Welcome to

McDonalds

A case study

History & some facts about McDonalds

McDonalds

➢Founded in 1940 by two brothers , Richard McDonald and Maurice McDonald.

➢Started as a barbeque restaurant.

➢In 1955, Ray Kroc joined as a franchisee agent and subsequently purchased the McDonalds chain.

➢More than 75 % restaurants run on franchisee and serves simple,fast and enjoyable food experience for over 58 million of people each day globally.

➢McDonalds target mostly the millenial segment i.e. youngsters,working people.

McDonalds

➢McDonalds is known for-○Quality

○Service

○Cleanliness

○Value

McDonalds➢Now, McDonalds have about 1.9 million employees worldwide.

➢McDonalds also have opened many types of restaurants such as McCafe , Drive thru restaurant ,Solid Gold restaurant ,McExpress etc.

➢McDonalds “plan to win “ and “I’m lovin it” campaign was very successful and helped the company in establishing brand presence.

➢These campaigns helped in improving brand image.

Mission & Vision McDonalds

Mission To be consumer’s first choice

everywhere when it comes to top quality products,outstanding service/cleanliness and great value for money.

To be consumer’s first choice,when it comes to top quality products,outstanding service/cleanliness and great value for money.

Vision To become a modern, progressive burger company delivering a contemporary customer experience.

To become a modern,progressive company delivering a contemporary consumer experience.

●The major competitor of Mcdonalds are starbucks,subway,KFC,Wendy.Papa john etc.Most of the competitors of McDonalds grew during 1990’s or 2000’s when McDonalds lost it’s focus due to massive global expansion.

Some Major Competitors of McDonalds

McDonalds has always been the market leader in it’s field.

It is way ahead of it’s competitors in terms of turnover.It’s just because of the careful management of product portfolio and understanding the needs of customer.

Where does Mcdonald Stand in the competition?

Now, the question is - What Factors led to the success of the firm?

Let’s explore the three important factors.

Reason for Success of McDonalds

Consistency and strategic branding leads to better brand equity.

McDonalds firmly believe in it’s motto of quality,service,cleanliness and value.

McDonalds gives it’s customers a similar experience everywhere in this world.

“ It doesn't matter if you're visiting a McDonald's in California or Connecticut, America or Australia – you're going to have a similar experience wherever you are.” - Ray Kroc

Consistency

McDonalds always work to make it’s consumer experience better.

They innovate new kind of product and services according to needs.

Drive thru restaurant,Solidgold etc. is a very good example.

Innovation

The main power of McDonalds is its ability to fight against the challenges.

The main challenges that they faced in the past was regarding health concerns , environmental concerns etc.

The company maintained their upward trajectory even after these challenges.

Resilience

McDonalds always love to take risks.They often experiment new kind of dishes in their menu and get their feedback.

They adapt with consumer’s changing tastes and keep updating their products constantly.

McDonalds is also known for their short menu & product portfolio.

McDonalds is also known for giving back to the community through charities , scholarships etc.

Some other factors

➢ The core values of the company are Quality,Service,Cleanliness and value.

➢ These are reflected in their products and services.

➢ They always try to deliver what a consumer wants.

➢ They focus on high quality food and service while maintaining hygenic food conditions.

➢ The company lost their focus due to their extensive expansion during the 1990’s and 2000’s.This led to poorly trained employees and poor service.

➢ The company’s “plan to win “ strategy helped in improvement of service.And thus maintaining their brand image.

➢ They try their best to maintain their core values.

Questions related to case studyWhat are the McDonalds core brand values?Have these changed over

the years?

➢ McDonalds has been able to maintain its core brand values i.e. QSC&V with an upward growth trajectory .

➢ It was during 1990’s ,due to extensive expansion,the company’s brand image was diminished due to poor service and poor training of employees.

➢ The company then used “plan to win” strategy to refocus on improving their values.

➢ During 1990’s and 2000’s , their brand extension strategy also failed as their new items included in their menu was not so effective.

➢ The “plan to win” strategy was successful.It is evident from the fact that their share price increased and sales topped during 2008 recession.Mcdonalds maintained it’s brand equity.

How has McDonalds grown it’s brand equity over the years?Has McDonalds changed in different economic times or in different parts of the world ? Explain.

➢ The main problem for McDonalds Is to tackle the health conscious people and organisations.Major competitors may get benefitted as people may switch to healthier options.

➢ The growing competition in the fast food sector.They should also be conscious of the local restaurants as the area the local restaurants serve is low.

➢ They should also focus on their product portfolio expansion as short menu means very less option for consumers.

➢ Company should also take care of the cases where people use the company’s brand symbol as it may diminish the brand value and hinder their upgoing trend.

What risks do you think McDonalds will face in the future ?

➢ History and some f

History and some facts about McDonalds

➢ Mission and vision statement

➢ McDonalds Major competitors

➢ Where does McDonald stand in the competition?

➢ Reason for success of McDonalds

○ Consistency

○ Innovation

○ Resilience

○ Other factors

➢ Case study questions

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Summary

These slides have been prepared by Shivam,IIT Kanpur, under the guidance of Professor Sameer Mathur ,IIM Lucknow,during an internship of marketing management.

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