McDonald's Marketing Case Study

1. CASE STUDY ON McDonald's

2. In 1954, Ray Kroc visited a restaurant in San
Bernardino, California. There he found a small
but successful restaurant run by brothers Dick
and Mac McDonald, and was stunned by the
effectiveness of their operation. They produced
a limited menu, concentrating on just a few
items – burgers, fries and beverages – which
alloMcDonald'sd them to focus on quality and
quick service.
They McDonald'sre looking for a new agent and
Kroc saw an opportunity. In 1955, he founded
McDonald’s System, Inc., a predecessor of the
McDonald’s Corporation, and six years later
bought the exclusive rights to the McDonald’s
name. By 1958, McDonald’s had sold its 100
millionth hamburger.
Ray Kroc
HISTORY
The 1st set of staff

3. ABOUT McDonald's
McDonald's/Headquarters
Oak Brook, Illinois, United States
Ronald McDonald
MASCOT
McDonald's logo
McDonald's and its franchisees employ
approximately1.9 million employees.
McDonald’s is committed to providing the
highest quality food and superior service, at a
great value, in a clean and
McDonald'slcoming environment.
At the restaurant level, McDonald’s is focused
on energy conservation, sustainable
packaging, and waste management.
Quality, service, cleanliness and value
(QSC&V) for each and every customer, each
and every time.
“Three-legged stool” of owner/operators,
suppliers, and company employees.
VISION
GOAL
BUSINESS MODEL

4. ABOUT McDonald's

5. Our purpose goes beyond what McDonald's sell. McDonald's’re using our reach to be a positive
force. For our customers. Our people. Our communities. Our world.
GOOD FOOD
McDonalds promote choices. Real ingredients. Great
taste. Transparency.
GOOD PEOPLE
McDonalds create opportunity. Encourage diversity. Offer
training. Facilitate teamwork. Reward achievement.
GOOD NEIGHBOR
McDonalds champion happy, healthy kids. Keep families
together through Ronald McDonald House Charities.
Commit to reducing our footprint. Using less energy. And
recycling more.
AmbitionMcDonald's

6. McDonald's Key business potential
Extended Hours
Pricing
Food Innovation
Operation Excellence
Brand Trust

7. "McDrive" locations near highway offer no
counter service or seating
McCafé is a café-style accompaniment to
McDonald's restaurants and is a concept created by
McDonald's Australia (also known, and marketed, as
"Macca's" in Australia), starting with Melbourne in
1993.At the end of 2003 there McDonald'sre over
600 McCafés worldwide.
CreateYourTasterestaurants:
Using the dedicated Create Your Taste (CYT) kiosks
a person can choose all ingredients including type of
bun and meat along with additional extras. The CYT
food is presented on wooden boards, fries in wire
baskets and Salads in china bowls and metal cutlery.
These services are a slightly higher price due to the
gourmet ingredients and cost of labor.
McDonald's Restaurants

8. McDonald's MENU

9. McDonald's is
putting people,
processes and
practices into
place to make
sustainability the
new normal –
for business,
society and the
world at large.
McDonald's Sustainability

10. Customers - McDonald's exist because of our customers. McDonald's stay focused by listening to our
customers' needs. Clients are always telling us McDonald's have exceeded their expectations at the end
of a job. McDonald's know you're on a budget, so McDonald's work within your means to deliver the best
available product for your budget.
People - McDonald's people are the strength of the company. Their involvement, teamwork, and
professionalism build customer confidence. With years of experience in modular building and design, our
employees bring a McDonald's alth of knowledge and expertise in construction, engineering and logistics.
And as part of a family run operation, they also bring warmth and a genuine desire to do the best job
possible. McDonald's have LEED Accredited Professionals with skills that exceed industry expectations
and standards. Our employees are active in business associations and professional development
programs that further their knowledge of the business.
Products & Service - Our dedication to providing quality products and services to the customer enables
us to be the best choice for office, storage and modular space. The flexibility of our modular buildings
enables us to design exactly what you need at a price you can afford. If you need room to grow,
McDonald's can help. If you need improvements on an existing building, McDonald's can update. If you
need a complete build from start to finish, McDonald's will be there for you. McDonald's can handle
everything from building security to interior design and landscaping. All of your modular needs met in one
convenient place.
McDonald's core values

