how special promotions can increase sales? (case study of a selected mcdonald’s)

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Dissertation Topic: How special promotions can increase sales? (Case study of a selected McDonald’s) Course: MBA Date of Submission: 30 th JUNE, 2011 1

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Complete Research of special promotion in McDonald’s for increasing Sales.

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Page 1: How special promotions can increase sales? (Case study of a selected McDonald’s)

Dissertation Topic:

How special promotions can increase sales? (Case study of a

selected McDonald’s)

Course:

MBA

Date of Submission:

30th JUNE, 2011

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Dedication

I dedicate this dissertation to my dear parents who always encouraged me and stand behind

me with lots of prayers. I would also dedicate this dissertation to all my family, sisters and

brothers and my friends who have been very supported to me during all the times in my life.

And finally I want to dedicate this dissertation to my dear fiancée who motivated me

throughout my research work.

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Acknowledgement

First of all I am very thankful to God who gave me the ability and strength to complete my

desertion on time.

Secondly I want to pay gratitude from the depth of my heart to my supervisor Professor

Thomas Reeves for his support throughout my dissertation. His knowledge and skills are

really admirable. His moral support, academic support, continuous feedback and motivation

enabled me to complete my research very interestingly and quiet successfully.

I would also like to say many thanks to all the staff of the McDonalds, the crew and the

managers who allowed me to conduct my research on the organization and provided me all

kind of possible help and information.

And finally I would proudly say thanks to all the teachers and staff of my school London

School of Commerce, who are really providing a high level and top standard education.

Whatever I learnt there was very helpful at this stage and will be very reflective during whole

my life. I am also very thankful to my all family and friends for all their moral support, love

and prayers.

Abstract

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The aim of this research is to identify the importance and role of special promotions for a

selected McDonald’s. Promotion products are most valuable assets of the company. As

market is saturated with tough competition in fast food industry and all competitors are trying

to attract more customers in order to increase their sales. Moreover, the knowledge of

consumer has increased because of advancement in electronic media and people have become

more sensitive about the choice of their food. In these circumstances companies need to be

target oriented in decisions making. The study is focused on a selected McDonald’s

promotions activities. The purpose of the research was to analyse and investigate the effects

of special promotions on sales. Research is conducted on the selected McDonald’s to gain the

aims and objectives of research. Quantitative research method is used to collect the data. Data

is collected through questionnaires method from the customers of the McDonalds. Questions

were organized in way to get information about preferences of consumers of different ages

and sex for McDonald’s food and other fast food companies. Moreover detailed discussions

were made with the staff to get information from the restaurant. The results showed that

consumers were well influenced by special promotions. All the evidences were collected

from the previous work in this field through the review of literature. This research showed

that special promotions play a vital role to boost the sales. As result this is recommended that

the company should continue investing on the promotion products and promotion activities.

Table of Contents

Serial No Topics Page No

1 Title Page 12 Dedication 23 Acknowledgement 34 Abstract 4

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5 Table of Contents 5

Chapter 1

Introduction

1.1 Introduction 81.2 Purpose of Study 81.3 How to define Special

Promotions?9

1.4 Company overview and business description

9

1.5 Background 111.6 Research Aim 121.7 Research Objectives 121.8 Scope of the study 12

1.9 Research Methods 13

1.10 Scheme of Study 13

Chapter 2

Literature Review

2.1 Sales Promotion 152.2 The growing importance of

sales promotions

16

2.3 Sales Promotion Objectives 172.4 Sales Promotion Techniques 172.5 An Overview of How Sales

Promotions Work25

Chapter 3

Research Methodology

3.1 Introduction 283.2 Research Philosophy 283.3 Research Design 293.4 Questionnaires 313.5 Research Ethics 36

Chapter 4

Finding and Analysis

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4.1 Introduction 374.2 Questionnaires Findings 374.3 Research Findings 37

Chapter 5

Discussions

5.1 Introduction 485.2 Discussions with

McDonald’s Manager and Staffs

48

Chapter 6

Conclusion and Recommendations

6.1 Introduction 526.2 Conclusion 526.3 Recommendations 586.4 Recommendations for Future

Researcher59

Chapter 7

Reflective Statement

7.1 Reflective Statement 60

References 63Appendixes 66

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Research Topic:

How special promotion can increase sales? (Case study of selected McDonald’s)

Chapter 1

Introduction

1.1 Introduction

This chapter discuss the history of McDonald’s restaurant, background and consumer’s

behaviour towards fast food industry in the UK. Moreover meanings and importance of

special promotions and the tactic McDonald’s uses to introduce promotions in order to attract

more consumers are discussed. This research is conducted on a selected McDonald’s

restaurant. And in this aspect all the discussion is about that particular McDonalds. All the

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research data, figures and discussions describes that selected McDonald’s restaurant that is at

commercial road London. The reasonsthe researcher chose this area for research, purpose and

the aim and objective of this research are being discussed here. Research methods are also

being discussed according to scheme of the study.

1.2 Purpose of Study

The purpose of this research study was to identify the importance of special promotions for

the McDonald’s as well as for the consumers. McDonald’s practices a regular research in

order to read the psychology of consumers. Rather than going in details of fast food giant

overall approach towards promotional activities, the researcher focused on a particular

McDonald’s restaurant for this study as research is carried out in a limited period of time. In

order to achieve their prospective McDonald’s have been using the number of ways to

understand the market, for example consumer welfare program, consumer’s feedbacks and

organised surveys are the part of those activities. This study helped out to analyse how well

McDonald’s understand the importance and intention of people towards spending money and

how successfully the fast food giant is motivating people to spend at the restaurant.

McDonald’s set Psychological prices and monopolies in order to attract more people. The

purpose of this research was to focus on the tactic and important business decision making

(marketing, promotions) which are essential to grow the business and to stay ahead from the

rivals.

This study helped out to identify and understand that how McDonald’s uses special

promotions to attract the consumers. This has been observed that the first thing which makes

customers to step in any shop is the advertisement of the special offers. This is a

psychological factor which motivate customer to go ahead and purchase the product. All the

small and large businesses are using this tactic to promote themselves in the market.

The research identified the importance of special promotions for the McDonald’s as well as

for the consumer. The carried out research showed how successfully McDonald’s achieved

the goals with the help of its special promotions.

1.3 How to define Special Promotions?

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In oxford dictionary the word ‘promotion’ is defined as “activities done in order to increase

the sales of a product or service” (www.oxfordadvancedlearnersdictionary.com). In order to

increase the sales business organisations introduce and offer some new products, discount

prices on particular products or for a particular period of time, new deals, monopoly, loyalty

schemes, these are defined as ‘special promotions’.

1.4 Company overview and business description

McDonald’s restaurants operated by MacDonald’s Corp were number one fast food chain in

the world till March 2011. In March 2011 Subway became the largest fast food chain beating

McDonald’s by its number of outlets.McDonald’s is serving about 49 million customers in

120 countries worldwide every day. The company’s headquartered in Oak Illinois.

McDonaldsoperates and licenses 31000 restaurants. The company generated total $19.06

million revenue in year 2004. McDonald’s brand is one of best brand out of ten most popular

brands in the world. McDonald’s differentiate its name and brand image through continuous

marketing, promotional activities and public related activities from its competitors to stay on

top.

The fast food giant offersa menu uniform to all locations. It emphasizes on low prices menu

as cheese burgers, ham burgers, chicken nuggets, soft drinks, hot drinks and many more. In

addition to its regular menus, McDonald’s introduces some promotional products time to

time. This promotional product plays a vital role to increase the sales of McDonald’s. During

the research number of interesting facts and figures came in the knowledge that how the

company stole the menus and strategies of other fast food companies in order to cover the

vast area of customers. And this has been observed too that how people can be attracted and

motivated through introduction of new products. The psychology of human being is that

every new thing attracts him. No matter it is the new girl, new car or a new burger with

slightly changes in a new box. Whenever people see something new they always go ahead to

try it. That is mean it is always a good and successful strategy to introduce new products time

to time. This is what McDonald’s is practising very nicely and successfully. The business

manager of the selected McDonald’s told that half of their total sales come through special

promotions.

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All the business organisations want to increase their revenue and profits, and this is possible

when an organisation focus on the factors which consumers consider when they spend

money. For this purpose the business organisations make the business strategies. Marketing

and selling promotions is one of the most important strategies of any business organisation,

and its importance is comprehensive. The reason that why introducing promotions is

important is quite debateable.

In order to attract more customers, keeping the existing customers loyal and gaining the

interest of new customers, business organisations introduce some discount prices, new

seasonal products, special offers on some recommended products, monopoly or some

customers loyalty schemes extra. For example, Tesco the largest retailer in the UK started

offering its customers the reward point scheme. That’s mean that any customer who spent £1

at Tesco got 2 club card points. In this way consumercollected club card points every time

when they shop at Tesco. In January 2011, Tesco invested £340 million in order to cut prices

on branded and own brand goods. This helped Tesco to attract the people who were facing an

increase in the VAT in January just after recovering from the festive season. Similarly Tesco

have lots of deals which some times vary from store to store depending on the market, for

example low price meal deals including the bottle of wine in areas where purchase power of

consumer is low, in order to win more market share and remain ahead in the game.

McDonald’s Restaurants, which is the largest fast food operator in the world, have 30,000

outlets in more than 119 countries. McDonald’s serves more than 50 million customers in the

world and more than 2.5 million people in the UK every day. McDonald’s also introduces

special promotions to its customers. The fast food giant has a set regular set scheme of

introducing the new promotions which we read, observe and taste on daily basis.

1.5 Background:

People in the UK are Europe's biggest fast food consumers and McDonald’s was top fast food

company with its number of outlets before beaten by Subway in March 2011. In 2007 figures

showed that UK consumers spent £82 per head just in fast food restaurants and burger chains

that doesn’t even take into account other types of fast food order such as Chinese, Indian or

Pizza. McDonald's opened its first restaurant here in 1974, and now more than 2.5 million

people in the UK are said to visit McDonald's every day. (*Internet).

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As the above study clearly showed that the UK is probably the best market for fast food

business. There are number of reasons that people prefer fast food. One of the main reasons

to buy fast food in the UK is the fast life of people here. As the time is passing life style of

people is changing very fast. There was a time when people used to have time for everything

but as time passed new requirements came into being. Shortly in today’s modern life people

have less time to spend on cooking at home or going out in restaurants where they have to

wait a long time. As a result people prefer to buy fast food as in fast food restaurants waiting

time is too less. Basically the concept of fast food was used to avoid the consumption on food

cooking in modern age. In fast food the restaurants food has been cooked and froze to use on

the time. As a result customers are being served within two three minutes with beef, chicken

and fish which otherwise was not possible. This is also a fact that when people use something

on daily basis no matter what was the reason was to go for it, they get used to with that.

