CASE STUDY

Flow Of Presentation
Reasons Competitor
Histor Globalis For s&
y ation Success Revenues

Case Tackli
Summa Risks
Study ng
 How the journey started
Founded in 1940 by Richard and Maurice McDonald.

Ray kroc , a multi-mixer salesman

,franchised hamburger restaurant
fom Mcdonald brothers in 1955.
The worlds famous golden
arches were incorporated in
1962 and mascot Ronald
McDonald was introduced
in 1967
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 McDonalds 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 McDonalds

experienced record revenue of $27 billion.
Smart choice of brand elements

Holistic marketing activities

 McDonalds Advertising Campaign
promotes the idea of Sharing with friends

Targeting family ,kids and youngsters with Happy Meal

 McDonald's Response
The company included healthy foods in menu

Making products more affordable, refurbishing restaurants

What are McDonalds 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.
 What risks do you think McDonalds 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
How has McDonalds 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.
Im lovin it campaign.
Refurbishing restaurant,1$ menu
Plan to win strategy.
The companys mission has changed from being the
worlds best quick service restaurant to our
customers favorite place and way to eat
 SUMMARY

Worlds 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.
Im lovin it campaign running currently.
 DISCLAIMER
Created by Nishant Srivastava ,NIT Raipur,
during a marketing internship by Prof Sameer
Mathur,IIM Lucknow