What does top brands sell is not merely their product, but also their brand power in terms of brand equity. This brand power is earned by value, trust, consistent service etc.

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McDonald’s
Does McDonald’s sell Burgers?
https://www.pinterest.com/pin/549509592011179686/
Created by : Divyanshu Goyal

2. Does McDonald’s sell Burgers?
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McDonald’s with
the burgers sells, its
brand power in
term of brand
equity.
https://www.linkedin.com/pulse/relationship-marketing-brand-equity-beq-company-value-cornett
http://oldcastlemeath.com/for-sale/

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According to book Philip Kotler
and Kevin Lane Keller, Brand
Equity is the added value
endowed to products and
services with consumers. It may
be reflected in the way
consumers think, feel, and act
with respect to the brand as well
as in the prices, market share,
and profitability it commands.
What is Brand Equity?
https://wvuimc.wordpress.com/2015/09/24/brand-equity/

4. https://www.exposingtruth.com/tasty-wood-pulp-burger/
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About McDonald’s
 McDonald’s is world`s leading hamburger fast-food
chain with more than 34,000 restaurants in 119
countries.
 More than 80% of McDonald’s restaurant are
owned and operated by franchises.
 It’s a multi-billion dollar brand today serving about
70 million people each day
 Has assets worth 38 billion, and had a revenue of
billion 25 in 2015

5. http://www.rd.com/culture/mcdonalds-facts-trivia/
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McDonald’s : History
 It started back in 1955, when Ray Kroc
franchised hamburger restaurant from
McDonald brothers.
 He also helped in building the company’s red-
white sides and single golden arch.

6. BRAND RESONANCE PYRAMID:
Famous multinational food chain Have more than 34000 restaurants
Have presence in more than 120 countries
Sells tasty, cheap quality food
Value of money Happy meal etc
Quality, loyalty,
attatchment leads to
repeat sales
Target children, fun, excitement
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7. McDonald’s : core brand value
Its core values are quality, service, cleanliness, value to customer.
http://www.kwintessential.co.uk/quality-assurance.html
https://pixabay.com/en/service-gear-wrench-help-support-1220327/
https://3qdigital.com/featured/case-sem-cleanliness/
http://www.officerreports.com/blog/customers-value-security-services/
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McDonald’s: Products
Burger Fries Beverages
http://cape-town-active.com/mcdonalds-the-south-african-burger/
http://www.potatopro.com/topics/french-fries-and-potato-specialties
http://www.rd.com/offensively-huge-beverages-07-mcdonalds-sweet-tea-sl/
And Many More…..

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McDonald’s: Competitions
Provide a good alternate to
burgers
Provide more
customizable and healthy
products
A good competition in
same segment
http://www.gsmnation.com/blog/2012/09/17/apple-samsung-world/pizza-hut-or-dominos/
https://commons.wikimedia.org/wiki/File:Subway_restaurant.svg
https://twitter.com/burgerking
And Many More…..

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Allegation: McDonald generally
provide large burger and unhealthy
fast food leading to obesity.
Solution : Company responded to
consumer needs and removed super
size options and as well extended its
services to salads and apple slices etc.
Obesity Allegation?
http://www.opengeek.net/mcdonalds-obesity-people-images-pictures.htm

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Solution : Company responded to
consumer needs and introduced the
$1 menu for teenagers and low-
income groups
Mac is Costly?
https://www.countryfinancial.com/en/investments/individual-retirement.html

13. McDonald’s: Extensions
McDonald’s has extended their service to many
sectors
 McDonald’s burger, fries etc.
 McDonald’s breakfast
 McCafe
 Salads etc.
http://www.wbnq.com/2015/11/30/win-free-mccafe-coffee-with-mugshots-contest/
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14. McDonald’s: Campaigns and sales
McDonald’s has always attracted consumers by
different marketing tactics and offerings:
 Campaign like “ I’m Lovin’ It” connects it to its
large customer base and keep them coming back
 Sale all around world by franchises which reduces
risk with expansions and cost to company.
http://www.mcdonaldsindia.net/happy-meal.aspx
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15. Continued……
 Offerings like coffee, breakfasts, salads attracted new segment of customers.
 Drive thru opens up gate to new consumers, in hurry of meetings or offices etc.
 “Happy Meal” was quite successful to invocate children to eat at McDonalds.
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16. Q1) What are McDonald's core brand values? Have these
changed over the years?
Ans1) McDonald`s core brand values are :
Quality, service, cleanliness and value.
Although it lost focus during 1990s and 2000s, company has learnt from
mistakes. But it try its best to stick to these core values with being more
conscious to higher-quality customer experience rather than being quick and
cheap.
Q&A from case study from book Philip Kotler and Kevin Lane
Keller
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17. Q2) 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.?
Ans2 Mc Donald`s created its brand equity by:
1)Continuously responding to customer needs including convenient
locations, easy dining and affordability, be it be healthier foods for health
conscious ones or $1 menu for lower income customers.
2) By being technologically innovative and by its Plan to win strategy .
3)By good marketing strategies and marketing campaigns like “I`m Lovin` It”
etc.
4)By consistency of values and continuous trust buildup among customer.
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18. Continued……
Yes McDonald`s allow local restaurants to adapt to different
environments and culture.
Example: It introduces a Bacon Roll Break-fast sandwich in United
Kingdom. a premium M burger in France etc. And like prices also
varied slightly in United States to better reflect different regional
tastes.
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19. Q3) What risks do you feel McDonald's will face going
forward?
Ans3) Risks to McDonald`s are:
1) Customers tastes and eating trends may change.
2) Competition from other food chains like Burger King, Pizza Hut, Subway
etc.
3) More Health conscious customer may shift to healthier options.
4) Competition from local fast foods as they have to focus on small areas.
5) Customers may shift to food chains giving more freedom for customized
food like Subway.
6) Training employees rapidly and efficiently during expansion drives and
when older employees quit away.
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20. RECAP
What McDonald’s sale
and Brand Equity McDonald’s an
introduction
Brand resonance
Pyramid
McDonald’s Values,
competition, products
etc
McDonald’s response,
campaigns etc
Q&A from case analysis from book
Philip Kotler and Kevin Lane Keller
http://wellkeptny.com/index.php/qa/ http://www.namebadgesandbuttons.com/store/corporate-buttons/im-lovin-it-button/
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Prof. Sameer Mathur
IIM Lucknow
Divyanshu Goyal
IIT Jodhpur
DISCLAIMER
This presentation is created by Divyanshu Goyal, IIT Jodhpur, during a Marketing
Internship by Prof. Sameer Mathur, IIM Lucknow