“One world, One Burger”- McDonald’sMcDonald’s Case Study

HISTORY

STARTED BY RICHARD AND MAURICE MCDONALD IN 1940 WITH HOTDOGS.YES,THAT’S RIGHT!NOT BURGERS.

NATIONALLY FRANCHISED BY BUSINESSMAN RAY KROC IN 1995 WHO EVENTUALLY BROUGHT THE CHAIN FROM THE McDonald BROTHERS.

THE WORLD FAMOUS GOLDEN ARCHES WERE INCORPORATED IN THE COMPANY LOGO IN 1962 AND THE MASCOT RONALD MCDONALD WAS INTRODUCED IN 1967.

McDonalds is the global fast food giant.

Forty eight years down the line ,they are the worlds largest food service chain with more than 31,000 restaurants in 119 countries ,serving 47 million customers everyday and employing more than 1.5 million people.

15% of McDonalds restaurants are owned and operated by McDonalds corporation directly.

McDonalds corporation earns revenue as an investors properties, as franchiser and as an operator of restaurants.

The other’s are operated through variety of franchise agreement and joint ventures.

Competitions were more.

SO HOW BIG REALLYTHE COMPANY IS

TODAY?

THE COMPANY TODAY

Operates more than 35,000 outlets is more than119 countries.

More than 1.9 million Employees worldwide.

Feeds more than 68 million people worldwide .

Generated $25.4 billion in Revenues in the year 2015.Also owns Assets worth $38 billion worldwide.

COMPETITION

MILES AHEAD OF COMPETITION

Mc-Don-alds

subway starbucks burger king

00.5

11.5

22.5

33.5

44.5

5

Series 1Series 2Series 3

REASONS FOR SUCCESS

Consistency : Same quality throughoutThe world both in terms of products And services.

Innovation : Introduction of innovative productsAnd services to enhance customer Experiences.

Strong emphasis on cleanliness, quality, and customer needsAnd services.

Strong focus on building of brand Equity through:

Smart choice of brand elements. &

Holistic marketing activities .

Brand revitalization through brand Extension.

Affordability of products . Through itsTaste ,quality, packaging ,all of these Attract masses and youngsters.

Localized product offerings satisfiesLocal tastes.

Innovative and targeted advertising campaigns and products

Ads and promotion targeted at kids And teens.

Promotes the idea of sharing withFriends.

Emphasis on cheapnessAnd affordability.

McDonalds ProductsADVERTISEMENT BANNERS

Risks faced by the company

Associated with obesity allOver the world . Health Conscious customers shifting To the healthier alternatives.Food safety issues also exist.

Rivals are offering more customizationOptions to lure in customers.

Expanding fast sometimes mayDip in quality.

Tackling Risks

Introducing healthierItems in the menu.

Slimming the menu down and Focusing on customization.

Controlled expansion will keep focus on Core brand values and undiluted quality of Products and services.

What are McDonalds core brand values ? Have these changed Over the years?

The core values of the brand have included quality , cleanliness,Service and value.

Although the company lost focus during expansion in the 80’s ,the Company has learnt from its mistakes.

Their core values are reflected in their outlets , the pricing of their employees.

Even after so many years ,the company does try its best to stick to their core values which is the center of their business model.

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

The company did exceptionally well in the recession especially When compared to its peers.

The company should definitely stick with their strategy even now Because if it has done well in financially trying times , it is favored To do well when the situation eases.

The reason it did well was because of its cheap offerings which Attracted customers in times of financial troubles.

Certain changes can be made to be existing strategy after in depth study of the current.

What are the risks do you feel McDonalds will face going forward?

Health conscious might move to brands offering healthier options.

Competition from local fast food chains as they have to focus Only on a small area.

Changing tastes and lifestyles pose a big threat . The companyWill need to adapt to changes to be able to tackle such problemsEffectively.

Training employees rapidly and effectively during expansionDrives.

RECAP

History: Started in 1955 , the company has grown to be the World’s largest food chain with assets worth around $38 billionAnd 1.9 billion employees.

Miles ahead of its competition in terms of sales.

Innovative marketing strategy along with good quality and Affordability of both services and products and localization growth.

Plagued with food safety issues in many countries.

Needs to introduce healthier options and control its expansion to maintain lead in the fast food industry.

Various risks faced by McDonalds has been discussed and how toOvercome with these risks.

DISCLAIMER

Created by Namrata Singh ,From IIT (BHU) VARANASI College During a Marketing intern by Prof .Sameer Mathur , IIM LUCKNOW.