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“An analysis on the impact of sales promotions on increasing sales: A case study of McDonald's,

Bond Street, London”


Abstract
In this study of research, the researcher looks over both the impacts and influences of the best of
sales promotion techniques used for sales increment by McDonald’s especially in McDonald’s
Bond Street branch of London. Fast food to cold-drinks items are selling to all over the world by
several branches of it by applying covert promotional techniques by McDonald’s. Possible
outcomes are passing through the sales promotion programmes and techniques makes McDonald’s
very profitable. This study of research indicates comprehensive discussions, analysis and
evaluations of current sales promotional techniques of McDonald’s and its impacts on the entire
sales of the company either diminishing or improving in recent years. The main purpose of this
research is to let people know that how sales promotional techniques of McDonald’s impact in
increasing domestic sales of the organisation in the Bond Street branch, UK. This research
demonstrates McDonald’s sales promotion impacts in the specific market in UK along with both
descriptive methods. Moreover, this study analyses sales related issues when implementing
recommendations to overcome identified weaknesses found within this specific branch and at the
same time suggest how to improve overall sales performance. In this research the researcher first
identifies several sales promotional techniques of McDonalds and after that the effectiveness of
the impacts of sales promotional techniques in increasing sales has been identified in the Bond
street branch. About 25 regular customers in local market has been interviewed and some were
contacted directly via telephone. Received data has been analysed by both experimental and
exploratory research methods. In Bond Street branch in London, McDonalds is serving more than
1 million customers each and every day and has become successful in their sales which is increased
by 5.6% compared to the previous year of 2012 and 2013 by their several sales promotional
techniques. Meanwhile, in the last two years the overall sales of McDonald’s rose about 6.7%
because of their sales promotion techniques in which Chicken Legend premium burgers, late night
food items and other breakfast foods items soared rapidly and surged by more than 7pc compared
to previous years. In the end, it can be said that the impacts from the promotional techniques are
very positive on the company’s overall sales in the Bond Street Branch of London. In general the
sales and profits generated during several previous years was excellent because of their sales
promotion measures.
Table of Contents
Chapter 1: Introduction ............................................................................................................................ 5
1.1 Background of the Research ............................................................................................................... 5
1.2 Rationale for the study ....................................................................................................................... 6
What is the research issue? ...................................................................................................................... 6
Why is it an issue? ..................................................................................................................................... 6
Why is it an issue now? ............................................................................................................................. 7
What could this research shed light on? .................................................................................................. 7
1.3 Research Aims ..................................................................................................................................... 7
1.4 Research Questions ............................................................................................................................ 8
1.5 Research Objectives and Hypothesis .................................................................................................. 8
Chapter 2 Literature Review ..................................................................................................................... 9
2.1 Introduction ........................................................................................................................................ 9
2.2 Defining Sales Promotion Strategy ..................................................................................................... 9
2.3 Porter Generic Strategies .................................................................................................................... 9
2.4 Cost leadership Strategy ..................................................................................................................... 9
2.5 Differentiation Strategy .................................................................................................................... 10
2.5 Focus Strategy ................................................................................................................................... 10
2.6 Growth Strategy ................................................................................................................................ 10
Branding .................................................................................................................................................. 11
Integration .............................................................................................................................................. 12
Differentiation......................................................................................................................................... 12
Added Value ............................................................................................................................................ 12
2.7 Concept of Sales Promotion.............................................................................................................. 12
Chapter 3: Research Design and Methodology ...................................................................................... 14
3.1 Type of investigation: ........................................................................................................................ 14
3.2 Data collection method............................................................................................................... 16
3.2.1 Primary data................................................................................................................................... 16
3.2.2 Secondary data .............................................................................................................................. 17
3.3 Sampling method .............................................................................................................................. 18
3.4 Accessibility issues ...................................................................................................................... 18
3.5 Ethical issues ..................................................................................................................................... 19
Ensuring Quality and Integrity ................................................................................................................ 19
Seeking Consent ...................................................................................................................................... 19
Voluntary Participation of the Respondents .......................................................................................... 20
Non Harmful to Participants ................................................................................................................... 20
Keeping Confidentiality of the Participants ............................................................................................ 20
Independent and Impartial Research ..................................................................................................... 20
Data analysis plan ................................................................................................................................... 21
3.7 Research limitations:......................................................................................................................... 21
Chapter 4 Results, Analysis and Discussion ............................................................................................ 22
Conclusions/Recommendations ............................................................................................................. 29
Bibliography ............................................................................................... Error! Bookmark not defined.
Appendices.............................................................................................................................................. 35
Chapter 1: Introduction
This chapter will highlight the research aims, objectives, questions and hypothesis. This paper will
investigate the impact of sales promotion strategy on increasing sales of McDonalds. It’s not
possible to assess the sales promotion impact on increasing sales without determining research
aim, objective and questions. Some rational objectives and questions will be determined to assess
the research issue.

1.1 Background of the Research


McDonald’s is very popular to all levels of people for its consistent food quality, features and
tastes. In UK, during economic recession McDonald’s sales was not affected because of their
advanced sales promotional strategies. Are these strategies really influential to their sales? The
background of this study is to reveal the possible impacts of the sales promotional tactics applied
by McDonald’s. At first, let’s have a look on what sales promotion actually is. The activity or
material or both which acts as a direct inducement, or offer the resellers salespeople or consumers
the added value or incentive for the product is known as sales promotion (Pride, W., 2008). It
attracts the customers to buy now rather than later using different offers and incentives to boost
the sales of service or product. Sales promotions are marketing strategies used by the companies
to increase sales shortly with a view to increase the sales volume and market share. It’s not possible
to increase sales of a company without maintaining sales promotion strategies. Due to various
reasons, the importance of sales promotion is increasing day by day, it’s considered as an important
marketing strategy to increase sales. Different sales promotion strategies, impact of sales
promotion strategies on sales increasing, choosing best strategy for best situation, reason behind
the increasing importance of sales promotion all these things will be highlighted by this research.
This study will focus on the impact if sales promotion on sales increasing of McDonalds.
McDonalds are taking sales promotion strategies to compete with other fast food restaurants.
Initiated by Richard and Maurice McDonald, the first restaurant of McDonalds was established in
1937 in California, USA. They got popularity within short time due to their great service. As a
result franchises were spreading all over the world. In October1974, the first outlet was opened
Woolwich, south east London (Mieth, H., 2007). As they have too many rivals in the market, that’s
why sales increasing is considered as an important issue to the McDonalds. Now-a-days, sales
increasing is closely related with sales promotion.
Different sales promotional like coupons, free samples, contests, price off deals can increase the
value of a product or can traffic more customers (Hair, J., et al., 2008). In this research area, sales
promotion is considered as more important than other activities by McDonald’s. According to
many studies, sales promotion can increases the sales opportunities of a company (Miletsky, M et
al., 2009).
Most of the famous fast food industries are following different sales promotion strategy to increase
their sales including McDonald’s. Restaurants who are not providing incentives and attractive
offers, they are suffering in the market. As a result, sales promotion is considered as one of the
most important issues to the McDonalds to increase their sales. By the essence of this research,
readers are expected to a great notion about the sales promotion tactics handled by McDonald’s to
increase its sales. This study of research signifies with comprehensive discussions, analysis and
evaluations of current sales promotional techniques of McDonald’s and its impacts on the entire
sales of the company either diminishing or improving in recent years in respect to the entire city
of London. The main area of this research is to let conduct how sales promotional techniques of
McDonald’s impact in increasing domestic sales of the organisation in the Bond Street branch,
UK. This research demonstrates McDonald’s sales promotion impacts in the specific market of
central London and this study also covers sales related areas when implementing sales promotion
programs of coupons, free samples, contests, price off deals within this specific branch and at the
same time suggest how to improve overall sales performance. In this research the researcher just
identifies several sales promotional techniques of McDonalds and after that the effectiveness of
the impacts of sales promotional techniques in increasing sales has been observed in the Bond
street branch unless the effects of other activities. This research has a problem which is there are
many factors that influences McDonald’s sales rather than sales promotion which not have been
discussed.
1.2 Rationale for the study
What is the research issue?
McDonalds, one of the most popular fast food brands among the young generation, not only the
young people, people of all ages love their food. They are serving people since 1937. There’s no
doubt that they have created a strong market place in the fast food industry (Kroc, R. & Anderson,
R. 1992). But there are too many rival groups in the market. If other fast food offer better sales
promotion offer, they will seek more customers than McDonalds. In this competitive world, no
business can exist or increase their sales without following sales promotion strategy. Different
incentives and offers can attract the customer for product trial and unplanned purchase which can
ensure sale increase in this competitive world. That’s why this research will investigate how the
sales promotional strategy of McDonalds can increase sales? The relationship between sales
promotion strategy and sales increase will be highlighted by this paper.
Why is it an issue?
In this competitive world, customers are not brand oriented like before; they have too many choices
now-a-days. They can change brand frequently if they get better offer from other brands. A better
sales promotion strategy can increase sales opportunity of an organization by seeking and keeping
more customers than before (Pride, W., 2008). In this competitive environment, businesses have
to face strict competition and changing market attitude. At the same time they have to compete
with similar product and market of these products. It’s not possible to exist in the market without
increasing sales using different sales promotion strategies. Businesses with great promotional
activities are able to seek more customers temporarily to boost the sales of their products. That’s
why the impact of sales promotion strategies on sales increasing is regarded as an important issue
at present.