When someone get advantage of enjoy food in a way that at same time one could save time

by avoiding time consuming tasks (cooking at home or restaurants where waiting times are

high), the trend of buying fast food became very popular. Here introducing smart promotions

products to customers so that they could keep changing their tastes played a vital role in the

trend and popularity of fast food.

1.6 Research Aim:

In the research the researcher was intend to look at:

a) How McDonalds uses special promotions as tool to gain competitive advantages?

b) An investigationto understand how McDonald’s usesvarious tactics to attract the new

customers and lock the existing one through special promotions.

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c) An analysis of McDonald’s promotions strategies to increase the sales and maximise

profits through offering special promotions to people.

1.7 Research Objectives

The purpose of this study was to investigate the effects of especial promotions for the

customers and business organisation. The study in depth analysed the reasons of introducing

offers, it has been also critically discussed that how special promotions can be used for the

growth of a business organisation in both short run and long run.

a) To investigate the effects of special promotions on consumer purchasing

decisions.

b) To analyse how special promotions affectsthe organisational sales.

c) To analyse the importance of special promotions for an organisation.

The following objectives have been achieved during the research.

1.8 Scope of the study

This research was conducted as MBA dissertation that how special promotions can increase

the sales, a case study of a selected McDonald’s. In the research the researcher has examined

the impact and importance of special promotions for a business. The research emphasised the

various tactic of fast food industry towards getting attraction of consumers. To achieve the

goals and to increase the market share, it is essential for business to increase the sales one

hand and the satisfaction of the crew on other hand. No business can be successful unless and

until the staff working their feel job security and progress. So business have both inside

challenges as well as outside challenges to handle That’s why all the business are trying to

increase their sales as more as they can. For this purpose lots of methods have been used in

different periods of times. Today an effective tool of ‘promotions’ is very successful in this

scenario. As the worldwide recession, unemployment and increasing prices of products make

a person to think and go for deals which suits their budget. During this research lots of

interesting information gained, that how McDonald’s was using the promotions tactic to

make people come in. It was a broad field to learn and discuss but due to limited time scale,

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the research has been carried out on a selected McDonald’s restaurant’s’ crew, managers and

customers. Quantitative questionnaire method is used to collect the primary data.

1.9 Research Methods

This research was conducted from a selected McDonald restaurant (commercial road) in the

London UK. In order to select the restaurant the researcher made visits to several

McDonald’s restaurants in the area. The research included the discussion with top level

management to lower level crew working in the restaurant. Quantitative research techniques

have been used to collect the data from customers. The researcher made regular visits to the

restaurant to observe the trend of people towards buying promotion products. Crew members

who directly serve customers are being included in discussions in meetings. The business

manager of selected restaurant has interviewed to get the facts and figures so that meaningful

and realistic conclusion can be achieved. This method of collecting the primary data from all

relevant sources was very helpful and practically possible for the nature of research and

circumstances faced.

1.10 Scheme of Study:

A brief summary of each chapter is discussed below:

Chapter 1: A brief introduction of the topic and selected organisation is defined in this

chapter. This chapter includes aims and objectives of the research.Research methods are also

discussed in this chapter.

Chapter 2: In this chapter key developments in sales promotions are critically discussed.

Different techniques of sales promotions, objective, growing importance of sales promotions,

and how sales promotions work is being discussed.

Chapter 3: This chapterdefines the various ways of research. Moreover, the quantitative

research technique is used to conduct this research. Questionnaires are used as research

method to find different perspectives of consumer purchasing behaviour.

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Chapter 4:The research report is being discussed in detail, which was conducted from store

manager of selected McDonald’s. Personal observations and discussions with crew and

customers are also reported in order to provide in-depth information on given topic.

Chapter 5: The data collected through questionnaires is analysedand critically discussed in

this chapter. In order to analyse and present data in tables exploratory data analysis technique

is used. Each question is analysed and the outcome is discussed in detail in this chapter.

Chapter 6: This chapter includes conclusions which were made on the basis on data in

Chapter 3 and Chapter 4 and further linkcollected data with literature. In addition, research

questions and objectives are being properly conducted through data analysis.

Furthermore, recommendations have been drawn for the selected organisation to improve

their business and recommendations for future researcher are also discussed in this chapter.

Chapter 7:This chapter includes my personal analysis on the research topic. What I learned

in whole research process and how I learned about the research practical implications. How

this research could be done differently if I have to do it again.

Chapter 2

Literature Review

2.1 Sales Promotion:

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The term ‘sales promotion’ covers a wide range of activities intended to provide a short-term

increase in sales. Some sales promotions are aimed at retailers, some at consumers and yet

others at wholesalers, but in all cases the intention is to provide an extra incentive to buy, or

stock, a specific brand or product range (Blythe and Jim, 2006).

Sales promotion includes marketing activities other than personal selling, advertising and

publicity designed to enhance consumer purchasing and dealer effectiveness. Sales promotion

can be traced back 100 years (Kurtz at le. 2009).

The aim of sales promotion is to influence the targeted audience purchasing decisions. In

contrast, advertising are usually used to develop market awareness. Advertising is used to

achieve long term sales, whereas, sales promotion are used to achieve short term sales (Fill,

2009).

Additional value is offered through sales promotion in order to generate an immediate sale.

Sale promotion targeted consumers, distributors, agents and members of the sales force. A

whole range of network members can benefit from the use of sales promotion. This

promotional tool is traditionally referred to as a form of below-the-line communication

because, unlike advertising, there are no commission payments from media owners with this

form of communication. The promotional costs are borne directly by the organisation

initiating the activity, which in most cases is a manufacturer, producer or service provider

(Fill, 2009).

However, the marketers recognise sales promotion as an important part of overall marketing

plan; hence the focus has shifted from short term objectives to long term objectives of

building brand equity and maintaining continuous purchases (Kurtz at le. 2009).

According to Kurtz et al. (2009), sales promotions are used by both retailers and

manufacturers to offer extra incentives to consumer to buy their products. These promotions

are likely to stress price advantage, giveaways or special offerings. The main objective of

sales promotions is to speed up the sales process and increase sale volume. Moreover,

promotions are help in building customer loyalty. The marketer encourages consumers

through consumer promotion to try product and use more of it and buy it again. Similarly,

loyalty programs are more important to organisations than ever before due to wide range of

choices open to consumers than in past. Therefore, marketers need to find ways to build

loyalty among customers (Kurtz at le. 2009).

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Once sales promotions are combined with other marketing activities it produces the best

result. As advertising (for example, ads) create awareness about product or service, while

sales promotions lead to purchase or trail. In addition, sales person may offer a potential

customer a discount coupon for good or service. Due to limited time frame, promotions

encourage immediate action. Therefore, sales promotion produce measurable results, and it

gives marketers to evaluate promotional effectiveness (Kurtz at le. 2009).

According to Kurtz at le. (2009), there are certain elements which need to understand

properly that what sales promotions can and cannot do. Sales promotion on one hand can

encourage consumer interest in both new and mature products, help introduce new products,

encourage trail and repeat purchase, increase product usage, neutralise competition, and

reinforce advertising and personal selling efforts. On the other hand, sales promotions cannot

improve poor brand images, defected products or poor training for salesperson. Sales

promotion increases volume in short term and may not lead sales and profit growth in the

longer time period.

2.2 The growing importance of sales promotions

Sales promotions are the important instrument of the communications mix. In the UK,

estimates suggest that budget of promotion exceed advertising spends. There are number of

factors which can be attributed to this evolution and are shown below in figure 2.2 (Pickton

and Broderick, 2001).

Figure 2.1:

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Sales PromotionBuying decision taken in store

Distribution Channel Power

Measurability

Short-term Orientedness

Lack of differentiation

Declining Brand LoyaltyCommunication Clutter

*Figure 2.1 Factors affecting the increasing use of sales promotion (Pelsmacker, 2010, Page 408)

“Due to an increasing number of product categories, more and more brands and product lines

are offered. Hence, it is getting increasingly difficult for consumers to distinguish brands on

the basis of their intrinsic qualities. In addition, functional differences between brands have

become less important. Therefore, manufacturers find it increasingly difficult to differentiate

their brands on the basis of advertising”, (Pelsmacker, 2010).

According to Pelsmacker, (2010), in order to attract targeted audience promotion is seen as a

useful tool to persuade them to buy their brands. Similarly, through advertising it is relatively

difficult to reach consumer effectively. Sometimes, individual ads get lost in communications

clutter, and are hardly noticed by the majority of consumers. In addition, sometime

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consumers are irritated by advertising and they try to avoid advertising. Therefore, marketers

are using alternatives tools to attract consumer attention to their brands.

According to McDonald, (1992), “consumers, at least for certain fast-moving consumer

product categories, are less brand loyal, and are becoming increasingly price-conscious”.

“This is due to increased response to material incentives, such as promotions. The majority of

buying decisions take place within the retail outlet. An increasing number of product or brand

purchasing decisions are essentially impulse-buying decisions. Since communications efforts

are most effective at the time and place when and where the consumer makes his or her

decision, in-store communications elements and incentives become more attractive tools of

persuasion”, (Pelsmacker, 2010).

Furthermore, companies are becoming increasingly short-term oriented. However, the

traditional advertising campaigns effects can only become visible in the long run. “Product

managers who want to see immediate results from their communications efforts will therefore

be tempted to use promotion tools rather than long-term thematic advertising campaigns”. It

is easy to measure the result of a promotion campaign than that of an advertising campaign.

The aim of advertising is often to obtained intermediate effects, such as awareness and

favourable attitudes, and it eventually leading to increased sales. Similarly, the aimed of

promotions are an immediate behavioural response, which can be readily measured. Product

managers are very keen about the immediate result characteristic of promotion. “Finally,

distribution channels are becoming increasingly powerful. Many brands are jostling for shelf

space and, as a result, retailers are in a position to decide which brands will obtain shelf space

under which conditions. Often, promotional tools are used to persuade the trade channel.

Furthermore, the distribution channel is taking an increasing part in the promotional activity

of manufacturers”, (Pelsmacker, 2010).

2.3 Sales Promotion Objectives:

Sales promotion has significant impact on overall sales. The dramatic increase in sales

promotion spending clearly shows that marketers recognised the potential of promotional

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methods. Sales promotion is widely used in various firms in their overall promotional mix.

Similarly, in order to achieve goal or set of goals, sales promotion activities may be used

singly or in combination. Sales promotion activities are used by marketers for number of

purposes (Hughes al et. 2011). Some of these purposes are mention below.

“To attract new customers

To encourage trail of new product

To invigorate the sales of mature brand

To boost sales to current customers

To reinforce advertising

To steady irregular sales patterns

To build up reseller inventories

To increase traffic un retail stores

To neutralise competitive promotional efforts

To improve shelf space and displays”

Sales promotion objectives should be consistent with the organisation’s strategic objectives

and its marketing and promotional objectives (Hughes al et. 2011).

