McDonald’s

Q. Answer the Question.

(Fun + Family & Friends + Quality Food) = ?

It’s for sure

McD ! I’m lovin’ it.

History

Rey Kroc

Multimixer Salesmen

McDonald Brothers

Runners of Successful but

small Restaurant

Vision

Brand’s Core Values

During its rising days Kroc led McDonald’s. He always

reinforced the importance of quality, service,

cleanliness and value.

1. • Quality of Product

2. • Service

3. • Cleanliness

4. • Value

Building Customer-based

brand equity.

Advertising

Ronald

McDonald

Mayor McCheese

Hamburgler

Grimace

It helped in luring children

into restaurant for familiar

food experience.

Charity Work

McDonald’s open several services for a charitable

cause. It was meant to help children with leukemia.

Challenging Days

• As McDonald’s aggressively expanded overseas it had a

tough time there after.

• During 1990s to 2000s they lost their focus.

• As new employees weren’t trained well, it lead to poor customer service and dirtier restaurants.

“Plan To Win” Strategy

1. People

2. Products

3. Promotions

4. Price

5. Place

McDonald’s started refocusing on higher quality consumer experience. Also they defined 5

Ps to gain stability in different environment and cultures.

Globally Improvement

Bacon Roll sandwich in UK

Premium M Burger in France

McPuff in China

Customizing

according to user

needs and wants.

Concept of Healthy Food

Perfect Alternative

As customers desired healthy foods, hence McDonalds came up with premium

salads and apple slices instead of French Fries in its Happy Meals.

Charging Premium Value

The healthier options targeted moms and

charged premium price.

Here is the role of Brand. Translation

of loyalty of consumers into

willingness to pay higher price.

Targeting Teenagers and Lower Income Consumers

Feasibility is one of the integral abilities of the progressing firms. So in order to

accomplish such ability McDonald introduced $1 menu.

Services Updated

They did Brand Reinforcement

to avoid diminishing of brand

awareness and weakening of

brand image. Wi-Fi Facility

Refurbishing Restaurant

Increasing Product Depth

Zoning in Restaurants

1. Linger Zone 2. Family Zone

3. Efficient Zone

McDonald’s segregated the sitting arrangements made in restaurants for efficient

accommodation of customers.

Introducing McCafe

When McDonald reviewed the competitive

frame of reference it realized that

Starbucks, Dunkin’ Donuts and Caribou

Coffee were affecting its market share.

Thus it led to origin of McCafe. Which

directly targeted consumers in blooming

coffee industry and stole market share

from its competitors.

The New York Times Talk

• Kroc’s Giving, Like McDonald’s Meals, Was Fast and Super-Sized

THIS is a story of a twice-divorced businessman and his beautiful third wife.

By PAUL SULLIVAN

Jan 20, 2017

• McDonald’s Introduces Screen Ordering and Table Service

McDonald’s on Thursday announced changes that could reshape the diner’s experience,

saying that it would expand its digital self-serve ordering stations and table service to all

of its 14,000 American restaurants. By STPHANIE STROM

Nov 17, 2016

Wall Street Journal Talk

• McDonald’s China Franchise Deal Could Fetch Up to $2 Billion Up Front

U.S. private-equity giants Carlyle Group, TPG and Bain Capital, among others, have shown

interest.

By WAYNE MA in Beijing and RICK CAREW and KANE WU in Hong Kong

Oct. 4, 2016

• McDonald’s Turns to Social Media to Draw Millennials

Fast-food chain recently hired 200 people to bolster its digital efforts and win back young

adults

By JULIE JARGON

Oct. 13, 2016

Question 1.

What are McDonalds core brand values? Have these changes over the years?

Instant

Answer -

Then

Now

Question 2.

How has McDonald’s grown its brand equity over the years? Has McDonald’s

changed in different economic times or different parts of the world? Explain.

Answer -

McDonald’s has grown its brand equity by being loyal

to consumers. Reducing cost and enhancing quality.

Also consistently attracting children.

McDonald’s has changed in different economic times

and different parts of worlds too.

Changes

according to

economic

times.

Chinese Culture

Indian Culture US Culture

Question 3.

What are the risks do you think McDonald’s will face in the future?

Answer -

As McDonald’s sells is altogether a fast food. It is not good for health. Such food

consumption might suit the western people but not all, because needs of body changes

according to the surrounding environment

Over Consumption

People being more health cautious nowadays, it is need of time to make products which are

not harmful to health. It needs to explore in it and increase its product length.

Recap

• History

• Core Brand Values

• Advertising

• Charity Work

• Challenging Days

• “Plan to Win” Strategy

• Globally Improvement

• Concept of Healthy Food

• Charging Premium Values

• Targeting Teenagers and Lower – Income Consumer

• Services Updated

• Zoning of Restaurant

• Introducing McCafee

• The New York Times Talk

• Wall Street Journal Talk • Questions

Disclaimer

Created by Utkarsh Rajesh Dighe, VIT Pune, during a

marketing internship by Prof. Sameer Mathur, IIM

Lucknow.