McDonald's Case Study

1. McDonald's Case Study

2. • McDonald’s is a large
corporation in the fast food
industry.
• They have been around since
1955 when Ray Kroc started the
chain of McDonalds. They have
been growing ever since.
• The majority of the
restaurants are owned through
franchises.
ABOUT COMPANY

3. • They employ 447,000 people.
• They have over 3,200 restaurants in
over 119 countries.
• The majority of the McDonald’s
franchises are owned by individual
franchises.

4. INCENTIVES TO YOUNG
EMPLOYEES
• High school at zero cost to
employees
• More than 5200 graduates from
english under Arches since 2007
• $13 Million+ awarded in Hign
school and college tution
assistance

5. BUSINESS MODEL
• McDonald's corporation earns revenue as an investors in
properties , as franchiser and as an operator of restaurants.
• 15 % of McDonald’s restaurants are owned and operated by
McDonald’s corporation directly.

6. • 15 % of McDonald’s restaurants are owned and operated by
McDonald’s corporation directly.
• In addition to ordinary franchisee fees and marketing fees,
McDonald’s also collect rent on the basis of sales.

7. • McDonald’s in India developed a range of 100% pure Veg
food, along with Non-Veg range.
• McDonald’s efforts were aimed purely at driving traffic in.

8. BUILDING BRAND EQUITY

9. BUILDING BRAND EQUITY
• Introducing regional meal with twists and marketing tricks

10. BUILDING BRAND EQUITY
• Luring costumers with innovative marketing skills and
advertising

11. BUILDING BRAND EQUITY
• Launch of healthy food plans for kids and people with
obesity.

12. • What are McDonald's core brand values? Have
these changed over the years?

13. • McDonald's promises a simple, easy and enjoyable food
experience for its customers. They know the importance of
quality, service, cleanliness and value. In 2003, it
implemented a strategic effort called "Plan to Win". It focuses
on how to improve the company's five P's i.e. people,
products, promotion, price and place.

14. • McDonald's did very 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?

15. • McDonald’s has changed both in economic times and in the
different parts of the world. Since the company aggressively
expanded overseas during the early 2000s, there was a
decrease in the quality of services. But after implementing the
strategy “Plan to win,” the results produced were staggering
with an increase in revenues by 33%. The company has
changed in the different parts of the world because of its
changes in the menu according to the local cultures and
environments.

16. • Yes adding more products to the product line and a suitable
building of brand equity keeping in mind the recent
developments in the economy and competitors. Brand audits
can provide a key insight to the changing marketing conditions
and suitable actions can be taken thereafter.

17. • What risks do you feel McDonald's will face
going forward?

18. • Increase in health consciousness and change in customer life
style

19. New competitors

20. THANK YOU

21. DISCLAIMER
Created by Sreesha Jagannatha B R, BIT, Bengaluru,
during a marketing internship, by Prof. Sameer Mathur,
IIM Lucknow.