Why is it an issue now?


Recently, it has been realized by the McDonalds that, customers are no more brand oriented at all
now-a-days. Though a good brand has a positive impact on them and they have positive attitude
towards famous brand, but they have too many options to choose one in this competitive time.
There are so many rival groups in the market. Many fast food restaurants are focusing on their
sales and trying to increase it through different offers. If the customers get more benefits from
others, then they can change brand very easily (Kapferer, J., 2008). There are many fast-food shops
in London which are offering coupons and attracting facilities to their customers. So it’s not
possible to attract and keep the customers and increase sales.

What could this research shed light on?


This research will highlight the impact of sales promotion strategy on sales increasing of
McDonalds. How the sales opportunities of a company can be increased by the sales promotion
strategies, it will be the main concern of this research work. People who are related with the
management of McDonalds or the employees of McDonalds will get deep insight about the process
of sales increasing using sales promotion strategies.

1.3 Research Aims


The main research aim of this research is to analyse the impact sales promotional strategy on
ensuring increasing sales of London McDonalds, UK.
The aim of this research is to analyse the impacts of the sales promotional techniques on the sales
of McDonald’s as well as this research also reveal the repositioning strategies of its local Bond
Street branch in UK. In central London, McDonald’s sales promotional techniques represent a
sharp and healthy fast food sales outcomes through the years. Moreover, this research also aims at
company’s refurbishing and modernising sales promotional techniques of its restaurants across the
London for increasing much more sales and profits. To reach the research aim successfully, some
questions and objectives will be set out in this paper.
The main purpose of this research is to let people know that how sales promotional techniques of
McDonald’s impact in increasing domestic sales of the organisation in the Bond Street, London,
UK. This research will demonstrate McDonald’s sales promotion impacts on increasing sales.
1.4 Research Questions
Research question must be specific and narrow which can answered by the observable evidence.
(Rubin, A., Babbie, E., 2009) The proposed research work will try to find out the answer of
following questions-
1. How the sales promotion strategy can be defined?
2. What are the strategies of sales promotion?
3. What are the impacts of sales promotion strategy on sales of McDonalds’?
4. How the sales of McDonalds can be increased using different sales promotion strategies?

1.5 Research Objectives and Hypothesis


Some research objectives will be set out to reach the key research aim successfully. These are
given below-
1. To identify and evaluate the effectiveness of sales promotion activities of McDonalds in
increasing sales.
2. To analyse the impact of sales promotion in increasing sales and the relationship between
sales promotion strategy and increasing sales.
3. To support with feasible recommendations to improve sales promotion of McDonalds to
increase sales even better.

Following are the research hypothesis regarding this research work-


H0- there is no an impact of sales promotion in increasing sales

H1- there is an impact of sales promotion in increasing sales


Null Hypothesis: There is no an impact of sales promotion techniques which has not any such kind
of impacts on increasing sales of McDonald’s. There is no impact on businesses of McDonald’s
that follows sales promotion strategy which can increase sales than other business companies.
There is no impact on the effectiveness of sales promotion strategy of McDonald’s which has an
increase on the sales opportunities in Bond Street area of London in UK.

Alternate Hypothesis: There is an impact on sales promotion techniques which impacts on


