Dissertation Topic:

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

Course:
MBA

Date of Submission:
30th JUNE, 2011

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 fiance who motivated me throughout my research work.

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
The aim of this research is to identify the importance and role of special promotions for a selected McDonalds. 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 McDonalds 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 McDonalds 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 McDonalds 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 2 3 4 5

Title Page Dedication Acknowledgement Abstract Table of Contents

1 2 3 4 5

Chapter 1 Introduction 1.1 1.2 1.3 1.4 1.5 1.6 1.7 1.8 1.9 1.10 Introduction Purpose of Study How to define Special Promotions? Company overview and business description Background Research Aim Research Objectives Scope of the study Research Methods Scheme of Study Chapter 2 Literature Review 2.1 2.2 Sales Promotion The growing importance of sales promotions 2.3 2.4 2.5 Sales Promotion Objectives Sales Promotion Techniques An Overview of How Sales Promotions Work Chapter 3 Research Methodology 3.1 3.2 3.3 Introduction Research Philosophy Research Design
5

8 8 9 9 11 12 12 12 13 13

15 16

17 17 25

28 28 29

3.4 3.5

Questionnaires Research Ethics Chapter 4 Finding and Analysis

31 36

4.1 4.2 4.3

Introduction Questionnaires Findings Research Findings Chapter 5 Discussions

37 37 37

5.1 5.2

Introduction Discussions with McDonalds Manager and Staffs Chapter 6 Conclusion and Recommendations

48 48

6.1 6.2 6.3 6.4

Introduction Conclusion Recommendations Recommendations for Future Researcher Chapter 7 Reflective Statement

52 52 58 59

7.1

Reflective Statement

60

References Appendixes

63 66

Research Topic: How special promotion can increase sales? (Case study of selected McDonalds)

Chapter 1 Introduction 1.1 Introduction

This chapter discuss the history of McDonalds restaurant, background and consumers behaviour towards fast food industry in the UK. Moreover meanings and importance of special promotions and the tactic McDonalds uses to introduce promotions in order to attract more consumers are discussed. This research is conducted on a selected McDonalds restaurant. And in this aspect all the discussion is about that particular McDonalds. All the research data, figures and discussions describes that selected McDonalds 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 McDonalds as well as for the consumers. McDonalds 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 McDonalds restaurant for this study as research is carried out in a limited period of time. In order to achieve their prospective McDonalds have been using the number of ways to understand the market, for example consumer welfare program, consumers feedbacks and organised surveys are the part of those activities. This study helped out to analyse how well McDonalds 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. McDonalds 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 McDonalds 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 McDonalds as well as for the consumer. The carried out research showed how successfully McDonalds achieved the goals with the help of its special promotions.
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1.3

How to define Special Promotions?

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

McDonalds restaurants operated by MacDonalds Corp were number one fast food chain in the world till March 2011. In March 2011 Subway became the largest fast food chain beating McDonalds by its number of outlets.McDonalds is serving about 49 million customers in 120 countries worldwide every day. The companys headquartered in Oak Illinois. McDonaldsoperates and licenses 31000 restaurants. The company generated total $19.06 million revenue in year 2004. McDonalds brand is one of best brand out of ten most popular brands in the world. McDonalds 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, McDonalds introduces some promotional products time to time. This promotional product plays a vital role to increase the sales of McDonalds. 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 McDonalds is practising very nicely and successfully. The business

manager of the selected McDonalds told that half of their total sales come through special promotions. 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. Thats 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. McDonalds Restaurants, which is the largest fast food operator in the world, have 30,000 outlets in more than 119 countries. McDonalds serves more than 50 million customers in the world and more than 2.5 million people in the UK every day. McDonalds 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 McDonalds 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 doesnt even take into account other types of fast food order such as Chinese, Indian or
10

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). 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 todays 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?

