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Case Study on McDonald's

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Case Study on McDonald's from Philip Kotler Management textbook.
Marketing Management Internship Assignment under the guidance of Prof. Sameer Mathur.

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Case Study on McDonald's

  1. 1. GOLDEN ARCHES A Case Study on McDonald’s
  2. 2. INCEPTION OF McDONALD’S ABOUT McDONALD’S McDONALD’S REALM REASON BEHIND ITS SUCCESS QUESTIONNAIRE BUILDING BRAND EQUITY
  3. 3. INCEPTION OF McDONALD’S • Richard & Maurice McDonald built hamburger stands with golden arches in California.15¢ hamburgers were very popular. • Ray Kroc, a milkshake machine salesman, bought world franchise rights from them and spread the golden arches around the globe. • In 1961, he purchased the company from the brothers for $2.7 million. Ray Kroc The original staff of the McDonald's brothers hamburger restaurant • Sales Sky Rocket just after few ad campaigns due to the presence of Ronald McDonald.
  4. 4. McDONALD’S REALM • The Company Has over 35,000 outlets all over the world. • It has 1.9 million employees around the world. • It generated a total of $25.4 billion of revenue for the year 2015
  5. 5. Why is McDONALD’S Successful? • Quality, Service, Cleanliness & Value. • Innovative way of presenting itself among people. • Welcoming all category’s people. • Regional taste and menu. • Various kinds of ventures in market. • Increasing demand of fast food over the world.
  6. 6. McDONALD’S COMPETITORS According to Hoovers • Main Competitors are • Subway • Burger King • Taco Bell (a.k.a Yum!)
  7. 7. BUILDING BRAND EQUITY  WIDE ARRAY OF MARKETING CAMPAIGNS  GOING BEYOND BURGERS THROUGH BRAND EXTENSION
  8. 8. BUILDING BRAND EQUITY  AFFORDABLE PRICES FOR THE MASSES.  LOCALIZED PRODUCT AUTONOMY.
  9. 9. BUILDING BRAND EQUITY  ADS and PROMOTION
  10. 10. What are McDonald’s core brand values? Have these changed over the years?  The core values of the company was Quality, service, cleanliness and value (QSC&V).  Their values were reflected on their Products and their service.  Through the 80’s they lost their sense of direction due to the aggressive expansion of the company.  They recovered by implementing “ Plan to Win” which provided the company’s 5 Ps – People, Product, Promotions, Price and Place.
  11. 11. With the economy turning around for the better, should McDonald’s change its strategy? Why or why not?  The product that is selling a product is consumed more when people have less money.  The product it was selling would meet the requirements of people who are struggling during the economic crisis by giving them food at a cheaper price than most restaurants would.  McDonalds should in fact change its strategy to keep its customers only slightly by possibly improving the quality of their food broadening their menu.
  12. 12. What risks do you feel McDonald’s will face going forward?  McDonald’s should offer more premium options and establish itself as a provider of normal goods while maintaining the value that its customers expect.  Increasing health conscious consumers are opting for natural/healthier products.  Increasing Competition in the fast food sector.  Wider options for consumers to reach out for other than just Burgers and fries.
  13. 13. Summary • Richard & Maurice McDonald started 15¢ hamburger stands with golden arches in California. • Ray Kroc, a milkshake machine salesman, bought world franchise rights. He later purchased the company from the brothers for $2.7 million. • Builds the most recognizable brand in the world. • Diversifies its menu to stay in the competition. • Low pricing and intensive marketing campaign fuels the growth of the company. • Health conscious society might move on to healthier options. • Needs to introduce healthier options to stay in the competition.
  14. 14. DISCLAIMER Sameer Mathur IIM Lucknow, Marketing Professor 2013 - McGill University Marketing Professor 2009 – 2013 Carnegie Mellon Ph.D and M.S (Marketing) 2003 - 2009 Vedanth Prakash PES Institute of Technology, Marketing Management Intern - 2016.

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