increasing sales of McDonald’s. There is an impact on businesses of McDonald’s that follows
sales promotion strategy which can increase sales than other business companies. There is an
impact on the effectiveness of sales promotion strategy of McDonald’s which has an increase on
the sales opportunities in the market of London.
Chapter 2 Literature Review
2.1 Introduction
McDonalds is the world’s leading fast food chain having its operation in more than 200 countries
of the world. The exceptional strategies & tactics followed by this company has given it the certain
identity in the world. This chapter will discuss the definition and meaning of sales promotion,
different strategies of sales promotion of McDonalds from various authentic sources in aspect of
Bond Street of Central London. The promotion & different strategies followed by McDonalds are
unique in their own classification which is going to be adjudged here in a broad & descriptive way.
With the some other strategies, Porter’s generic strategies will be described here as these are
considered as very important by the modern businesses which can develop the new ideas to
differentiate this company with its competitors. Besides branding, growth strategies will also be
discussed briefly in this chapter.
2.2 Defining Sales Promotion Strategy
Sales promotion strategies are those strategies which are used by the company to attract the
customers & retailers for the mass marketing of the products. There are different types of sales
promotion strategies which are used by McDonalds to attract the customers, suppliers & other
parties & theses different strategies based on different situation, time and need. Some of the
important strategies are given below:
2.3 Porter Generic Strategies
According to Porter, organization can undertake different strategies at business level to get success
which includes differentiation, cost leadership, and focus strategy. (Griffin, R., 2011). Strategic
scope and strategic strength are the main concentration of the Porter’s Generic Strategies. The
generic strategies of Porter are given so that strategy identification & differentiation becomes
easier to notice. There are four types of generic strategies-
- Cost leadership,
- Differentiation,
- Focus differentiation and
- Growth Strategy.
2.4 Cost leadership Strategy
Cost leadership believes that standard price charging can ensure standard benefit of the company.
It supports the organization product delivering cost should be increased rather than minimizing the
price charged to the customers. (Griffin, R., 2011). A company needs the ability of reducing cost
with a view to create price leadership or increased portability to follow the cost strategy.
McDonalds has its own cost leadership strategy where it has segmented its price on the basis of its
product base. With its efficiency level McDonalds can produce food with fewer cost that those of
its competitors for which it is successful at its cost leadership strategy.
2.5 Differentiation Strategy
Differentiation is followed by major companies. This strategy believes in improving better quality
and providing better product than the rival groups which will attract the people to buy their
products and services. People buy their products because of quality not because of price. Higher
research, ability to improve product and service, effective sales and marketing is needed in
differentiation approach. (Sehgal, V., 2010). This strategy supports the view that how McDonalds
can be differentiated with its competitors. McDonalds has the strategy of providing the food in
fastest mode & with great taste, along with that it has the customized offerings of foods where
people can add & delete their choice of food in Bond Street of Central London.
2.5 Focus Strategy
Focus Strategy tries to understand the particular market place and customer need rather than
understanding the whole market place. Small businesses concentrate on the specific segment of
broad market that’s why focus strategy is highly suitable to the small businesses. (Sehgal, V.,
2010). Focus strategy means to whom McDonalds is focusing. McDonalds focuses its all level of
customers simultaneously. When children come to McDonalds they find the place as a fun place
with a great level of taste in food, the business & professional people having less time to spend for
food find foods with great taste & match up with their work schedule, students find the foods of
McDonalds affordable, tasty & so on. & finally the family people find McDonalds a great place to
pass time with the homely environment. (McDonald’s Corporation, 2008)
2.6 Growth Strategy
Growth is considered as most of the companies as one of the most important strategies to run their
business successfully. Growth strategy is aimed in gaining larger market share, sometimes even at
the short term earning expenses. For implementing growth strategy, McDonald’s follow different
methods which include market penetration, market expansion, product expansion, diversification
and acquisition in London. Market penetration strategy is followed by McDonald’s when they
want to market the existing food product in the same market. This strategy inspires to lower price
to increase market share with a view to grow existing food products and markets. Product
expansion strategy of McDonald’s is followed by the small branches in London city. This strategy
encourages adding new feature to the existing food product to compete with their rival groups in
the market of London and these controversial rivals are KFC, Pizza Hut and Subway. When
McDonald’s wants to sell their current product in every portion of the market of London, they
follow market expansion strategy. McDonald’s growth strategy is innovative & this is their point
of difference from the competitors. From its beginning McDonald’s has followed several growth
strategies keeping all types of customers ahead in front of it. Its growth strategies are:
Fast & inexpensive menu: The first among all the growth strategies developed in 1960s. From that
time industrialization is in way to boom & people started getting involved in work. So they got
less time to cook food. For them McDonalds introduced those menus which are as good as
homemade food & charged affordable price for those. So people become more cling to the fast &
inexpensive items of McDonalds & this practice is still available for those class of customers who
have huge time but less money to spend for food for them in London. McDonalds have their
inexpensive food items in Bond Street of Central London.
Globalization trend: Incepted & developed between 1970, 80 in which came on with the British
culture that has added to the world culture. British people are busy & have less time to spend for
food. So McDonalds introduced those menus which are easy to prepare, handy to carry & less time
consuming to eat for the people of UK. After these menus are introduced in the London market
people started preferring and the concept of Fast food get the vast recognition & still this practice
is in its peak of popularity in London.
Low calorie & cholesterol concept: This is the concept known as semi global growth strategy
where McDonalds keep in mind those customers who prefer healthy foods. The research of
McDonalds finds out that there are huge portion of people who are bound to avoid cholesterol
because of their health issue. So this company introduced foods containing less calorie to target
the untouched portion of market to have more growth in its sales which is maintaining very well
also in London.
Acquiring restaurants & franchise: This trend is a newly introduced trend that companies do to
expand their wings. In London, UK, McDonalds also acquire many restaurants like Chipotle Grill,
Potbelly Corporation & the Noodle & Company which gave it the opportunity to cover a good
space of the market of London by acquiring the customers of those restaurants as well. In these
restaurants the food products of McDonalds are available which are sold using their logos & they
attract the other types of customers as well.
Localization: This concept deals with the portion of grabbing the local market in a traditional way.
Here the local ingredients are used in the food items & they are promoted in the traditional way.
In India the ‘Big Mac’ of McDonalds was renamed as ‘Maharaja Mac’ & the authority used locals
for the promotion. Again some people are more likely to avoid Beef & Pakistani people are more
likely to avoid pork because of their religious value McDonalds used them interchangeably & they
add those flavours which are the representatives of these cultures so that more & more people
come to McDonalds. (Mourdoukoutas, 2013) This is not an issue for McDonald’s Bond Street of
Central London.
There are some other strategies that can be followed by the organization. These are given below-
Branding
Brand can be defined as the name, sign, creation, symbol or combination of these with a view to
distinguish the goods or services from the seller or group of sellers, it aims in making distinction
from the goods and services of the competitors. (Kotler 2000). McDonalds is a brand whose worth
is millions of pound Sterling. The logo of McDonalds is highly recognizable & noticeable among
people which represent the founder of this company in whole UK. Branding is the process of
creating name and unique image on the mind of customer using advertising, campaign and other
process. It tries to attract and retain loyal customer by establishing a significant and differentiated
presence in the market of the products. (Kumar, S, R., 2009). The branding strategy of McDonalds
followed the aforementioned things with campaign strategies as well. Branding is playing an
important strategic role for many products and companies. In London, McDonald’s strategic
functions of branding includes differentiating products from other competitors, creating a position
in the minds and hearts of the consumers, delivering quick message, projecting credibility,
establishing a strong customer loyalty and retention. Fill (2005) stated that there are some aspects
of branding that can help to achieve the strategic role of branding. These aspects are-
Integration
Integration is considered as an important aspect in developing and maintaining strong brand
positioning. Fill (2005) stated that a result of branding is the result of effective marketing
communication, there should be integration of these factors. In London, McDonalds maintain the
effective marketing & communication strategy with its stakeholders. Moreover, In London,
McDonalds maintains good relationship of it with its suppliers let it get the quality ingredients for
its food items & this company have the local suppliers for which its cost of importing gets lower
as it its getting the ingredients available in it. Along with that, this company maintains very good
relationship with the governments of the host country which ensures its smooth operation there &
McDonalds also build up a good community relationship with UEFA which keeps its flow of
running convenient. (McDonald’s Corporation, 2013)
Differentiation
The process of establishing different name and image in the mind and heart of customer is known
as differentiation. (O’Guinn, Allen, Semenik, 2006). This strategy can give advantage to the new
entry brands in the market. From its logo to its marketing strategy everything can be differentiated
very well. McDonalds promises the quick delivery of foods & maintain a competent sales force
which has let this company keep its promise to the customers in UK. It has promised to provide
tasty the foods in the hygienic way which is also maintained by it which help people find out the
point of difference of McDonalds.
Added Value
Perceived performance, the degree of brand name awareness and psychological meaning can add
extra value to brands. (Fill 2005 & Riezebos 2003). The value of brand or extra benefits provided
by the brand may vary from brands to brands. McDonalds is still now the leading of all the fast
food producers whose branding strategy is originated from the core of its product, company & its
service as well. McDonalds is the brand with added value representing the perception of people
towards the organization. Its marketing strategy, promotional strategy, stakeholder management
strategy, promotional & communication strategy is so unique & different that they are good enough
for the value creation of this brand. This added value by McDonalds gave it the unique identity &
recognition in the market.
2.7 Concept of Sales Promotion
The set of marketing activities which is aimed in increasing the sales of product and service for a
specific time period- is known as sales promotion. There are different ways of sales promotion
which includes coupons, samples, demonstration, giving more amounts etc. Sales promotion is the
way of connecting motivation tools that an organization uses to balance and focusing advertising,
to influence locally and temporary balanced purchase of a good and service more swiftly. (Lambin
et al., 2007).There are four types of sales promotion:
Consumer promotion: This promotion is done so that more & more customers get interested about
McDonalds. There are some customers who prefer visiting regularly but there is another group
which is price sensitive. McDonalds provide several offers like coupons, premiums or
sweepstakes, where coupons are the symbols of price reduction which is provided in not so peak
hours or sometimes when new item is introduced which can be collected from McDonald’s outlets
or can be found in newspapers or with other recopies. Premium is another type of customer
promotion when something extra is given in same price & with same food item. Sweepstakes are
recently getting mass popularity for attracting new customers & retaining the older ones. This is
what customers have to collect as tokens. Through this customers have the chance to win many
prizes & get more offers with the current ones.
Commercial promotion: This type of promotion is done to get the attention of consumers, suppliers
etc. Commercial promotions are done through advertising, social media presentation, newspaper
& magazine promotion etc. Commercial promotion is more successful in TV advertising.
McDonalds have the good strategy of showing their different types of offer in different times.
When there is any of matches like cricket or football this company shows their promotional offers
applicable for the young stars. At night, when the elder people of the family are watching TV then
they show the family offers of theirs & in cartoon or other children TV shows they showcase the
offers for children. So the commercial promotion of McDonalds reaches a huge coverage with the
use of its TV, print & social network media. Another type of commercial promotion of McDonalds
is they gives the convenience of choosing & ordering the food with the use of websites where the
customers can personalize their own choice. (Adamy, 2009)
Target promotion: Target promotion is done only for the target customers & they don’t hit the
massive market. Rather they are for the target people of orientation. McDonalds promotes their
vegetable items’ through the use of newspapers because they know that adult people are the readers
of newspapers & they are the target customers of theirs for vegetable & less calorie items.
McDonalds avail their offers for less costlier products in the break time of school & colleges so
that students can have them in their Tiffin hours & with fewer prices as well. For the customers
who prefer personalized service are offered with the target promotional strategy as well.
McDonalds involve this group of customers in making their own items so that they are considered
as more valued & hold their level of loyalty to this organization. (McDonald’s Corporation, 2008)
Network promotion: Network promotion is done by McDonalds to increase their current network.
This promotion is done by McDonalds to get more and more customers. This company has signed
agreements with Coca Cola, the beverage giant, so that the consumers of Coca Cola also come to
McDonalds for having food. In all the outlets of McDonalds people are offered with the beverages
of Coca Cola & along with this McDonalds have several other strategies for promoting their
network as well. McDonalds has its outlets in shopping malls, airports & some other crowdie
places where people will be left with no choice but having McDonalds’ products. McDonalds
intentionally does this by communicating with the mall & airport authorities so that their networks
become increased. (Burger Business, 2013)
Chapter 3: Research Design and Methodology
3.1 Introduction
In this section of research, several methodologies are used to conduct the research study. Development
of Type of investigation, research limitations and data analysis plan, sampling size, ethical issues and
sample design and measures, data collection methods, data analysis, accessibility issues and ethical
considerations will follow.

