Marketing and Innovation

by

Name of the Student

Institution

Date

Task A

Introduction

Every organization tries to maintain high level competition in the market; however, very

few of these successfully create their position in the market. Different marketing concepts and

strategies are adopted by the companies to remain successful (Lovelock & Wirtz 2010). Among

other strategies, uniqueness of product or services contributes to the success of the company.

Moreover, constant update and external market scan is also necessary to remain informed about

the changing demands and needs of customers (Kotler 2002). One such organization is

McDonalds that has maintained its leadership in the fast food industry.

This paper discusses the marketing and innovation at McDonalds. The paper initially

presents a brief introduction of the company. Then the benefits and value derived by the

McDonald’s customers is discussed. Moreover, the paper also highlights the uniqueness of

McDonalds design elements – shape, colour, design, imagination, relevance and usefulness.

Finally, the paper discusses the McDonalds brand appeal in relation to competitors in

contemporary market.

McDonalds

The McDonald's is known as one of the largest chain of hamburger and fast food

restaurants internationally (Vieregge, Scanlon & Huss 2007). The brand serves more than 68

million customers on a daily basis in more than 119 countries with approximately 35,000

restaurant outlets. McDonalds Corporation has its head-quarter in the US. The company was

started as a barbecue restaurant in 1940 which was operated by Maurice and Richard. In the year

1948, the restaurant business was reorganized as a hamburger stand through the use of principles

of production line. In the year 1955, Ray Kroc joined McDonalds as a franchise agent (Bertoli

2013). Since then, consequently purchased the complete chain from Maurice and Richard an

expanded the business internationally. The primary menu of McDonald's include desserts,

milkshakes, soft drinks, breakfast items, french fries, chicken, cheese burgers and hamburgers

(Onkvisit and Shaw 2008). However, to address the changing tastes of consumers, McDonalds

has extended its menu and now also includes seasoned fries, fruit, smoothies, wraps and fish.

The benefits and value derived by the McDonald’s customers

Customers or clients or recipients are very important for any organization. Therefore, it is

necessary for every organization to consider the benefits and value derived by the customers

(Lovelock & Wirtz 2010). According to business dictionary, perceived value refers to the

customer’s opinion regarding a product’s value to her or him that may have nothing or little to do

with the price of the product or its ability to satisfy the requirements or needs of the customers.

Moreover, it also refers to the worth that a service or product has in the minds of the customers

and influences their buying decision (Peters 2011). The perceived value of a consumer for a

service or good also affects the level of price that she or he is ready to pay for it. In most cases,

the consumers do not consider the actual cost of production of the product or service they are

buying (Ramaswamy &Namakumari 2007). Alternatively, they have an internal satisfaction or

feeling that a certain product or service is worth to them. As a result, the companies often charge

higher prices for a product that have a higher perceived value or benefit to the customers

(Vignali 2001). McDonalds is also one of those brands that have higher value and benefits for

the customers. As McDonalds offers hamburgers and other fast food restaurant menu, therefore

the primary benefit or value to the customer is hunger satisfaction besides providing them with a

feeling of a worthy brand product (McDonald & Payne 2006).

Initially, McDonalds sold only hamburgers with no change in flavour. However, in

response to changing customer taste and rise in fast food chain restaurants, McDonalds have

changed its menu by adding more products to its menu (Knight 2010). However, the main menu

remained same. In addition, the company also took a giant step to increate value and benefits of

its products worldwide by offering customize menu. McDonalds now offers products according

to the region it serves (Snyder 2003). For example, McDonald’s main products are based on

chicken which is not preferred by Indians due to their religion. Therefore, to cater Indian market,

McDonalds offers the vegetable burgers and other items that are prepared using vegetables.

Similar approach is adopted in China, Thailand, and Europe etc (Vrontis 2006). This customized

change in menu was accepted and appreciated worldwide. Similarly, with the rise of diet

conscious customers globally, the trend of fast food was affected largely (Krishnamurthy &

Singh 2005). This is because the fast food products are being considered as unhealthy food. As

McDonalds was dealing with fast food items, therefore the company was required to change its

menu to remain in its global position (Lovelock & Wirtz 2010). McDonalds included healthy

food items to its menu which was also contributed to the company’s success. Moreover, the

company also added healthy menu to breakfast food in which Egg McMuffin is one of the most

successful item in the menu. Thus, in order to maintain its value and position in the minds of the

customers, McDonalds changed its food menu from time to time according to the changing

needs, tastes and demands of the customers (Onkvisit and Shaw 2008). This is the reason behind

the McDonalds strong global position and its success.

Besides food menu, McDonalds also provides value and benefits to its potential

customers through its restaurant services (McDonald & Payne 2006). The employees at

McDonalds are trained to provide best services “with a smile” to its customers. Besides this, the

restaurant also provides appropriate sitting arrangements for families, singles, couples or friends

where they can enjoy their meal with good ambiance (Bertoli 2013). Besides this, McDonalds

also provides its customers with Wi-Fi. Thus, it could be said that McDonalds offers value and

benefits to its customers through both i.e., its products and services.