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b) An investigationto understand how McDonalds usesvarious tactics to attract the new customers and lock the existing one through special promotions. c) An analysis of McDonalds 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 McDonalds. 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 Thats 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 McDonalds was using the promotions tactic to
12

make people come in. It was a broad field to learn and discuss but due to limited time scale, the research has been carried out on a selected McDonalds restaurants 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 McDonalds 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 McDonalds. 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:
16

Declining Brand Loyalty

Communication Clutter

Lack of differentiation

Buying decision taken in store

Sales Promotion

Short-term Orientedness

Distribution Channel Power

Measurability

*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

17

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 organisations 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
19

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 manufacturers 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 Coupons

Objectives Stimulate trail

Strengths or Attract
21

Weaknesses

price- Not all retails accept

brand switching

sensitive who

customers coupons. Have often not been counterfeited or redeemed by some retailer retailers without

might

otherwise buy. Encourage support. Refunds (or rebates) Encourage customers Help to buy half

consumer purchases. sales May reduce

declines or reduce perceived value of inventories if new the product. products are about to Easy for competition enter the market to match

Samples

Stimulate trail of new Low customer risk May be very costly products creates and trail awareness for the company

Premiums

Encourage customers Reward to buy and minimise customers brand switching

loyal Customers will not for need to repurchase for a longer period

continued purchase

Contests

Stimulate

trail

or Customers like free May be costly for the merchandise and may company induce trail of

create goodwill

complementary product Sweepstakes Encourage consumers to A predetermined Requite careful

buy number of winners, thought to be creative

and minimise brand hence cost is usually and to avoid costly switching predictable. Consumers like them because little effort is required Specialty Advertising Encourage customer Create awareness and May be very costly loyalty help to reinforce for company become and less if legal responsibilities

previous and future may

advertising messages. effective, Good

customer competition offers a

22

acceptance

better item.

promotional

*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 products 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:

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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 products 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 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 brands 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 its 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

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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 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.

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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 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
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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 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.

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Chapter 3 Research Methodology: 3.1 Introduction:

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).

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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). 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 its 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).

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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. 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).

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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. 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 McDonalds 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 McDonalds and try to understand the perception of consumers and employees.

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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.

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 McDonalds, 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 McDonalds. During conversations, I recognised that people perception about
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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.

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).

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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 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.

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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. 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.

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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). 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

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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 McDonalds. The data was collected through questionnaires 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 McDonalds manager and staff. Regular visits were made to the selected McDonalds 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 McDonalds. 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.

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1. What is you gender? Male Female 60% 40%

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 21-30 Years 31-40 Years 41-50 Years 51or above 28% 24% 20% 22% 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 McDonalds sales.

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3. Do you often visit McDonalds? Yes Sometimes 30% 60%

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 McDonalds 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 McDonalds promotional offers? Yes No 35% 65%

The result shows that 65% out of total respondents replied No that they are not aware of any McDonalds promotional offers. Whereas, 35% out of total respondents replied that they are not aware of any McDonalds 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 McDonalds promotional offer attract you to visit here? Yes No 25% 75%

According to research 75% out of total respondents replied No that McDonalds promotional offers do not attract them. Whereas, 25% out of total respondents replied Yes that McDonalds promotional offers did attract them to visit McDonalds.
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The above finding further specifies the role of promotion and whats 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 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 3-5 Days 6-10 Days More than 10 Days 15% 50% 10% 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 McDonalds alone, with friends or family. Moreover, it also shows that McDonalds 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 McDonalds 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.

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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 65% 15% 10% 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 McDonalds 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. McDonalds approach to sustain their customer for longer time period through various strategies such as pricing strategies, promotional strategies and product differentiation strategies. Moreover, McDonalds to keep their customer happy through best customer services. 8. How long you have been visiting McDonalds? Less than a Year 2-5 Years 6-10 Years More than 10 Years 10% 15% 15% 60%

The results shows that 60% out of total respondents have been visiting McDonalds from more than 10 years, while 15% out of total respondents have been visiting McDonalds 2-5 years and 6-10 years consecutively. Whereas, about 10% out of total respondents have been visiting McDonalds from less than year. The above result shows that majority of McDonalds customers are happy with McDonalds product and services. Furthermore, they are the loyal customers and they regular do visit to McDonalds. This shows the McDonalds are highly customer focused organisation and it

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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 2 Times 3 Times 4 Times More 75% 10% 5% 5% 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 McDonalds promotional products. Hence promotional products are very attractive and McDonalds 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 McDonalds promotions influence you to come to visit McDonalds? Yes No 40% 60%

The results shows that 40% out of total respondents replied Yes that McDonalds promotion have an influence when they do visit McDonalds. Whereas, 60% out of total respondents replied No that McDonalds promotion have an influence when they do visit McDonalds. 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.

