McDonald's is the world's largest fast-food chain, founded in 1940 and currently serving over 68 million customers daily across 121 countries with more than 36,250 outlets. The company has a significant market share and employs over 447,000 people, with a focus on demographic, psychographic, and behavioral segmentation in its marketing strategy. It is known for its burgers and fries and utilizes various promotional channels to communicate with its customers.

1. “Burgers for every Taste”- McDonald’s

2. Introduction
World's largest chain of hamburger fast food restaurants
Started in 1940 as a barbecue restaurant
Operated by Richard and Maurice McDonald
Ray Kroc joined the company as a franchise agent in 1955
Annual revenues of $27.5 billion, profits of $5.5 billion in 2012
Serves 68 million customers daily
He subsequently purchased the chain from the McDonald brothers
Primarily sells Hamburgers, Cheeseburgers, Chicken, French fries,
Breakfast items, Soft drinks, Milkshakes & Desserts
Operates in 119 countries across 35,000 outlets

3. .
 As word of their success spread, franchisees started showing interest.
However, the franchising system failed
 McDonald's was started as a drive-
in restaurant by two brothers, Richard
and Maurice McDonald in California,
US in the year 1937.
Mcdonald’s History
The original mascot of McDonald's
was a man with a chef's hat on top of
a hamburger shaped head whose
name was Speedee

4. • At this point, Ray Kroc (Kroc), distributor for milkshake
machines . Expressed interest in the business, and he
finalized a deal with the McDonald brothers in 1954.
•He established a franchising company, the McDonald
System Inc. and appointed franchisees.
•In 1961, he bought out the McDonald brothers' share for
16.2 Cr and changed the name of the company to
McDonald's Corporation. In 1965, McDonald's went
public...
Currently McDonald's operates in 121 countries & having more
than 30000 restarunt
McDonald’s History

5. Change in Logo’s

7. McDonald's Market Share {Globally}

8. McDonald's Market Share {INDIA}
Source : https://simconblog.wordpress.com

9. Current status of McDonald’s
 McDonald's is the world's #1 fast-food company by sales
 Serving burgers and fries, it operates more than 36,250
restaurants
 It serves in more than 121 countries on six continents
 On a day-to-day basis, more than Rs.318 Crores
customers world-wide are served
 Employs more than 4,47,000 people
 The Boston Market and Chipotle Mexican Grill fast-
casual chains are also owned by McDonald's
 Global sales of McDonalds is Rs.5,34,780 Crores in 2013

10. Marketing Mix
The 4P’s used in Marketing Mix
are :-
Product
Price
Place
Promotion

11. Product

12. New Product

13. Consumer Brand Response
What about you?
63% trust McDonald's for Quality Service, Cleanliness &
Value
McDonalds is the First Choice for Burgers
McDonald’s will retain 44% consumer’s even if they start
selling Pizza instead of Burgers
56% Love McDonalds as a brand
JudgmentFeeling
More than 48% feel Comfortable @ McDonald’s
Kids feel Excited & Happy when @ McDonald’s
Fun place to go with friends

14. Place
McDonald's opened its doors in India in October 1996. Ever since then,
our family restaurants in Mumbai, Delhi, Pune, Ahmedabad, Vadodara,
Ludhiana, Jaipur, Noida Faridabad, Doraha, Manesar and Gurgaon have
proceeded to demonstrate.

15. Promotion
The various promotion channels
being used by McDonalds to
effectively communicate the product
information are-

16. Organizational Chart

17. STP Model
McDonald’s has segmented their products
according to 3 different bases
Segmented groups -
Adults, kids, students and family
The 3 bases for segmentation are :
Demographic Segmentation
Psychographic Segmentation
Behavioral Segmentation.

18. Target Segment What is McDonalds for me?
A Family with children A treat to children, a fun place to be for the
children
Urban customer on the move Great taste, quick service without affecting
the work schedule
Teenager Hangout with friends, but keep it affordable.
Click here -
Targeting

19. Bargaining power of buyers:
Pay attention to customer demands and trends
Offer specialty products for all segments
First mover- salads, cooking oil
Bargaining power of suppliers:
McDonald’s relies on strong supplier and distributor
relationships Help suppliers lower costs
Suppliers include: Coca-Cola
Porter’s Five Competitive Forces
Rivalry within industry:
Burger King, Wendy’s, In & Out etc.
Brands - Big Mac, Filet o’ Fish
Innovation – celebrity endorsements, monopoly
Online presence - company info, links to charity works
Threat of new entrants:
Eg.. Burger King
Threat of substitutes:
Any other food industry – high-class restaurants to hot dog stands.

20. Summary
1
• History and Brand
value of McDonald’s
2
• Market Share of
McDonalds
3
• Marketing Strategy
with Marketing Mix
4
• Brand Equity
creation in India
5
• Porter’s 5
competitive forces.
6
• McDonalds And its
Customer Value

21. DISCLAIMER
This mini case is a submission for an
internship under
Prof. Sameer Mathur(IIM-L).
See: www.iiminternship.com