2.4 Sales Promotion Techniques:

There are numerous sales promotion techniques. All these techniques offers a direct

inducement or an incentive to encourage target audience of these promotional messages to

buy a product/service sooner rather than later. The inducement (for example, price deals,

coupons, premiums) is presented as an added value to the basic product, and it encourages

buyers to act now rather than later. Sales promotions are used to accelerate sales. The

acceleration represents the short time period in which the whole transaction is completed

relative to the time that would have elapsed had there not been a promotion. It does not mean

that extra sales have been achieved, but it is just a potential future exchange which is

confirmed and transacted upon now. Sales promotions consist of a wide range of tools and

methods. There are many consideration of what constitutes sales promotion methods is

important. In many cases, price is the determinant variable and can be used to distinguish

between instruments. Sales promotions are often perceived purely as a price discounting

mechanism through price deals and the use of coupons. This, however, is not the whole

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picture, as there are many other ways in which incentives can be offered to buyers (Fill,

2009).

Promotions are a way of providing value, and it is this value orientation that should be used

when considering the nature and essential characteristics of sales promotions. Peattie and

Peattie (1994) established a useful way of discriminating between price and non-price sales

promotion instruments. They refer to sales promotions that are value increasing and sales

promotions that are value adding. This demarcation is important because a large amount of

research into sales promotion has been based on value-increasing approaches, most notably

price deals and coupons (Gupta, 1988; Blattberg and Neslin, 1990; Krishna and Zhang,

1999). This tends to distort the way sales promotions are perceived and has led to some

generalisations about the overall impact of this promotional discipline. There is a large range

of other sales promotion instruments that added value and enhance the offering and which

provide opportunities to drive longer-term benefits. However, research into these is limited

(Gilbert and Jackaria, 2002).

Sales promotion techniques can further classified as promotional techniques for either

consumer-oriented sales promotion or trade-oriented sales promotions. Consumer-oriented

sales promotion methods are trying to attract consumers to particular retail store and motivate

them to purchase certain new or existing products. Whereas, trade-oriented sales promotion

encourages wholesalers and retailers to stock and actively promote a manufacturer’s

products. Various incentives such as money, gifts, merchandise and marketing assistance are

awarded to reseller who buy products or responded positively (Hughes al et. 2011).

2.4.1 Retailer promotions:

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Various retailer promotions are used to attract customers to spend more in-store. Some of the

major promotional activities of retailers are as follows:

To increase store traffic: As sales promotion helps to increase the number of people

come into store, but retailer would use sales in special events or seasons.

To increase frequency and amount of purchase: This kind of sales is widely used

by the retailers. Buy two-for-one offers, buy one get another product for 50% and so

are the examples of such kind of sales promotion.

To increase store loyalty: Most retailer issues cards which offers economic benefits

to customers, this not only help spending in-store but it also help to increase customer

loyalty. For example, Tesco Club card or Sainsbury Nectar Card (Verhoef 2003).

To increase own-brand sales: As own brands have often higher profit margin than

national brands. Own-brands are usually perceived as low quality and therefore, an

increase promotion can help in increase own-brand sales.

To even out busy periods: Most retailers use seasonal sales, but in order to gain high

market share some retailers also promote at busy times.

2.4.2 Consumer-Oriented Sales Promotion:

Marketers in promotion industry uses all kind of sales promotions such as, games, contests,

and coupons to persuade new and existing customers to try their products. Consumer-oriented

sales promotions help to encourage repurchases by rewarding current users, boost sales of

complementary products, and increase impulse purchases. It also helps to attract consumer

attentions in the midst of advertising clutter (Kurtz at le. 2009).

It is important for the marketers to use sales promotions selectively because if they using

excessive, then customer will begin to expect more price discounts all times, which will

ultimately damage brand equity.

The figure 2.2 illustrates the objectives of popular sales promotion alternatives and identifies

their strengths and weaknesses and will be further discussed in detail below.

Kind of Promotion Objectives Strengths Weaknesses

Coupons Stimulate trail or Attract price- Not all retails accept

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brand switching sensitive customers

who might not

otherwise buy.

Encourage retailer

support.

coupons. Have often

been counterfeited or

redeemed by some

retailers without

consumer purchases.

Refunds (or

rebates)

Encourage customers

to buy

Help half sales

declines or reduce

inventories if new

products are about to

enter the market

May reduce

perceived value of

the product.

Easy for competition

to match

Samples Stimulate trail of new

products

Low customer risk

creates awareness

and trail

May be very costly

for the company

Premiums Encourage customers

to buy and minimise

brand switching

Reward loyal

customers for

continued purchase

Customers will not

need to repurchase

for a longer period

Contests Stimulate trail or

create goodwill

Customers like free

merchandise and may

induce trail of

complementary

product

May be costly for the

company

Sweepstakes Encourage

consumers to buy

and minimise brand

switching

A predetermined

number of winners,

hence cost is usually

predictable.

Consumers like them

because little effort is

required

Requite careful

thought to be creative

and to avoid costly

legal responsibilities

Specialty

Advertising

Encourage customer

loyalty

Create awareness and

help to reinforce

previous and future

advertising messages.

Good customer

acceptance

May be very costly

for company and

may become less

effective, if

competition offers a

better promotional

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item.

*Figure 2.2 Most Popular Sales Promotional Alternatives Figure (Kurtz at le. 2009)

There are number of factors considered when marketing decisions are made about which and

how many sales promotion methods to use. The most important are the objectives of

promotional effort. Marketer must consider product characteristic (such as, size, weight, cost,

durability, uses, features, and hazards) and target market profiles (such as, age, gender,

income, location, density, usage rate and buying patterns). Similarly, distribution channels

and availability of appropriate reseller also influence the choice of sales promotion methods.

In addition, competitive and regulatory forces in the environment have also great influence on

sales promotion methods (Hughes at le.2011).

Few important sales promotion methods are discussed below.

1) Coupons:

A coupon reduces the retail price of particular item by a stated amount at the time of

purchase. Coupons may be worth anywhere from few pence to a few pounds, they are

made available to customers through newspapers, magazines, direct mail, online, and

shelf dispensers in stores. Some coupons are precisely targeted at customers (Hughes

at le.2011).

2) Rebates:

A rebate is a return of part of the product’s purchase price. Usually, the refund is

offered by the producer to consumer who sends in a coupon along with specific proof

of purchase. Rebating is relatively low-cost promotional method. Once used mainly to

help launch new product items, it is now applied to a wide variety of products. The

main problem in rebates is that many people perceive the redemption process as too

complicated. Only half of individuals who purchase rebated products actually apply

for the rebates (Hughes at le.2011).

3) Samples:

A sample is a free product given to customers to encourage trail and purchase.

Marketers use free samples to stimulate trial of product, increase sales volume in the

early stages of a product’s life-cycle, and obtain desirable distribution. Samples may

be offered via online coupons, direct mail, or in stores. Though many customers

prefer to receive their samples by mail. It is the most expensive sales promotion

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technique. Although it is used often to promote new products, or sometime used to

promote existing brands. In designing free sample, organisations must consider

factors such as seasonal demand for the product, market characteristics and prior

advertising (Hughes, at le. 2011).

4) Premiums:

A premium is a gift that producer offers a customer in return for buying a product.

They are used to attract competitors’ customers, introduce different sizes of existing

products, add variety to other promotional efforts, and stimulate consumer loyalty.

Creativity is essential when using premiums: to stand out and achieve a significant

number of redemptions, the premium must match both the target audience and the

brand’s image. Premiums must need to be easy recognisable and desirable. Premiums

are placed on or inside packages and also can be distributed through retailers and

through the mail (Hughes, at le. 2011).

5) Contests:

Contests are the special types of promotion where the winner is awarded value solely

on basis of his/her skills they showed compared to others. As it is very natural that

customer are being attracted when the winning value is very high. But in contests

there are quite few lucky winners who will receive the value of which is offered in

promotion. The main problem with this method is that relatively very costly for

company (Christ, 2008).

6) Sweepstakes

Sweepstakes are not skill-based but it’s rather based on luck. Winners are selected

randomly. There are chances of winning higher prices and sweepstake occurs

automatically when purchase is made. Moreover, in some case there is no requirement

to make a purchase, but it is wise to be more creative and try to avoid the costly legal

responsibilities (Christ, 2008).

2.5 An Overview of How Sales Promotions Work

Sales promotion need to be more effective in order to accelerate or bring forward future sales,

and need to have better understanding about behavioural change. New behaviour patterns

need to be used for better results. If sales promotions are used for long term then it brings

repeat purchase behaviour, than on permanent basis new behaviour patterns needs to be

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learned and adopted. It is one of the most complicated tasks and is also referred by

behaviourists as shaping. It is advocated by Rothschild and Gaidis (1981). They argued that

overall task needs to be segmented into constituent parts and it will help in smaller sequential

tasks can be learned. The successive action leads to new desired pattern of behaviour. “This

view emphasises the impact of external stimuli in changing people behaviour. The cognitive

view of the way sales promotions operate is based on the belief that consumers internally

process relevant information about a sales promotion, including those of past experiences,

and make a reasoned decision in the light of the goals and objectives that individuals set for

themselves”. According to ELM that individuals using peripheral route will consider only

simple strategies such as display boards and sign of price reductions. “Those individuals who

are using ELM central route have a higher need for information and will develop the

promotional signal to evaluate the value represented by the relative price and the salient

attributes of the promoted product, before making a decision (Inman et al., 1990)”. “The main

difference between the views of the behaviourists and those of the cognitive school of

thought is that the former stress the impact of externally generated stimuli, whereas the latter

emphasise the complexity of internal information processing”.

There are series of concern regarding the costs and its impact on overall activities due to the

increase budget allocated to sales promotions and temporary price reductions (TPRs).

However, the use of temporary price reduction (TRP) can increase sales volumes (Ehrenberg,

2000). But in stable market the long-term upward shift in demand is totally unrealistic.

Ehrenberg (2000) further argued that people who are frequently use TPRs are infrequent

purchasers of given category. The research further suggested that these types of promotion do

not attract new buyers.

According to Dawes (2004) research that in the promotion period there are as many buyers in

market when TPR was running. “Promotional activity does not take place in a vacuum with

new products: competitors will be attracted and some customers lost to competitive offerings;

in mature markets, non-loyal will take advantage of a sales promotion and then revert to

competitors sales promotions when they re-enter the market”.

