GOLDEN ARCHES

A Case Study on McDonald’s

INCEPTION OF McDONALD’S

ABOUT McDONALD’S

McDONALD’S REALM

REASON BEHIND ITS SUCCESS

QUESTIONNAIRE

BUILDING BRAND EQUITY

INCEPTION OF McDONALD’S

• Richard & Maurice McDonald built hamburger

stands with golden arches in California.15¢

hamburgers were very popular.

• Ray Kroc, a milkshake machine salesman,

bought world franchise rights from them and

spread the golden arches around the globe.

• In 1961, he purchased the company from the

brothers for $2.7 million. Ray Kroc The original

staff of the McDonald's brothers hamburger

restaurant

• Sales Sky Rocket just after few ad campaigns

due to the presence of Ronald McDonald.

McDONALD’S REALM

• The Company Has over

35,000 outlets all over the

world.

• It has 1.9 million

employees around the

world.

• It generated a total of

$25.4 billion of revenue for

the year 2015

Why is McDONALD’S Successful?

• Quality, Service, Cleanliness &

Value.

• Innovative way of presenting

itself among people.

• Welcoming all category’s

people.

• Regional taste and menu.

• Various kinds of ventures in

market.

• Increasing demand of fast

food over the world.

McDONALD’S COMPETITORS

According to Hoovers

• Main Competitors are

• Subway

• Burger King

• Taco Bell (a.k.a Yum!)

BUILDING BRAND EQUITY

WIDE ARRAY OF MARKETING CAMPAIGNS

GOING BEYOND BURGERS THROUGH

BRAND EXTENSION

BUILDING BRAND EQUITY

AFFORDABLE PRICES FOR THE MASSES.

LOCALIZED PRODUCT AUTONOMY.

BUILDING BRAND EQUITY

ADS and PROMOTION

What are McDonald’s core brand values?

Have these changed over the years?

The core values of the company was Quality, service, cleanliness

and value (QSC&V).

Their values were reflected on their Products and their service.

Through the 80’s they lost their sense of direction due to the

aggressive expansion of the company.

They recovered by implementing “ Plan to Win” which provided the

company’s 5 Ps – People, Product, Promotions, Price and Place.

With the economy turning around for the better,

should McDonald’s change its strategy? Why or

why not?

The product that is selling a product is consumed more when

people have less money.

The product it was selling would meet the requirements of people

who are struggling during the economic crisis by giving them food

at a cheaper price than most restaurants would.

McDonalds should in fact change its strategy to keep its customers

only slightly by possibly improving the quality of their food

broadening their menu.

What risks do you feel McDonald’s will face

going forward?

McDonald’s should offer more premium options and establish itself as a provider of normal goods while maintaining the value that its

customers expect.

Increasing health conscious consumers are opting for

natural/healthier products.

Increasing Competition in the fast food sector.

Wider options for consumers to reach out for other than just Burgers

and fries.

Summary

• Richard & Maurice McDonald started 15¢ hamburger stands with golden arches in California.

• Ray Kroc, a milkshake machine salesman, bought world franchise rights. He later purchased the company from the brothers for $2.7 million.

• Builds the most recognizable brand in the world.

• Diversifies its menu to stay in the competition.

• Low pricing and intensive marketing campaign fuels the growth of the company.

• Health conscious society might move on to healthier options.

• Needs to introduce healthier options to stay in the competition.

DISCLAIMER

Sameer Mathur

IIM Lucknow,

Marketing Professor 2013 -

McGill University

Marketing Professor 2009 – 2013

Carnegie Mellon

Ph.D and M.S (Marketing) 2003 - 2009

Vedanth Prakash

PES Institute of Technology,

Marketing Management Intern - 2016.