McDONALD's CASE STUDY

RAY KROC FRANCHISED A HAMBURGER

RESTAURANT FROM THE McDonald

BROTHERS IN 1955

THE 15

CENT HAMBURGER

CHANGES OVER THE YEARS…

DURING 1960s AND 1970s McDonald’s GREW BOTH DOMESTICALLY AS WELL

AS INTERNATIONALLY BUT ALWAYS REINFORCED THE IMPORTANCE OF

QUALITYSERVICE

CLEANLINESSVALUE

BUT GOOD TIMES CAME TO A HALT…

McDonald’s STARTED

STRUGLING

REASONS FOR FAILURE

NEW EMPLOYEES NOT TRAINED FAST OR WELL ENOUGH

POOR CUSTOMER SERVICE & DIRTIER RETAURANTS

PRESENCE OF NEW HEALTHIER OPTIONS LIKE SUBWAY AND PANERA BREAD

FAILURE OF NEW PRODUCT LAUNCHES

REASONS FOR

SUCCESS

PEOPLE

PLACE

PROMOTIONS

PRODUCTS

PRICE

IN 2003 McDonald's IMPLEMENTED ASTRATEGIC

EFFORT ‘PLAN TO WIN’ WHICH IS STILL IN EFFECT

WHICH FOCUSES MAINLY ON BETTER HIGH QUALITY

CONSUMER EXPERIENCE RATHER THAN QUICK AND

CHEAP FAST FOOD OPTIONS.

McDonald’s EXPANDED GLOBALLY AND ADAPTED TO DIFFERENT ENVIRONMENTS AND

CULTURES.

McDonald’s INTRODUCED A BACON ROLL BREAKFAST SANDWICH IN THE UNITED

KINGDOM,A PREMIUM BURGER IN FRANCE & AN EGG TOMATO PEPPER MCPUFF IN CHINA AS

THEY PERFORMED SEGMENTED MARKETING.

PRICES ALSO VARIED ACROSS DIFFEREENT PARTS OF THE UNITED STATES TO BETTER REFLECT DIFFERENT REGIONAL TASTES.

ADVERTISING & PROMOTIONSMcDonald’s HAS ALWAYS TRIED TO MAKE A MARK IN THE HEARTS OF ITS TARGET MARKET WITH THE

HELP OF INNOVATIVE AND CATCHY ADVERTISEMENTS OR SOME OVER THE TOP

PROMOTIONAL STRATEGIES.THE COMPANY IS ALSO THE PROUD SPONSOR OF VARIOUS WORLD

SPORTING CHAMPIONSHIPS INCLUDING THE OLYMPICS.

NEWER MARKETING TECHNIQUESSEGMENTED MARKETING

HEALTHIER OPTIONS TARGETING MOMS AT PREMIUM PRICES

$1 MENU FOR TEENAGERS & LOW INCOME GROUPS

INTRODUCTION OF DRIVE-THRU SERVICE & ALSO REFURBISHED RETAURANTS

OPENING UP McCAFE TARGETING CUSTOMERS OF THE BOOMING COFFEE INDUSTRY

WHERE DOES

IT STAND TODAY

SOMEINTERESTING THOUGHTS…

CORE BRAND VALUES THE CORE BRAND VALUES OF McDonald’s IS QUALITY,

CLEANLINESS, SERVICE AND VALUE

THE COMPANY SHOWS COURAGE AND WISDOM AS IT OWNS UP ITS MISTAKES MADE DUE TO RAPID EXPANSION DURING THE 1980s

THE COMPANY HAS ALWAYS TRIED TO CONNECT WITH ITS CUSTOMERS BY EXPANDING GLOBALLY, REACHING OUT TO THE

CROSS-SECTIONS OF THE SOCIETY AND BY INTRODUCING HEALTHIER FOOD OPTIONS.

CREATING BRAND EQUITYBRAND EQUITY IS THE DIFFERENTIAL EFFECT THAT BRAND KNOWLEDGE HAS ON CONSUMER

RESPONSE TO THE MARKETING OF THAT BRAND

McDonalds's HAS BEEN ABLE TO CREATE A BRAND EQUITY FOR ITSELF THROUGH ITS EFFECTIVE MARKET SEGMENTATION, TARGETING AND POSITIONING (STP)

PROPER ADVERTISING AND SALES PROMOTIONS CREATES A POWERFUL BRAND EQUITY AND GIVES THE COMPANY A POWERFUL COMPETITIVE ADVANTAGEOVER

OTHERS

CONSISTENCY IN QUALITY, HEALTHY FOOD OPTIONS AND REACHING OUT TO THE MASSES HELPS McDonald's CREATE A CONSUMER BASED BRAND EQUITY.

RISKS THE COMPANY WILL FACE AS TIME PASSES, HEALTH CONCIOUS CUSTOMERS ARE MOVING TOWARDS

MORE HEALTHIER FOOD OPTIONS WHICH MIGHT IN TURN REDUCE THE NUMBER OF CUSTOMERS FOR MCDONALDS

NOT ONLY BIG BRANDS BUT ALSO LOCAL COMPETITION MIGHT POSIT SERIOUS THREAT TO MCDONALD’S BUSINESS

AS MCDONALDS GROWS BOTH AS A COMPANY AND AS A BRAND, EFFECTIVE MANAGEMENT AND MARKETING STARTEGIES MUST BE PRESENT

WITHOUT WHICH IT WILL SURELY COLLAPSE.

SUMMARYSTARTED IN THE YEAR 1955 WHEN RAY KROC ACQUIRED A FRANCHISEE FROM

THE McDONALD BROTHERSWITHIN 10 YEARS, REACHED THE PINNACLE OF SUCCESS WITH 700 US

RESTAURANTS ,SPREAD GLOBALLY IN THE 1970Ss AND 1980sIN 1955 RONALD McDONALD WAS INTRODUCED AND IN 1974 THE RONALD

McDONALD HOUSE WAS ESTABLISHED FOR CHARITABLE VENTURESCOMPANY FACED STRUGGLE IN 1990s DUE TO RAPID EXPANSION AND PEOPLE

BECOMING MORE HEALTH CONCIOUSIN 2003, THE BRAND WAS REVAMPED AND PROPER MANAGEMENT AND

MARKETING STRATEGY HELPED McDONALD's REACH THE HELM OF SUCCESS YET AGAIN

EFFECTIVE SEGMENTED MARKETING AND STICKING TO CORE VALUES HELPED McDONALD's ACHIEVE BRAND EQUITY

DISCLAIMERTHIS PRESENTATION WAS CREATED BY

MR.SUMANTRA GUHA(ST.XAVIER’S COLLEGE, KOLKATA)DURING A

MARKETING INTERNSHIP UNDER DR.SAMEER MATHUR(IIM LUCKNOW)