Programme: Bachelor of International Business (Bridging)

Module

: Marketing Management

Term

: August September 2016

Word Count : 3,500 words maximum

IPE BIB Assignment for Marketing Management

Student Name : Yeoh Zyn Guan
IC number : 930515-07-5679

Parts
Task 1
Task 2

Marks
Total Marks :

Words Count : Total = 3498 words

Contents
1
2

Contents
Task 1
Task 2

Page Number
3 - 10
11 - 23

Task 1
Marketing Environment Analysis for
McDonalds

Marketing Environment Analysis for McDonalds

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Part 1
The report will explore the fast food industry and also examine the McDonalds
corporation as a firm. In addition, the report will appraise mainly on three areas for trends in
the macro/market environment that had an influence on McDonalds corporation, identify the
key customers profile and effect of E Commerce and online shopping towards McDonalds.
The global fast food industry has managed to grow over the past five years. Fast-food
industry includes about 200,000 restaurants with combined annual revenue of about $120
billion. The industry is highly labor intensive which the average annual revenue per worker
is just under $40,000. Kamalesh Dey (2016) stated the global fast food restaurants industry is
highly fragmented, with a large portion of single-location restaurants providing a diverse
range of cuisine and fast food choices to customers across the globe. The market share of the
major global operators is not expected to grow over the five years through 2021, despite the
opening of more stores in high-growth emerging countries. Fast food restaurants specialize in
a few main dishes and operate by national and regional chains, franchises, or independent
businessman. Fast food industry now is developing significantly. The change of lifestyle
leads to the change in people eating habit. In the past, if just workers, drivers or someone
who had to work busily and didnt have enough time for a home meal choose fast food;
nowadays, almost people eat fast food and a major of them like fast food very much. It is a
huge chance for fast food brand to increase their revenues, especially McDonalds. The
details of current trends of fast food industry can be viewed at the IBIS World Where
Knowledge is Power website at <http://www.ibisworld.com/industry/global/global-fast-foodrestaurants.html>.
The McDonald's Corporation is the world's largest chain of hamburger fast food
restaurants, serving around 68 million customers daily in 119 countries across 36,000 outlets.
Headquartered in the United States, the company began in 1940 as a barbecue restaurant
operated by Richard and Maurice McDonald. In 1948, Richard and Maurice McDonald
reorganized their business as a hamburger stand using production line principles. Peter
(2006) discovered the businessman Ray Kroc joined the company as a franchise agent in
1955. Ray Kroc subsequently purchased the chain from the McDonald brothers and oversaw
its worldwide growth. A McDonald's restaurant is operated by a franchisee, an affiliate, or
4

the corporation itself. More than 80% of McDonald's restaurants worldwide are owned and
operated by independent local business men and women.
Part 2
The first market trend is a new definition of healthy. Once, a simple promise of
vitamins and a lack of calories could be seen as a symbol of nutrition. Now, however, the
definition is more complicated and more in demand. I think that what is really interesting is
that traditional definitions of healthiness are changing, Darby Hughes, an analyst at food
and beverage brand-building company Quench said. (Kate, 2016) While once nutrition was
all about cutting calories and adding salads to the menu. Now, transparency and the
production chain are of elevated importance. In an era when a viral blog post about
chemicals in fast food could seriously damage a companys reputation, chains are eager to
take action before they get called out.
Health-minded consumers often gravitate to places like Subway, Panera Bread, and
Chipotle Mexican Grill that allow them to customize their orders, thus choosing their own
healthful options. This extends to vegetarians and vegans, who are not only seeking healthier
foods, but also have animal rights on their minds. (Barney, 2016) There are people heavily
into gluten-free, who care about genetically modified organisms, who want low-fat or
organic items, but there is no consensus about what is a healthy diet, says Rita Negrete,
senior editor at market research firm Technomic. Still, she says, more people really are
trying to eat more healthfully, and that becomes an issue for restaurants in an era of shrinking
menus.
McDonald's has been impacted by negative press like the documentary "Supersize Me"
by Morgan Spurlock in which he contributed our societys obesity to McDonald's and other
fast food chains. In fact, each McDonalds dishes provides large amount of calories but not
too much nutrition. Although McDonalds tries to update its menu by healthy criteria,
McDonalds meals are still unbalance. For example, there are many dishes with chicken,
bacon, beef, rib or egg. Besides, just several dishes are salad with vegetable and fruit.
Moreover, amount of fruit or vegetable is not much. Consequently, a number of customers

