quality
process consultancy and training through strategy formulation. Once implemented, this
model will help in proper planning of marketing to achieve the organization’s objective.
Thus, directors will also be able to have control and see if the marketing decisions have
been achieved or not. (Milisavljevic, 2013)
2.2 Discuss the links between strategic positioning and marketing tactics
McDonald's Strategic Positioning
McDonald’s is known as of the most flourishing companies on the planet, but it started out
as a very small business. Strategic Positioning can be defined as doing different activities
than your competitors or doing the same activities in your own way which is quite
unique. This way your company becomes a better performer in the industry.
McDonald’s has made itself to be the family friendly as well as low cost restaurant in the
fast food business. In recent years due to lost sales they have started to focus on their menu
with a healthier option. (LaPlaca, 2007)They are now focused on cutting delivery time and
cutting the cost of food. They have the most modern and technologically advanced
equipment in their restaurants which make the job easier and efficient. The computer
operated machinery allows the workers to keep cost low by only needing a few employees
to do the work of a large number of workers. They even have included playgrounds in many
of the restaurants as well as their marketing schemes feature family friendly ads and
slogans. Also, the term happy meal is said and begged for by children worldwide it is known
in every house hold. (Milisavljevic, 2013)
McDonald Restaurant Marketing in UK Market
McDonald’s opened its first UK restaurant in Woolwich, which was in south of London. One
of the most important reasons for McDonald’s success in UK was because of its brand
consistency. McDonald’s also introduced novel items in their menu including angus beef
burger as well as premium chicken sandwiches and did a lot campaigns to make more
healthy foods including salads. Similarly, British people really enjoy eating fish, they also
focused on introducing fish burgers in their fast food chains. Also, they focused more on
increasing their sales at their current restaurants instead of opening new ones which was a
smart idea McDonald's has redesigned many of their restaurants, kept their stores open till
late and increased menu options. (Mamula, 2012)
Thus, there is very close link between strategic positioning and strategic marketing of
McDonald’s because both focus on continues growth of an organization. (Mattsson, 2008)
As far as strategic positioning is concern, they are merely concerned with conducting
research to determine what the needs in order to promote are and position company where
they want to.In order to make strategic marketing plans for an organization they need to
consider whether they can produce exactly according to needs and demands of the
customers. As discussed above that marketing provides them with clear room to understand
the long term objective as well as the standing of an organization. That’s how they keep on
changing their strategies. McDonald’s strategic positioning provides different following
questions to them. (Milisavljevic, 2013)
What is their strength, weaknesses, opportunities and threats?
How customer takes their products?
Who are the target customers?
What is the image?
Competitive edge?
Communication to the right people?
Are we able to target our product to other markets properly or not?
These are the question they see while undergoing the positioning for them self, if we
commonly see the marketing aspect in those questions, we can clearly identify link between
these two terms because strategic marketing planning provides them the same kind of
information in order to make their marketing plan deliverable. Marketing plan gives them
the in signs to achieve the ultimate goals while positioning is based on marketing plan that
pinpoints out where they exactly stand. (LaPlaca, 2007)
So marketing is the key element for them in order make their position where they could
differentiate their product from their competitors, because they believe in providing the
best quality products to their customers that no one does in that capability. Hence the link
between these two is very common and are dependent on each other in order to achieve
ultimate goals. (Milisavljevic, 2013)
2.3 Analyse the merits of relationship marketing in a given strategic marketing strategy
McDonalds uses relationship marketing in a couple of ways, but they don't expand it largely.
McDonald's makes use of their happy meal toys as relationship marketing as these cheap
little toys tend to entertain little kids and encourage them to bring their parents to the
business. (Inc.com, 2019)
Another way is when you buy six hot drinks and you get the seventh one for free. In order to
create a trustful relationship with customers, organizations have to recognize customers,
this way they come up with such strategies to promote relationship marketing. Loyal
customers will recommend business to others; thus, this will be expanding the business for
McDonald’s; this way the objective of strategic marketing is achieved which is basically
maintain a brand name. (Mattsson, 2008) Faithful customers will be keen to try some of
their new products, because they trust them and value them. Similarly, trust worthy
consumers will advocate their business to others, thus this will be expanding their business.
