McDonald's began in 1940 in Illinois and has since expanded globally through strategies like market penetration, product development, and market development, establishing over 36,000 locations across 121 countries. The document outlines McDonald's history, leadership, growth strategies using Ansoff's matrix, product lines, branding activities, and notes it remains the largest fast food chain in the world serving nearly 68 million customers daily. McDonald's success comes from its low cost structure and use of franchising to rapidly expand its global footprint.
3. Men behind the Success
Steve Easterbrook
CEO
Richard McDonald
July 14, 1998
(aged 89)
Ray Kroc - Founder
5 October 1902 - 14 January
1984
Maurice McDonald
December 11, 1971
(Aged 69)
4. Where it all began
Original Picture at the
McDonald’s Famous
Hamburgers
McDonald’s famous
Hamburgers (First
Restaurant)
6. Ansoff Matrix - McDonald’s
Market
Penetration
Cleaver Pricing, Happy
Meal, Speedy Service,
Drive through
Recently it has begun to
offer salad wraps and
fruits.
Product
Development
McSpaghetti, McAloo
Tikki, Masala Grill,
Royal Paneer
All these in India since
people do not eat beef.
Market
Development
Has presence in 121
countries and is
planning to open outlets
in Nigeria, Tunisia,
Armenia
Diversification
McCafe, Hotel
(Switzerland)
7. Market Penetration
McDonald’s uses market penetration as its
primary intensive strategy for growth. In
applying this intensive strategy, McDonald’s
grows by reaching more customers in
markets where it already has operations. For
example, McDonald’s opens new restaurants
in North America and Europe by
franchising, joint ventures or corporate
ownership. A strategic objective connected
to this intensive growth strategy is global
expansion through new locations.
McDonald’s generic strategy supports this
intensive growth strategy because low costs
and low prices empower the firm to easily
penetrate markets.
8. Sponsorship
McDonald’s became an official
sponsor of the Olympic
Games in 1976 and has
longstanding commitment to
the Olympic movement.
9. TV Commercials
McDonald’s claims it is showing a ‘brand
evolution’ as it launches new Happy Meal ad. …
McDonald’s has launched a new campaign in a bid to show off its “brand evolution”
and change brand perceptions by convincing parents that the Happy Meal is healthier
than ever, having reduced the average salt content by 47.4% since 2003.
10. Market Development
In its early years, McDonald’s used market
development as its primary intensive strategy for
growth. However, market development is now a
secondary intensive growth strategy because
McDonald’s already has restaurants in most
regions around the world, except Mongolia, some
parts of the Middle East and west Asia, and the
majority of African countries. A strategic objective
for this intensive growth strategy is to establish
new locations in new markets, such as new
McDonald’s restaurants in African or Middle
Eastern countries where the company currently
has no operations. Based on its generic strategy of
cost leadership, McDonald’s supports this
intensive growth strategy by using low prices to
compete in new markets.
11. Product Development
McDonald’s uses product development as its
supporting intensive strategy for growth. In
applying this intensive growth strategy,
McDonald’s develops new products over
time, such as new McCafé products. These
new products may be variations of existing
products, or entirely new products. The
strategic objective for this intensive growth
strategy is to capture more consumers by
attracting them to new products. This
intensive growth strategy agrees with
McDonald’s broad differentiation generic
strategy in terms of new products that make
the company distinct.
13. Line Extension
8 different kind of categories
Breakfast
Burgers
Chicken & Sandwiches
Salads
Snacks & Sides
Desserts & Shakes
Drinks
McCafe
In addition, McDonald’s has
Happy Meal
The Mac Trio
Extra Value Meal
All day breakfast
15. How McDonald’s Implements IMC
• ‘Sing the Same Song’ in the market
• TV Advertising
• Out of Home (OOH) – Billboards
• Free Coupons
• Public Relationships
• Weekly newsletters for internal communication team
• Training and Education opportunities
16. New Mc Strategies
• Product Development: Focus on core business
• Quality and taste issues
• Food delivery methods
• MBX (McDonald’s Big Extra)
• Family Value Meal
• Joint Venture (Franchisee): Change methods of dealing with
franchisees
– To better motivate owners and foster team spirit
– Enhance owners’ participation in process improvements
• Market Penetration and Development
– Continue International expansion
17. Product Life Cycle @McDonald’s
The French Fries have been an important part of the
McDonalds menu worldwide. But now it was in the stage of
decline and was actually not generating proper return. In
an attempt to refresh it, a new variant was introduced
namely Shake Shake Fries. This is being served with
chatpata spice mix which has resulted in increase in the
sales of French Fries and has elevated it from to the decline
stage. This is used to delay the decline of a well established
product which has the potential of generating further
revenue.
Recently launched Gilroy Garlic Fries
18. Who is the Burger King?
McDonald’s –
Burger King –
20. Did you know?
About 15 percent of all McDonald's restaurants are owned by the
actual company. The remaining 85 percent are operated under
franchises
McDonalds is the leading global food service retailer with more than
36,615 local restaurant serving
McDonalds opens a new restaurant every 14.5 hours
McDonald’s restaurants feed 68 million people every day. That is
more than the entire population of U.K
21. Continues. …
McDonald’s is the world’s largest distributor of toys
McDonald’s makes about US$75 million per day
McDonald’s used to sell pizza in the 70s.
A person who lives in the U.S., never more than 115miles away from
a McDonald’s
Bill Gate has a McDonald’s Gold card for unlimited free fast food
The Queen of England owns a retail park in London, which has a
drive-thru McDonald's
Diversification : Failure • McDonald's made its foray into the hospitality industry in 2001, opening two hotels in Switzerland, at Zurich and Lully. • The "Golden Arch Hotels" were positioned as four-star facilities with the latest in-room technology and very original, modern interior design. • Reactions and reviews of guests following their stay there were mixed. Most seemed to agree, that the hotel's four-star rating didn't seem to correspond with McDonald's image. The Golden Arch in Zurich is McDonald's first hotel. • Unfortunately, this venture was not successful as it went to market in the early 21st century
About to invest 750 crores to open in india
Available in mcdonald’s also and has different retail outlets.