who care about their health stop eating at McDonalds restaurants. It makes revenue of
company decrease.
The second market trend is mobile technology innovations. Mobile and automated
ordering offer a big opportunity for restaurants, both in terms of customer service and behind
the scenes. New developments can be seen in ordering, marketing, loyalty programs, and
payment. (Kate, 2016)Developers are increasingly combining these applications into a single
solution, adding an additional layer of convenience that is important to limited-service
restaurants. At this point, its easier to count major chains that havent launched or at least
tested mobile ordering that those that have. (Barney, 2016) Ordering via mobile app gives
restaurants new ways to get customer data, tends to increase the average bill, and delivers
orders directly to the kitchen, cutting out the middle man.
McDonalds is keeping at the forefront of technology around the globe. For example, In
Brazil McDonalds is currently studying the installation of Internet access terminals in some
outlets as well as enabling customers to order online. This will create a more efficient
process that will reduce the amount of lag time between a customers orders and pick up of
the order.(Kate, 2014) While in Malaysia, when passing by McDonalds outlet, customer
mobile might detect the outlet and posting advertisement on customers mobile apps such as
on the navigation apps.
The third market trend is expanding delivery. The biggest barrier to delivery in the fastfood business is that the costs of delivery can easily double how much the customer is
spending on his or her meal. (Kate, 2016)However, with new models for delivery and
increasing demand, that may not be a problem for long. Amazon Prime Now, for example, is
now delivering from select restaurants in certain cities free of charge. Both fast-food chains
and their entrepreneurial partners have a lot to gain from creating new delivery options.
McDonalds online ordering is now available in a growing number of countries,
including China, Singapore, Australia and Malaysia. In Malaysia, customers can use mobile
apps to order meals before reaching the restaurant so that can save the time of waiting and
easier to pay online. Customers can use a range of payment options, including credit card,
debit card and net banking when ordering meals.
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Part 3
McDonald's marketing targets everyone and does not have a select audience. (Justin,
2014) The company claims that their restaurants offer meals for children, a place to relax
with free Wi-Fi for adults, and a quick breakfast for those in a hurry in the morning.
The company employs different marketing strategies during different seasons of the
year. They are constantly investigating what their customers enjoy, how their lives are
changing and what they can offer them as a result, in order to better maintain their business.
As of 2014, McDonald's offers value-priced meals and has seen a tremendous amount of
success from its "Happy Meals." (Kate, 2016)The Happy Meal represents one area where
market demand changed the company's product, as it began offering fruit and other healthier
choices for kids due to a raised awareness of nutritional needs. For teenagers and adults,
McDonalds prepared free WIFI and Mc Cafe for them to enjoy the time in the outlet. And
for the elders, McDonalds prepared some special menu such as porridge and salad for them.
The emerging use of E commerce and online shopping and purchase affected
McDonalds positively. By using E-Commerce, McDonalds can expand their market to
national and international markets with minimum capital investment. (Dave, 2008)They can
easily locate more customers, best suppliers and suitable business partners across the globe.
E-Commerce can helps McDonalds to provide better customer services and helps simplify
the business processes and make them faster and efficient.
For an example, In Malaysia McDonalds officially announced the service of
McDelivery started on 1st July 2016. Customers can make their McDonalds McDelivery
orders via www.mcdelivery.com.my or simply by downloading the McDelivery mobile
application from Google Play or App Store. McDonalds McDelivery is available 24-hours a
day, 7 days a week at selected restaurants nationwide. Currently, 30% of McDonalds
restaurants offer McDelivery service and the coverage area expected to grow periodically.
7

