Analysis of McDonald's mini case for internship under Prof. Sameer Mathur.

2. CORE VALUES
Quality, Service, Cleanliness &
Value
“If I had a brick for every
time I’ve repeated the
phrase Quality, Service,
Cleanliness and Value, I
think I’d probably be able
to bridge the Atlantic
Ocean with them.” —Ray
Kroc

3. MARKET LEADER
• McDonalds is the world’s leading hamburger
fast food chain.
• McDonalds serves more than 70 million
people each day.

4. SO WHAT WERE THE
REASONS
FOR ITS SUCCESS?

5. • Smart choice of brand elements like
golden arches as logo and Ronald
McDonald as mascot.
• Holistic marketing activities to lure its
core audience.
Focused on building brand equity

6. • Consistency: Same quality
throughout the world both in
terms of products and services
• Innovation: World’s first drive
through was developed by
McDonalds.
• Customer Service

7. • Economic Pricing :
Affordability and reasonable
pricing for its products.
• Regional Product
offering: localized
offering of food
products depending on
preference of the
region.

8. Growing the brand through product
extension : To increase the customer
base through global growth and product
expansion, was launched
which became a great success.

9. However,
there was
an accident!

10. • Due to rapid growth, the company lost
focus and direction.
• New employees weren’t trained fast
enough, which led to poor customer
service.

11. INCREASING COMPETITION
• Other competitors like subway which offered
more healthy options popped up.
• New products launched by McDonald’s failed.

12. “We got distracted
from the most
important thing : hot,
high quality food at a
great value at the
speed and convenience
of McDonalds” – Jim
Skinner, McDonald’s
former chief executive

13. SO, HOW DID McDONALD’S DEAL
WITH IT?

14. McDONALD’s implemented a strategic
effort called Plan to Win. Idea was to
refocus on offering a better, higher
quality consumer experience.

15. Another Bump in the road!

16. McDonald’s link
to obesity
• A documentary “Super
size me” was released
directly linking McD
to obesity and its name
was derived from
“Super size” category
of burgers.
• Customers were
shifting to healthier
options.

17. McDonald’s responded
• “Super size” option was removed from the
burgers.
• Premium salads were introduced and french
fries were replaced by apple slices in happy
meals.

18. Other winning moves
• Introduced $1 menu to target teenagers and
low income consumers.
• Improved drive thru, refurbished restaurants,
installed TVs and Wi-Fi.
• Created 3 different zones for everyone to fit in.

19. Risk Analysis
• Since McDonald’s is linked with
obesity, customers are opting for
healthier options. More healthy options
should be added.
• Growing competition with other brands.
• Brands like subway offering more
customizability and healthy options.
• Expansion should be not be too rapid as
it may cause a dip in quality.

20. Summary
• McDonald’s is the world’s leading hamburger store that serves
more than 70million people each day.
• It has always reinforced its core values of : Quality, Service,
Cleanliness & Value.
• It has managed to build a very strong brand and is growing at a
very fast pace.
• Consistency, innovation, affordable pricing, customer service,
cleanliness and well built brand equity has been the main
reasons of success.
• It has faced challenges like inharmonious growth, deviated from
the right direction and got connected to obesity but has
responded well and came out of every challenge.
• It is still growing through its marketing and brand
extension(McCafe) and increasing revenues.

21. DISCLAIMER
This Presentation Is Based On The knowledge and
experience gained By Rishabh Bhutani , MSIT Delhi,
during an internship on “Marketing Management”
under Prof. Sameer Mathur, IIM-L.