Marketing Management Ansoff Matrix

Question: Discuss about the Marketing Managementfor Ansoff Matrix. Answer: Introduction: Marketing strategies are rapidly changing now days. Nonprofit organization and commercial companies are also using marketing strategies now days for enhancing their market. Many theories are involved with marketing management like SWOT, BCG, product life cycle, GE matrix, Ansoff matrix, marketing mix etc. Marketing mix is one of the key elements of marketing management (Jain Haley, 2009). It is required to show that how all the elements of marketing mix affect the organizations development of tactics and marketing strategies. The organization of my choice is (Cravens Piercy, 2006). Marketing Mix Definition: Marketing mix is quite essential for every organization to understand the policies and internal and external environment. Basically, it is described as a set of tactics or actions a company uses for its brand promotion or product promotion in the market (Varadarajan, 2010). It is a business tool using by almost all the organizations existing in the market. It is often associated with 8 Ps of marketing mix- Product, price, promotion, distribution, partnership, people, process and physical evidence. Company Profile: McDonald is a firm of food and beverage industry that has an appeal globally. It is a food chain and has many outlets worldwide. It is enjoying the success since the time it has been entered into the market. McDonald entered into the Australian fast food industry in 1971 and from that time the organization is rapidly growing and currently it is the largest food chain in the Australia. The major competitor of the organization is heart tic and burger king. Still, the company is on the top with 50% market share. Organization is in maturity stage now and the pricing strategy used by organization is penetration. Marketing Mix of McDonald: Product: Product is a thing which is supplied by the company to its customers. Product can be tangible as well as intangible like car or a haircut. The main focus of decision is on functionality, branding and quality of product. Companies also focus on the other elements like packaging, support, safety, warranty, styling and other complementary services or accessories (Peter Donnelly, 2011). McDonald is providing food and beverage products mainly. The main product of the company is Burger. The packaging style, branding, taste etc of burger makes it competitive in the market. Many varieties of burger has been provided by the McDonald like: Classic Angus Aussie BBQ Angus Big Mac Cheeseburger Hamburger Southwest BLT Burger Spicy Jalapeno Grilled chicken burger Filet o fish Clubhouse Chicken It is mostly known for burgers. It is innovating its product continuously to attract more customers (McDonald, 2016). Company is taking care of Product life cycle of its burger and thats why it is introducing some innovation in its existing market to retain the customers and provide them the best quality product. So it is recommended to the company to make continuous improvement in the product to grab and attract more market share and customers. Price: A price of a product is the amount a company charge against its product or service. Determining the prices is quite complicated. As the price is just not set by the manufacturer instead it encompasses a set of decisions and research on price adjustment and price setting. Company can use different strategy for setting the price like skimming, penetration etc (Beracha Seiler, 2014). McDonald is using psychological pricing and price bundling strategy both for the burger. The pricing strategy of McDonalds burger is involving many prices bundling along with psychological pricing. In the strategy of price bundling, company offers its more tan 1productss in a discounted price. In the strategy of psychological pricing, McDonalds charges a price of burger which seems more affordable like $ .99. This pricing strategy of McDonald encourages its customer to buy more products (McDonald, 2016). So it is recommended to the company to implement competitive pricing strategy so that company can enhance the profitability of the product. Distribution: Distribution channels help the company to analyze that from where the customer can easily buy their product. The main decision of this element is to analyze that which distribution channel is good to distribute the products like direct selling, online store, retail store, and order through TV or phone. Another part of this strategy is to identify that how can the whole market be covered, how will the stock be managed in distribution centers, transportation and warehouses. The restaurants of are in the most well known places from where all the burgers are supplied or distributed. The main distribution places of this organization are as follows: Restaurant s mobile app Postmates app and websites Kiosks. Mostly all the restaurant of this food chain are established at the place from where company can generate more revenue. These restaurants also manage a kiosk to sell burgers in some events. Customers can also place their order through the mobile app or postmates websites. Moreover, the app of the organization offers special deals to its users. McDonald is using penetration strategy to attract the customer more (McDonald, 2016). It is also recommended to the company to focus on lower segment too. Promotion: This is the main element of marketing mix which is mostly used by all the companies. Promotion is known as different marketing communication styles including public relations, publicity, sales promotions and advertising (Payne, Galantine Christopher, 2005). This includes the overall promotion strategy like technology, marketing, consumer pull etc. company determine the best promotional strategy according to their budget and location. McDonald is using many kind of promotional strategy to attract more customers for its key product i.e. burger. Following tactics are using by McDonald to promote its business: Sales promotions Direct selling Public relations Advertising Advertisements of this organization are most notable. Company uses radio, TV, online media, print media etc for its advertisement and promotes the burger. It is using sales promotion tactic for drawing more customer to its doorstep. The public relation strategy of this organization also helps in promoting the business to the target market. Occasionally, this company uses direct selling for local government, community events, corporate or parties. In this element, the main approach for the organization to promote its business is advertising (McDonald, 2016). Company is using the best of promotional strategy. Company just need to focus on its competitive promotional strategy too. Partnership: This element of marketing mix describes that partners are important for the business and for expanding the business like a company can tie up with another company situated at different place to expand the market and grab the opportunities. Basically, government agencies work as partners. It maintains the good relationship and partnership with its supplier, stakeholders and government. Company recently enjoyed 10 years of the partnership with its partners. This helps the company to expand its business and grab the more market with competitive advantages and sustainability development (McDonald, 2016). Company must also deal with some small and famous companies to grab the other countrys market too. People: People play a vital role in marketing mix. People include all the back office, front line, customer service staff and other people of company who have a link or contact with clients. The main part of this element is to train the staff well so that they can provide the best services to customers (Lovelock Wirtz, 2010). This helps an organization to develop the strong customer oriented culture. McDonald is having a large number of people as employees, management staff, consumers etc. It is using the best tactics and strategies to retain them, make the loyal etc. The culture of McDonald is impressive as employee set over there very easily and adopts the culture rapidly. Customer services of McDonald are quite competitive as employees are provided training for it (McDonald, 2016). Company is suggested to use the best of trainings for its employees as the goodwill of the company totally depends upon them. Process: It is the method through which services are provided to customers. It is particularly important for the service industry. This is used by the company to provide a comparable service in the industry. So that company can ensure its client about the quality of its services (Kumar Phrommathed, 2005). Manufacturing process and channels of distribution of McDonald is impressive as it focuses on hygiene while manufacturing its product and the warehouses and transport of McDonald is built according to its product. So the product can reach to its customer without any harm. Fresh product availability is a main focus of McDonald (McDonald, 2016). Process of the company is quite fair. It is just needed to make it more transparent. Physical Evidence: It is another essential element of marketing mix and service industry. Services can not have any tangible outcome. Once they delivered, client cannot change them like product. So a service providing company needs to provide some physical evidence to clients to make sure them about the quality of service (Wilson, Zeithaml, Bitner Gremler, 2012). For the physical evidence of McDonald its logo is enough. People can perceive about it by its logo. Through the logo they can easily identify that this product is belonging to the McDonald and the taste of its products are just amazing that not any other company in food and beverage industry is providing the same taste (McDonald, 2016). Company needed to carry this strategy for long period. Evaluation: Marketing strategies: For expanding the market and increase the customer level, McDonald is implementing many strategies. Some of them are as follows: On Every hand Everywhere: It is the market leader in fast food industry at Australia. Their sales person plays a key role in success. They conduct many surveys on regular basis to understand the requirement and choice of consumer. McDonald is providing its burger not only in big malls but in small area also, so that every consumer can easily buy and have the burgers of McDonald (Elliot Larry, 2011). Growing up with Emerging Markets: A companys revenue grows up with emerging market. Company modifies its burger continuously to fulfill the requirement of customers of all the segments. This strategy helps the McDonald to achieve the growth of 20% from last 3 years (Kotler Keller, 2009). Growing with the Market: Attract and grab the consumer worldwide is the main aim of McDonald. For this, it has created a great range of burger at a reasonable and affordable price. McDonald also introduced a range of Vegan and non vegan burger. (Laforet Saunders, 2005). Affordable Luxury: McDonald launched various burger for increase its presence in market. This strategy is adopted by McDonald for grabbing the middle level class also as company is providing the burger in affordable price. Hence, people can afford