Case Study Mc Donalds

2. About McDonalds
Brief History of McDonald’s
The first McDonald’s was built in 1940 by Richard and Maurice McDonalds.
Started off as a hot dog stand.
The brothers realized that hamburgers were the most profitable item and
they changed their business and has a limited menu.

3. About McDonalds
It has been around since 1955 when Ray Kroc started the chain of
McDonalds. They have been growing ever since.
Majority restaurants are franchise.
The chain has over 3,200 restaurants in over 122 countries.
It is one of the most well known fast food chain in the world.
Started going international in 1967- Canada and Puerto Rico.
First presence in Asia in 1971.
First presence in India- 1996, New Delhi.

4. BRAND
EQUITY

5. BRAND RESONANCE MODEL

6. Brand Resonance Model (Cont.)
•Ensuring customers identity and associate it with specific product and
class.
•Firmly establishing the brand meaning in the customers’ mind by
strategically linking a host of tangible and intangible brand
associations.
•Eliciting the proper customer responses in terms of brand related
judgement and feelings.
•Converting customers’ brand response to intense activity.

7. What a company need to focus
upon?
Brand Salience
Brand performance
Brand imagery
Brand judgement
Brand feelings
Brand resonance

8. SALIENCE
•How often and how easily customers think of the brand under various
purchase consumption situations- the depth and the breadth of the
brand.
Logo with the yellow ‘M’.
Ronald the clown for kids.
Famous/top of mind.
Tag lines like- “ I’m lovin it.”
Childhood memories.
Consumers link it to- tasty, fun, fast and clean.
Covering broad amount demand.

9. PERFORMANCE
How well the products or services meet the customers’
functional needs.
One of the largest fast food chain in the world.
Drive thru and Take away system.
Widely spread.
Consistent in services across every outlet.
Speed and accuracy of serving orders.
Accessible and affordable prices.

10. IMAGERY
Describes the extrinsic properties of the product or services, including
the ways in which the brand attempts to meet customers’ psychological
and social needs.
Aims at all kinds of users.
 Operates in many countries and serves many people.
Fun, efficient, pervasive and convenient.
Consumers have had a pleasant past experience.

11. JUDGEMENT AND FEELINGS
•Judgement is to focus on customers’ own personal opinion and
evaluations.
•Brand feelings are customers emotional response woth respect to the
brand.
As its financial value has grown and also its popularity as we come to
know from many surveys we know that customers feel positive about
the brand.

12. RESONANCE
Describes the relationships customers feel they have with the brand and the
extent to which they feel they are “in sync ” with it.
McDonalds is known all over the world and has always been the choice of
the consumers.
Enjoys customer loyalty- Regular and repeat purchases.

13. HOW TO BUILD BRAND EQUITY?
Choosing brand element.
Developing a brand element.
Designing holistic marketing activities.
Leveraging Secondary associations.
Internal branding.

14. Brand element choice criteria:
Memorable.
Meaningful.
Likeable.
Transferable.
Adaptable.
Protectable.

15. Choosing brand element: (cont.)

16. DESIGNING HOLISTIC MARKETING
ACTIVITIES
&
INTERNAL BRANDING

17. INTERNAL BRANDING

18. LEVERAGING SECONDARY ASSOCIATIONS

19. Q1. What are McDonald's core brand values? Have these changed over the
years?
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.

20. Q2. 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?
McDonalds did very well during the recession because the product that it is
selling is a product that 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. However, now I would say that McDonalds
should in fact change its strategy to keep its customers only slightly by possibly
improving the quality of their food and broadening its menu.

21. Q3. What risks do you feel McDonald's will face going forward?
New competitors
Changing customer taste and life style
Availability of alternative fast food