Rather than that, E-commerce let McDonalds save more time and cost on advertising
and promoting their products. By using e-commerce site, McDonalds can change your
product offerings, display, and marketing materials almost instantly. (Kate, 2016) In a brickand-mortar store, McDonalds have to physically move things around and it just takes longer.
An e-commerce site is extremely flexible and lets McDonalds adapt to the changes needs of
their customers and the changing demands of the business environment. Example is
McDonalds can change their display of meal menu according to season in the website so
that customers can get more detail information about products that McDonalds are selling.
E-commerce also can help McDonalds communicate directly with customers and gain
information from customers easily. By using social media such as Facebook, Twitter and
Instagram as platforms, McDonalds can reduce transaction costs, understand customers
from their comments and thus may improve their quality of operations. E-commerce makes
relation between McDonalds and customers more convenience and more directly. From the
comments by customers such as in Facebook, McDonalds can improve their performance or
services using customers opinion and understand customers need.
From this report, the McDonald's Corporation is the world's largest chain of hamburger
fast food restaurants, serving around 68 million customers daily in 119 countries across
35,000 outlets. Three trends in the macro/market environment that influenced McDonald's
are a new definition of healthy, mobile technology innovations and expanding delivery. The
emerging use of E commerce and online shopping and purchase affected McDonalds
positively.
(1687 words)

References
Kamalesh. (2016) The fast food industry in the UK. Analysis of McDonalds with PESTEL,
VRIN and Porter's Five Forces.[Online]Grin Page. Available from:
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<http://www.grin.com/en/e-book/333863/the-fast-food-industry-in-the-uk-analysisof-mcdonalds-with-pestel-vrin>. [Accessed:2th September 2016]

Global Fast Food Restaurant: Market Research Report 2016, IBISWorld, viewed 2th
September 2016,
<http://www.ibisworld.com/industry/global/global-fast-food-restaurants.html>.

Peter, J 2006, Marketing Management: Knowledge and Skills. Boston: McGraw-Hill, 2006,
viewed 2th September 2016,
<http://www.123helpme.com/mcdonalds-case-study-view.asp?id=166353>.

Barney, Wolf 2015, 9 Fast Food Trends For 2015, Special QSR Report, viewed 2th
September 2016,
<https://www.qsrmagazine.com/reports/9-fast-food-trends-2015?page=2>.

Kate, T(2015), These 5 trends will dominate fast food in 2015, Business Insider, viewed 2th
September 2016,
<http://www.businessinsider.my/5-fast-food-trends-to-watch-out-for-2015-12/?
r=US&IR=T#5heTmkEkFoe1XF58.97>.

Barney, Wolf 2014, 8 Fast-Food Trends For 2014, Special QSR Report, viewed 2th
September 2016,
<https://www.qsrmagazine.com/reports/8-fast-food-trends-14?page=2>.

Kate, Taylor (2014), The 10 Biggest Restaurant Trends for 2015, Entrepreneur, viewed 2th
September 2016,
<https://www.entrepreneur.com/slideshow/239015>.

Justin, Sullivan (2016) What is McDonalds Target Market?, McDonalds Corporation,

References, viewed 2th September 2016
<https://www.reference.com/business-finance/mcdonald-s-target-marketae5bd3fcf824d691#>.
9

Lainey (2016) McDonalds: McDonalds Malaysias McDelivery Is 100% Online Effective

Today, viewed 2th September 2016,
<https://hype.my/2016/113514/mcdonalds-mcdonalds-malaysias-mcdelivery-is-100online-effective-today-1st-july/>.

Dave, Ross, 2008, "Advantages of E-commerce" HowStuffWorks.com, viewed 2th

September 2016,
<http://money.howstuffworks.com/advantages-e-commerce.htm>.

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Task 2
Marketing Plan for Samsung Galaxy S7
Edge

Executive Summary

11

This assignment provides an effective and efficient marketing plan for the success of a
brand new product "Samsung Galaxy S7 Edge" being launched by Samsung. This document
will start by mission, vision and goals of Samsung Company. Then it will continue with
company analysis such as SWOT, industry analysis, competitive analysis and consumer
analysis will also include.
Target market and points of differences of Samsung Galaxy S7 Edge will also mention in
this assignment. In further, product strategy such as price and distribution strategy will
discuss and an implementation plan will produce for launching of the product. The
assignment will finalize by the evaluation and control of the product.