3.2 Type of Investigation


This study of research is designed to assist decision makers in determining, evaluating and
preferring the impact of sales promotion techniques of McDonald’s in increasing sales. The
research design is conducted formally and structurally. Sample large is not very large as well as
sample represents the overall population that is why this type of investigation relates to conclusive
research design in which descriptive research is undertaken for research method. Some hypotheses
are set out in chapter one which will be investigated and tested to get a generalist result. Due to
the short time allocation, case study approach will be followed in this research. A conceptual
analysis given in literature review will be tested by this research work. Based on some
questionnaires, sample survey will be conducted on limited sample to get idea or to characterize
the whole population.
This research based on sales promotion of McDonalds as an example of case study. So this study
is descriptive in types. So descriptive methods are take place. Because, now we are living in a
world of communication. And customers in UK are very much aware about their benefit. They
always trying to search what they are about to get. That is why many companies offer attractive
sales promotion. Sales promotion always considered as a very strong tool to increase the sales
volume as well as the profit margin. In this research we need to explore into some facts about the
connectivity of sales promotion and the increased sales based on fast food company McDonalds.
In here the descriptive research take place to get the facts known about the selective subject matter.
3.3 Research Paradigm

Survey with questionnaires and observation methods will be used to collect and assess the primary
or first-hand data. A questionnaire will be used by the researcher to get required information from
the respondents. Questions will be closed and open ended according to the topic. Observation
technique will be used to analysis the gap of the statement of the respondents. By using both
observation and survey methods in this descriptive research method of data collection really helps
to be tactful and sensitive in this approach. Some of the fundamentals of those techniques are
summarized in the analysis section.
a. Observation: It is a social research technique that involves the direct observation of
phenomena in their natural setting. This differentiates it from experimental research in
which a quasi-artificial environment is created to control for spurious factors, and where at
least one of the variables is manipulated as part of the experiment.
There are two techniques used in this personal observation
➢ Overt observational research: In this study researcher identify himself as a
researcher and explain the purpose of their observations. The problem with this
approach is subjects may modify their behaviour when they know they are being
watched. They portray their “ideal self” rather than the true self. The advantage is
that the overt approach has over the covert approach is that there is no deception.
➢ Researcher participation: By using this method researcher needed to acted in a way
so that the targeted people thought that they observing so as to get finer appreciation
of the phenomena.
b. Survey: This is a strong research instrument consisting of a series of questions and other
prompts for the purpose of gathering information from respondents. Although they are
often designed for statistical analysis of the responses. But for some other phenomenal
facts this study will be known as a case. This questionnaires has some questions that
measure separate variables, could for instance include question on:
➢ Preferences
➢ Behaviours
➢ Facts
Some parts of the questionnaire are aggregated into either scale or index, include for
instance questions that measure;
➢ Latent traits
➢ Attitudes
➢ An index like social economic status
Questionnaire for interview is used in this research interview seeks to describe and the meanings
of central themes in the life world of the subjects. The main task in this interviewing is to
understand the meaning of what the interviewees say. Interviewing, when considered as a method
for conducting descriptive research, is a technique used to understand the experiences of
respondent. Interviewing as descriptive research there are some criteria to use both of them
successfully. Those are described in below. Interviews are completed by the interviewer based on
what the interviewee says. Interviews are a far more personal form of research than questionnaires.
In the personal interview, the interviewer works directly with interviewee. Unlike the mail surveys,
the interviewer has the opportunity to probe or ask follow up questions. There was bit impression
about their opinion so the interviews got so easy. Although interviews took much time but it had
a very good and easy impact on the analysis and findings. Here the conversation was taken as a
strong tool of measurement instrument. This interview was worked as an opportunity between two
men to complete a very meaningful marketing issue.
The whole questionnaire was prepared by consider the type of the questionnaire. Those are
➢ Dichotomous
➢ Nominal-Polychromous
➢ Ordinal-Polychromous
➢ Bounded-Continuous
By the combination of those types of options the series of the questions was prepared. So that, the
data collection process gets so easier.