Similarly, Dawes also found that price promotion has negative impact on brand, as sales

volume increases but it drastically lower down the profitability. There are number of hidden

cost associated with sales promotion. Although there was perception that sales promotion

cost are relatively low as Buzzell et al. (1990) and other demonstrated, but the other indirect

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costs also need to considered. For example, a manufacturer uses promotional deals to induce

reseller to buy their stock at promotional price, in addition to their normal buying

requirements. The additional stock is being held for resale at later dates at regular retail

prices. However, the cost of this forward buying can be enormous. Buzzell et al. (1990)

further suggested that promotion stock attracts higher interest charges, warehouse costs, cost

associated for transferring of stock to various geographical areas and cost relating to separate

promotional stock from normal. When all these associated costs are added to the

manufacturer forward buying costs then costs overweight the benefits of sales promotion

uses. In order to demonstrate the above point that the use of sales promotion especially Buy

One Get One Free (BOGOFS), are used by supermarkets to change consumer purchasing

behaviour and influence consumer purchasing decision to try the new product. in addition,

Simms (2007) reports that they as effective as television advertising to encourage trail. Still

there are numerous problems with BOGOFS. According to Binet by Simms, around 84 per

cent of trade promotions are unprofitable. Every year volumes are added into next year

targets, which force manufacturer to increase their volume due to average price down, and it

untimely lower down the profitability. Promotions do promote the brand image but they also

create difficulties for retailers. This is because of the impact promotions can have on the

relatively stable logistics associated with normal trading patterns. Therefore, it very important

for resellers and manufacturers to work together such promotions in order to cover all the

associated costs and both parties can benefit from them. The associated cost with sales

promotion is not only evaluated for short-term but also for long-term costs as well.

“Jones (1990) refers to this as the double jeopardy of sales promotions. He argues that

manufacturers who participate extensively in short-term sales promotions, mainly for

defensive reasons, do so at the expense of profit. The generation of sales volume and market

share is at the expense of profit. The long-term effects are equally revealing. As the vast

majority of sales promotions are TPRs, the opportunity to build a consumer franchise, where

the objective is the development of brand identity and loyalty, is negated. Evidence shows

that as soon as a sales promotion is switched off, so any increased sales are also terminated

until the next promotion. The retaliatory effect that TPRs have on competitors does nothing

to stabilise what Jones calls volatile demand, where the only outcome, for some products, is

decline and obscurity”.

Due to regular sales promotion most consumers totally depends on the presence of promotion

before any purchases. If preferred product does not carry a coupon, premium or TPR, then

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they may switch to competitors product that does offer some promotional element with

products. A related issue concerns the speed at which sales promotions are reduced following

the introduction of a new product. If the incentives are removed too quickly, it is will be hard

to build relationship with the products. Similarly, if these incentives stayed for too long, then

its might possible consumer only identified product by the value of the incentive, not the

actual value of product itself. The process by which a sales promotion is removed from a

product is referred to as fading and its rate can be crucial to the successful outcome of a

product launch and a sales promotion activity.

Chapter 3

Research Methodology:

3.1 Introduction:

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In Chapter 3 an in-depth analysis of research methodologies is being made for collecting

data. Various research methods are being discussed in this chapter to support the aims and

objectives of research. The desired objectives of this chapter to achieve the aim and

objectives of research for the selected organisation. Different theories are discussed in order

to support the research work.

3.2 Research Philosophy:

There are various ways of thinking, categorising and rich variety of methods are available for

designing, carrying out and analysing the results of research. Some of the research

philosophies are discussed below.

i) Positivism

Positivism is a single, tangible reality "out there" that can be separated into parts and which is

competent to study independently. For being a positivist, in order to have great effect on

social world has use scientific methods and aim to discover the regularities and patterns of

social world. These patterns and regularities are determined for having their own existence.

Similarly, an assumption is being made that there is no effects without causes and vice versa

(Dencombe, 2007).

ii) Realism

The reality of truth is what our senses show us and object existence is independent of the

mind. In this context realism contradicts with idealism, which is theory defines that only

mind and its contents exist. Realism and positivism both believe that the development of

knowledge can be done through scientific approach. This believe supports understanding and

collection of data. It would be further clearer when comparison is being made in between two

forms of realism (Saunders at el. 2007).

There are two types of realism, which have different opinion and are totally different from

each other.

Direct Realism: It argues that you get what you see. It actually means that through our senses

of experience we can depict the world accurately (Saunders at el. 2007).

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Critical Realism: It is totally opposite to direct realism. It argues that our senses of experience

are mere the images of things in real world and it’s not the things actually. Further, it point

out how our senses misled us on numerous occasions (Saunders at el. 2007).

3.3 Research Design

There are two types of research used for the analysis and data collection which are qualitative

research and quantitative research. Both these methods are widely used for data analysis.

Each type of research has merits and demerits. A brief comparison has been made below.

3.3.1 Qualitative Research and Quantitative Research:

Qualitative approach is used to explore those areas where there is little or no knowledge

exists and the results are conducted in words, whereas, quantitative approach is used to make

comparison, usually result oriented and often expressed in numbers (Tench & Yeomans,

2006).

“The aim of qualitative is to identify and explore in-depth phenomena such as reasons and

attitudes (Tench & Yeomans, 2006)”.

“Whereas, the aim of quantitative research to quantify variables such as attitudes or

behaviours and points out co-relations between them. Results can be generalised which

means research that generates findings that can be applied to a wider public or situation

(Tench & Yeomans, 2006)”.

Quantitative Approach Advantages and Disadvantages:

The main advantages of quantitative approach are to generate comparable results can

be generalised. Moreover, non-experienced researchers can be guided and it has

higher acceptance by clients.

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Similarly the main disadvantages of quantitative approach is that result can be

generated what is coded in prepared questions. It may distract respondents into no

relevant direction. It does not help to make deeper analysis of reasons (Tench &

Yeomans, 2006).

Qualitative Approach Advantages and Disadvantages:

The main advantage of qualitative approach is that it provides deeper understanding

of causes and motivations. It also helps to explore information which are unknown or

unpredicted.

Similarly, the potential disadvantage of qualitative approach is that it is costly and

time consuming. Qualified researchers are needed to conduct this kind of research.

Moreover, researcher can easily influenced by the results (Tench & Yeomans, 2006).

3.3.2 Quantitative Research Method:

Saunders et al. (2007) suggested that quantitative data is in raw form and data need to be

processed and analysed in order to make them useful or turn them into information. In order

to explore, present, describe and examine the relationships and trends within data various

quantitative techniques can be used such as graphs, charts, and statistics. Mostly all business

and management research involve some amount of numeric data or contains data that can be

usefully quantified to answer the research questions and meet research objectives (Saunders

at el. 2007).

“Quantitative data ranges from simple counts to more complex data. These data need to be

interpreted and properly analysed. This process can be assisted by quantitative analysis

techniques. This range includes the creating simple tables or diagram that shows the

frequency distribution and using statistics that help in making comparison, through

establishing statistical relationships between variables to complex statistical modelling

(Saunders at el. 2007)”.

There are number of quantitative methods that data can be collected and analysed. The main

method which is used for quantitative research technique is the questionnaires.

Questionnaires are used to collect primary data for the selected research.

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In this research questionnaires are used as the main research technique. This will be discussed

later in current chapter in detail.

3.4 Questionnaires

Bryman, (2004), argues that questionnaires are designed to be completed by the respondents.

Self-administered questionnaires are also being referred to such kind of questionnaires. In

research management the most frequent method used for data collection is questionnaires.

As questionnaires are relatively cost effective, easy to use and usually the most reasonable

alternative for measuring unobservable constructs such as attitudes, values and preferences,

intentions, and personalities (Moorman & Podsakoff, 1992).

“Moreover, questionnaires are commonly associated with co-relational field study (survey)

designs, of which the mail (postal) questionnaire is the most popular. Questionnaires can be

designed either by hand or online or via email. Questionnaires are highly structured

instruments composed of pre-set standardised questions. Due to their highly structured

format, questionnaires are used where the aim is to generate quantitative data from a large

sample to test research questions and/or hypotheses”.

Method Used in Research:

Quantitative method of research is being used in given research. Questionnaires

method is used to collect the data from the customer of selected McDonald’s

restaurants. Discussions with store manager and some staff is also being conducted.

They were asked the relevant questions to get information about sales promotion.

These activities were helpful to know the tactic of sales promotion. Personal

observations were also conducted that how consumer are influenced by the promotion

tactics of McDonald’s and try to understand the perception of consumers and

employees.

The purpose to use these methods was to classify features, count them and construct

statistical models in an attempt to explain what has been observed. All the aspects of

study were clearly designed in advance.

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3.4.1 Types of Questionnaires:

As mentioned above that respondents usually filled self-administered questionnaires. There

are various ways to administered questionnaires such as electronically via email, postal or

mail questionnaires (where questionnaires are posted to respondents and they posted after

completion), delivery and collection questionnaires (where questionnaires are being handed

respondents personally and collected later). Similarly, telephonic questionnaires for survey

are also widely used in area of market research. In structured interview the respondents are

interviewed face to face from selected questionnaires.

Delivery and Collection Questionnaires:

This type of questionnaire method is used in research for collection of data. Questionnaires

were handed out to various respondents and respondents filled those questionnaires right in

selected organisation and collected at same time. Questionnaires were designed in such way

that respondents are easily understandable and the sequence of questionnaires was in such

way that respondents easily follows what questions is coming next. Before handling

questionnaires all respondents were taken in confidence that their responses will completely

remain anonymous and all their data will not be shared with any individual or organisation.

Method used for Research:

I have used two methods of getting my questionnaires done from customers. I

delivered the questionnaires to the customers and collected later on an agreed time.

And the second way I used was, I went to McDonald’s, met the people over there and

explained what I am doing and it was all about and requested them to fill up my

questionnaires. Most of the people agreed to fill up questionnaires. During that time

when the targeted people were filling my research questionnaires, I had time to chat

with them. This helped me to ask them more oral questions regarding my research. I

took their opinion on the promotions, what they feel about all that activities of

McDonald’s. During conversations, I recognised that people perception about

products promotions. Questionnaires were delivered by hand to each respondent and

collected later on agreed time. I ensured that questions I have designed are simple and

easy to understand, followed with proper covering letters, which will help the

respondents to know what the research is all about. That was the best type of

questionnaire I have used to gather data from respondents in limited time.

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3.4.2 The choices of questionnaires:

Researcher can used various choices of questionnaires while designing questionnaires and

some these choices are used for the selected research.

i) Closed-Ended Questions

In closed questions there are ranges of responses that respondent many choose. It is useful to

use highly structured closed question in order to generate frequencies of the response which

are capable for analysis of data in statistical form. It helps to enable comparison among

groups in sample (Oppenheim 1992:115). “Moreover, their coding is much quicker and

analyse than word-based data (Bailey 1994: 118) and, they are focused more than open-ended

questions”.