Part 1: Strategic Focus and Plan

Samsungs vision statement is Inspire the World, Create the Future. (Samsung, 2014)
Samsung believes that with their three strengths; new technology, innovative products, and
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creative solutions through their core networks of industry, partners, and employees that they
can help contribute to a better and richer world for all.
Samsungs mission is to inspire the world with innovative technologies, products and
designs that enrich peoples lives and contribute to a socially responsible, sustainable future.
Samsungs goal is to provide all customers with efficiency, productivity, and stability and
strives to resolving any issues a customer may have with areas of home, mobile, and office
through digital convergence and networking. They are one of the most innovative contenders
in all their fields of focus.
Samsung has a few goals they wish to obtain by the year 2020. They wish to obtain $400
billion dollars in sales. Samsung wants to be number one in the global IT industry and within
the top five of the global companies. Their more qualitative goals are to remain an innovative
and respected company. They wish to be in the Top 10 Worlds Best Workplaces, a creative
leader in building new markets, and a Global enterprise that attracts the worlds most talented
employees. (Samsung, 2016)

Part 2 : Situation Analysis

SWOT Analysis

13

Strengths
- Phones are high quality
- Strong market position
- Pricing strategy for huge market
Opportunities
- Software improvement
- Growing market

Weaknesses
- Fluctuating operating and net profit

Threats
- Increasing raw material prices
- Intense competition
- Government regulations

Strengths
Samsungs smartphones always the highest or top 3 ranked phones on CNET, ranked both by
review scores and by popularity. Samsung phones are almost always cheaper for the same
quality, and often have greater flexibility and features.
Weaknesses
Samsungs always gained fluctuating in their operating and net profit. Samsungs markets are
easily affected by external factors such as from competitors that will affect its sales.
Opportunities
Samsung potentially hiring more talent from US to develop own software and improving OS
system that runs on the phones. Growing market in Southeast Asia and India give more
opportunities for Samsung to expand their market.
Threats
Global effects that increase the price of raw materials will affect the pricing strategy of
Samsung. Samsung also faced huge competition with rivals such as Apple and new emerging
company Huawei. (Harris, 2016, p.21-30)
Industry Analysis
The smartphone industry consists of all companies that manufacture and sell
smartphones to consumers. This industry is a massive, fast paced environment where
products are constantly updating and changing. (Harris, 2016, p.5) It is characterized by
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quickly evolving technology and designs, short product life cycle, aggressive pricing, rapid
limitation of product and technological advancement, and highly price-sensitive consumers.

Competitive Analysis
The most notable of these competitors is Apple. While there are other phone developers
that present strong competition, none of them are immediate threats to Samsungs
competitive advantage. (Rasel, 2015) Apple is the most dangerous threat, with its extremely
profitable and high-selling iPhone. Apple is the sole reason that it may not feel to the reader
that Samsung dominates the smart phone market. The iPhone is the benchmark by which
consumers judge a smart phone, and Samsung must deal with this threat first and foremost.

Customer Analysis
Samsung primary consumer target is upper income professionals who need one portable
device to coordinate their busy schedules and communicate with family and colleagues.
Their secondary consumer target is graduate students who need a multifunction device.
Samsung had developed various level functions of mobile phones to meet different level of
customers. (Henderson, 2016)

Part 3 : Market-Product Focus

Marketing and Product Objectives

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The number of companies making smartphones is growing, but it still seems to be

largely a Samsung or Apple world. The latest offerings from the Korean tech giant go on sale
today and the highlight is the Galaxy S7 Edge, which is about to raise the bar for mobile
devices to new heights. (Jason, 2016)
Sales of the Samsung Galaxy S7 Edge are estimated to reach nine million units during
their first month on the market or triple those of the S6 models in the same time frame in
2015. An almost $100 price cut on the S7 from the S6 and numerous special offers will boost
up the sales. Samsung and mobile carriers will give away virtual reality Gear headsets,
tablets, and even a 48-inch TV set with some sales. Some sales in few countries are expected
to grow 50% more than last years model. (Eric, 2016)

Target Market
Samsung Galaxy S7 Edge targeted primary for businessman who has upper income
professionals need one portable device to coordinate their busy schedules and communicate
with family and colleagues. Samsung primary business target is medium to large-sized
corporations that want to help their managers and employees stay in touch and input or
access critical data on the go. This segment consists of companies with more than $100
million in annual sales and more than 250 employees. (Henderson, 2016)