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11. Among the following factors choose those which you consider when visiting McDonald's? Not Less Very

Important Important Important Important Special Promotion Product Assortment Price Food Quality Discounts/Coupons/Offers Waiting Time Travelling Time Good Services Convenience Socially Responsible Organisation 10% 20% 15% 5% 25% 30% 15% 45% 40% 20% 10% 10% 25% 10% 20% 15% 45% 45% 40% 55% 35% 40% 25% 35% 45% 20% 15% 25% 25% 35% 45% 35% 10% 50% 35% 10% 15%

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

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

Strongly Disagree 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. 10% 25% 20%

Neither Disagree Agree/Disagree 15% 10% Agree 30%

Strongly Agree 45%

20%

20%

15%

30%

35%

30%

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 McDonalds to their friends and families. Whereas, 15% out of total respondents either agree/disagree that they would recommend McDonalds to their friends and family. These result shows that McDonalds has the unique brand image and their customers are highly satisfied with McDonalds products and services. The analysis also shows that people considered the McDonalds 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 5-15 16-25 More than 25 Minutes 5% 75% 10% 5%

The result shows that 75% out of total respondents are willing to spent 5-15 minutes on travelling to visit McDonalds, while 10% out of total respondents are willing to spent 16-25 minutes on travelling to visit McDonalds. Moreover, 5% out of total respondents are willing to spent less than 5 minutes on travelling to visit McDonalds and 5% out of total respondents are willing to spent more than 25 minutes on travelling to visit McDonalds. 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 McDonalds 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 5-10 11-15 16-20 More than 20 Minutes 5% 15% 15% 45% 25%

According to the results about 45% out of total respondents spent 16-20 minutes time on each visit to McDonalds, while 35% out of total respondents spent less than 5 minutes, 5-10 minutes or 11-15 minutes on each visit to McDonalds. Whereas, 25% out of total respondents spent more than 20 minutes time on each visit to McDonalds. It clears shows that most of McDonalds customers spent reasonable time in McDonalds. Hence it needs good customer service along with reasonable products. McDonalds 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 6-8 More than 9 55% 35% 15%

The result shows that 55% out of total respondents spent 3-5 on average on each visit to McDonalds. Whereas, 35% out of total respondents spent 6-8 on average on each visit to McDonalds, while 15% out of total respondents are willing to spent more than 9 on average on each visit to McDonalds.

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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 todays 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 McDonalds 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 McDonalds 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 McDonalds Manager and Staffs:

The McDonalds 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 McDonalds and their benefits for the organisation, he told me that apart from the regular set promotions of McDonalds 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 McDonalds have lots of fantastic offers for their customers. McDonalds offer the student customers an option to get one of these free (Cheese Burger, Ham Burger, Fries and McDonalds 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 McDonalds 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)