Also, customers will be keen to pay more for their products if there is adjustment in pricing
because they are already loyal to company and trust their products. Loyal customers will tell
them about problems with products such as writing reviews in order to enable to better
menu. The final benefit will be boost to sales, market share as well as authority. (Grubor,
Đokić and Milićević, 2018)
Thus, keeping in all points mentioned above demonstrate a clear picture that how
relationship marketing will help them to contact with their current customers in order to
increase their new customers. As we know that it’s always about word of mouth, old
customer experience will let their known people know about the experience they had which
will be the key point to increase the overall image of the company. (Mamula, 2012)
3.1 Use appropriate marketing techniques to ascertain growth opportunities in a market
PRODUCT LIFE CYCLE-
The goal of Product life cycle is to improve product quality, reduce prototye costs, identify
potential sales opportunities, increase revenue contributions, and reduce environmental
impacts. To create successful new products the company needs to understand its
customers, markets and competitors.
STAGES OF PLC:-
Stage of Growth: This is the time when sales increase, but this period ends quickly as, which
attracts more competition into the market. This stage is the best time to introduce new
effective products in the market which will help to increase the growth opportunity.
Maturity Stage: This is the time when product has reached its peak; this means that the
product has achieved a considerable advantage over its competitors; however, it doesn’t
mean that "mission is accomplished". With many companies in the market, competition
becomes fierce, thus the company should keep up with their promotions in order to strive in
the market. A good name in the market can be achieved if promotions are done effectively,
this provide with an opportunity to expand the business. (LaPlaca, 2007)
Decline: Not all products have to go through decline stage, there are many products that
have not disappeared from the market since the day they were launch, because of their
constant innovativeness and extensive advertisements. In any case, decline stage comes
sales start decreasing; because the product must be perceived as "old". Thus, to counter the
changes, McDonald’s has continuously introduced new products and has phased out the old
ones which were at the decline stage, this helped them to stay in the market. When new
products are introduced, if the product gains popularity, the company gets an edge in the
market and can easily expand its operations. (Grubor, Đokić and Milićević, 2018)
As there is lot of competition it has become really difficult for the McDonalds to attract
more customers and to grow their business. In these markets, the saturation stage has
come for the McDonald that is to create new opportunities of growth and business, for
which they needs to plan a strategy to introduce new and different products with
competitive prices so that they can attract the customers . The other option for McDonald
will be to expand its business in other countries. (Bhasin, 2019)
3.2 Plan how to use marketing strategy options in a market
One of the effective marketing strategies is to make use of Boston Consulting Group (BCG)
growth-share matrix. When it is used effectively, it helps provides guidance for resource
allocation. And despite its weaknesses, it is probably one of the most widely used
management instrument used by marketing managers. (Inc.com, 2019)
In the past years McDonalds has grown a lot locally as well as globally and so has its
competition. Due to the presence of other competitors and substitutes in the market, the
growth opportunities have considerably fallen or have come to a saturation level in the
prevailing markets. Being one of the oldest as well as strong player McDonalds enjoys a high
market share, but to survive and compete in these markets McDonald has to accelerate its
market growth in order become a star again. (Milisavljevic, 2013). For this McDonald should
make use of diversification in its product and come up with a new strategy to design new
products which are unique from its competitors fulfilling the preferences and the health
needs of the customers as well as making these products available to them at competitive
prices for the success and profit of its business. (Mamula, 2012).For this what McDonald’s
could do is that they could design a new menu which caters the new trends in the market,
they should also focus upon different events and come up with discounted promotional
offers. They should target days such as Independence day, Women’s Day, Labour’s day and
so on this way their new products will also be introduced during such important days and
customers will also get discounts. (Grubor, Đokić and Milićević, 2018)
3.3 Create appropriate strategic marketing objectives for a market
Objectives tend to communicate what marketers want to achieve, guide marketing actions
and also are used to measure how well their plan is working. They can be related to market
share, sales, reaching the target audience and also will be creating awareness in the market
place. This type of feedback will allow the company to change plans and foster flexibility..
