Costa & McDonalds Marketing Plans

Authors Avatar by kierantannersfamilycouk (student)

For this assignment I have been asked to do a report on the marketing techniques used by McDonalds & Costa in order to win a contract.

The companies I chose for this marketing report is McDonalds and Costa. I will first begin with is McDonalds.

About McDonalds

McDonald’s is the world’s largest chain of hamburger fast food restaurants. It serves over 68 million customers daily in 119 countries. It was founded in 1940 and now has over 35,000 locations. The revenue generated by McDonald’s is that of $28.1057 billion as of 2013. It also employs an impressive 440,000 people.

The types of products McDonalds produce are hamburgers, cheeseburger, chicken burgers and French fries. The Breakfast menu includes items, such as, soft drinks, milkshakes and desserts. It has also recently decided to introduce a new range of café items. In the café range it now offers ‘premium’ coffee and tea as well as light snacks i.e. doughnuts, muffins.

About Costa

Costa is a British multinational coffeehouse. It is owned by Whitbread and is the second largest coffeehouse chain in the world. Starbucks is the largest but Costa is the largest in the UK. It was founded in 1971 it then got acquired by Whitbread in 1995. It now has 2,861 stores across 30 countries.

The types of products Costa produces are coffee, tea and iced drinks. Costa also serves a range of Panini’s, toasties, sandwiches, wraps, pastries and muffins. Costa serves a Breakfast menu which includes porridge and toast. Until now it’s only competition has been Starbucks.

Ansoff’s Matrix

Ansoff matrix

This shows how and when marketing companies should use the techniques as show above. So if you have an existing market and product all your need to do is penetrate the market were as if you have the market but not a product you will need to invest in product development.

Marketing strategies used by McDonalds

McDonald’s uses a variety of marketing strategies. One of which is the growth strategy which can take many forms as listed below.

I will write about the Growth strategies in greater detail. For McDonalds they use all the following strategies for growth. Another is survival strategies which also takes place in different forms as listed below.

Growth strategies are:

Market penetration - This is the objective of higher market share in existing markets. This is the least risky of all four strategies. An example of McDonald’s doing this is their Saver Menu. The Saver Menu has a range of cheap food 99p up to £1.49 it means that it is now accessible to more people therefore gaining a higher market share in their existing market.

Market development - This is the strategy of selling an existing product to new markets. This could involve selling to an overseas market, or a new market segment. This is has a moderate risk of all four strategies. McDonald’s do this by opening new stores in multiple countries. They still sell the same products as they would normally which is why there popular with English tourists if they don’t like the countries food. At the time of writing this McDonald’s are in 119 countries and have 35,000 locations.
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Product development - This involves taking a new product and devolving it in existing markets. This is has a moderate risk of all four strategies. An example of McDonald’s doing this is there weekly special burgers. Having this means there taking a new product into the market each week. It is a risk with McDonald’s doing this as they cannot be sure if the public will like it but if they do there keep coming back each week to try them.

Diversification - This is the process of selling different, unrelated goods or services in unrelated markets. ...

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