Points of Difference
Galaxy S7 Edge has Quad HD super AMOLED display that wraps around the curved
screen, which measures 5.5". The display performs well in direct sunlight and offers topnotch contrast between the darkest blacks and vivid colors. With a resolution of 2560 x 1440,
the S7 Edge has a pixel density of 534 pixels per inch, which helps keep images crisp and
clear on a display that's more compact than its biggest competitors, including the iPhone
6s Plus.(Henderson, 2016)

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Samsung Galaxy S7 Edge has a camera to rival the iPhone. The camera has built in
Dual Pixel Sensor technology in the 12 megapixel rear shooter to excel in low-light
conditions. The Galaxy S7 Edge also uses an auto-focus that's reportedly so fast user will
question that it's even working. Fully waterproof function enables S7 to capture picture and
record video under the water.
Samsung are positioning the Samsung Galaxy S7 Edge as the most versatile, convenient,
value-added model for personal and professional use. The marketing strategy will focus on
the powerful camera and fully waterproof function as the main features differentiating the
Samsung Galaxy S7 Edge. (Rasel, 2015)

Part 4 : Marketing Program

Product Strategy

17

Galaxy S7
OS

Android 6.0 (Marshmallow)

Galaxy S7 edge
Android 6.0 (Marshmallow)

Dimensions 142.4mm x 69.6mm x 7.9mm

150.9mm x 72.6mm x 7.7mm

Weight

152g

157g

CPU

Snapdragon 820 Octa Core (2.3 GHz

Quad + 1.6Ghz Quad)

Exynos 8890 Quad Core (2.15 GHz

Dual + 1.6Ghz Dual)

Memory

4GB RAM (LPDDR4)

4GB RAM (LPDDR4)

Storage

32GB (+ MicroSD card slot)

32GB (+ MicroSD card slot)

Display

5.1-inch Quad HD AMOLED

5.5-inch Quad HD AMOLED

Resolution 2560 x 1440 (577 ppi)

2560 x 1440 (534 ppi)

Camera

12MP rear, 5MP front

12MP rear, 5MP front

Battery

3000mAh (non-removable)

3600mAh (non-removable)

Samsung is using its own latest processor, the Exynos 8 Octa. This is an octacore (2.3GHz quad, 1.6GHz quad) 64-bit, 14nm processor, with superfast LTE speeds. The
CPU is 30 per cent faster than the processor in the Galaxy S6 and S6 edge, while the GPU is
a whopping 64 per cent faster. Galaxy S7 Edge has a 5.5-inch Super AMOLED screen with
resolution 2560 x 1440 (Quad HD). Galaxy S7 Edge has a wrap-around display that curves
on either side.
There are models with 32GB and 64GB storage options. Samsung has reintroduced the
ability to increase storage by using a Micro SD card of up to 256GB in size. Galaxy S7 Edge
has a 3,600mAh battery that has fast charging with wired and wireless functions. Galaxy S7
Edge capable of playing HD video for 13 hours straight. Samsung Galaxy S7 Edge has a
camera with built in Dual Pixel Sensor technology in the 12 megapixel rear shooter to excel
in low-light conditions. Samsung Galaxy S7 Edge is layered on top of Android 6.0
Marshmallow. (Henderson, 2016)
Building the more customers is an integral part of Samsung product strategy. The brand
and logo will be displayed on the product and its packaging, and reinforced by its
prominence in the introductory marketing campaign.
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Pricing Strategy

The Samsung Galaxy S7 will be introduced at $699 and Galaxy S7 Edge for $789 retail
price per unit. Samsung believe that this pricing strategy will take advantage because it is
cheaper $100 than last years model Galaxy S6. These prices reflect a strategy of attracting
desirable channel partners and taking market share from Apple. (Rasel, 2015)

Distribution Strategy

Samsung channel strategy is to use selective distribution to have Samsung Galaxy S7

Edge sold through well-known stores and online retailers. During the first year, Samsung
will add channel partners until have coverage in all major countries. markets and the product
is included in the major electronics catalogues and Web sites. (Rasel, 2015) In support of
channel partners, Samsung will provide demonstration products, detailed specification handouts, and full-colour photos and displays featuring the product. Samsung will also arrange
special trade terms for retailers that place volume orders.