Profitability
McDonald's is one of the large corporations, therefore it must remain profitable to stay in
business. In order to remain profitable, McDonald's should offer quality products at a price
that meets should meet the consumers' demands. Ironically, McDonald's has remained
profitable throughout, even during the times of global recessions, because it was offering a
cheap alternative to sit-down meals. (Mattsson, 2008)
Quality Service
McDonald's always aims to offer quick, efficient products at a reasonable price; for example,
McDonald's has expanded food as well as beverages containing fruits, vegetables across the
menu. It has increased awareness of fruit, vegetable and dairy options available for children
on the menu as well. Their fast, convenient have always attracted the customers.
Customer Satisfaction
Customer loyalty is an important objective set by McDonald’s. Customer satisfaction takes
into account marketing, as McDonald's identifies the needs and requirements of its
consumers in a better way than as compare to its competitors. (Mattsson, 2008). Many
consumers tend to choose McDonald's because of its friendly as well as inviting
atmosphere. Restaurants are offering comfortable seating, televisions and play areas for
children. (Milisavljevic, 2013)
Reputable Image
McDonald's opened its first restaurant in 1954, they have established more than 30,000
franchising stores in 119 countries and served more than 47 million people each day and
generated about $15 billion revenues annually. McDonald's also seeks to continually
improve its image as a pathway to a career, rather than being just a provider of "minimum-
wage, dead-end, burger flipping jobs."
Community Outreach
McDonald's also strives to increase its financial and volunteer support to Ronald McDonald
House Charities through effective communication outreach. It is involved in many schools,
community, organizations as well as non-profit organizations that will benefit citizen in
communities all over the world. (Bhasin, 2019)
4.1Report on the impact of changes in the external environment on a marketing strategy
Economic factors
The organizations that are in the fast food industry aren't excused from any disputes or
problems. Definitely, they have the separate problems involving business factors prevailing
in the market. Branches and privileges of networks of the enterprises of fast service such as
McDonald’s has had a difficulty in cases where the economy of the corresponding states
was affected by inflation and changes in the exchange rates. (Milisavljevic, 2013)Clients hence
faced a survey stalemate through their separate budgets, whether they should spend more
in foreign networks of the enterprises of fast food or not. Hence, to these chains have to
then take into account the marketing strategy. In an estimation of operations of the
company, food chains import the biggest part of the raw materials to certain territory, this
increases the cost and then less cost becomes available for marketing of the products.
Socio-Cultural factors
McDonald’s has indulged in variety of consumers with certain types of persons. Also, it has
been noticed that the company has given the markets, such as the United Kingdom, a choice
regarding their lunch requirements with a healthier choice. McDonald’s has always
considerably valued set of meal which offers an unfailing degree of quality for the
corresponding market where it works. (Mamula, 2012)
Technological factors
McDonald’s makes a demand for their own products, a key tool used by company for
marketing is by means of TV advertisings. Also, there are some requirements that
McDonald’s is tending in order to interest the younger population more. Existence of game
stains as well as toys in the meal offered by the company shows this validity. Other
demonstration of their marketing strategy is obvious; they make use of advertising
operations that are employed to popular celebrities to promote their products. Alao has
brand endorsees for McDonald’s all over the world "loving’ it" campaign. (Bhasin, 2019)
Legal factors
Legal factors on McDonald’s apply to more close examination on their corporate social
responsibility, it has addressed to requirement of the company to generate its corporate
status in a positive way and the more socially responsible company. The reputation of
McDonald’s is obviously a huge question, however it has an excellent, motivated staff
whose rights are always taken into consideration. They make use of environment friendly
ways such as recyclable bags for delivery. (Bhasin, 2019)
Environmental factor
They take into account the factors that are of harm to the environment. Some of the civil
groups of Hong Kong have made actions to make McDonald’s privileges in Hong Kong by
making them aware of the rather profuse use of containers of expanded polystyrene.
