A Journey in

CORE VALUES Quality, Service, Cleanliness & Value

 “If I had a brick for every time I’ve repeated the phrase Quality, Service, Cleanliness and Value, I think I’d probably be able to bridge the Atlantic Ocean with them.” —Ray Kroc

MARKET LEADER• McDonalds is the world’s leading

hamburger fast food chain.• McDonalds serves more than 70

million people each day.

SO WHAT WERE THE REASONS

FOR ITS SUCCESS?

• Smart choice of brand elements like golden arches as logo and Ronald McDonald as mascot.

• Holistic marketing activities to lure its core audience.

Focused on building brand equity

• Consistency: Same quality throughout the world both in terms of products and services

• Innovation: World’s first drive through was developed by McDonalds.• Customer Service

• Economic Pricing : Affordability and reasonable

pricing for its products. • Regional Product

offering: localized offering of food products depending on preference of the region.

Growing the brand through product extension : To increase the customer base

through global growth and product expansion, was launched which became a great

success.

However, there was

an accident!

• Due to rapid growth, the company lost focus and direction.

• New employees weren’t trained fast enough, which led to poor customer service.

INCREASING COMPETITION

• Other competitors like subway which offered more healthy options popped up.

• New products launched by McDonald’s failed.

“We got distracted from the most

important thing : hot, high quality food at a

great value at the speed and

convenience of McDonalds” – Jim

Skinner, McDonald’s former chief executive

SO, HOW DID McDONALD’S DEAL WITH IT?

McDONALD’s implemented a strategic effort called Plan to Win. Idea was to refocus on offering a better, higher quality consumer experience.

Another Bump in the road!

McDonald’s link to obesity

• A documentary “Super size me” was released directly linking McD to obesity and its name was derived from “Super size” category of burgers.

• Customers were shifting to healthier options.

McDonald’s responded• “Super size” option was removed

from the burgers.• Premium salads were introduced and

french fries were replaced by apple slices in happy meals.

Other winning moves• Introduced $1 menu to target

teenagers and low income consumers.

• Improved drive thru, refurbished restaurants, installed TVs and Wi-Fi.

• Created 3 different zones for everyone to fit in.

Risk Analysis• Since McDonald’s is linked with

obesity, customers are opting for healthier options. More healthy options should be added.

• Growing competition with other brands.

• Brands like subway offering more customizability and healthy options.

• Expansion should be not be too rapid as it may cause a dip in quality.

Summary• McDonald’s is the world’s leading hamburger store that

serves more than 70million people each day.• It has always reinforced its core values of : Quality,

Service, Cleanliness & Value.• It has managed to build a very strong brand and is

growing at a very fast pace.• Consistency, innovation, affordable pricing, customer

service, cleanliness and well built brand equity has been the main reasons of success.

• It has faced challenges like inharmonious growth, deviated from the right direction and got connected to obesity but has responded well and came out of every challenge.

• It is still growing through its marketing and brand extension(McCafe) and increasing revenues.

DISCLAIMER This Presentation Is Based On The

knowledge and experience gained By Rishabh Bhutani , MSIT Delhi, during an internship on “Marketing Management” under Prof. Sameer Mathur, IIM-L.