Case study on McDonalds

1. Case Study

2. Welcome to the World of McDonalds

3. About McDonald’s
FOUNDED:
• McDonald’s BAR-B-Q, May 15, 1940 in San
Bernardino, California • McDonald's Corporation,
April 15, 1955 in Des Plaines, Illinois
HEADQUARTERS: Oak Brook, Illinois
TOTAL EMPLOYEES: 3,75,000 (as in 2017)
World's largest chain of hamburger fast food
restaurants: 121 countries – 36,000+ locations – 70
million+ customers daily
MASCOT: Ronald McDonald
CEO: Steve Easterbrook
CHAIRMAN: Andrew J. McKenna
McDonald’s is committed to providing the highest quality food
and superior service, at a great value, in a clean and
welcoming environment.
• At the restaurant level, McDonald’s is focused on energy
conservation, sustainable packaging, and waste management.
• GOAL: Quality, service, cleanliness and value (QSC&V) for
each and every customer, each and every time.
BUSINESS MODEL: “Three-legged stool” of owner/operators,
suppliers, and company employees.

4. History 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.
 Kroc partnered with the brothers, and within a few years turned their small idea into the huge franchise
that would become the McDonald's Corporation.
 Kroc became frustrated with the brothers' desire to maintain only a small number of restaurants.
 In 1961, he purchased the company from the brothers for $2.7 million.

5. The original staff of the
McDonald's brothers hamburger
restaurant.
The First McDonald’s

6. McDonaldization

7. McDonald’s Around the Globe

8. McDonald’s MENU
The salads all are a mixture of iceberg lettuce and a
lettuce assortment, with cherry tomatoes topped with
either a grilled or crispy chicken patty which has been
chopped.
Premium Salads

10. Brand Equity
 Smart choice of brand elements
 Holistic marketing activities
 McDonald’s Advertising Campaign
• promotes the idea of Sharing with friends
•Targeting family ,kids and youngsters with Happy Meal
 The company included healthy foods in menu.
 Making products more affordable, refurbishing restaurants

11. Reasons for Success
 Consistency in quality, service, cleanliness and value.
 Innovation in the products to stay updated.
 Affordablity of product attracts masses.
 Brand revitalization through brand extension.
 Local restaurants to adapt regional tastes
Strategies
 It earns a revenue as an investor in properties,
franchisees of restaurants and as operator of
restaurants.
 80% of McDonald’s 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 its sales.

12. Some Creative Ads

13. Competitors

14. McDonald’s in
FRANCHISING IN INDIA: McDonald’s Corporation has
entered into JV’s with two companies to develop, open
and operate McDonald's restaurants in India.
North & East India: Connaught Plaza Restaurants Private
Limited ("CPRPL“)
South & West India: Hardcastle Restaurants Private
Limited ("HRPL“)
• Entered India in 1990s.
• Majority of Indians did not eat beef.
• Muslims did not eat pork.
• Food items were segregated into Veg and Non-veg
• Introduced Maharaja Mac and McAloo Tikki.

15. McDonald’s in Controversies
 In 1990, a small group of activists criticized its environmental health and
labour record.
 In 1999, French anti globalisation activist Jose Bove vandalized a half built
McDonald to protest against the introduction of the fast food in the region.
 In 2002, vegetarian group largely Hindu and Buddhist successfully sued
McDonald’s for misrepresenting their French fries as vegetarian when they
contain beef broth.
 In 2013, McDonald’s encountered controversy around negative racial
stereotypes when the fast-food restaurant tested one of its ads in Germany
for the resident Mexican population.

16. The QUESTIONS

17. What risks do you think McDonald’s 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

18. What are McDonald’s 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.

19. How has McDonald’s 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.
 • “I’m lovin it campaign”.
 • Refurbishing restaurant,1$ menu
 • Plan to win strategy.
 • The company’s mission has changed from ‘’being the world’s best quick
service restaurant’’ to ‘’our customers’ favorite place and way to eat’’

20. Summary
 World’s 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.
 I’m lovin it campaign running currently.

21. Disclaimer
 This Case Study was made by Bliss Sinha of BIT
Mesra during a marketing internship by Prof.
Sameer Mathur, IIM Lucknow.