it and it helps the company to increase its turnover (Laforet Saunders, 2005). Competition: The main competitor of McDonald in fast food industry is heart tic and burger king. In the case competitor of McDonalds burger, there is mainly burger kings burger. The market share of this company is still expanding. It has launched many innovative product lines of beverage and meal to enhance its market and capture more people (Chaffey, Ellis-Chadwick, Mayer Johnston, 2009). Company has launched various burgers to attract more customers and provide new taste to existing loyal customers. It is continuously launching new products to beat the strategy of its existing competitors and grab the market more. The main competitive advantage f this company is its international existence as people from worldwide like the taste of its burger. Contemporary Issues: McDonald is facing many contemporary issues in reference with society, technology, media, environment etc. These all factors are affecting the McDonald marketing strategy too as it negatively impact on the customer and thus customer dont buy the products of McDonald (McDonald Wilson, 2011). Society is affecting the McDonald and its strategy badly as many families, religions, ethnicity dont allow the person to buy the food from outside and have junk foods. The physical status, economical status, education, children, life partner etc of a person also impacts on the McDonald. McDonald is using old technologies for marketing its product. McDonald is still using the old school tactics for it which is not as much powerful as much it would be earlier. The environment plays a crucial role as the environment and the surrounding of a person decides that he will buy the products from McDonald outlet or not. Media too affect the marketing of McDonald as sometimes the bad news and bad publicity damages the image of store worldwide. Thus all of these factors are affecting and making the issues for McDonald and because of it, the company has to face many problems. Company must plan and implement its strategy while keeping all these factors in the mind. Recommendations: It is recommended to the McDonald that company must work more on its pricing strategy. So that, company can make a control on its prices and can step into the market with competitive price and can enhance the profitability ratio also (Goi, 2009). It is also recommended to the company to focus on its marketing mix. Price of its burger must be competitive so that it can easily grab the market. It must launch new products in the market with new specification as well as modify the existing products according to the customer demand and market requirement (Kazemi Esmaeili, 2010). Company must use the best strategy for its promotions and chose the promotion technique according to the geographical location, so that it could aware people about its new products as well as existing products (Laforet Saunders, 2007). Distribution technique of McDonald is quite competitive still there are some lose points which should be modified by the company to enhance the channels. The company must also focus on the external factors like environment, social and psychological factors, media etc as all of these impacts negatively on the organization sometimes (Madhavaram, Badrinarayanan McDonald, 2005). Company must plan its strategy while keeping all these factors in mind so that company needs not to face any issue in near future. It has great partners which help the organization in expanding as well as grabbing the market. Company need to enhance the relationship more with partners to retain them. People at McDonald must be trained well according to their department and job profile, so they can work with full of their efficiency and effectively (Patwardhan, Flora Gupta, 2010). Process of McDonald from buying the raw material to sell the products to the end consumer must be transparent, so that consumer can build their trust in the organization (McDonald Oates, 2006). Physical evidence is mostly related with service industry; still McDonald must aware and ensure its customer that they are providing the same product, they have said. Marketing strategy of McDonald is quite competitive as it analyzes the market and competitors before planning its strategy and make strategy according to that. But the company must make a strategy for sustainability also as the competitor of the company are focusing more on sustainability and thus they are attracting more customer towards them as people became more aware about the environment and society (Sharma Narwal, 2006). Conclusion: After doing the case study on McDonalds burger and going through many books, articles etc it can be concluded that McDonalds burger is doing very well in the market. It has established its name very well in the fast food industry worldwide and it is having a great amount of market share of its different products lines specially the burger. It must focus on new strategy for enhancing its market more and must focus on the sustainability for attracting the more customers. It has to invest in innovation in technology and factor productivity instead of spending a great amount on advertising and marketing its products like burger is already a market leader. It must also make some strategies to pull and attract the old consumer towards it. References: Beracha, E., Seiler, M. J. (2014). The effect of listing price strategy on transaction selling prices.The Journal of Real Estate Finance and Economics,49(2), 237-255. Cravens, D. W., Piercy, N. (2006).Strategic marketing(Vol. 7). 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