Golden arches 1

McDonald's mini case analysis about its brand equity. Done during internship programme under Prof. Sameer Mathur

1. Golden Arches A case study on Mc Donald’s

2. McDonald’s- The Beginning Started by Richard and Maurice McDonald Ray Croc, eventually bought the chain The famous golden arches were introduced in the company logo in 1962 and the mascot Ronald McDonald was introduced in 1967.

3. About McDonald’s Headquarters – Oak Brook, Illinois , United States May 15, 1940, McDonald’s was created in San Bernardino, California. McDonald’s Corporation moved to its present head quarters was started in April 15, 1955 in Illinois, United Stated Chairman- Andrew J. Mckenna President & CEO- Don Thompson Total Employees: 1.5 Million globally World’s Largest Hamburger Fast Food Joint : Official Mascot- Ronald McDonald’s

4. About McDonald’s Business Model- McDonald’s follows a unique business strategy the “Three- legged stool”. Mostly its just, “ To provide hot, high-quality food at a great value at the speed and convenience of McDonald’s.”

5. About McDonald’s Commitment- The company is committed to provide high quality food and good service , at great value in a clean and welcoming environment . In restaurant level, McDonald’s focuses more on energy consumption, sustainable packaging and waste management. Goal Quality , Service , Cleanliness and Value ( QSC & V) for each and every customer, each and every time.

6. Strategies used Step into new business areas . Geographical Expansion Improve industry infra- structure. Innovation in delivery systems Innovation in products and services. Attracting new customers. Satisfying the customers .

7. McDonald’s Global Expansion Many outlets were introduced during 1980, in Europe, Asia, the Philippines, and Malaysia. More than 2000 outlets were opened every year. Present in more than 118 countries are present.

8. McDonalds has been open for over 75 years now.

9. Effects of Expansion New employees weren’t trained properly , which lead to poor customer service and dirtier restaurants. Many competitors popped up during this time such as

10. Come-Back Strategy “Plan to Win” - helped refocus on offering a better, higher quality service. 5 P’s- P eople P roducts P romotions P rice P lace.

11. Come- Back Introduced different variety of food products for local restaurants. Helped them to adapt to different environments and cultures.

12. Come- Back The company also satisfied customers by providing healthy foods with premium salads and apple slices Redefining the companie’s name and targeting teenagers by improvising.

13. Reason for Success Quality , Service , Cleanliness & Value . Various kinds of ventures in the market. Regional taste and satisfying needs of customers. Innovative way of presenting itself to the customers. Food and advertisements for all segments of people India London New York

14. Building Brand Equity Going beyond Burgers and hot dogs (it’s first product) Price variations and making it affordable for masses

15. Building Brand Equity Localized product and regional variation in price. Ad’s, promos and varied gifts- for attracting children. National Breakfast day promo Kid promo Valentine day ad

16. Mini- case Question 1. What are McDonald’s core Brand Values? Have these changed over the years? The major core brand values of McDonald’s are quality , service , cleanliness and value (QSC&V). For over 80 years these values play a major part in leading the company forward. During expansion when the company lost direction for a small amount of time and the quality of the food has fallen. They made a great come back by introducing new strategy for maintaining the 5 P’s - P eople, P roducts, P romotions, P lace and P rice.

17. Mini- case Question 2. How has McDonald’s grown its brand equity over the years? Has McDonald’s changed in different economic times or in different parts of the world? Explain? McDonald’s has obviously improved its brand equity over the years, even though it suffered from a fallback in the 80’s. It improved the general perception of the product first before expanding again and introduced different regional foods And also introduced varied priced foods, attracting new segments of people. McDonald’s easily adapted to different economic situation by introducing regional foods and also making the restaurants adjustable to different segments of people.

18. Mini- case Question 3. What risks do you think McDonald’s will face in the future? Increase in health consciousness among the general public can cause huge shift in the market. Presence of various competitors in the field of fast food production. Wider options in all places can be provided , so the customers can choose other than burgers and fries. Producing more premium food product and establish itself as a provider of normal goods in all areas.

19. Summary Started by Richard and Maurice McDonald in 1940. World’s Largest Hamburger Fast Food Joint. Goal- Quality , Service , Cleanliness and Value ( QSC & V) for each and every customer, each and every time. More than 2000 outlets were opened every year. Effects of Expansion- New employees weren’t trained properly, which lead to poor customer service and dirtier restaurants. Come back- Strategy “Plan to Win” - helped refocus on offering a better, higher quality service. Building Brand Equity throughout its service period.

20. Disclaimer Prof Sameer Mathur Marketing Professor IIM Lucknow Carnegie Mellon University PhD and MS(Marketing) 2003-2009 Swaathi Rameshwar Velammal College of Engineering and Technology Summer Internship in Data Analytics with Managerial Applications 2017