The uniqueness of McDonalds design elements – shape, colour, design, imagination,

relevance and usefulness

As discussed previously, McDonalds is an innovative brand that has brought in the

unique characteristics from time to time to maintain its position as a leader in fast food industry

(Vrontis 2006). Moreover, McDonalds has unique elements incorporated in both product and

restaurant that has made the brand more than just a hamburger chain. With respect to shape, it

has not changed much (Vieregge, Scanlon & Huss 2007). Often the shape is changed for

promotion i.e., soccer game etc. However, the basic shape of the hamburger is same globally

whether the burger is single or double Mac. This standard shape is to ensure standardization of

product internationally (Krishnamurthy & Singh 2005). The following image shows different

shapes of McDonalds Burger.

Likewise, the colour and design of the hamburger is also same but often modified as

shown in the above image. However, the colour and ambiance of the restaurant is customized

according to the region, but the brand’s logo is standardized globally i.e., red, white and yellow

is found in all restaurant chains (Peters 2011). Initially, the design of the restaurant was same,

but in the last few years the designs of the restaurant has changed a lot and is now in bright

colours with an ambiance that depicts joy and happiness that is what McDonalds provide its

customer through its products and services (Snyder 2003). This change in restaurant design was

made due to large emphasis on the outlook and ambiance of the restaurant by the customers.

Moreover, the restaurants also have latest technological devices to serve their customers (Vignali

2001). For instance, facility of WIFI is provided at almost all McDonald’s restaurants. The

following are few images of restaurant designs of McDonalds.

With respect to imagination and relevance McDonalds incorporates both the elements in

their corporate strategy. New food menu items are introduced from time to time that are unique

in their own ways (Knight 2010). Similarly, new trends in fast food restaurant are also

introduced by McDonalds. For example their concept of breakfast menu is unique and less

copied by its competitors (Krishnamurthy & Singh 2005). Similarly, McDonalds introduction of

coffee was unique that was not offered by any other hamburger restaurant. Likewise wide range

of healthy and low calorie food items are also offered by McDonalds that has made McDonalds

stand alone in the healthy and competitive menu (Onkvisit and Shaw 2008). Finally, with respect

to usefulness, the brand satisfies basic needs of its customers i.e., hunger and thirst in all ways.

McDonalds provides different beverages ranging from cold drinks to coffee and shakes.

Likewise, for hunger satisfaction the brand offers wide range of food items that include both fast

food and healthy food items.

McDonalds brand appeal in relation to competitors in contemporary market

A product or services can be endorsed in the market through different ways such as

uniqueness, quality or price etc (McDonald & Payne 2006). Apart from these, the brand is also

compared with its competitors on the basis of size, shape, reputation and several other product

features. These different features help to distinguish a product from the eyes of customers and

make a brand worthy (Vrontis 2006). With respect to McDonalds, the product’s brand name is

now recognized globally. One of the major factors in this global recognition is the strategic

expansion of McDonalds in different markets (Ramaswamy &Namakumari 2007). Besides

McDonalds, several other fast food restaurants have also expanded internationally, but none of

them has been so far able to overtake the position of McDonalds in international market (Kotler

2002). Fioroni and Titterton (2008) say that the successful brand is the one which has an ability

to face fierce competition in the market. This competition is followed by many different factors

on the basis of which customer selects a brand as the best brand (Vieregge, Scanlon & Huss

2007). Moreover, the competition in the market is also created by the continued market

expansions and operations, timely introduction of new products and quickly responding to the

changing needs and demands of the customers. According to Christodoulides (2012), it is

possible to create value of the brand in the market through regular proceedings in the competitive

market. Because of the continuous operations in the market, the brand can increase customer

retention and can create strong customer equity and base to enhance the value of the brand.

Customer retention with a loyal brand increases the competition in the market.

McDonalds is known as a strong brand and as a leader in fast food industry with a good financial

position, international presence, and quality and perceive image (Bertoli 2013). These factors

have made McDonalds as more appealing brand in the international market among middle and

upper class consumers. Due to the increased success of the brand i.e., McDonalds, it is easy for

any competitor to copy any innovative services offered by the brand (Snyder 2003). Thus, for the

protection of the McDonalds restaurant chain is operated by either by an affiliate, a franchisee or

by the company itself (Peters 2011). This helps to standardize the quality of the company besides

maintaining the uniqueness of the services and product of McDonalds. Despite of this, the trends

introduced by the McDonalds of breakfast menu, offering coffees, healthy food menu etc are

intimated by other direct competitors of McDonalds that now sells similar products (Knight

2010). Thus, this act of intimation shows that the brand i.e., McDonalds has an exceptional

appeal in the current market that shapes up the competition in the market (Vignali 2001). If taken

this competition positively, it has enabled McDonalds to constantly engage in introducing

innovative products and services to satisfy customer needs and to maintain its leadership

position.