11. McDonald’s“ Plan to Win” which provided the company’s 5 Ps –
People, Product, Promotions, Price and Place.
Product
Product consists of how the company must design,
manufactures the products which improve the experience
of every customer. Product refers to physical product and
services provided by the business to its patron.
Place
The place for the most part includes distribution outlet and
channel of the business. It is very essential because the
service or the product should be accessible to the
consumers at the right time, right place and right quantity.
Price
Pricing strategy is one of the most significant aspects
when it comes to marketing. This includes price
breakdown, when any discount service or payment
available.
McDonald's marketing strategy

12. People
McDonalds understands the significance of both
consumers and employees. It understands the truth that
happy workers can serve properly and led in happy
customers.
Promotion
The endorsement activities implement by the Company
aids communicate effectively with the potential
consumers. Ad targeted to catch the interest of the people
it reaches to massive number of customer at a time. Ad
plays an important role for product promotion such TV
advertisement, billboard and posters which also used by
some ground breaking business including McDonald’s
Company.
McDonald's core values

13. McDonald's SWOT Analysis

14. McDonald's Competitors

15. BRAND EQUITY
WIDE ARRAY OF MARKETING CAMPAIGNS
GOING BEYOND BURGERS THROUGH BRAND EXTENSION
AFFORDABLE PRICES FOR THE MASSES.
McDonald's

16. ADS and PROMOTION
LOCALIZED PRODUCT AUTONOMY.
BRAND EQUITYMcDonald's

17. McDonald's being one of the finest and leading brand in the fast-food chain has committed to doing
the right thing. And everyday, all around the globe, they put people, processes and practices into place
to make quality food, more responsible sourcing choices, a stronger community and a better planet.
Thus creating a difference in the market.
Its core values include
1.Better quality and service
2.Cleaner surroundings and added values
3.Healthier food options
4.Sustainability Priorities
5.Refurbished restaurants based on consumers needs
The company did lose track of their market in the 80's but has learnt from their mistakes and now they
are more focused on to their core brand values thereby their economy turned around for the better.
What are McDonald’s core brand values? Have these changed over the years?

18. McDonald's is a premier example of the business model. With roots that trace
back to a single drive-in started by a pair of brothers, Dick and Mac
McDonald, in Southern California, McDonald's has grown to a network of
well over 35,000 locations in more than 100 countries. McDonald’s adjusts
product offerings to satisfy needs – like relatively lower cost, healthy
alternatives for mom's and $1 menu options for lower income consumers and
teens. It also redesigned restaurants with consumer needs in mind and
adapted it menus to different regions based on consumers needs. It also
expands its consumer base through product offerings like McCafe and via
global growth. This led to its growth in brand equity over the years.
With the economy turning around for the better, should McDonald’s change its
strategy? Why or why not?

19. The major risk's that McDonald's will face going forward is that,
1.Most people will give a value for eating a healthy diet thereby
leading to a downfall in their profit margins.
2.Training employees rapidly and less effectively during expansion
drives will pose a major threat in the future.
2.As people's tastes and liking's changes , theyll have to adapt to
these changes to supply a better product.
3.Competitors like Domino's, Pizza Hut etc., will posses a threat if
McDonald's is not consistent in innovating newer products in their
menu.
What risks do you feel McDonald’s will face going forward?

20. • 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.
SUMMARY

21. Sameer Mathur IIM Lucknow, Marketing Professor 2013 –
McGill University Marketing Professor 2009 – 2013
Carnegie Mellon Ph.D and M.S (Marketing) 2003 – 2009
DISCLAIMER
NARESH R
Vellore Institute Of Technology (VIT University , Vellore)
Marketing Management Intern-2017