Mc Donald’sA successful marketing story.

INTRODUCTION Headquartered in Oak Brook, Illinois. World’s largest foodservice retailing chain

with 36,615 stores worldwide. Known for its burgers and fries. Offers a standard, consistent menu at all

locations Nearly one in eight workers in the US has at

some time been employed by McDonald’s. Since its founding in 1955, McDonald’s has

sold well over 100 billion hamburgers. More than 50,000 students from all over

the world have graduated with “Bachelor of Hamburgerlogy” degrees from McDonald’s from Hamburger University.

MISSION STATEMENT

McDonald's brand mission is to "be our customers' favorite place and way to eat."OBJECTIVES:

To serve good food in a friendly and fun environment.

To be a socially responsible company.

To provide good returns to its shareholders.

To provide its customers with food of a high standard, quick service and value for money.

WIDE OFFERINGS

HISTORY

Ray Kroc’s Business Model:•Quality•Service•Cleanliness•Value

•Ray Kroc- Developed a business model known as “The Three Legged Stool.” Owner/Operator, Suppliers and Employees

•Just as all three legs of a stool need to be equal to support the weight, all three elements of the McDonald’s system are equally important partners in McDonald’s success.

SPEEDEE SERVICE SYSTEM:

1. Introduction of production line principles.2. Instead of skilled cooks, many unskilled

workers did one small step.3. Instead of preparing a wide variety of items,

it prepared a large quantity of small varieties of items.

4. Features:a. Large grill where one person

cooked burgers.b. Dressing station: where same

condiment was added to each burger.

c. Fryer for Fries.d. Soda Fountaine. Counter for order placement.

• Located in a 119 countries around the world, McDonalds is seen as a symbol of – Capitalism, Globalization and the American way of Life .

• Offers a standard menu at all locations, though some locations may have some variation based on geographic variations in taste preference.

• Sensitive to local customs and traditions.

INTERNATIONAL PRESENCE

GLOBAL McDonald’s,

Local Taste.

McDonald’s tailors its menu in different markets to cater to local tastes.

In this process it takes care of respecting the local customs and traditions.

For ex.

• No Beef or Pork is sold in India.• Asian McDonalds serve Soup.• Mc Rice is offered in Indonesia.• Prawn burgers are offered in

Singapore and Japan.• Alcoholic drinks like Beer are served

in German Mc Donald’s.• Meat Pies are a speciality in New

Zealand.• Mc Donald’s in Israel offer Kosher

meat.

One Brand. Different Stores.

• Mc Donald’s has built different types of stores in different locations depending upon:

i. Convenienceii. Availability of Spaceiii. Products offered.

• Mc Drive• Mc Café• CYT- Create Your Taste• Mc Express• Mc Stop

Mc Donald’s marketing campaigns not only drive footfall to stores, but also help to increase brand loyalty and engagement.

Mc Donald’s creates targeted advertisement which concentrate on its points of difference and human emotions alike:1. Large Serving Size2. Fast Service Time3. Friendly Staff4. Care for Customers5. Long Operating Hours6. A Family Place – A place for everyone.

Mc Donald’s Marketing Campaign:

4 P’s

Product Price Promotion Place

4 P’s of Marketing for Mc Donald’s:

Mc Donald's: Entry into India and Regional Challenges:

1. Entered India in 1996: Separate Franchisees handle operations in North and West India.

2. Challenges faced:a) Vegetarianism and

Regiocentricismb) Competition from Local

Food Retailers c) Pricing Strategyd) Eating Habitse) Nutrition and Healthf) Employmentg) Ethics and Social

Responsibility

DID YOU KNOW? McDonalds India offers the cheapest burgers and Switzerland the costliest?

Mc Donald’s and India While globally, Mc Donald’s advertisements focus on the convenience of Mc Donald’s; In Indian market it takes a completely different turn. Advertisements focus on:1. “Larger Serving Size in Lesser Cost.”2. “ Introduction of Sharing Packs which are

cheaper than Individual Meals”3. These advertisements focus on the family

and friendship oriented culture of Indians.

Also, to respect the cultural traditions and religious sentiments, Mc Donald’s has opened Vegetarian only restaurants in India. This shows its commitment towards respecting Indian Traditions.

EVERYTHING HAS CHANGED…BUT NOTHING HAS CHANGED CAMPAIGN. (2016)

Focus on:• Consistency over the years.• Family Place• Place for Celebrations and new

beginnings.• Mc Donald’s ever presence –

“Through Thick and Thin – Through Floods, Heavy Rains .

• Emphasis on commitment to customers.

Around rest of the world:

• Around rest of the world, Mc Donald’s focus on values like-• Loyalty• Integrity• Team Work• Care for customers• Long operating hours.• Delicious Food• Large Servings

BABY Advertisement:

Shows:

1. Care for Customers2. Speed of Delivery3. Friendly and Caring Servers4. Late Working Hours5. ‘A Family Place’

Strengths Weaknesses

OpportunitiesThreats

1. Market Leader, strong global presence.2. Most universally recognized logo.3. Huge Brand equity.4. Community oriented and socially

responsible.5. Sensitive Towards local customs and

traditions.

1. No healthy food in core product line.2. Quality issues in franchisees.3. Lack of new innovative products.4. Few seasonal and fresh products.5. Huge preservative content.6. Low Variety

1. Green, re-usable packaging2. Slow down expansion and increase

profitability.3. Instead of owning franchise property, let the

franchise buy/lease the shops.4. Increase stores in upcoming markets of

Africa and Asia.5. Differential pricing in price sensitive regions.

1. Competition from healthy cum fast servicing food outlets.

2. Low payment to workers may lead to drop out of workers.

3. Increasing awareness towards environment and healthy food.

SWOT

COMPETITION WITHIN SAME SECTOR:

1. Stiff competition from same sector.2. Many points of parity (PoP) but only a few points of

difference (PoD).3. Highly similar product offering.

CHARITY and CSR:

1. Ronald McDonald House Charities was founded in 1974.

2. Mission: The mission of RMHC is to create, find and support programs that directly improve the health and well-being of children and their families.

3. Vision : A world where all children have access to medical care, and their families are supported and actively involved in their children's care.

4. It also raises funds to help children with leukemia.5. Thus, creating a “We care for you” image in the

minds of consumers.

CONCLUSION:

1. We saw how Mc Donald’s grew from a small BBQ Outlet to a multinational company.

2. We saw the innovative Speedy Service System introduced by Mc Donald’s which was based on industrial assembly line.

3. We understood the vision and mission statement of the restaurant chain and its plans ahead.

4. We saw the brand power of Mc Donald’s and how its global presence makes it the world leader in fast food services.

5. We did a SWOT analysis of the company and identified its Strength, Weaknesses, Opportunities and Threats.

6. We saw the marketing strategies of Mc Donald’s and how it manages to stay relevant in times of recession and down markets.

This PowerPoint presentation has been created by Mr. Prathamesh Mahesh Saygaonkar, Pune Institute of Computer Technology, during an internship under Professor Sameer Mathur, IIM Lucknow.

Professor Sameer MathurIIM Lucknow

Prathamesh Mahesh SaygaonkarPICT, Puneprathamesh8296@gmail.com+91 9561961831