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Growing the McDonald’s Brand
- 1. Growing the McDonald’s Brand Submitted By Khushboo Solanki (PGP31412) IIM Lucknow
- 2. Brand Elements Name • McDonald’s Slogan • I’m Loving it! Color • Red & Yellow Character • Ronald Brand Mantra Food Folks Fun
- 3. Evolution of the brand element - Logo
- 4. Brand Identity • Trusted for service quality • Cleanliness & hygiene • First choice for burgers • Hangout place for youngsters • Also a place for family • Happy & cheerful atmosphere • Personality – family oriented
- 5. Brand Image – Social & Family Oriented
- 6. McDonald’s as a Brand
- 7. Brand Positioning Frame of Reference Points of Parity Points of difference Veg options Toys Low price
- 8. Low Price Strategy • “Happy Price Menu” introduced items starting at Rs. 20 in India • Later increased the same starting at Rs. 25. • Slogan – “Humaare Zamaane Ke Daam”
- 9. Market Penetration Strategy Initially launched new outlets each year Later, focused on upgrading existing • Facilities • Operations 24-hour store services Introduced Breakfast menu
- 10. Market Penetration Strategy Breakfast menu introduced • Generates 50% revenue • McMuffin & McGriddle Drive-thru snacks 60% sales
- 11. Penetration in different Segments Core • Mother and Child: Happy Meals Peripheral • Working Men: Drive-thru breakfast
- 12. Market Development Strategy Spread • 33,000 restaurants in 119 countries • 1.7 million employees • 64 million customers served daily Different target segments • Happy meals for children & parents • Salads for younger women Children & Parents Young Women
- 13. Market Development Strategy Teriyaki Burger in Japan Vegetable McNuggets in England Maharaja Mac in India with mutton instead of beef McMasala & McImli sauces in India Specialized Menu Items
- 14. Menu items - India • More veg options were added • Indian spicy flavors were introduced
- 15. Product Development Strategy Issues related to poor health and obesity Healthier options were introduced Fresh salads Healthier Happy Meals for kids Bottled water and pedometer in adult Happy Meals Other health initiatives Balanced Lifestyles platform for children GoActive! Campaign promoted by celebrities Ronald McDonald re-casted as sports enthusiast Brand Repositioning
- 16. Product Development Strategy Premium coffee Shared meal segments like KFC cheaper than Starbucks
- 17. Diversification Strategy McCafe •Gourmet coffee shop – Portugal & Austria McTreat •Ice-cream & dessert shop
- 18. Diversification Strategy Golden Arcs Hotels • Failed in Switzerland Wedding packages in Hong Kong • Warm and Sweet Wedding • 50 guests for $1,300 • Additional $165 for rented gown
- 19. Financials Sales decline due to health issues Gained back by taking new measures Growth has slowed down due to price pressure
- 20. Advertising – Innovative Print Ads
- 21. Advertising – Ads promoting friendship • Mac Maharaja – Social Burger • “Familiarity Test” in India • It suggested spending more time with your near ones and know them better • Slogan – “Thoda Time Aur”
- 23. Social Media – Best Brand in Category
- 24. Social Media to Answer Customers
- 25. Recent News Washington Post : “Why you might want to be skeptical of McDonald’s latest food changes” • Remove artificial components • Overcome losses TechTimes: “McDonald's Latest Attempt To Make Happy Meals Seem Healthy Has Backfired” • Skin irritation on wearing device • Device perceived as toy by children • A very late move Failed Brand Repositioning
- 26. Sustaining Number 1 position - Laddering Up Listening to Stay on Trend Customer centric Remaining Authentic and Transparent Personal social engagement Quality service
- 27. Conclusion Growth - Reached Maturity Continues to grow with • Innovation • Flexibility • Diversification • Maintains standards
- 28. Disclaimer • Created by Khushboo Solanki, IIM Lucknow • For Brand Management Course • Under the guidance of Prof. Sameer Mathur, IIM Lucknow
- 29. References • http://www.mcdonaldsindia.com/ • http://www.socialmediatoday.com/content/how-mcdonalds-wins- social-ranking-number-one • http://www.techtimes.com/articles/174117/20160818/mcdonalds- tried-make-happy-meals-seem-healthy-now-paying-price.htm • https://www.washingtonpost.com/news/wonk/wp/2016/08/02/why- you-might-want-to-be-skeptical-of-mcdonalds-latest-food-changes/ • http://marketrealist.com/2013/12/mcdonalds-global-footprint- bringing-obesity-developed-emerging-markets/
- 30. Thank You!