4.2 Conduct an internal analysis to identify current strengths and weaknesses in a marketing
strategy
Strengths of McDonald’s
McDonald’s is regarded as a strong competitor for all rest restaurants because of its
size, worldwide extent and popularity.
McDonald’s is the market leader in both the domestic as well as international
markets.
The size of McDonald’s is huge, and it has an advantage of economies of scale, which
is essential for every business’s operations
Diversifying the business worldwide in various countries has led them to reduce or at
least substantiate the risk of business that has benefitted different countries’
economies.
McDonald’s also seeks benefit of a long-term economic growth as an international
company.
McDonald’s consists of a strong real estate portfolio.
It is located in areas that are highly known for visibility, traffic volume and ease of
access.
The brand of McDonald’s is easily predictable because of its good quality
Through aggressive market planning, MacDonald’s has always been able to
recapture its youth market.
Weaknesses of McDonald’s
Although McDonald’s has a huge name in the market along a strong strategy, and
feels comfortable in a market but it also faces some difficulties when it expands itself
in the foreign market such as Halal meat should be used in Muslim countries.
Looming market saturation, that lead to difficulties in advertising new products.
Fast growing and competitive market, they face income problems.
Income problems and huge competition has not increased the range of but tends to
diversify a range of cheap ones.
McDonald’s is accounted as a low innovative company as compare to other new
companies.
4.3 Propose strategic marketing responses to key emerging themes in a marketing strategy.
Data
At the moment, biggest restaurant marketing trend is integrating data in order to capture
in-depth analysis from social media, public relations, email marketing and advertising
teams. Most of the restaurants are still keeping data in separate silos, maintaining
marketing, forming public relations, influencing relations and business data in different
departments. Some also have begun to see silos break down and the emergence of more
fully integrated communications programs that will inform each other to reach a highly
defined target market with a customized messaging that will be providing a robust
understanding of marketing effectiveness. (Mamula, 2012)
Identifying and Activating Influencers
Number one-way consumers find and decide to dine is based on the positive word of mouth
or a recommendation from a close contact in their social circle. But when it comes to finding
those customers who have the most authority to give recommendations, there has been a
significant lack of data in order to understand who those individuals really are and which
tools to give them in order to encourage to pass such information. Specialized tools, as well
as techniques, word of mouth and marketing agencies can be engaged to identify those
individuals who are passionate about a particular kind of restaurant and seem to be
considered knowledgeable in their social circle. (Bhasin, 2019)
Signature Items
In the past few years there has been an increase in the trend of websites, blogs and in
traditional media which focuses on discussing specific dishes versus specific restaurants.
This makes a special emphasis on restaurant marketers in order to make sure signature
items are getting sampled by key their influencers in order to steal the share from their
competitors.
Gamification of Loyalty Programs
Restaurants also have made an attempt to differentiate their loyalty programs from their
competitors with the usage of social gaming-type rewards for performing certain actions,
which include referring friends, visiting multiple times or more. Location based services
along with their badges, titles and rewards have merged with restaurant loyalty programs to
play a major role in increasing repeated visits, this facilitates sharing and making rewards
easier to redeem for diners. (Mamula, 2012)
One to One Accessibility
Restaurants, unlike many other industries, excel at customer relations. Social media has
given operators another channel through which to make a meaningful connection with their
customers. Consumers not only want to hear from but also want to interact with the chefs
directly. Now you can expect to see personalized messages directly from the chef to best
customers telling them about the changes in menu, nightly specials as well as suggestions
based on past orders. In addition to this, chefs will manage to enhance this engagement by
relying on the marketing team in order first identify the restaurant’s best customers both on
as well offline. (Milisavljevic, 2013)
Coupon Personalization
In the last few years, a lot of restaurants have experimented with social coupon sites such as
Living Social, Groupon and others; however many reported neutral and often negative
results. Most restaurants will realize their own customer lists are gold mines for helping to
promote them, by focusing again on the top influencers and providing them with additional
opportunities that adds valued experiences as well as tools and rewards to facilitate the
ones that pass recommendations.
References:
Mattsson, J. (2008). True Marketing: A Value Based Philosophy for Strategic
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