“Closed questions are relatively easy to code and quick to complete and its do not

discriminate on the basis of respondents reacts (Wilson and McLean 1994:21)”.

ii) Multiple choice questions

Researcher can use multiple choice question, where the range of choices are designed to

capture the likely range of responses to given statements. A complete guidance need to be

given to participants and clarify on the completion of multiple choice, whether respondents

are able to select single response or several responses from the list. In addition, multiple

choices should also include that enable respondents to select the response that most closely

represent their view. Hence a pilot is needed to ensure that the categories are comprehensive,

exhaustive and representative. This will help the researcher to figure the response categories

only. Rankings are useful in indicating degree of response (Morrison el at. 2007).

iii) Rating scales

“Dichotomous questions have managed to move away from the degree and intensity of

response and can be seen in the spectrum of rating scales – Likert scales. This method is

useful for the researcher to generate numbers and help to understand the sensitivity and

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differentiation of responses. All the categories need to be discrete and to exhaust the range of

possible responses which respondents many wish to give. The opinion of respondents can be

traced by selecting or ticking on that position on the scale which they feel comes closer to

their mind (Morrison el at. 2007)”.

“A Likert scale (Rensis Likert 1932) provides a range of responses to a given question or

statement”, for example, in given questionnaires the researcher used wide range of responses

to a given statement in the following order:

Strongly Disagree

Disagree

Neither Agree/Disagree

Agree

Strongly Disagree

iv) Ratio Data:

Ratio data avoids forcing responses into categories. It allows for greater accuracy. It enables

the researcher to calculated proportions or ration. Similarly, it also enables high level

statistics to be computed, such as regression and factor analysis. There is no fixed answer or

category provided, and the respondent puts in the numerical answer that fits his/her exact

figure, i.e. the accuracy is higher, much higher than in categories of data (Morrison el at.

2007)”.

The researcher also used ration data in various parts of questionnaires in order to find the

responses of participants. It will help to complete the research with higher accuracy.

3.4.3 Sequencing the Questions

The important part of any questionnaire is the ordering, first set the tone for early questions

and then mindset in later questions. Oppenheim (1992:121) argues that each question purpose

is to ensure that the respondents will cooperate continuously.

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Moreover, questions need to be designed in such method that respondent clearly read the

signs through seeking similarities and resonances between statements so that responses to

early statements will affect responses to later statements and vice versa. Due to multiple

sections questionnaires acts like cross check and the whole process might irritates some

respondents.

Similarly, Krosnick and Alwin (1987) also found a ‘primacy effect’ (discussed earlier), i.e.

respondents tend to choose items that appear earlier in a list rather than items that appear later

in a list. This is particularly important for branching instructions, where the instruction,

because it appears at the bottom of the list, could easily be overlooked. Krosnick (1999) also

found that the more difficult a question is, the greater is the likelihood of ‘satisfying’, i.e.

choosing the first reasonable response option in a list, rather than working through a list

methodically to find the most appropriate response category”. It is therefore important to

begin the questionnaires with friendly questions that respondents can readily answer and then

move towards more personalised questions.

Completing questionnaires can be seen as learning process in which respondents goes deep as

it proceed. Therefore, the initial questions need to be simple, which would be more

interesting and encourage participation. It helps to build motivation and confidence among

respondents. Difficult questions need to be arranged in the middle section of the

questionnaire and most interested questions should be put in last section in order encourage

respondents to return the completed questionnaires.

3.4.5 Administration of Questionnaires:

In order to maximise the response rate sample is taken which will help the validity

questionnaires. It will help whether the questionnaires is good method for collecting data.

This stage of questionnaires is also called as administration of questionnaire (Edwards et al.

2002).

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More than hundred and twenty questionnaires were distributed in selected McDonalds and

almost hundred completed filled questionnaires were collected. Sample of hundred

questionnaires were selected for research and all the data were analysed and frequency

distribution table was designed for various variables. The frequencies were further converted

into percentage in order make analyse data more accurately. The overall result was compared

with research aims and objectives which are mentioned in Chapter 1.

3.5 Research Ethics:

“Ethics are the norms of behaviour that helps moral choices about our relationships with

other. In research context, ethics is the suitable behaviour of researchers in relation to the

rights of those who become the subject or affected by it (Saunders et al 2007)”.

There are various ethical elements while conducting research. The followings are some key

ethical issues which the researcher need to following in doing research.

Willingness of respondents

Valid permission from the selected organisation.

Confidentiality of data

Anonymity of participants.

Researcher behaviour

Respondent reaction

Chapter 4

Finding and Analysis:

4.1 Introduction:

This is the core chapter of research work in which data would be analysed that how special

promotion can increase sales in McDonald’s. The data was collected through questionnaires

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from various customers of McDonalds. In this chapter data and results are analysed and are

related to the research objectives specified in Chapter 1. Furthermore, all the data collected is

presented in tables form and each variable is examined through frequency distribution.

Similarly, this chapter includes the information gathered from the McDonald’s manager and

staff. Regular visits were made to the selected McDonald’s and had detailed discussions with

the store manager and crew. Moreover, information gathered through personal observations is

also discussed in this chapter.

4.2 Questionnaires Findings:

A total of 120 questionnaires were distributed among various customers in McDonalds. 100

out of total questionnaires were completed filled, whereas, 20 out of total questionnaires were

not completely filled. Therefore, sample of 100 questionnaires are used for final data

analysis. All questionnaires were filled by customers in McDonald’s. Different choices of

questionnaires were used such as open question, category questions and rating question. In

addition, all the responses were properly organised and presented in tabulation form in

revealed the specified facts.

4.3 Research Findings:

The data gathered through questionnaires are thoroughly analysed and the final result values

are given in percentage. The percentage is taken from total of 100 responses. All gathered

data is presented in tables which shows the respondents reply in approx value. The

questionnaires finding are shown below with results and tables.

1. What is you gender?

Male 60%

Female 40%

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The about table shows that out of total respondents the male customers are of 60%, whereas

40% are female customers of out of total respondents. It clearly shows that McDonalds is

attracting both gender groups. Moreover, as McDonalds is fast food chain hence it attracts

different class people through various promotional activities.

2. What is your age?

10-20 Years 28%

21-30 Years 24%

31-40 Years 20%

41-50 Years 22%

51or above 8%

According to research 28% of total respondents were in ages from 10 till 20. While out of

total 24% of respondents were in age from 21-30 years. Whereas, 20% out of total

respondents were in age group of 31 to 40 years. Moreover, 22% out of total respondents

replied that they were in age group of 41-50 years, while 8% out of total respondents were 51

or above age group.

This clearly shows that McDonalds are targeting every age group. Though their main target

are children as it clearly shows in the above table but recently they are targeting every age

group in order to maximise their sales. Children can easily be motivated through promotional

activates and different in store activities in McDonalds such as birthdays parties. Families are

targeted through various promotional activities. Hence, it finding clearly shows that

McDonalds target audience is at large proportion. They are trying to reach to every age group

in order to increase their customer base and it will ultimately increase McDonald’s sales.

3. Do you often visit McDonalds?

Yes 30%

Sometimes 60%

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The resultin above table shows that most customers “sometimes” visit McDonalds; it might

be due to their various deals offered to customers. Furthermore, it also shows that due to

promotional activates McDonald’s attracted their competitors customers. As promotional

activates are result oriented and their result can be identified by the manager very easily

through sales. If the sales increase in specific time period when they are doing promotional

activities, it means that their promotional activates are successful.

4. Do you aware of any McDonald’s promotional offers?

Yes 35%

No 65%

The result shows that 65% out of total respondents replied “No” that they are not aware of

any McDonald’s promotional offers. Whereas, 35% out of total respondents replied that they

are not aware of any McDonald’s promotional offers.

The above result clearly shows that majority of customers do not know the role of

promotional activities on their purchasing decisions. Customers do not know the importance

of promotional activates for any product. As advertising helps to create awareness regarding

product and its attributes and promotional activities helps to customer to buy their product.

5. Did McDonald’s promotional offer attract you to visit here?

Yes 25%

No 75%

According to research 75% out of total respondents replied “No” that McDonald’s

promotional offers do not attract them. Whereas, 25% out of total respondents replied “Yes”

that McDonald’s promotional offers did attract them to visit McDonald’s.

The above finding further specifies the role of promotion and what’s the perception of

customer regarding promotional offers. The finding give significant picture of customer

perception regarding McDonalds promotional offers. As most of the customer replied that

promotion has little or almost nothing effect on their purchasing behaviour. This is

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remarkably opposite to what the marketers think about the role of sales promotion. Customers

are right on their place but promotional activities do have significant role on the purchasing

decision of consumer. In fast food industry the price of product are minimum and mostly

affordable and the companies do their promotional campaign in such manner where

customers do not feel that promotional activities have any effect their purchasing behaviour.

6. On average, how many days in month do you visit McDonalds?

1-2 Days 15%

3-5 Days 50%

6-10 Days 10%

More than 10 Days 25%

According to the results 50% out of total respondents replied that on average they visit

McDonalds 3-5 days in a month, and 15% out of total respondents replied that on average

they visit McDonalds 1-2 days in a month. While 10% out of total respondents said 6-10 days

in month they visit McDonalds and 25% out of total respondents replied that on average they

visit McDonalds more than 10 days a month.

The above results shows that majority of customers spend on average 3-5 days in month in

McDonalds. This shows that most of customers are loyal and they often visit McDonald’s

alone, with friends or family. Moreover, it also shows that McDonald’s promotions

successfully targeting the right audience. Similarly there were some customers that they are

visiting McDonalds more than 10 days a month. This shows that McDonald’s has appropriate

promotion strategy to maintain good relations with existing loyal customers and trying to

attract new or competitive customers. Promotional strategies have the significant effect on the

purchasing behaviour of consumer.

7. How many times in a month do you visit to fast foods other McDonalds?

1-2 times 65%

3-5 times 15%

6-10 times 10%

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More than 10 times 10%

According to the results out of total respondents 65% replied that they do visit other fast food

restaurants once or twice in a month, while 15% out of total respondents replied that they do

visit other fast food restaurants 3-5 times in month. Furthermore, 20% out of total

respondents replied that do visit other restaurants 6-10 or more than 10 times in month.

The above result clearly shows that McDonald’s customers very rarely visit other fast food

restaurants. There are number of reasons that customer are willing to visit McDonalds more

often than their competitors. McDonald’s approach to sustain their customer for longer time

period through various strategies such as pricing strategies, promotional strategies and

product differentiation strategies. Moreover, McDonald’s to keep their customer happy

through best customer services.

8. How long you have been visiting McDonalds?

Less than a Year 10%

2-5 Years 15%

6-10 Years 15%

More than 10 Years 60%

The results shows that 60% out of total respondents have been visiting McDonald’s from

more than 10 years, while 15% out of total respondents have been visiting McDonald’s 2-5

years and 6-10 years consecutively. Whereas, about 10% out of total respondents have been

visiting McDonald’s from less than year.

The above result shows that majority of McDonald’s customers are happy with McDonald’s

product and services. Furthermore, they are the loyal customers and they regular do visit to

McDonald’s. This shows the McDonald’s are highly customer focused organisation and it

helps them to increases their market share in UK market and it will untimely leads to high

returns on revenue.

