Read the case study below and answer the questions that follow. McDonald's Marketing Mix (4Ps) Analysis McDonalds Corporations marketing mix (4Ps) involves approaches that meet business concerns in different markets around the world. The marketing mix defines the strategies and tactics that the fast-food restaurant company uses to reach target customers, in terms of products, place, promotion, and price (the 4Ps). In this business analysis case, McDonalds has corporate standards that its marketing mix applies globally. For example, the companys standards for productivity are implemented in the management of each company-owned and franchised location. McDonalds also applies some variations in its marketing mix to suit the conditions of local or regional markets. For instance, the food service companys promotion strategies and tactics focus on online media in countries where such media are most popular, and prioritize television in other markets. The specifics of the 4P variables define the strategies and tactics that McDonalds uses in executing its marketing plan and achieving related strategic goals to grow the multinational restaurant chain business. McDonalds Corporations effectiveness in implementing its marketing mix contributes to the leading performance of its brand and business in the international fast-food restaurant industry. Strategic management considers how the 4Ps relate with the approaches of competitors like Burger King, Wendys, Dunkin Donuts, and Subway, as well as other firms in the food and beverage industry, such as Starbucks Coffee Company. McDonalds marketing mix facilitates effective reach to target customers around the world. This condition supports the companys leading global industry position, as well as the strength of its brand, despite the strong force of competitive rivalry shown in the Porters Five Forces analysis of McDonalds Corporation. As a food service business, McDonalds 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. McDonalds product mix has the following main product lines: Hamburgers and sandwiches, Chicken and fish Salads, Snacks and sides, Beverages, Desserts and shakes, Breakfast/All-day breakfast McCaf. Among the 4Ps, products are a fundamental determinant of McDonalds brand and corporate image. The company is primarily known for its burgers. However, the business gradually expands its product mix. At present, customers can purchase other products like chicken and fish, desserts, and breakfast meals. McDonalds generic strategy and intensive growth strategies influence the product lines included in this element of the marketing mix. In diversifying its product lines, the fast-food chain satisfies market demand and improves its revenues. In terms of risk, a more diverse product mix reduces the companys dependence on just one or a few food service market segments. This element of McDonalds marketing mix indicates that the firm innovates new products to attract more customers and improve its business stability. Source: https://panmore.com/mcdonalds-marketing-mix-4ps-analysis Answer ALL the questions in this section.

QUESTION ONE

(28 Marks) Identify and discuss the 7P model and provide relevant examples to support your discussion.

QUESTION TWO (24 Marks)

Quick service and casual dining group Famous Brands says that higher fuel costs and inflationary pressure have led to major price hikes at South Africas favourite fast food chains and the trend is expected to continue. Reporting its interim results for the six months ended August 2022, the group noted that consumers are facing increased financial pressures due to escalating inflation and interest rates. During the review period, the South African consumer faced several macro-economic issues, which an inflationary environment has exacerbated, it said. Higher costs for fuel, food notably oils, fats, breads and cereals non-alcoholic beverages and electricity were the main drivers of inflation. Rising input costs have forced many in the restaurant sector to raise their menu prices substantially in the first half of 2022, with more increases anticipated for the remainder of the year. Source: BusinesTech (2022) You are required to provide an analysis on the macro-environmental factors and its impact on McDonalds.

QUESTION THREE (24 Marks)

As a product developer for McDonalds, the company wants to introduce a new product to the market. You are expected to examine how the new product development stages can guide the company.

QUESTION FOUR (24 Marks)

McDonalds is reviewing its marketing promotional tools to gain insight on which tool is more profitable to the company. You are required to differentiate the advantages and disadvantages of promotional tools such as the newspaper and internet.