Part 5 : Implementation Plan

The Samsung Galaxy S7 Edge will be introduced in February 2016. Following are
summaries of the action plan Samsung will use during the first few months to achieve their
sales target.
January
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Samsung will initiate an $800,000 trade sales promotion campaign to educate dealers and
generate excitement for the product launch in February. Samsung will exhibit at the major
consumer electronics trade shows and provide samples to selected product reviewers,
opinion leaders, and celebrities as part of their public relations strategy. Samsung training
staff will work with sales personnel at major retail chains to explain the Samsung Galaxy S7
Edges features, benefits, and competitive advantages.
February
Samsung will start an integrated print/radio/Internet campaign targeting professionals and
consumers. The campaign will show how quickly Samsung Galaxy S7 Edge users can
accomplish tasks using the product and show to customers how well the fully waterproof
functions are performing.
March
As the multimedia advertising campaign continues, Samsung will add consumer sales
promotion tactics such giving away leather carry-cases as a premium. Samsung will also
distribute new point-of-purchase displays to support their retailers.
April
Samsung will hold a trade sales contest offering prizes for the salesperson and retail
organization that sells the most Samsung Galaxy S7 Edges during the 4-week period.
May
Samsung plan to roll out a new national advertising campaign this month. The television ads
will feature Waterproof and Powerful Camera to operate their Samsung Galaxy S7 Edge. The
print ads will show these celebrities holding their Samsung Galaxy S7 Edge.

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Part 6 : Evaluation and Control

Samsung are planning tight control measures to closely monitor quality and customer
service satisfaction towards Galaxy S7 Edge. This will enable them to react very quickly in
correcting any problems that may occur. Other early warning signals that will be monitored
for signs of deviation from the plan include monthly sales by segment and channel and their
monthly expenses. (Reuters, 2016)
Samsung will conduct extensive preparation for Galaxy S7 Edge and will release it to
the market only after proper completion of the development process. Extremely experienced
engineers and managers will monitor the quality and performance of the Galaxy S7 Edge and
make sure it will catch up with the production speed.
(1811 words)

References
Samsung Company Profile, 2016, Vision 2020, viewed 10th September 2016,
<http://www.samsung.com/my/aboutsamsung/samsungelectronics/vision2020.html>.

Harris, L 2016, Samsung Client Report, Danger Zone Consulting, p21-30, viewed 10th
September 2016,
<http://economicsfiles.pomona.edu/jlikens/SeniorSeminars/Likens2014/reports/samsung.pdf>.
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Harris, L 2016, Samsung Client Report, Danger Zone Consulting, p5, viewed 10th
September 2016,
<http://economicsfiles.pomona.edu/jlikens/SeniorSeminars/Likens2014/reports/samsung.pdf>.

Henderson, March 2016, Samsung Galaxy S7 and Galaxy S7 edge: Release date, specs and
everything you need to know, viewed 10th September 2016,
<http://www.pocket-lint.com/news/135386-samsung-galaxy-s7-and-galaxy-s7-edgerelease-date-specs-and-everything-you-need-to-know>.

Eric, M 2016, Columnist, 7 Reasons Why Samsung is The New Smartphone King, viewed
10th September,
<http://www.inc.com/eric-mack/samsungs-galaxy-s7-edge-sets-the-standard-7-reasons-why-its-the-newsmartphone-k.html>.

Aaron, B 2016, Barcelona, Samsung Galaxy S7, S7 Edge Launch: UK Price, Release Date,
Specs and Features, viewed 10th September,
<http://www.express.co.uk/life-style/science-technology/646063/Samsung-GalaxyS7-Edge-Launch-UK-Price-Release-Date-Specs-Waterproof>.

Rasel, 2015, Report on Marketing Plan-Samsung Galaxy S5, viewed 10th September,
<https://www.scribd.com/doc/274174054/Report-on-Marketing-Plan-SamsungGallexy-S5>.

Jason, C 2016, Its True: Samsungs Galaxy S7 is Better Than the iPhone, viewed 10th
September 2016,
<http://fortune.com/2016/03/14/samsung-galaxy-s7-s7-edge-review/>.

22

Reuters, 2016, How Samsung Tripped on Quality Control in Its Rush to Beat Apple,
viewed 10th September 2016,
<http://fortune.com/2016/09/06/samsung-apple-galaxy-note-quality/ >.

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