3.3 Data collection method


Data collection method is one of the most important research tasks. Both the primary and
secondary data will be collected for this research work. Data will be descriptive as it’s not possible
to get representative result by assessing one kind of data. (Bamberger, M., 2000).
This study is used various methods in collection of descriptive data including personal observation,
interviews, and questionnaires, checking reports and publications. The use of multiple data
collection techniques is important. Because of more authentic information makes the study ready
to meet the objective.

3.2.1 Primary data-


Primary data means first hand data that can be collected through observation, descriptive research.
. (Wilson, 2003). This is the data has not been subjected to processing or any other manipulation.
All this primary data was collected as first hand data and those are used for the analysis part.
3.2.2 Secondary data
Data previously collected from other sources for other purpose and not for the present research
work is known as secondary data. (Vartanian, T, P., 2010). Secondary data can be collected from
two different sources-Internal and external. When data produced and provided by the company
itself its known as internal source. And if the data produced and collected from outside the
company, it’s known as external secondary data. Both types of data will be used in this research.
It is the process of re use the descriptive data. Some sources were used as secondary data which
makes some unknown facts clear and understandable. Although those are not first handed
information but they helped. That is why secondary data is for. Secondary data are more structured
in type and more meaningful than raw material information or primary data. That is why secondary
data are more likely frequent source of dependency. There are some useful sources those are used
in this study.

▪ Annual report of McDonald: The annual report of the company always used as a vast source
of useful data. So in this research this source worked well. Because it contain lot of
information about their whole year’s growth and sales volume in a structured way.
Although there was a bit information about their relativity of their success with those
attractive sales offering. That report describes more about their mission and vision. But the
information about the impact of sales volume was absent. But with those vast ranges of
information the impact can be forecasted. Because this report was full of their skim, offers
and sales growth.
▪ Advertisements: Fast food advertisements were frequently caught the eye of the audience.
So McDonald does the same thing. Their advertisement appears on TV, newspapers, by
leaflet and every advertisement has some message to inform. So advertisement is always a
great source to know about the respective company’s sales promotions.
▪ Organizational publication: Instead of just menu card there are several types of cards and
publication which describes about the sales promotion. Those are used as sources of
secondary data.
Those are some used sources to seek the more structured data rather than the primary data.
3.3 Sampling method:
It’s not possible to interview the whole population within a short time limit using limited budget,
and this problem can be solved by using sampling method. Sampling is the process of selecting
unit or subset of individuals from population, analysing and studying these units’ can help to
estimate characteristic of the whole population. There are two types of sampling methods,
probability sampling method and non-probability sampling method.
Non-probability sampling method will be used by this research. In non-probability sampling
method, all individuals don’t have equal chances to be selected. One of the important
characteristics of non-probability sampling is that, in this sampling method, samples are taken
based on subjective judgement of the researcher instead of random selection. Purposive sampling
technique will be used by the researcher as it inspires them to select sample according to their
need. This is a research about a selected organization. And this is also related with a specific area
that is why flexible way is considered rather than random sampling. It is a bit of systematic
sampling. In London, UK, the number of current customers are many and the number of
interviewees are limited to 130. The interviewees are regular and diversified customers of
McDonalds.

3.4 Accessibility issues:


In this research study, staffs and customers will be interviewed to reach the research goal. It’s
essential to take the permission of manager first to take the interview of staffs. Unhelpful attitude
of manager, too much working load of staffs, customer’s unwillingness to take part in research
work all are considered as potential risk to gain perfect sample or get perfect result from research.
Access to secondary information is very much essential in any research work to get a perfect
research result. (Smith, E., 2008). Some research also conducted on this issue, researcher can get
access to this secondary information using internet or going library which is very essential for
research.
The main tools to make sure about the access into the subject matter through the respondents and
the respected target people, was the questionnaire sequence. Those questions are decorated such a
way so that respondent could give the answer eagerly. Because of the disturbance of the
respondents has a very bad impression to the manager of that outlet. So that could be a hazard to
the study. So the researcher needs to handle this situation wisely. That is why an organized pre
plan is very important to prevent the accessibility problem. So accessibility considerations need to
take place early and throughout the program of research.

Areas to consider:
▪ User interface design of innovations
▪ Datasets- do they accommodate user diversity?
▪ Illustration should be considered appropriately.

3.5 Ethical issues:


A researcher must have to consider some ethical issues. Six key principles set out by the ESRC
Framework for Research Ethics will be followed by this research work. These principles are given
below-
Ensuring Quality and Integrity
Quality and integrity will be followed in this research properly. Researcher will present the
research result from a neutral point of view. All procedures would be followed by his carefully to
ensure quality.
In this study we need to figure out the impact of sales promotion. But some customers are too
much loyal to this company. And this is not related to the sales promotion. For the sake of ethical
issue those respondents got deducted from the sample. Because they might be partial by some
point of view

Seeking Consent
It’s the researcher duty to seek consent before taking interview from the respondents. Without
taking consent he can’t proceed, it’s against their research ethics.
Because seeking consent is like taking permission. We can also call it by an agreement. Because
without permission they were not bounded to researcher to answer. In this research data was
collected with the permission of the respondents.
Voluntary Participation of the Respondents
Researcher can’t force or influence anyone to give information or to take part in the research, it’s
a willing process. This research will interview the participants who will participate willingly.
All the participants of this research were gave information willingly. There was not any kind of
force or rush to answer the questions. The respondents with interest were only selected for this
data collection.
Non Harmful to Participants
Keeping the participants interest should be the prior responsibility to the researcher. A good
researcher never harm his respondents, it’s one of the most important ethical principles.
By using favourable sequence of questions and keeping the interview flexible is the method to
keeps the respondent away from any harm. This research conducted with some extra effort. So that
the respondent could feel safe to participate. If any respondent feel uncomfortable then researcher
should change the discussion with some other way. This is followed in this research.
Keeping Confidentiality of the Participants
The confidentiality of the participants should be kept carefully. If they think their shared
information is not highly secured, then surely they won’t feel free to share all the required
information which will ensure the success of the research work.
It is not only keeping the participant information secret but also keeping the respected company as
well as the researcher’s information. Without the assurance of confidentiality participant will feel
insecure. That is why researcher should keep the information between them. At the same way
participants should follow this rule equally. So researcher should assure about the confidentiality
at very first. And this rules is followed in this study.

