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Golden Arches
A case study on Mc Donald’s
McDonald’s- The Beginning
Started by Richard and Maurice McDonald
in 1940 with hotdogs.
Ray Croc, helped franchise the company to the next
level and 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.
About McDonald’s
Headquarters –
Oak Brook, Illinois ,
United States
Founded-
May 15, 1940, McDonald’s was created
in San Bernardino, California.
McDonald’s Corporation 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:
37,000+ Locations worldwide, 2 million+
customers globally, 118 Countries.
Official Mascot-
Ronald McDonald’s
About McDonald’s
Business Model-
McDonald’s follows the “Three- legged stool” of owner/operators,
suppliers and company employees. Mostly its just,
“ To provide hot, high-quality food at a great
value at the speed and convenience of
McDonald’s.”
About McDonald’s
Commitment-
The company is committed to provide high quality
food and good service, at great value in a clean
and welcoming environement.
In resturant 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.
Strategies used
Step into new business
areans.
Geographical Expansion
Improve industry
infra- structure.
Innovation in delivery
systems
Innovation in
products and services.
Attracting new
customers.
Satisfying and
increasing existing
customers.
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.
• Presently more than
37,000+ restaurants in
118 countries are present.
McDonalds has been
open for over 75 years
now.
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
Come-Back
• Strategy “Plan to Win” - helped refocus on
offering a better, higher quality service.
• 5 P’s-
People
Products
Promotions
Price
Place.
Come- Back
• Introduced different variety of food products for local
restaurants.
• Helped them to adapt to different environments and cultures.
Come- Back
• The company also satisfied customers by providing
healthy foods with premium salads and apple slices
instead of French fries
Redefining the companie’s name and targeting teenagers
by improvising.
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
Building Brand Equity
Going beyond Burgers and hot dogs
(it’s first product)
Price variations and making it affordable
for masses
Localized product and regional variation in price.
Ad’s, promos and varied gifts for attracting children.
National Breakfast
day promo
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 5 P’s- People,
Products, Promotions, Place and Price.
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.
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.
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.
Disclaimer
Prof Sameer Mathur
IIM Lucknow
Marketing Professor
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

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Golden arches

  • 1. Golden Arches A case study on Mc Donald’s
  • 2. McDonald’s- The Beginning Started by Richard and Maurice McDonald in 1940 with hotdogs. Ray Croc, helped franchise the company to the next level and 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 Founded- May 15, 1940, McDonald’s was created in San Bernardino, California. McDonald’s Corporation 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: 37,000+ Locations worldwide, 2 million+ customers globally, 118 Countries. Official Mascot- Ronald McDonald’s
  • 4. About McDonald’s Business Model- McDonald’s follows the “Three- legged stool” of owner/operators, suppliers and company employees. 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 environement. In resturant 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 areans. Geographical Expansion Improve industry infra- structure. Innovation in delivery systems Innovation in products and services. Attracting new customers. Satisfying and increasing existing 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. • Presently more than 37,000+ restaurants in 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
  • 10.
  • 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 instead of French fries 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. 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 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 IIM Lucknow Marketing Professor 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