The Impacts of Marketing Mix on the Consumer Experience in Fast

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International Journal of Research and Development - A Management Review (IJRDMR)
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The Impacts of Marketing Mix on the Consumer Experience in Fast
Food Industries
1
R.Uma Maheswari, 2G.Nagamuthu,
HOD, Dept of MBA STC College, Pollachi
Assistant Professor, Department of Business Administration,
PSGR Krishnammal College for Women
Abstract- The paper aims at analyzing marketing mix of a
chosen fast food company. The theoretical part of the work
deals with function and role of marketing mix and explains
each element of marketing mix. For this study the data was
collected from 120 respondents in Coimbatore City.
Percentage analysis, Weighter average rank analysis and
Chi-square test used for analyzing primary data to find the
relation between various marketing mix elements. Corelation coefficient was used to find the relationship
between various elements. Based on the analysis, some
suggestions and recommendations were given.
Keywords: product, price, place, promotion, physical
evidence, process, people
INTRODUCTION
The marketing mix is a model of creating and
implementing marketing strategies. The elements are the
marketing tactics, also known as the 'four Ps', the
marketing mix elements are price, place, product, and
promotion. The model was developed by Neil Borden
who first started using the phrase in 1949.Particular
attention being paid to services marketing in recent
years, theorists have identified additional variables
which could be added to the 4 P’s. Fifield and Gilligan
recognized the three more variables as an integral part of
marketing mix- process, people and physical evidences.
When blending these mix elements, marketers must
consider their target market. These seven P's are the
parameters that the marketing manager can control,
subject to the internal and external constraints of the
marketing environment. The goal is to make decisions
that center the seven P's on the customers in the target
market in order to create perceived value and generate a
positive response.
REVIEW OF LITERATURE
Lauterborn (1990), the study claims that each of these
variables (4 P’s) should also be seen from a consumer’s
perspective. According to Gronroos (1994), the
Marketing mix built from a concept of the marketer as a
“mixer of ingredients” that plans various means of
competition and blends them into a “marketing mix” so
that a profit function is optimized, or rather satisfied.
According to Peter Doyle ( 2000), the study claims that
the Marketing mix approach leads to unprofitable
decisions because it is not grounded in financial
objectives such as increasing shareholder value. It has
never been clear which criteria to use in determining an
optimum Marketing mix. According to Möller (2005) ,
the study highlighted some key criticisms against the
Marketing mix framework that the Mix does not
consider customer behaviour but is internally oriented.
According to Fakeideas( 2009) ,the study found that the
Mix does not take into consideration the unique
elements of marketing. According to Rafiq and Ahmed
(2012), the study found that there is a high degree of
dissatisfaction with the 4Ps, however, 4Ps is thought to
be most relevant for introductory marketing and
consumer marketing. The result also suggests that the
7Ps framework has already achieved a high degree of
acceptance as a generic marketing mix .
OBJECTIVES OF THE STUDY
1.
To find the motivating element of the marketing
mix model which makes the customer to purchase
of the McDonald s product
2.
To build an analytic connection between the
customers satisfaction with the marketing mix
3.
To analyses impact of the people, process , price
and physical evidence towards the customers.
According to Neil Borden ( 1964) who first started using
HYPOTHESIS
the phrase in 1949 , the Marketing mix is a model of
HO: There is no significant relationship between
creating and implementing marketing strategies. It
marketing mix elements and consumer experience
stresses the blending of various factors in such a way
that both organizational and consumer objectives are
H1 :There is significant relationship between marketing
attained. The elements are the marketing tactics, also
mix elements and consumer experience
known as the 'four Ps', the marketing mix elements are
METHODOLOGY
price, place, product, and promotion. According to
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ISSN (Print): 2319–5479, Volume-3, Issue–2, 2014
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International Journal of Research and Development - A Management Review (IJRDMR)
