McDonald's case study

1. CREATING BRAND
EQUITY

2. In 1955 , Ray Kroc franchised A hamburger
restaurant from Mcdonald brothers and
offered simple foods such as 15 cent
hamburger

3. During 1960 and 1970 Kroc led McDonalds growth domestically and
internationally but reinforced with importance of
Quality,Service,Cleanliness and Value which are the Core Brand values
of the company

4. It targeted Core audience of Childrenand Familiesthrough
Characterslike Grimace,Hamburglarand Mayor McCheese
for food with fun experience ,where these charactersare
the brandelements .

5. It adopted Holistic Marketing Activites through a charitable house to helpchildren
withleukemia,thenthrough Ronald McDonald House,Ronald McDonald Family and
Ronald Care Mobile.

6. In 1980’s McDonaldaggressivelyincreasedoverseasdue to
which it lost focus,inturnon internalbranding.The new
employeesarenot welltrained. Resulteddirty restaurants
and poor service.

7. Products like pizza,Arch Deluxe,deliSandwiches where failures
and doesn’tconnect well with customers. Negative effect ofBrand
Extension.

8. It then returned back to it basics and concentrated mainly on 5P’s such as
price, products, promotions, place, people. Itcreated thebrand value
depending onthe geographic segmentation , culture and region.

9. Changedits Brand CoreValue and addedHEALTH to it. Thus eliminating bee
consumption,super size methods, mystery meat and evenFrench fries
consideringin some countires.

10. Brand Revitalization was achieved throughrefurbished restaurants with
differenttype of comforts for differentage groups.

11. Brand Extensionwas successfulwhen the
company introducedMcCafe. Thus it has
positive effect onbrandextension

12. It has gained its brand Value through its current
campaign I’m Lovin’ it

13. CORE BRAND VALUES:
First of all, McDonald’s aims at providing high quality
foods thereby increasing their value proposition and
thus the brand name is obviously increased.Increased
customersatisfaction.

14. Segmenting based on geographic
segmentation for the benefit of good tastes
and preferences for the customers in
different regions. Various offerings for the
customers thus bringing about more number
of customers.

15. McDonald’s GROWTH:
Morehealthier foodsto attract families and also foods available
to attract youngpeople.Analysed the needs andwants of the
society and acted accordingly.More offeringsin some products
thus attracting more customers. Segmentation based on tastes and
prefernces of customers of differentregions.

16. CHANGES OCCURED:
More offerings and best customer services during
economic falls to attract more customers.
Healthier foods to attract mothers.

17. RISKSINFUTURE:
More goodstrategies of heavy competitors. As customers tastes
are changingand the tastes of foodscookedremain same, there
may be declinein the growth.

18. Many competitors offerbetter customer service, low price,better
tastes whencompared to McDonald’s so more chances of shifting.
Limited foodsavailable andthere is so much of productextensions
so customers may get less satisfied.

19. DISCLAIMER
Created by PAVITHRA RAKKIMUTHU,PSGTECH Coimbatore,
duringthe marketing internship underProfessor Sameer Mathur,
IIM Lucknow.