Conclusion

In a nutshell, McDonalds has its unique way of creating benefits and value to its loyal

and potential customers where one of the most contributing factor is the timely response to the

changing customer needs and tastes i.e., healthy food, customized food, comfortable ambiance

etc. Thus, in order to preserve the uniqueness, McDonalds holds the right to preserve its chains

by sharing it with an affiliate, a franchisee or holding the rights by the company itself.

Task B

In the module of marketing design and the innovation, i have studied regarding the

behavioural patterns and marketing methods for the successful businesses. The module

marketing design and innovation is important for the clear classification of the necessity of the

innovation that is required in the business. Moreover, the module marketing design and

innovation also sheds light on the relevant changes that takes place in the contemporary business

environment and how products and services are modified by the brands accordingly. The module

marketing design and innovation was engaged with many practical lessons which had defined the

practical implementation of the innovation theories and market design in the practical business

environment. This has led the students including me to critically find out the relationship

between the practical proceedings and theoretical underpinnings. Moreover, the theory and

practice was also compared. The main objective of the module marketing design and innovation

was to create and develop up a successive personality in the profession of marketing through

perfectly positioning the actual meaning of the concepts laid out in the module.

The strength of the module marketing design and innovation was increased by the

theoretical understanding that was taught by the professor and the practical lessons that were

carried out during the course of module. The information regarding the actual practical

experiences provided by different sources has encouraged the module students to obtain more

confidence and information about the field of marketing. Moreover, the practical appliance of

theories learnt were utilised by the critical thinking methods of the module followers. Besides

this, the practical assignments and theoretical lessons assigned enhanced the ability to take

decisions critically and analyze the situation practically. This has led to utilise one’s own

capabilities in the direction of the origin of the definitions of the concepts learnt in the module

marketing design and innovation.

As the field of marketing changes frequently with more updated information on the

subject, information is required to handle the marketing functions in real business situation. This

is very challenging as it directly relates with the changing preferences of the consumers or

customers that has increased the importance of the module. Moreover, a marketer must have the

ability to accurately investigate real market situations and the minds of the customer. In addition,

the marketer must also have the ability to predict the future accurately particularly in the middle

of the satisfaction of consumer needs before time through the innovation. Thus, it is important to

study marketing design and innovation as without proper knowledge of theories, these abilities

could not be developed through conventional thinking patterns. Apart from this, a market must

also have knowledge of philosophy i.e., he or she must be able to think out of the box. This is

every important for marketer as each time new ideas that lead to innovation and creativity is

required. Thus, these different aspects are included in the module marketing design and

innovation that has allowed the module followers to do different practices throughout the module

lessons. Moreover, these practices were done under the supervision of the professions that have

provided good guidance and practical information of real world.

Throughout the module i.e., practical lesions and the theoretical understandings, the

conventional thinking patterns regarding the production of goods was widely discussed and

challenged i.e., through the introduction of different factors that must be taken into account in the

real world while marketing design and making innovative decisions while product positional that

requires thinking beyond the scope. Moreover, the module marketing design and innovation also

defines the different features of innovation, opportunities, space to come up with new ideas,

thinking and creativity in all the assignments given in the module. The practice of these practical

lessons gave student with personal experiences where they can handle different business

scenarios in future.

Besides the considerations of specific marketing, the module marketing design and

innovation has defined all the related areas on the subject. This has provided the students with an

opportunity to personally straight with the scenario of real world via experiences and theoretical

underpinnings learnt from this module. in addition, the most significant part of this module is

how needs of customers are identified at the initial stage of the innovative and change

development besides further evaluation of the cut-throat competition on the decisions made by

module followers. Regarding customer exploration, many different theories are remained to be

self practiced along with apparent theoretical background. The customer exploration is the main

section of the module that enables a student to obtain wide knowledge on the innovative

strategies and market design.

Besides the evaluation of the competitive position regarding the business is another most

interested and information area that helps a module follower to understand the implementation of

the innovative changes and the market design techniques with respect to different business

cultures. Moreover, the knowledge on the subject promotes the ability of the student to find out

the company’s cultural impact through decision making focussed on bringing change. Because of

these different options, the real knowledge on different business scenarios could be strengthened.

This has also allowed module followers to personally experience the main essence of the module

market design and innovation. The theoretical support that this module has provided has given

vast information and knowledge that has increased the understanding of how things in pratical

business world happens and how these are dealt by the business organizations in most effective

manner. The practical sessions help throughout the module has further enhanced the

understanding of the marketing design and innovation.

In a nutshell, it could be rightly said that the module marketing design and innovation has

provided with valuable knowledge. The module is essential for students as it provides a wide

array of practical knowledge and real world situations. Moreover, the course will enable student

to address market situation rightly and predict future happenings in the market. Thus, it is

important for students to understand this module with interest as it will also help in career

progression.

References

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Fioroni, M & Titterton, 2008, Brand Storming, Palgrave Macmillan.

Knight, G 2010, Born Global, Wiley International Encyclopedia of Marketing.

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Krishnamurthy, S & Singh, N 2005, ‘The international e-marketing framework (IEMF):

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