Independent and Impartial Research


This research must be impartial and independent. It must not be affected or influenced by the
beliefs of the researcher or by the interest of other people. Because, a partial research never produce
authentic result.
This research contains the impartial information about the sales promotion. All the participants
were got known about the purpose of the study. They were well known about the objectives of the
study. This research does not showing any kind of partial information regarding any party,
company or any community. Data collection and analysis is representing the whole part of
independency of this study. This research is free from all kind of manipulation.
Data analysis plan
Only the quantitative or descriptive data can’t give a representative research result. According to
the research methodology, primary, secondary, quantitative and descriptive data will be collected
and analysed in this research to get a representative result.
There are three steps that need to be followed in quantitative research which include- Coding, data
entry and tabulation and statistical analysis. (Newman, I., 1998). Tables, diagrams, Microsoft excel
will be used to analyse the quantitative data. In descriptive data analysis, there should be
relationship between literature review and findings. Data which are appropriate to the research
question described in literature review would be highlighted in descriptive data analysis.
Collected data needs to analysis for the decision making about the respected topic. Because data
collected as primary and secondary considered as raw materials. Without processing all those
information, that study cannot be counted as final product of research. In analysis section collected
data analysed in such a way, so that the data collection could meet the main purpose of it. Before
get down to any work plan is essential to make the whole task much easier. Data analysis is not
different. This task is also needs an appropriate planning, so that it could meet the core value of it.
By using questionnaire all the primary data used to collect for that type of research, and secondary
data collected know about the relation between the first hand data and the ultimate way of findings.
For this reason all the answers and response of the respondents are analysed in the analysis section
by the focus of secondary data. There is several measurement scales to measure all the information.
3.7 Research limitations:
Effect of sales promotional strategy on sales increase is a vast issue; it’s not possible to assess this
issue within short time limit. But time allocation for this research work is very short which a main
constraint of this research.
Besides short time allocation will cause short sample selection. External validity might be limited
due to limited short sample selection. As a result the generalization might be hampered. It’s not
possible to get the whole picture of sales increase through sales promotion strategy only by
interviewing a limited number of respondents. Some limitation of this research described in below
➢ Time limitation: Research is a very long time process. It cannot be accomplished within
few months. Collection of many types of data by using selected method needs huge time.
After collection, those data needs to analysis in a careful way. The whole process needs lot
of time. But the given time was not enough.
➢ Geographic limitation: Customers of fast food industry is everywhere. But a selected
company with selected branch does not show the overall fact. Although the customers or
target peoples were so many. It is not possible to take interview from every single person.
That is a big limitation.
➢ Resource limitation: Professional researchers used to get paid. That is why they consider
all the spending money as maintenance charge. Due to this limitation this research is not
comparable with some professional research.
➢ Lack of experience: Experience is very precious thing. Without past experience this type
of research could not gather all the possible facts.
Those are some limitations of this research. This research has gone through with those limitation.

Chapter 4 Results, Analysis and Discussion

In descriptive research many methods and way need to conduct to get the best approximate result.
In here an appropriate planning takes its place. That is why as a researcher I needed to confirmed
about some facts, including data analysis tools- Microsoft excel Microsoft word and some
statistical presentation tools. Which tools are needed, that depends on the nature of the study.
Although, this portion of data analysis seems a bit of complex. But by using those tools this data
analysis became much easier to get a clear concept about the whole study. Because, data analysis
part is the heart of every research. That is why in this discussion section of data analysis every part
of the collected data was considered. Results are described below.

How satisfied consumers feel with sales promotion techniques of McDonald’s in London, UK?
Technique

Primiums
13%

Buy one get


one deal
29%

Coupons
34% Gifts and prize
16%

App
download
and sharing
8%

From this survey in Bond Street, London, we can find out some distinct information about some
very effective sales promotion. But in our research respondents gave their interest only some of
them. But all those offers were very much famous about their attraction. In our discussion coupons
got the number one position with 34%. After that buy one get one deal got 29% of the respondents.
Gifts and prize holds 16% of the respondents. 8% of the respondents choose app download and
sharing offers: free chop chip frappe or passion fruit smooth in special occasion. From those
percentages we can observe that customer loves more in hand types of sales promotion rather than
some value adding things. They want to see them get benefited in front of their own eyes instantly.
This is called hand in hand offerings.
What is the satisfaction quality of the following dimensions of sales promotion of McDonald’s?
In this question there is a little bit different method was applied. Because here need some answer
with the proper measurement directly from the respondents. That is why a little bit different scale
is used in here. Those are
▪ Very dissatisfied
▪ Dissatisfied
▪ Neutral
▪ Satisfied
▪ Very satisfied
a) Brand Quality
very
dissatisfied
0%

satisfied Dissatisfied
32% 26%

Neutral
42%

b) Price affordability
very dissatisfied
dissatisfied 20%
3%
very
satisfied
25%

satisfied neutral
27% 25%

c) Store accessibility:
very dissatisfied
dissatisfied 8%
2%

very
neutral
satisfied
15%
40%

satisfied
35%

d) Marketing/ communication:
very dissatisfied dissatisfied
3% 12%

neutral
7%
very satisfied
47%

satisfied
31%

From those charts we can see that there are several subject matter to judge. So according to the
sequence those information was presented. So that the expected outcome could easily come out.
Among them most of the people really do not know about the brand quality, but they tried to give
the answer. But this information comes from the satisfactory level. If the customer is satisfied then
he will gives the positive answer. If he is not then the answer could be different.
Now price is a matter of consider. Because all the customer in this world want the product with
minimum low price. In this study this facts came true. Customers were seems satisfied by their
nature but they claim that price should be reduced with their choosing pattern.
Store accessibility is a combination of many things together like decoration, environment of the
outlet, the service and in the area of eyesight. All this things comes together when we talk about
store accessibility. Most of the customers are quite satisfied with that.
Marketing/ communication, now here come the most important question of our research. Because
that question is all about the sales promotion. And they are quite satisfied with this topic. So we
can say that sales promotion is the main tool to boost up the sale. So, there is an impact on sales
promotion techniques which impacts on increasing sales of McDonald’s
Based on the offers and features of sales promotional techniques developed and applied in the
market of London by McDonald’s compared to other food based companies customers think that
the company’s sales promotion techniques are.
much
worse
10%

much better
about the same
40%
20%

somewhat better
30%

About this question it is very easy to say that over 60% of percentage is positive. So we can say
that they are very good at it. Because customers are very satisfied with the respective offer. With
that promotional tool, they can satisfy their customer as well as can attract new customer toward
their food and their company. So it is a bit of good news for the company. They need to continue
the whole process of offering and incentives to the customers.

Compared to other food companies and their food menus and offering as well as their food items
available in market customers in London said that McDonald’s food items and its quality are

poor
1% undecided
16%

fair Exellent
12% 43%

good
28%
In this section the question was raised about the quality of food to judge the mentality of
customer toward food as well as the company. But the outcome of that judgement got the
company side. The participants said well about the food. This means they are satisfied with
their service. But it is very difficult to say about the specific impressive service. Because
all the service are interrelated to other. Here another truth came out. And that is, if the
quality of food is not got then the sales promotion got waste. So every company should
maintain a proper balance between the sales promotion and the quality of food.

Deciding between food items of McDonald’s and competing other food makers consumers buy
one get one deals of McDonald’s influence them to buy the food?
not at all
2%

undecided
18%
very much
44%

somewhat
36%

By this question’s analysis a very interesting information got known. People are just got
crazy about this offer. Because getting an extra piece is a great benefit to them. So they do
not want to miss that chance at all. 44% people thinks that drives them to buy that food.
36% said that somewhat they want to buy that food to get that chance and other 2% said
this is not effective and other remaining people said they could not decide about it.