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Coimbatore city has been selected for the study.
Statistical tools such as percentage analysis, weighted
average rank analysis and chi-square test analysis are
used for this study. The primary data was collected
through survey method using interview schedules.
FAST FOOD INDUSTRY
The fast food industry, also known as Quick service
restaurants (QSR) have been serving tasty food in quick
time for many years. The major players of the fast food
industry include McDonalds, KFC, Pizza hut , Dominos
and Subway. Fast food franchises focus on high volume,
low cost and high speed product. Frequently food is
preheated or precooked and served to-go. Consumers
enjoy being able to get a familiar meal in each location,
and the menus and marketing are almost the same in
every location. Hence, there has been a huge market
share, increase in the employment rate and high growth
rate which indicates a positive growth in future.
Fast food franchises are also focusing on expanding into
new product lines, such as the coffee initiative- McCafe
which is intended to offer competition to Startbucks.
McDonalds is luring customers back into their stores,
hoping they will purchase food as well. The fast food
industry is still a large and diverse industry with plenty
of opportunity. Its certain that the challenge is being
answered with innovation, and fast food franchises are
responding with new offerings, pricing and strategies to
lure consumers back in. The future trends of the fast
food industry will be that the industry will begin to
make larger internal and external business decisions.
The food at fast food establishments will be brought to
an acceptable level of nutritional value. By 2025 , the
fast food industry will have transformed from a food
provider to one that serves a specific health benefit. The
industry will move from healthy to functional, by
concentrating on basic nutrition such as creating the
vitamin burgers by replacing unhealthy ingredients with
healthy alternatives that keep the taste consistent also
providing the nutritional value.
THE MCDONALDS -OVER VIEW
The story of McDonalds started in 1954 when its
founder Raymond Kroc saw a hamburger in San
Bernardino , California and envisioned a nationwide fast
food chain.Kroc proved himself as a pioneer who
revolutionarized the American restaurant industry.Today
McDonalds is the world’s largest fast food chain serving
47 million customers daily.
MCDONALDS IN INDIA
McDonalds entered India in 1996.McDonalds India has
a 50-50 joint venture partnership with Connaught Plaza
restaurants and Hard castle restaurants. The Connaught
plaza restaurants manages operations in North India
while the Hard castle restaurants manages operations in
Western India. Apart from opening outlets in major
metros, the company is now expanding to the tier two
cities as well
Elements of Marketing Mix ( 7 P )
Product : The product is a combination of tangible and
intangible aspects of the products offered by the
manufacturer to the customers.
Price : Price means the monetary value of the product
has been fixed for exchange purpose. The price is the
amount a customer pays for the product.
Place : Place represents the point or location where the
product is made available to purchase. It is required that
the products and customer should be available at a point
then only the sales would be possible. It can include any
physical store as well as virtual stores on the Internet.
Promotion : It includes all means of communications a
marketer uses in the market for their products or services
so as to create awareness, persuade the customers to buy
and retain in future also. The promotional mix includes
advertising, personal selling , sales promotion ,public
relations ,direct marketing and corporate image.
People : The services are being provided with the help
of employees and to the customers. There is direct
contact for delivery of the services to the customers. The
type of people providing the services are important
hence , the people are to be selected, trained and
motivated consciously to make the customers content
with the service provided.
Process : For availing a particular service , certain
activities are to be performed which requires a
procedure , mechanism and flow of activities by which
services are to be delivered. It is important to maintain a
a standard format for availing the services without
which the service cannot be delivered properly with
uniformity.
Physical Evidence : The physical evidences create the
environment in which the service or product is
delivered. It includes two types – Internal evidences
such as interiors of the environment , décor etc and
external evidences such as building, parking place, gate
and a long drive- way etc.
LIMITATIONS OF THE STUDY

