CASE STUDY

History

Flow Of PresentationGlobalisation

Competitors & Revenues

Reasons For Success

Risks Faced

Tackling Risks

Case Study Questions

Summary

How the journey started

• Founded in 1940 by Richard and Maurice McDonald.

The worlds famous golden arches were incorporated in 1962 and mascot Ronald McDonald was introduced in 1967

Ray kroc , a multi-mixer salesman ,franchised hamburger restaurant fom Mcdonald brothers in 1955.

•Domestic and international expansion with reinforced quality ,service ,cleanliness and value.•Product line expansion and widespread advertising

McDonaladization

•The company is found in 119 countries ,more than 34,000 restaurants Serving 70 million consumers ,Employing 42000 people

REASON FOR SUCCESS Consistency in quality,service,cleanliness and

value. Innovation in the products to stay updated. Affordablity of product attracts masses.

2003 SRATEGY

Brand revitalization through brand extension

Local restaurants to adapt regional tastes

Business Model

• It earns a revenue as an investor in properties,franchisees of restaurants and as operator of restaurants.

• 80% of McDonald’s restaurants are owned and operated by franchisees.

• It owns an estimated property of $16 to $18 billion.• In addition to ordinary franchise fees and marketing

fees, McDonald's may also collect rent, which may also be calculated on the basis of sales

Competition

REVENUE

•Sales continued to increase and in 2012 McDonald’s experienced record revenue of $27 billion.

Smart choice of brand elements

Holistic marketing activities

McDonald’s Advertising Campaign• promotes the idea of Sharing with friends

• Targeting family ,kids and youngsters with Happy Meal

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

• Growing Health conscious people avoiding too much fat products .obesity a serious concern.

•Competitors are offering healthier options

•With large expansion compromise in quality

McDonald's Response•The company included healthy foods in menu

• Making products more affordable, refurbishing restaurants

What are McDonald’s core brand values ? Have these changed over the years?

• Easy and enjoyable food experience for its customers • Proper geographic and demographic segmentation to lure

customers • Believes that a well trained individuals can work effectively to

serve better.• quality, service, cleanliness and value• fairness ,honesty and integrity and high moral ethics.• Virtue of social responsibility ,runs Ronald Mcdonald charitable

house.• Affordable products for all class of consumers.• Innovation to enhance customer experience.

How has McDonald’s grown its brand equity over the years ? How has it changed in different economic times and in different parts of the world?Explain• Smart choice of brand elements. For example- Ronald

McDonald to target children and families for a happy time.• Through its holistic marketing activities.• Brand extensions like McCafe.• “I’m lovin it campaign”.• Refurbishing restaurant,1$ menu• Plan to win strategy.• The company’s mission has changed from ‘’being the

world’s best quick service restaurant’’ to ‘’our customers’ favorite place and way to eat’’

SUMMARY

World’s leading hamburger fast food chain. Ray kroc franchised it in 1955 and expanded it worldwide Reinforced cleanliness, service, quality and value. Targeted children and youngsters Opened Ronald Mcdonald house to help fight lukemia. Expansion lead to a decrease in quality 2003 implemented Plan to Win. Local restaurants for regional taste. obesity leading people to avoid fat product ,serious concern

for company. Created brand equity though brand elements and brand

extension. I’m lovin it campaign running currently.

DISCLAIMER

Created by Nishant Srivastava ,NIT Raipur, during a marketing internship by Prof Sameer Mathur,IIM Lucknow