If deciding between food items of McDonald’s and competing other food makers, how much
would gifts and prize schemes in special occasions of McDonald’s influence customers to buy the
food?
very little not at all
13% 2%
very
much
14% somewhat
11%

undecided
60%

In here the question was about gifts and prize schemes. A big part of our respondent got
confused to give any answer. And the percentage of that figure is 60%. 14% people think that
is very effective. 11% people somehow they agree with the statement and 13% people think it
has very little impact on their buying decision. But 2% people think it has no impact on their
buying decision.
So, there is an impact on the effectiveness of sales promotion strategy of McDonald’s which has
an increase on the sales opportunities in the market of London.

Deciding between sales promotional tactics of food items of McDonald’s and competing other
food makers, how much would coupons, premiums and sweepstakes of McDonald’s influence
customers to buy the food?

not at all
13% very much
23%

undecided
35% somewhat
29%

How the coupon, premiums and sweepstakes helps to increase the sales that was the main
objective of that question. 35% people could not think about any of these options so they
abstain. 29% people said it has somewhat impression. 23% people strongly said about the
positive things about this sales promotion.

How would customers in UK rank the quality of McDonald’s sales promotions?

poor undecided
1% 2%

fair
25%
exellent
41%

good
31%

This is the final judgement about the sales promotion and the effect of that promotion in
sales of McDonald’s. So this question is asked to respondents so easily. And they choose
their choice according to their own judgement. 41% people think that is excellent, 31%
people said well about the sales promotion. 25% people said it is fair somehow. 1% said
poor about McDonald’s sales promotion and other 2% people do not know the real fact.
That is why they remain abstaining.

Eventually, it is proved that there is an impact on sales promotion techniques which impacts on
increasing sales of McDonald’s as well as businesses of McDonald’s that follows sales promotion
strategy which can increase sales than other business companies. Moreover, the effectiveness of
sales promotion strategy of McDonald’s which has a positive increase on the sales opportunities
in the market of London. So, H0 is rejected and H1 is accepted.

Conclusions
In the end it is exemplified that the impact from the promotional techniques has turned out very
positively on their overall sales in the Bond Street Branch of London. In general the sales and
profits generated during several previous years was excellent and their sales promotional
techniques are sort of covert. Regular improvements of McDonald’s entire activities are seen in
their authorised food outlets. In according to the customers of London, the effects of the
promotional techniques are very good and it is mandatory for the company to keep these
promotional activities in a regular basis, not to short it rather to increase sales promotions so forth.
Meanwhile in aspects of less developed areas those are not like London, sales are usual even of
these sales promotional activities performed by the McDonald's. Sales promotion techniques
which is influential on increasing sales of McDonald’s as well as other businesses of McDonald’s
and the effectiveness of sales promotion strategies of McDonald’s which has a positive increase
on the sales opportunities in the market of London. So, sales situations are non-negative, hence it
is quite satisfactory and profitable compared to other food makers in Bond Street London areas.
Recommendations
Moreover, some recommendations can be suggested with justifications for the McDonald’s
Marketing manager of Bond Street to increase a better sales, outcomes, popularity and maximum
satisfaction:
• The company is that are must understand the each and every customer properly for making
sure the repurchase from them. A website blog can be more advantageous for knowing the
customers more deeply regarding to their preferences choices likes and dislikes.
Meanwhile store positioning can be slightly changed for the maximum customer attraction.
For supervising and monitoring the sales functions more appropriately some additional
employees part time or full time can be recruited. The menu of premium burgers should be
increased because of its popularity it has been observed that in every store and in every
shop in the London premium burger food items sold maximum number of units.
• To attract the maximum number of customers the store can be refurnished with modern
equipment. Current sales promotion techniques are adequate and well enough to generate
possible number of sales yet the sales can be triggered by offering more value and
economic meals for all classes of customers especially in the bond street of UK. Food items
and raw food materials and its preservation system should be stored perfectly. Moreover
the number of series of toys can be increased for the attraction of children more. A series
of fruit juice items, low fat dairy items, vegetables and fruit items must be maintained with
proper nutrition. Through this report we have come to some ideas through which
McDonalds can develop its current strategies & to work more adding growth in its market
share. The marketing strategy of McDonalds is strong & fully goes on with the fulfilment
of its objectives. So the implementation of marketing strategy is as important as planning
a good marketing strategy for gaining more shares & for attracting untouched group of
stakeholders.
• More research & development activities, more & more involvement of people to its
marketing strategies, better ways to find out effective marketing communication are
something that McDonalds can do which can give it a competitive advantage in the
marketplace. The adaptation & following of good marketing strategies can improve the
economic condition of McDonalds & let it achieve effective marketing strategies &
techniques in order to go on with the updating environment so that this company can
confront challenges of the market & can divert the current threats into the opportunities
along with changing the current behaviour & consumption pattern of the customers of it in
Bond Street of Central London.
• Though McDonalds is the better of all other existing food chain restaurants in the world
this company has also something to add with their existing service level as well. This
company has the localized outlets which are managed & controlled by the local employees
of McDonalds. In locals, some of the local outlets of McDonalds are complained for using
unhygienic kitchen environment & provide foods in an unhygienic way. So to remove this
complain McDonalds can appoint the managers from the central authority & start the
central controlling system in its all the outlets of central London. One area manager will
be appointed by the home country of McDonalds & she/he will report the country outlets’
condition to the centre. By this, there will be ensured a code of command in all the outlets
of McDonalds.
• Another thing that the company should follow is the use of recyclable packaging in the
outlets. To encourage that idea McDonalds can give the customers with the offer that if
they return the recyclable packaging of McDonalds they will be offered with some hampers
or they will be charged less while they visit McDonalds outlets in London. This strategy
will encourage people same the packages & also help the company reduce their packaging
cost & help the movement of sustainability issue which is now in the zenith of its concern.
McDonalds has started using less calories & cholesterol in its food items & using
vegetables has added as one of its practices.
• McDonalds can increase food menus announcing vegetable items in its global markets
rather than keeping them in localized versions because vegetables are the common
ingredients used in the world. So McDonalds can start a vegetable campaign as well. If it
starts using more & more vegetables in its food items then it will inspire the people of
London to cultivate more vegetables which will also help protecting the environment & it
will create a positive impression of people to this company. Using vegetables in the food
items will reduce its production cost, save the environment, help the animals to breed more
& moreover it will be cause for employing more people for vegetable cultivation. In its
vegetable cultivation campaign McDonalds can invite & add the local communities to
make the campaign more successful with the help of the locales. In the many countries
McDonalds have its outlets but their number is countable & they are not even available in
those places where they can have a huge demand. So for the central London, McDonalds
can set its outlets in the places full of crowd like educational institutions, offices, parks etc.
McDonalds can be sponsor of many local events which will be another reason for its
promotion as well.
• Finally, for the identification of more opportunities lying in the market McDonalds can do
more research & allocate more budgets for its research activities. This company can adopt
informal ways to do research so that the general people can have no idea about the research.
The researchers can meet the current customers in disguise of other customers & find out
their expectations & level of satisfaction to the products offered by McDonalds in Bond
Street. McDonalds should also develop more advanced & interactive ways of customer
management through which many complains of customers will be taken care of
immediately & there system of responding customers should be more developed so that no
complain call can remain un-received. Another way of communicating with customers can
be the arrangements of competitions where the customers can provide ideas of how this
company can produce food in less costly way. That will help McDonalds getting more
innovative ideas in the shortest possible time.
So, in London, UK, if McDonalds wants to become successful and market leader in terms of sales,
following recommended suggestions can help to become market leader position will be unshakable
in aspect of the area of London.