9. In each visit, how often you buy promotional products?

1 Time 75%

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2 Times 10%

3 Times 5%

4 Times 5%

More 5%

According to the results 75% out of total respondents replied that they buy promotional

products just once each time they visit McDonalds. Whereas, about 25% of total respondents

replied that they buy promotional products 2, 3, 4 and more each time they visit McDonalds.

This shows that most customers are actively taking the benefit from McDonald’s promotional

products. Hence promotional products are very attractive and McDonald’s generate revenue

from other products when customer bought other products with promotional products. Due to

these promotional products customers can be attracted and it will help them to maintain as

market leader.

10. Do you think McDonald’s promotions influence you to come to visit

McDonald’s?

Yes 40%

No 60%

The results shows that 40% out of total respondents replied “Yes” that McDonald’s

promotion have an influence when they do visit McDonald’s. Whereas, 60% out of total

respondents replied “No” that McDonald’s promotion have an influence when they do visit

McDonald’s.

This shows that most of customers do not the active role of promotional activities on their

purchasing decisions. While some customers do know that promotions do have influence on

their purchasing decisions.

11. Among the following factors choose those which you consider when visiting

McDonald's?

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Costumers were being asked to choose the factors they considered while choosing the

McDonald’s to buy their food. They have to rate each factor as not important, less important,

important and very important. The questioned were designed in a sequence in order to make

them easily understandable. Out of ten questions three questions were designed on prices and

promotions. The final results were arranged in table and table shows that the factors on top

priorities of customers along with all other factors.

Special promotion (70%), product assortment (75%), price (90%), food quality (80%),

discounts/coupons/offers (75%), travelling time (85%), and good services (80%) are among

the top factors which customers consider important or very important factors while visiting

McDonald’s. The purpose of these factors was to gain in-depth analysis about consumer

perception regarding price, promotion and other services. Price plays considerable role in

today’s competitive market. Similarly, promotions do have considerable effect on consumer

perception. Promotions not only help in purchasing decisions but it also help to attract more

customers to buy their products. Services are the part of product and best service help to keep

long term relationship with consumer.

12. To what degree do you agree/disagree with the following statements:

43

Not

Importan

t

Less

Importan

t

Importan

t

Very

Importan

t

Special Promotion 20% 10% 45% 25%

Product Assortment 10% 25% 40% 25%

Price 10% 55% 35%

Food Quality 20% 35% 45%

Discounts/Coupons/

Offers

10% 15% 40% 35%

Waiting Time 20% 45% 25% 10%

Travelling Time 15% 35% 50%

Good Services 5% 15% 45% 35%

Convenience 25% 45% 20% 10%

Socially Responsible

Organisation

30% 40% 15% 15%

Page 44: How special promotions can increase sales? (Case study of a selected McDonald’s)

Strongly

Disagree Disagree

Neither

Agree/Disagre

e

Agree

Strongly

Agree

I will keep

visiting

McDonalds.

15% 10% 30% 45%

I will visit if

there are

more

promotions.

25% 20% 20% 20% 15%

McDonalds

have better

offers than

the other fast

food

restaurants.

10% 30% 35% 30%

I would

recommend

McDonalds

to my family

and friends.

15% 50% 35%

According to the results 75% out of total respondents agree or strongly agree that they will

keep visiting McDonalds, while 25% out of total respondents disagree or neither

agree/disagree that they will keep visiting McDonalds.

Similarly, 35% out of total respondents are strongly agree or agree that they will visit if there

are more promotions, 45% out of total respondents are strongly disagree or disagree that they

will visit if there are more promotions, whereas, 20% neither agree/disagree that they will

visit if there are more promotions.

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Moreover, 65% out of total respondents strongly agree or agree that McDonalds have better

offers than other fast food restaurants, while 10% out of total respondents disagree that

McDonalds have better offers than other fast food restaurants, whereas, 30% out of total

respondents neither agree/disagree that McDonalds have better offers than other fast food

restaurants.

Furthermore, 85% out of total respondents strongly agree or agree that they would

recommend McDonald’s to their friends and families. Whereas, 15% out of total respondents

either agree/disagree that they would recommend McDonald’s to their friends and family.

These result shows that McDonald’s has the unique brand image and their customers are

highly satisfied with McDonald’s products and services. The analysis also shows that people

considered the McDonald’s special promotions as best. The increased promotional activities

will help not only attract customers but it will ultimately help to increase sales.

13.  What is reasonable travelling time you are willing to spend to visit McDonalds?

Less than 5 Minutes 5%

5-15 75%

16-25 10%

More than 25 Minutes 5%

The result shows that 75% out of total respondents are willing to spent 5-15 minutes on

travelling to visit McDonald’s, while 10% out of total respondents are willing to spent 16-25

minutes on travelling to visit McDonald’s. Moreover, 5% out of total respondents are willing

to spent less than 5 minutes on travelling to visit McDonald’s and 5% out of total respondents

are willing to spent more than 25 minutes on travelling to visit McDonald’s.

Travelling time is one of the unique aspects for every business and for that it needs the best

location which is near main shop malls, public transport and amenities. The location of this

McDonald’s is at unique place where there are no other fast food restaurants nearby. It has

huge parking area and is near to local amenities and public transport. It will only take up-to

15 minutes to travel to McDonalds and customers will be willing to travel at-least 15 minutes.

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14. How much time is spent on each visit to McDonald?

Less than 5 Minutes 5%

5-10 15%

11-15 15%

16-20 45%

More than 20 Minutes 25%

According to the results about 45% out of total respondents spent 16-20 minutes time on each

visit to McDonald’s, while 35% out of total respondents spent less than 5 minutes, 5-10

minutes or 11-15 minutes on each visit to McDonald’s. Whereas, 25% out of total

respondents spent more than 20 minutes time on each visit to McDonald’s.

It clears shows that most of McDonald’s customers spent reasonable time in McDonalds.

Hence it needs good customer service along with reasonable products. McDonald’s have

enough space to accommodate large number of customer who wants to eat in and are trying

to change this trend to take away products with them. This totally up-to customers whether

they want to eat in or take away, but McDonalds can try to influence their customer

behaviour through constructive strategies.

15. How much average money is spent on McDonalds on each visit?

£3-£5 55%

£6-£8 35%

More than £9 15%

The result shows that 55% out of total respondents spent £3-£5 on average on each visit to

McDonald’s. Whereas, 35% out of total respondents spent £6-£8 on average on each visit to

McDonald’s, while 15% out of total respondents are willing to spent more than £9 on average

on each visit to McDonald’s.

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The above result shows that majority of customers are willing to spent average money and

some customers are willing to spend even more on their each visit. This helps to maintain the

balance in between product cost and promotion cost. In today’s market there is trend if

business has more customers it means that business is generating profit. The same goes in this

case as well. The more customer McDonalds are attracting the more they will spend on their

product. It will help McDonald’s to keep balance in between the associated cost on products

and promotions and profit they made from those products.

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Chapter 5

Discussions

5.1 Introduction:

In this chapter the perception about McDonald’s manager and staff are discussed in detail.

Various promotional offers and its benefits and how McDonalds promotion influence

consumer purchasing decisions are discussed in this chapter.

5.2 Discussions with McDonald’s Manager and Staffs:

The McDonald’s which I have chosen for my research works 24 hours in a day and 7 days of

weak. The reason behind to choose that particular restaurant have number of aspects, I was

interesting. First of all I chose that restaurant because as I mentioned above, it is 24/7 open.

So their number of customer, sales and promotional activities were obviously more as

compare to other. The location of that restaurant was ideal as that was only the one restaurant

in the 60 km of area which serves the people 24/7. I discussed the reason that why they think

that it was a good idea to open 24/7, as I was told by the business manager it used to work

from 5 pm till 2300 hours in the beginning. The manager told me that idea behind was to

cover all the customers who work in the nights. They realised that especially the night cab

drivers and people who go out for clubbing can be targeted. For this initially they offered

some special deals for them to attract them. As they have the advantage of good location and

were able to target the great number of customers, they started the offer of serving a large cup

of coffee when a customer will buy a breakfast meal.

*(www.mcdonalds.co.uk)

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On top of that they started to sell three filet-o-fish burgers for £3.99 which normally was

£2.09, and two apple pies for £1 which was £0.89 each at that time. These promotional

activities were very successful which boost up their sales. Telling me more about the

promotions of McDonald’s and their benefits for the organisation, he told me that apart from

the regular set promotions of McDonald’s organisation they introduce some promotions by

themselves. For example they offer two sausage and egg muffin and bacon and egg muffin

sandwich for £2 which was £1.79 each. He mentioned that that offer was very successful and

dragged a majority of people into their restaurant. Moreover I was told that McDonald’s have

lots of fantastic offers for their customers. McDonald’s offer the student customers an option

to get one of these free (Cheese Burger, Ham Burger, Fries and McDonald’s special flavour

Mcflury ice cream) when they buy a meal. During my visits there I observed the long queues

of students who were buying the meals to get advantage of that offer. A number of students

among those were coming from university for lunch, approximately from 10km distance

especially for this promotion. He further told me the history that in the begging McDonald’s

was focusing on the burgers and was only famous for that. But later on realising the tastes of

customers and beat the competitors, brought more variety in the menu.

*(www.mcdonalds.co.uk)

McDonald’s introduced the special wrap and deli sandwiches to customers on very

competitive prices as compare to the rivals. During the research I observed that those wrap

were also very popular I customers specially when they were getting those on very low prices

as compare to burger King’s wrap and subway’s sandwiches. On top of that McDonald’s very

intelligently introduced the promotion. Now McDonald’s sell a deli sandwich on price of

£1.99 which otherwise was £3.29 and they kept changing the daily sandwiches on daily bases

whole the week. Now McDonald’s is bringing some more promotions to the people. Adding

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the new flavour of coffee for example espresso (etc) is the part of those promotion activities.

Basically McDonald’s is trying to target the whole customer of the market. Their intention is

to capture the people who visit Starbucks, Prêt a manager and other local coffee shops. As

their philosophy is that once they will be able to make the people step in their restaurants

with the help of these promotional activities, the customers definitely will buy more products.

This is in fact right thing to do as the prices of McDonald’s are very suitable to purchasing

power of majority of consumers. When consumer will have the option of getting all the food

of their choices (burgers, sandwiches, wrap, shakes and coffee) under one roof, they will

always prefer to buy from McDonald’s. From June, 2011 McDonald’s will offer the

customers to choose their food to have in wrap or in roll. This they call “a little bit extra”

service to their customers. The major special promotions of McDonald’s are the variety of

burgers, drinks and desserts. They felt that if they offer the same set menu to people whole

the year, people become fed up. That is why they introduced these promotional foods to give

them new taste. For that they sell promotion products in different but particular periods of

time and keep changing the promotion whole the year. These promotional products are very

popular among the customers. According to the business manager of selected McDonalds,

half of their sales come through those promotions. I observed that the crew who were serving

the people were offering and motivating the customers to buy promotions. They told that they

have special instructions from the management to do that, when they were being asked.