McDonalds 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 Kings wrap and subways sandwiches. On top of that McDonalds very intelligently introduced the promotion. Now McDonalds 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 McDonalds 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 McDonalds is trying to target the whole customer of the market. Their intention is to capture the people who visit Starbucks, Prt 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 McDonalds 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 McDonalds. From June, 2011 McDonalds 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 McDonalds 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 McDonalds 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, McDonalds 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 McDonalds manger and staff. The research is based on McDonalds 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 McDonalds 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 McDonalds 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 McDonalds 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 McDonalds sales and it also helps to attract new customers and they can became loyal McDonalds customer for longer time period. McDonalds need to have clear promotion objectives and need to relate all these objectives with their marketing objectives. It will help McDonalds 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 McDonalds 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. McDonalds did attract all types of customer through greater emphasis on their promotional activities. For example, McDonalds 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 McDonalds and they can change their parents mind. Furthermore, McDonalds 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 McDonalds. 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 McDonalds 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 McDonalds 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 McDonalds 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, McDonalds 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 McDonalds 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. McDonalds 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 McDonalds 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 McDonalds. 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 organisations strategic objectives and its marketing and promotional objectives. The McDonalds are consistent sales promotion objective with their strategic, marketing and promotional objectives. The basic promotion objectives of McDonalds 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, McDonalds identified different types of customers through market research. As this is essential for McDonalds 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. Thats 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 McDonalds offer free coke glasses or free coffee mugs (premium) when a customer buy a meal. This premium technique helped McDonalds to motivate the consumers to buy their meals. In addition to that McDonalds offer contests to its customers. Here McDonalds 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 McDonalds. And McDonalds get an increase in number of customers and money spent in the restaurant and increases sales as a result. Happy meals of McDonalds are very popular among children. McDonalds attracts families to give a treat on very affordable prices with nice sitting arrangements. Kids feel like a fun coming in McDonalds getting free toys and balloons with their meals as McDonalds is considered as a family restaurant. Saver menu and free WIFI helped McDonalds 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 McDonalds to maximise their sales through promotion.

1. Healthy Nutrition: McDonalds need to focus their attention on healthy and low fats products. In todays most customers are heath conscious and deliberately avoiding fast food restaurants. If McDonalds want to gain more market share, then they need to focus on niche market. Through proper promotions McDonalds can attract customers who are more heath conscious. McDonalds can attract various competitor customers such as Subway, Prt 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 McDonalds 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 McDonalds to have various options and put the best candidate on best position. Moreover, staffs need regular motivation and McDonalds 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: McDonalds need to in-store advertising in order to create awareness regarding new products launched in market. In-store advertising will help McDonalds 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 McDonalds 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 McDonalds). 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 McDonalds 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 McDonalds 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 McDonalds promotional offers? 2. Did McDonalds promotional offer attract you to visit here? 3. In each visit, how often you buy promotional products? 4. Do you think McDonalds promotions influence you to come to visit McDonalds? 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. McDonalds had the most dedicated staff that was busy all time to serve customers. Even after my research, I am still in touch with some McDonalds 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
Books: Achenbaum, A. A. and Mitchel, F. K. (1987), Pulling away from push marketing, Harvard Business Review, 65 (May/June): 38-40. Alan Bryman (2004), Social Research Methods, 2nd Edition, Oxford University Press, Page No: 435-45 Blythe, Jim (2006),Essentials of Marketing Communications, 3rd Edition, Prentice Hall, Page No: 238-240 Blattberg, R.C. and Neslin, S.A. (1990), Sales Promotion: Concepts, Methods and Strategies, Englewood Cliffs, NJ: Prentice-Hall. Baker, T. L. (1994), Doing Social Research, 2nd Edition, New York, McGraw-Hill Buzzell, R.D., Quelch, J.A. and Salmon, W.J. (1990), The costly bargain of trade promotion, Harvard Business Review (March/April), 141-9 Chris Fill(2009), Marketing Communications: Interactivity, Communities and Content, 5th Edition, Prentice Hall,Page No 538-558 Cohen, Louis; Manion, Lawrence; Morrison, Keith (2007),Research Methods in Education, 6th Edition, Published By Taylor & Francis, Page No: 317-338 Dencombe (2007), The Good Research Guide, 3rd Edition,Published by Open University Press, page: 332-334 David L. Kurtz, H. F. MacKenzie, Kim Snow (2009), Contemporary Marketing, 2nd Canadian Edition, Cengage Learning, Page No: 558 - 565 Loraine Blaxter, Christina Hughes, Malcolm Tight (2006), How to Research, 3rd Edition, Open University Press, Page 64, 179-181 Jones, P.J. (1990), The double jeopardy of sales promotions, Harvard Business Review, (September/October), 145-52
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McDonald, C. (1992), Finding Out How Unleashing the Power of Single-Source Data to Explain the Marketing Mix, Admap (December), Page No: 21-5 Oppenheim, A. N. (1992),Questionnaire Design, Interviewing and Attitude Measurement, London: Pinter. Paul Christ (2008),KnowThis: Marketing Basics, Page No: 242-243 Patrick De Pelsmacker (2010),Marketing Communications: A European Perspective, 4th Edition, Pretence Hall, Page 407-209. Pickton, D. and Broderick, A. (2001), Integrated Marketing Communications, Harlow: Financial Times Prentice Hall. Peattie, S. and Peattie, K.J. (1994), Sales promotion, In The Marketing Book (ed. M.J. Baker), 3rd Edition, London: Butterworth-Heinemann.