Timetable:
Every research has a time schedule within which the research must be done. Following is the
timetable of this research project.

Months
Tasks June June

Make research proposal

Set out questionnaires

Proposal Submit

Timetable interviews

Start interviews

Analysis

Implement findings

Write draft report


Start full data analysis

Write dissertation

Final Paper Submission

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http://www.forbes.com/sites/panosmourdoukoutas/2013/11/23/mcdonalds-three-
strategies-to-re-ignite-sales-growth/> [Accessed: 19th September, 2014]
28. McDonald’s Corporation, 2008, ‘Marketing at McDonald’s’, [Online]. Available at: <
http://www.mcdonalds.co.uk/content/dam/McDonaldsUK/People/Schools-and-
students/mcd_marketing.pdf> [Accessed:19th September, 2014]

Appendices
This questionnaire is structured on the impact of promotional techniques of McDonalds subject
to their sales. For that opinions of its customers are investigated for better analysis and findings
of whole impacts on the choices and preferences of the customers which ultimately affect
paramount on the sales of the company onwards.
Q 1 Gender
Q 2 Age group:
1. 18-25
2. 25-35
3. 35-45
4. 45-60
5. 60-above
Q 3 Origins:

Naive Non-naive

Q 4 Education:
Q 5 Income: Very low income

Low income Middle income Higher middle High income


income
Q 6 How satisfied you feel with sales promotion techniques of McDonald’s?
1. Buy-one-get-one deals
2. Gifts and prize schemes
3. App download and sharing offers: Free Choc Chip Frappe or Passion Fruit Smoothie in
special occasions
4. Coupons
5. Premiums
6. Sweepstakes
Q 7 How satisfied are you with the following dimensions of McDonald’s
Serial No Dimensions Very dissatisfied dissatisfied neutral satisfied Very
satisfied
1. Brand Quality
2. Prices affordability
3. Stores Accessibility
4. Marketing/Communication
Q 8 Based on the offers and features of sales promotional techniques developed and applied in
the market of London by McDonald’s compared to other food based companies do you think that
the company sales promotion techniques are:
1. Much better
2. Somewhat better
3. About the same
4. Much worse

Q 9 Compared to other food companies and their food menus and offering as well as their food
items available in market would you say that McDonald’s food items and its quality are:
1. Improved or Excellent
2. Good
3. Usual or Fair
4. Tasteless or Poor
5. Undecided
Q 10 If deciding between food items of McDonald’s and competing other food makers, how much
would Buy-one-get-one deals of McDonald’s influence you to buy the food?
1. Very much
2. Somewhat
3. Undecided
4. Very little
5. Not at all

Q 11 If deciding between food items of McDonald’s and competing other food makers, how much
would Gifts and prize schemes in special occasions of McDonald’s influence you to buy the food?
1. Very much
2. Somewhat
3. Undecided
4. Very little
5. Not at all
Q 12 If deciding between food items of McDonald’s and competing other food makers, how much
would Coupons, Premiums and Sweepstakes of McDonald’s influence you to buy the food?
1. Very much
2. Somewhat
3. Undecided
4. Very little
5. Not at all

Q 13 how would you rank the quality of McDonald’s sales promotions compared to other food
maker’s sales promotions of same nature?
1. Excellent as First Class
2. Good as Second Class
3. Fair as Usual
4. Poor as Bad
5. Undecided
These information provided by you will be kept hidden and feel free to share your thoughts, other
opinions, other likes and dislikes. Your co-operation is appreciable.
1. Gender

Female • 57%
Male • 43%

Gender

Male
43%
Female
57%

If we see here we can easily catch the difference between male and female customer. Although
here is a probability of psychological acceptance about the service of the organization. But if we
look through our topic then it seems little different. Here 57% of the respondents were female and
other 43% of the respondents were male in London. In here female customer are more than male
customers. So we can say that the effect of attractive sales promotion has greater impact on female
more than male.
If a woman goes for a bite then normally she used to bring someone. It could be her husband, her
friends or it can be her child. So by targeting one woman this company can get some other
customers too. So automatically the sales are increasing.
So in this simple section about gender we can find out the impact of sales promotion on the total
volume of sales. And that increasing portion of sales gives the company some sustainable
competitive advantage as well as profit.

2. Age group
18-25 • 37%
25-35 • 34%
35-45 • 20%
45-60 • 7%
Above 60 • 2%
Above
60 Age group
45-60 2%
7%

18-25
35-45
37%
20%

25-35
34%

In this age group it was tried to seek the most interested people of age. In this section 18-
25 aged people were the maximum percentage. That shows the interest of young generation
toward the fast food. After that the 25-35 aged people got the second position of the age
ranking with 34%. In here also having a bit of age effect. 35-45 aged participants were 20%
of their percentage. Here the percentage falls. There are some other reason could be related
with this fall. But the percentage became low about the age of 45-60. It is only 2%. Because
at this age people got very conscious about health and other issues. They are almost
forbidden from that type of food. That is why, no matter how attractive promotion the
company offers does not get the eye of that aged people.
On the other hand young generation are very much cost sensitive. That is why the used to
know all the sales promotion of the McDonald’s. But with the increasing year of age that
interest falls down. So we can say young generation are the target customer of every sales
promotion.

3. Origins

Oigins
Naïve
2%

Non naïve
98%

In this section almost all the respondents are capable of taking their own decision about their
choice. That means they are out of anyone’s manipulation. They used to pick their own choice
with their own decision making process. That is why attractive sales promotion got them
quickly. Because it is not give any chance of judgement. It is used to came from instant decision
making. If they are little bit confused then it is become a matter of discussion. When they
discuss about the new sales promotion, at that time he or she used as a promotional tools to the
company. Because he or she promoting an information among the people. That is why they are
important. On the other hand naïve people are also a part of the service and they are also
contributing from their position.

4. Education
Education

No
27% University
23%

College
School 26%
24%

Here every section of education has a great impact on the response of any offerings. For this
question 23% of respondents are from university, 26% from college and 24% are from school
and other remaining 27% said they are doing job. They did not said about their education. For
the reason of the ethics of research that data was not given in this section. But we can say that
the sales promotion and the impact of it could affect the students more than other people.
Students are more conscious about the promotion and offerings. That is why the less price food
sales higher than the luxury food. It is a very strong about the purchasing behaviour.
5. Income:
Income

high very low


26% 19%

low
middle
31%
24%

In this following chart we can see about the information of income of our resopondents.19%
of our respondents are getting very low money for their livelihood, 31% peoples income are
low and this is the maximum percentage of the overall respondents, other 24% people earning
money at the middle level and rest of the 26% people earning in a good figure. Their income
is pretty much high. So it could easily say that the low level of incoming people is more
interested to know about the sales promotion. But with the total amount of sales volume it can
be recovered instead of high price. So we can say that price sensitive customers are more likely
the target customer of sales promotion. And they are contributing in the increased sales
volume.

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