In this presentation we take up the concepts of brand equity to analyze the McDonald's case study.

2. Richard McDonald & Maurice McDonald
Ray Kroc
McDonald’s Founder Brothers

3. THEN NOW

4. CREATION OF GREAT BRAND EQUITY
In accordance with Brand
Resonance Model:
 Salience
 Performance
 Imagery
 Judgements
 Feelings
 Resonance

5. Full focus on its
BRAND
PROTECTION
TRADEMARKED
terms and phrases.
Emotional Selling
Propositions, i.e.
ESPs
CREATION OF GREAT BRAND EQUITY

6. I’m Lovin’ It  Original vocals by
Justin Timberlake

8. Rapid overseas expansion in 80’s, 90’s & early 2000s
2000 new restaurants each year
Untrained Employees
Poor Customer Service & Dirty Restaurants
DISSATISFIED CUSTOMERS!!!

9. Change of consumers’ tastes
and eating trends.
Failure of new food offerings.

10. LINKED WITH OBESITY

11. COMPETITION
TOUGH
COMPETITION
FROM
EMERGING
FAST FOOD
CHAINS.

12. “ Hot, high quality food at a great value
at the speed and convenience of
McDonald’s.”
- Jim Skinner
THE MOST IMPORTANT THING

14. BRAND REVITALIZATION
$1 Menu for teenagers & low
income consumers.
Enticing target segment of
the market.

15. BRAND REVITALIZATION

16. BRAND REVITALIZATIONS
Cultural
Adaptability
Introduction of McCafe Free WiFi

17. What are McDonald’s core brand values? Have
these changed over the years?
 Core brand values: quality, cleanliness, service
and value.
 Core values are reflected in their outlets, pricing
of products and employees.
 The company learns from its past mistakes.
 Makes it a point to stick to the core values which
is the center of their Business Model.

18. McDonald’s did really well during the recession in the late 2000s.
With the economy turning around for the better, should
McDonald’s change its strategy? Why or why not?
• Exceptional performance of the company compared to
its peers.
• Cheap offerings attracted customers in times of financial
troubles.
• The company should stick to its strategy.
• Changes in the existing strategy should be subject to
current market status.

19. What risks do you feel McDonald’s will face
in future.
• Consumers might prefer healthier options.
• Adaptability to the changing trends is the need
of the hour.
• Competition from local food chains.
• Need of effective training of employees during
expansion.

20. SUMMARY
 McDonald’s purchased by Ray Kroc in 1955.
 Multiplication of restaurants on a global level.
 Creation of great brand equity and ESPs.
 Challenges on the way:
(a) Rapid expansion but untrained
consumers.
(b) Failure of new food offerings.
(c) Linked with obesity.
(d) Emerging competition.
 Plan to win: Brand revitalization
 Powerful comeback!

21. DISCLAIMER
Created by Sahitra Ghosh, DTU during a remote Marketing internship under
Prof. Sameer Mathur, IIM Lucknow.