Ralph Tench and Liz Yeomans (2006), Exploring Public Relations, Prentice Hall, Page No: 214-216 Rothschild, M.L. and Gaidis, W.C. (1981), Behavioural learning theory: its relevance to marketing and promotions, Journal of Marketing Research, 45 (2), 70-8. Saunders, Mark; Lewis, Philip; Thornhill, Adrian (2007), Research Methods for Business Students, 4th Edition, Prentice Hall, Page No: 101-107, 472-475, 406-426 Simms, J. (2007), Scant value in BOGOFS, Marketing, 7 November, Page No: 18 William M. Pride, Robert J. Hughes, Jack R. Kapoor (2011), Business, 11th Edition, Page No: 445-447 Wilson, N. and McLean, S. (1994) Questionnaire Design: A Practical Introduction. Newtown Abbey, Co. Antrim: University of Ulster Press.

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Journals: Dawes, J. (2004), Assessing the impact of a very successful price promotion on brand, category and competitor sales, Journal of Product and Brand Management, 13 (5), 303-14. Gupta, S. (1998), Impact of sales promotions on when, what and how much we buy, Journal of Marketing Research , Volume 25 (4), Page No: 342-55. Ehrenberg, A.S.C. (2000), Repeat buying: facts, theory and applications, Journal of Empirical Generalizations in Marketing Science, 5, 392-770. Gilbert, D.C. and Jackaria, N. (2002), The efficacy of sales promotions in UK supermarkets: a consumer view, International Journal of Retail and Distribution Management, Volume 30 (6), Page No: 325-32. Inman, J., McAlister, L. and Hoyer, D.W. (1990), Promotion signal: proxy for a price cut? Journal of Consumer Research, 17 (June), 74-81. Krishna, A. and Zhang, Z.J. (1999), Short or long duration coupons: the effect of the expiration date on the probability of coupon promotions. Management Science, Volume 45 (8), Page No: 1041-57. Verhoef, P. C. (2003), Understanding the effect of customer relationship management efforts on customer retention and customer share development, Journal of Marketing, 67 (4): 30-45. Surveys: Krosnick, J. A. and Alwin, D. F. (1987) An evaluation of a cognitive theory of responseorder effects in survey measurement. Public Opinion Quarterly, 51, 20119 Krosnick, J. A. (1999) Survey research. Annual Review of Psychology, 50, 53767

Internet Sources: Promotion Definition, Available at [www.oxfordadvancedlearnersdictionary.com], [Accessed at: 12th May, 2011] McDonalds, Available at [www.mcdonalds.co.uk], [Accessed at: 2nd May, 2011]
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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 McDonalds promotional offers? Yes No 5. Did McDonalds 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
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More than 10 days

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 McDonalds promotions influenceyou to come to visit McDonalds? Yes No 11. Among the following factors choose those which you consider when visiting McDonald's? Not Factors
Special Promotion Product Assortment Price Food Quality Discounts/Coupons/Offers Nutritions Waiting Time Travelling Time Good Services Convenience Socially Responsible Organisation

Less

Very

Important Important Neutral Important Important

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

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Strongly Disagree
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.

Neither Disagree Agree/Disagree Agree

Strongly Agree

13. What is reasonable travelling time you are willing to spend to visit McDonalds? Less than 5 Minutes 5-15 More than 40 Minutes

16-25 25-40

14. How much time is spent on each visit to Mc Donald? Less than 5 Minutes 5-10 More than 20 Minutes

11-15 16-20

15. How much average money is spent on McDonalds on each visit? 3-5 6-8 More than 9

Less than 1 1- 2

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