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

11. Come-Back
• Strategy “Plan to Win” - helped refocus on
offering a better, higher quality service.
• 5 P’s-
People
Products
Promotions
Price
Place.

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

13. 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.

14. 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

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

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

17. 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- People, Products, Promotions, Place and Price.

18. 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.

19. 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.

20. 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.

21. 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