Management told me that apart from regular basis advertisement of promotion, they also give

awareness to the customers in the store. That meant selling promotion was important for them

as promotion products were high in cost as compare to regular menu and as a result increase

the sales. So what McDonald’s did regarding those promotions. They always bring some new

burgers along with new flavour milk shakes and desserts. For example on top of their regular

burgers they sell promotion burgers such as Big Tasty, special taste of America, chicken

supreme, quarter deluxe etc. along with the regular Mcflury (ice cream) flavour, McDonald’s

sell Orea, Egg Cream, and Drifter with new flavours and toppings.

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*(www.mcdonalds.co.uk)

As for as shakes are concern they have promotions such as vanilla flavour, caramel,

shamrock etc. McDonaldsalso introduced two new flavours (double chocolate and double

tropical and vanilla) serving in new glasses in order to expand their product range. All these

promotions are being set to sell on particular times such as summer and Christmas. People are

well influenced through these promotions to buy their products.

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Chapter 6

Conclusion and Recommendations

6.1 Introduction:

In this chapter the final conclusion is being drafted on basis of research findings which are

mentioned in Chapter 4. Furthermore, conclusion is being drawn from the questionnaires and

discussion with selected McDonald’s manger and staff. The research is based on McDonald’s

promotional activities and how important is role of promotional activities to increase sales

and customer base. It could be done through comparing literature with research findings. In

addition, all the research findings will be evaluated to get clear picture whether promotional

activities and techniques are being used by McDonalds to achieve its objectives.

6.2 Conclusion:

Conclusion is being drawn from the research findings through questionnaires and discussion

with McDonald’s manager and employees and that promotional activities help in increasing

sale of products and maximise profit.

i) Findings of ResearchQuestion

From all the finding it is clear that McDonald’s have clear vision and are well aware of the

importance of using promotion activities to increase short term sales. McDonalds are using

various sales promotions techniques in order to reach the targeted audience.

In the prism of all the research work the most significant factor which arises are the customer

perceptions about promotional activities. In retail sector promotional activities are widely

visible and customers can get those promotional offers quite often. Those promotional

activities are very obvious and can be determined easily. Whereas, for fast food franchise like

McDonalds it is hard for the customer to notice promotional activities because the price of all

those products are much lower and affordable. Therefore, sometime customer even do not

realise that promotional activities have a greater effect on their purchasing decisions.

Similarly, all promotion techniques need to be tested in order to show their validity, but the

finding shows that all McDonald’s promotion techniques are very appealing and it helps to

boost their sales. The performance of promotion techniques can easily identified by the

manager through sales at the end of day. If the sales are not increase then they change their

promotion techniques. Therefore, McDonalds are using promotion methods quite perfectly in

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order to increase their short term sales. Whereas, advertising help to create awareness among

target audience and it help to achieve long-term sales. In my opinion promotion methods are

vital for increasing McDonald’s sales and it also helps to attract new customers and they can

became loyal McDonald’s customer for longer time period. McDonald’s need to have clear

promotion objectives and need to relate all these objectives with their marketing objectives. It

will help McDonald’s to achieve short-term as well as long-term goals.

ii) Findings Analysis

McDonalds are attracting various age group audiences. Initially their main target was families

with kids but they changed their tactic and start to attract all types of people in order to

increase the sales. As United Kingdom economy is based on two main industries i.e. tourism

and international students and McDonalds are using various promotional tactics in order to

reach wide range of audience. Moreover, McDonalds is located at place which cover

surrounding area up-to 60 km. Due to 24 hour service all week McDonald’s are using various

promotional tactics in order to attract all types of customer whether they are working (in

morning, evening or night), families, students or tourists. McDonald’s did attract all types of

customer through greater emphasis on their promotional activities. For example, McDonald’s

have special arrangement for birthday parties, customers can celebrate their birthdays in

McDonalds and is they give away toys to kids, which could helpful for McDonalds in longer

time period. Because kids would only go to McDonald’s and they can change their parents

mind. Furthermore, McDonald’s are cutting down various meal or deal prices as promotional

tactic in order to attract various group of customer. It will help them to further increases their

sales for short time period. This will help in to boost the morale of customers and they can

become loyal to McDonald’s. Due to continuously introducing new flavours to their menus

McDonalds is way ahead of the competitors and is continuously trying to widen their range

of menus in order to attract customers from competitors. Through this way McDonalds can

increase their market share and help to boost their sales.

Similarly, in research findings the significant thing is that most of customers do not know the

role of promotion and its influence on their purchasing decision. They do not even know that

it because of promotional activities of McDonalds which help the customers to make decision

whether to buy that specific product/service or not. Therefore, promotional activities play

vital role in purchasing decision. The McDonalds need to do their promotional activities in

particular way that their message reaches the targeted audience with or without letting them

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know and it also helps them to increase their sale. It will help to achieve their both objectives

through promotion.

Furthermore, product assortment, price, quality, waiting time, travelling time, good services

and convenience are the few main elements which the customer rate them the most important

while doing any special promotional activities. Therefore, McDonalds need focus their

attention on these elements in order to get the best possible result. In addition, from research

finding it is clear that majority of McDonald’s customer spent about £3-5 on each visit to

McDonalds. Therefore McDonalds need to improvise their techniques not only provide the

best quality product and service at very minimum price but they need to have to attract more

customers in order to cut down the overhead costs. It is only possible through proper

promotional strategies to achieve this objective.

iii) Links with literature review

According to Fill (2009) that sales promotion aims is to influence the targeted audience

purchasing decisions. Sales promotions are used to achieve short-term sales. Whereas,

advertising are usually used to develop market awareness. Moreover, advertising are used to

achieve long term sales.

This statement will helps McDonald’s to focus their attention solely on promotion in order to

boost their sales. This could only be achieved if McDonalds wisely targeted the audience and

sales promotion will help to achieve to increase short-term sales. The most important part in

sales promotion is how to use the best technique to reach the targeted audience. It is

therefore, important that marketing strategy would be related to promotional mix in order to

get the best possible result.

According to Hughes at le. 2000, that there are many factors when marketing decisions are

made about which and how many sales promotion methods to use. The most important are

the objectives of promotional effort. Marketer must consider product characteristic (such as,

size, weight, cost, durability, uses, features, and hazards) and target market profiles (such as,

age, gender, income, location, density, usage rate and buying patterns). Similarly, distribution

channels and availability of appropriate reseller also influence the choice of sales promotion

methods. In addition, competitive and regulatory forces in the environment have also great

influence on sales promotion methods.

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McDonalds are using sales promotion methods by considering many factors when marketing

decisions are made. The marketers of McDonalds consider the product characteristics such as

weight, cost, size, and features. In addition, they also consider the target audience on basis of

age, gender, income, location, and buying patterns. All these factors were identified in

research finding in discussion with McDonalds manger and staff. The most important aspect

of for any product promotion they consider the main product characteristics such as the cost,

size, cost, and features. Whereas, McDonalds are trying to target the audience on basis of age,

gender, income, location, and customer buying patterns. These all elements are considered

while using any decision on the sales promotion method. The marketer knew the pro and cons

of all the methods. If the specific method of sales promotion failed to achieve the result then

the method is review and making possible changes or can introduce entirely new sales

promotion method. This will help in continuous increase in McDonald’s sales.

According to McDonald, (1992), “consumers, at least for certain fast-moving consumer

product categories, are less brand loyal, and are becoming increasingly price-conscious”.

Similarly, McDonald’s is fast food franchise and one of the most loving fast food franchises

of United Kingdom. Thought the current UK market is saturated with competitors but

McDonald’s are always market leader and take a competitive advantage over its competitors.

McDonalds can be categorised as a fast moving consumer product and most of their

customers are not loyal and while some customer became increasingly price-conscious.

Therefore, due to such perception of consumer leads franchises to price-war and where most

of franchises cut down their product price and sell them at relatively lower prices. Hence, at

this point different sales promotion methods are being used in order to influence on consumer

purchasing behaviour. Therefore, it is important for McDonalds to use the best possible

option in order to create customer base. McDonald’s has relatively lower price than its

competitors as mentioned in Chapter 4.

Once sales promotions are combined with other marketing activities it produces the best

result. As advertising (for example, ads) create awareness about product or service, while

sales promotions lead to purchase or trail. In addition, sales person may offer a potential

customer a discount coupon for good or service. Due to limited time frame, promotions

encourage immediate action. Therefore, sales promotion produce measurable results, and it

gives marketers to evaluate promotional effectiveness (Kurtz at le. 2009).

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Moreover, sales promotion in McDonald’s is combined with various marketing activities

such as advertising and personal selling in order to get the best result. Advertising and

personal selling are used for the awareness of product and services of McDonald’s. Due to

the shorter time period McDonalds are expecting that promotion encourages immediate

action. Furthermore, the sales promotion produce measurable results at the end of day and it

also give the marketers of McDonalds to evaluate the effectiveness of promotional activities.

According to Hughes al et. (2011), that sales promotion objectives should be consistent with

the organisation’s strategic objectives and its marketing and promotional objectives.

The McDonald’s are consistent sales promotion objective with their strategic, marketing and

promotional objectives. The basic promotion objectives of McDonald’s are as follows:

Attraction of new customers.

Introducing new products

Maximise sales from current customers

Improve product service

High competitive promotional activities

These few are the promotion objective where McDonalds are way ahead of its competitors

like Burger King, KFC and Subway. McDonalds have relatively lower prices than its

competitors and huge customer base due to their promising promotion methods. It could only

done through clear objective and have the consistency with strategic, marketing, promotional

objectives.

Furthermore, McDonald’s identified different types of customers through market research. As

this is essential for McDonald’s to retain people once they have become their customers, they

use different marketing and promotions tactic to target different people. Children happy

meals, free coffee coupons, premiums, contests, free WIFI and saver menu are the part of

those activities. McDonalds look forward for the loyal customers and provide extra value to

them. Customers are given free coupons for coffee. That’s mean when a customer buy six

coffee cups at same time or during different times, they give free coupons which can be used

in any McDonalds restaurant to get free coffee. This is a successful promotion activity which

helps McDonalds to lock the loyal customers on long term basis. Similarly McDonald’s offer

free coke glasses or free coffee mugs (premium) when a customer buy a meal. This premium

technique helped McDonald’s to motivate the consumers to buy their meals. In addition to

that McDonalds offer contests to its customers. Here McDonald’s give free stickers with

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some particular food (promotion burgers, promotion Mcflury, promotion desserts) to

customers. Customers can use those stickers to participate in contests. On the basis of skills

they get rewards such as high cash prizes. These contests develop a strong interest of

consumers in the products of McDonald’s. And McDonald’s get an increase in number of

customers and money spent in the restaurant and increases sales as a result. Happy meals of

McDonald’s are very popular among children. McDonald’s attracts families to give a treat on

very affordable prices with nice sitting arrangements. Kids feel like a fun coming in

McDonald’s getting free toys and balloons with their meals as McDonald’s is considered as a

family restaurant. Saver menu and free WIFI helped McDonald’s to attract teenager.