The number of respondents are limited to 120.

Time is a major constraint in doing the project.
 The findings and observation are based on the
respondents answer which may be affected by the
personal bias.
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ANALYSIS AND INTERPRETATION CUMULATIVE PERCENTAGE ANALYSIS
Table:1 Profile of Respondents
Factors
Particular
No. of Respondents
%
Gender
Male
Female
Below 21
21-35
36-50
Above 50
Married
Unmarried
Never
Once / Twice a Week
Once / Twice a Month
Once / Twice a Year
43
77
43
55
22
0
50
70
17
31
58
14
36
64
36
46
18
0
42
58
14
26
48
12
Age
Marital Status
Frequency of Visit
Cumulative
%
36
100
36
82
100
0
42
100
14
40
88
100
64 % of the respondents are females, 46% are between the age group 21 and 35, 58% are married and 48% are
frequently visiting once or twice a month.
Table:2 Motivating Factor Among the Various Marketing Mix Elements Weighted Average Rank Method
Variable/Rank
Product
Price
Place
Promotion
Process
People
Physical
Evidence
1
3
2
7
5
35
57
11
2
4
3
9
7
64
20
13
3
2
6
17
11
7
14
63
4
14
10
54
13
5
11
13
5
8
8
21
66
4
8
5
6
21
73
3
9
3
7
4
7
68
18
9
9
2
3
11
TSV
715
670
478
551
256
286
404
AVS
595
558
398
460
213
238
336
Ranks
I
II
IV
III
VII
VI
Ranks
Source : Primary data
The table shows the ranks assigned to the variables using the weighted average ranking method. The first rank has been
assigned to “Product” , the second rank to “Price” , third rank to “promotion” , fourth rank to “place” , fifth rank to
“physical evidence” , sixth rank to “people” and seventh rank to “process”.
Result
Therefore, the most preferred variable is the “Product” of McDonald's using the weighted average rank method.
Table:3 Satisfaction Level of Marketing Mix Element
S.
No.
1
2
3
4
5
Satisfactory level
Highly satisfied
Satisfied
Neutral
Dissatisfied
Highly dissatisfied
Total
No
of
respondents
12
52
43
9
4
120
Percentage
(%)
10
44
36
7
3
100
Source : Primary data
44% are satisfied, 10% are highly satisfied and 36% are neutral about the marketing mix of McDonald s, respectively.
Table:4 Association Between Price and Physical Evidence
Objective : To find out the relationship between the people, process , price and physical evidence towards the
customers.
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0ij
57
11
10
10
2
2
25
3
0
Total
Eij
59.8
10.4
7.8
10.73
1.86
1.4
21.46
3.73
2.8
Oij-Eij
-2.8
0.6
2.2
-0.73
0.14
0.6
3.54
-0.73
-2.8
(Oij-Eij)^2
7.84
0.36
4.84
0.53
0.019
0.36
12.53
0.53
7.84
(Oij-Eij)^2/Eij
0.13
0.03
0.62
0.04
0.01
0.25
0.58
0.14
2.8
4.6
Factors
Degree of Freedom
Table value
Calculated value
Relationship
Physical evidence &Price
4
9.488
4.6
Not Significant
Result : Table value is greater than the calculated value, the null hypothesis is accepted and the alternative hypothesis is
rejected. There is no significant relationship between the physical evidence and price.
Table:5 Association Between People and Process
0ij
50
4
6
5
3
5
41
2
4
Total
Factors
Process & People
Eij
48
4.5
7.5
10.4
0.97
1.62
37.6
3.52
5.87
Oij-Eij
2
-0.5
-1.5
-5.4
2.03
3.38
3.4
-1.52
-1.87
Degree of Freedom
4
(Oij-Eij)^2
4
0.25
2.25
29.16
4.12
11.42
11.56
2.31
3.49
(Oij-Eij)^2/Eij
0.08
0.05
0.3
2.80
4.24
7.04
0.30
0.65
0.59
16.05
Table value
9.488
Calculated value
16.05
Relationship
Significant
Result : Table value is lesser than the calculated value, the null hypothesis is rejected and the alternative hypothesis is
accepted. There is a significant relationship between the process and people.
Table:6 Correlation Between Place and Physical Evidence
X
97
5
18
Total
Y
83
11
26
x=X-X57
-35
-22
y= Y-Y 43
-29
-14
x.y
2451
1015
308
∑ x .y =3774
x2
3249
1225
484
∑x2=4958
y2
1849
841
196
∑y2=2886
Source : Primary data
Correlation coefficient (r) =
0.997
Result : As the correlation value is 0.997 which is between +1 and -1 , there is a positive correlation between place and
physical evidence.
Table:7 Correlation between product and promotion
X
38
22
60
Total
Y
13
86
21
x= X- X-2
-18
20
y =Y-Y-27
46
-19
x.y
54
-828
-380
∑ x .y =1154
x2
4
324
400
∑x2=728
y2
729
2116
361
∑y2=3206
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International Journal of Research and Development - A Management Review (IJRDMR)
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They may try to adopt innovation to overcome the
challenges .
Source : Primary data
Correlation coefficient (r) =
- 0.75
Result : As the correlation value is – 0.75 which is
between +1 and -1 , there is a negative correlation
between product and promotion.
Fast food franchises are responding with new offerings
and pricing strategies
They can practice continual
improvement in their menu.
FINDINGS:
68% agree that the quality and packaging of food is
good, 73% agree that the menu gives emphasis on
customer requirements.

40% agree that the price suggests best value for
money,65% agree that the price is reasonable when
compared to its leading competitors.

77% agree that the price reflects good quality of
food,60% agree that the location aids easy
accessibility.

81% agreeing the restaurants are located at prime
locations,79% agree that the promotional strategies
induces the target customers to purchase the
product.

72% disagree that the consumers are well
informed about the promotional strategies,81%
agreeing the effective usage of different medias.

53% agree that the quality of service provided by
the staff is satisfactory, 50% agree that the staff
employed provides fast and friendly service.
80% agree about the speed of food preparation ,
44% of the respondents are satisfied with the
marketing mix of McDonald s.
SUGGESTION:
and
CONCLUSION:


enhancement
The fast food industry has its challenges, from rising
food costs, economic recession and changing
perceptions about health. The major problems faced by
the Fast food industry include the growing restaurants ,
health related issues ,changing trends , changing
consumer preferences, long service hours and profit
repatriation. There are many ways being adopted by
these industries to overcome the challenges .
REFERENCESS
[1] Lauterborn, R. (1990). New marketing litany: 4P’s
passé; c-words take over. Advertising Age,
(October 1), p. 26.
[2] http://extension.umd.edu/agmarketing/marketing101/mark
[3] http://articles.economictimes.indiatimes.com/
keyword/marketing-mix
[4] Kotler, Philip. 2009.Philip Kotler Marketing
Group. http://www.kotlermarketing.com
[5] http://www.theseus.fi/bitstream.
[6] T.N.Srivatsava, Shailaja Rego (2010). Business
Research Methodology. Tata McGraw Hill
Education Pvt. Ltd., New Delhi.
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