Teenager affords that saver menu and prefers to visit. A pound burger deal in Central London

is indeed an appealing offer to customers.

iv) Research Evaluation

Through proper evaluation of research finding I consider all my judgement on research work

as the best as I thoroughly keep the main theme of my research under my prism. The most

important part of any research work that sometime researcher lost the research main

objectives and question set while doing research. Whereas, I was consistent with my

questions and stick to the research topic and its objectives. The research I have conducted by

using two way i.e. questionnaires and discussion with McDonalds manager and staff.

The questionnaires were designed in such way that it helps me to identify different

perspective of customers. That what they perceive about the promotional activities and how it

could affect their daily life. Whereas, in discussion with manager and staff help me identify

the various factors which are important while using any promotional method. Furthermore, it

helps me to identify how promotions can effects the organisations and knew the importance

of special promotion for an organisation.

The main thing which is quite new that I have identified in questionnaires that most

customers do not know the influence of promotion activity on their purchasing decisions.

When the same query was asked from the manager then he said sometime customer do not

know that promotion can actually influence their purchasing decision because there are

certain other elements such as promotion methods, location of franchise, product

characteristics, age, gender, customer income and their perception about McDonalds. These

all things are part of promotion where organisation decides to implement specific promotion

method in order to increase sales and customer base.

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6.3 Recommendations:

On the basis of research findings and conclusion the following are the main recommendations

for the selected McDonald’s to maximise their sales through promotion.

1. Healthy Nutrition:

McDonalds need to focus their attention on healthy and low fats products. In today’s most

customers are heath conscious and deliberately avoiding fast food restaurants. If McDonald’s

want to gain more market share, then they need to focus on niche market. Through proper

promotions McDonald’s can attract customers who are more heath conscious. McDonald’s

can attract various competitor customers such as Subway, Prêt and Burger King. This will

help to further increase their sales and gain high market share.

2. Staff Training:

McDonalds need to train their staff so that they can serve the entire customer properly. It will

help high customer satisfaction and it will lead McDonalds to high revenue. Training of

employees is as important as customers to the business. Employees are the main asset of an

organisation and proper training will help to polish their skill and it will help in assisting

customers in store. Employees training will help to flourish McDonald’s brand image,

because these employees would satisfy customers on front line. Staffs need to be trained in all

areas, so they can easily adjust at any place on particular event. This will help McDonald’s to

have various options and put the best candidate on best position.

Moreover, staffs need regular motivation and McDonald’s need to regular assessment of their

employees and employees need to be reward on the basis of their performance. This will help

in motivating staff at different levels.

3. In-Store Advertising:

McDonald’s need to in-store advertising in order to create awareness regarding new products

launched in market. In-store advertising will help McDonald’s to attract new customer

towards its products. Different advertising techniques such as posters on walls should be used

to create awareness about product existence and its benefits. This will help to attract more

customers and it will enhance store sales. In order to support in-store advertising, regular

promotion activities are also need to done for both short-term and long-term increasing sales.

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6.4 Recommendations for Future Researcher:

I have gathered research data through questionnaires and discussion with manager and its

staff due to the time limitation. It would be more appropriate if the researcher use some other

research techniques in order to gather more accurate data. Apart from questionnaires and

discussion the researchers can use structured interviews with various McDonald’s franchises

and include more participants in order to do in-depth analysis of data. Data need to be

compared with research question and objectives. It will help the researcher to focus their

attention on various aspects of sales promotion activities. The following the main

recommendation for future researcher in order to get clearer picture about the research topic

and its objectives.

The future researcher needs to identify the various methods of sales promotion and

define its advantages and disadvantages. It will help the researcher to explore various

other methods which could help to increase organisation sales.

The future researcher need to explore the research topic and data gathered through

various options need to be properly examined in order to identify the different

perspectives.

Future research need to stated clear purpose of research and research objectives in

order to use specific research technique to gather the specified data.

They need to ensure that the data they are gathering are reliable and accurate.

Future researcher need to use various techniques such as un-structured interviews

with more participants and then draft all the gathered data in suitable manner that it

can answer all the research objectives.

The future research need to ensure the privacy of all participants and no individual or

company need to be identified.

During data gathering the future researcher need to tell the purpose of their research to

all participants.

Future researcher need to focus more on interviews and if possible record their

interviews.

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Chapter 7

Reflective Statement

7.1 Reflective Statement

The purpose of this study was to identify the importance of special promotions for the

business organisations as well as for the consumer and what is the perception of consumer

about special promotion. The aim of the research is to investigate “How special promotion

can increase the sales? (A case study of selected McDonald’s)”. The whole research is

conducted over during of one month, which is long enough to discover the perception of

consumer and staff regarding special promotion. In addition, over this period of one month

the perception of consumers are slightly different from that of employees and manager of

McDonalds. The whole process of contacting McDonalds and seeking permission to filled

questionnaires from their customers was indeed a great experience. I really appreciate the

extremely friendly behaviour of McDonald’s staff and its customers. Most of them gave me

their contact details and are very happy to say in contact.

Furthermore, the collection of data through research questions is severed as guide in this

study. The collected data was processed thoroughly. Systemised process began, I depend on

the concepts and information emerged from the data to form analysis. The research questions

provide a framework to collect the data. The perspective theory derived from the data was

linked with literature.

Almost 100 questionnaires were distributed among various customers of selected McDonalds

in London. 60% of the respondents were male while 40% were female. The respondents were

among all age starting from as 13 years to 65 years old. Self-administered questionnaires

were arranged.

The research questionnaires contains total of 15 questions. The initial two questions were

very basic while the rest questions focused on getting better understanding of consumer

perception towards McDonald’s promotional activities and how promotion help to influence

on their consumer purchasing decisions.

The attitude and perception of consumers were analysed under different statements regarding

sales promotion, and are shown below.

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1. Do you aware of any McDonald’s promotional offers?

2. Did McDonald’s promotional offer attract you to visit here?

3. In each visit, how often you buy promotional products?

4. Do you think McDonald’s promotions influence you to come to visit McDonald’s?

Although beside the above statements there are numbers of other question which were

focused on dynamics of consumer behaviour and the role of sales promotion on consumer

purchasing decisions, how it help in gaining competitive advantage and how to attract new

customers through these sales promotion activities. The role of sales promotion concepts

were used as the main objective for better understanding the perception of consumer and

employees regarding performance appraisal through self-administrated questionnaires and

discussions.

I learned various lessons from questionnaires which help me in my research work. All finding

assisted me throughout the research process. Proper questionnaires guide was develop to

assist asking questions.

The respondents were enjoying the questionnaires process and they were freely sharing their

ideas, experiences, opinions and feelings. Most of respondents shared their personal stories

regarding promotion in their particular organisation and elsewhere.

This research gave me an opportunity to thoroughly analyse how I learn and in order to fully

understand an idea how I should learn. In order to learn new theories and models and I must

need to learn their practical implications. I thoroughly link literature with my findings and it

shows that I am able to link theory with their practical implications. Though it was

challenging task but I love to do new innovative ideas and their practical implications. In this

case the relationship between sales promotion, consumer purchasing patterns and increasing

sales was a topic of great interest for me to their relationship in practical world. The whole

process of research is very interesting and it would help me making decisions on practical

occasions. On daily basis this research help me to observe numerous other business products

that are doing promotion offers to attract wide range of customers in order to increase their

sales. I learned that many businesses doing their promotion for short-term increase in sales. I

learned how businesses attract new customers due to various promotion activities and which

give them leading edge on its competitors.

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Due to time limitation for this research, I might have used interviews with my participants

rather than using questionnaires. Face-to-face interviews would be more helpful to have an

in-depth analysis of participant responses.

Overall, it was fascinating experience and made me realise the relationship between sales

promotion and its influence on consumer purchasing patterns. After comparison I easily say

that similar perception can be found regarding my work-feedbacks. This research help in

better undertaking the competitor market of fast food restaurants and the importance of

promotional activities regular in such a competitive market. I noticed that only promotions

activities do not help business but it need great team to offer their best services so that no

customers left unsatisfied. McDonald’s had the most dedicated staff that was busy all time to

serve customers. Even after my research, I am still in touch with some McDonald’s staff and

research participants. We regularly meet for cup of coffee, sometime drink and share great

discussion on the importance of sales promotion and how it helps in increasing sales.

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References

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Appendixes

Research Questionnaires

Please tick () the appropriate option which seems closer to your opinion. This questionnaire

will not take longer than 10 minutes. Thank you for helping me with my research.

1. What is you gender?

Male

Female

Other

2. What is your age?

3. Do you often visit McDonalds?

Yes

No

Sometime

4. Do you aware of any McDonald’s promotional offers?

Yes

No

5. Did McDonald’s promotional offer attract you to visit here?

Yes

No

6. On average, how many days in month do you visit McDonalds?

1-2 days 3-5 days 6-10 days More than 10 days

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7. How many times in a month do you visit to fast foods other McDonalds?

1-2 times 3-5 times 6-10 times More than 10 times

8. How long you have been visiting McDonalds?

Less Than a year 2-5 Years 6-10 Years More than 10 Years

9. In each visit, how often you buy promotional products?

1 times 2 times 3 times 4 times More

10. Do you think McDonald’s promotions influenceyou to come to visit McDonald’s?

Yes

No

11. Among the following factors choose those which you consider when visiting

McDonald's?

Factors

Not

Important

Less

Important Neutra

l

Important

Very

Important

Special Promotion

Product Assortment

Price

Food Quality

Discounts/Coupons/

Offers

Nutrition’s

Waiting Time

Travelling Time

Good Services

Convenience

Socially Responsible

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Organisation

12. To what degree do you agree/disagree with the following statements:

Strongly

Disagree Disagree

Neither

Agree/Disagree Agree

Strongly

Agree

I will keep

visiting

McDonalds.

I will visit if

there are more

promotions.

McDonalds

have better

offers than the

other fast food

restaurants.

I would

recommend

McDonalds to

my family and

friends.

13.  What is reasonable travelling time you are willing to spend to visit McDonalds?

Less than 5 Minutes 5-15 16-25 25-40 More than 40 Minutes

14. How much time is spent on each visit to Mc Donald?

Less than 5 Minutes 5-10 11-15 16-20 More than 20 Minutes

15. How much average money is spent on McDonalds on each visit?

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Less than £1 £1-£ 2 £3-£5 £6-£8 More than £9

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