McDonald's originated in 1940 and pioneered the fast food franchise model. It now has over 34,000 restaurants serving over 100 billion hamburgers in 119 countries. McDonald's dominated the fast food world through strategic expansion, product consistency across franchises, and an affordable family-friendly image. However, changing consumer preferences toward healthier options and saturated expansion have led to recent declines. The summary analyzes McDonald's rise to prominence and the strategies it can adopt to adapt to current market challenges.

1. How A Clown Dominated the Food World!

2. The Origin
First store opened in 1940
The Men Behind the ‘haven’ of Fast Food

3. Where it stands today
The Magnitude
• Leading fast food retailer
• Over 34,000 restaurants
• Part of the living of 119
countries.
• Over a 100 BILLION
Hamburgers served!
The Image
• Ubiquitous brand
• Well known worldwide for
quick and delicious fast food.
• An informal place for both
hanging out and enjoying good
food. Really, those burgers are
bundles of joy!

4. The Brand
 THE example of brand what franchising
is and how it can be profitable.
 The restaurants signify:
 Quality
 Cleanliness
 Service
 The signature efficiency comes from the
process of cooking being redefined into
small segments, thus making the staff
adept at providing food at blazing
speeds.

5. What McDonald’s Stands For!

6. BUILDING THE EQUITY:
The Universally recognized ‘M’ logo.
The iconic “ I’m lovin it” tagline, that
became a pop culture reference.
The nostalgia game, banking upon
people’s memories.
Mcdonald’s is linked with tasty and
quick food, universally.

7. THE CLOWN MAKESTHE COMPETITION
FROWN
The Performance
Over 100 billion
burgers sold with
high customer
satisfaction.
High speed of
service.
Easy accessibility.
The Image
A brand for the
family.
Friendly and affable
environment to
attract families.
Pandering to the kids
via happy meals and
toys.

8. Resonance
•Consumer recognition all over the
world.
•Customer rewards for loyal, active and
repeat customers a.k.a McDonald’sVIP

9. MARKET SEGMENTATION:
• Geographic segmentation based on the country e.g.
lamb use in India, Chilli sauce in Mexico.
• Demographic Segmentation by changing prices depending on
the average income of the region.
• Segmentation based on age e.g. happy meal toys for children,
Wi-Fi for young adults.

10. SWOT Analysis of
The Brand:
Strengths
1. Brand awareness and recognition.
2. Spread over a large geographic
region due to international
expansion.
3. Efficient and well trained staff
have kept their image afloat with
excellent service.

11. Weaknesses:
 Lack of food variety as the
restaurant only dabbles in fast
food.
 Slow growth of revenue in the
past few years due to near
saturation of expansion.
 Dips in quality of food due to the
large number of restaurants,
thus leading to overall dent in its
image.

12. Opportunities:
1. Coming up with newer
and healthier food
options.
2. Expansion in China and
Russia.
3. Changing the brand
image to pander more
to the professionals so
as to capture a larger
demographic.

13. Threats:
1. The masses are moving
away from fast foods, to
healthier options.
2. Customer fatigue due to the
availability of same food
items for long durations of
time.
3. Competition with Global,
Regional and Local
restaurants.

14. TYPES OF COMPETITIONS:
1.Brand: Direct competition
includes Burger King, KFC,
Subway and Starbucks.
2.Form: Similar in form but not
direct e.g. Pizza Hut, Long
John Silver, Domino’s.
3.Generic: Satisfy the same
need of hunger. e.g. local
restaurants.

16. Marketing
Strategy of
McDonald’s
Business Strategy:
Franchise Module- Product
Consistency, Act like a
retailer, think like a brand.
Strategy as per
Indian Market:
Re-engineering the menu
for vegetarian customers.
Reducing prices of
products due to low value
of currency.

17. Ingenuity regarding products:
1. Keeps the customers
coming by introducing
slight changes in popular
products.
2. Introduces new products
to avoid decline in sales,
thus renewing the product
cycle.

18. Strategy Recommendations:
1.Introduction of healthier food
options.
2.Use local food products as much as
possible to give a homely feel to the
food.
3.Using local products reduces the
market to restaurant time, hence
maintaining the freshness of food.

19. Increase presence in Asian
countries
1. McDonald’s has had a
profound affect on china
It is growing faster than us
in china
2. It owns and operates 600
stores in china.
3. More than 100 McDonald
stores are going to open up
in the coming years

20. Summary:
1.McDonald’s had humble origins but always had the right idea.
2.After adopting the franchise module, it expanded rapidly.
3.It introduced new products based on time, demographics ,
psychographics and financial status of the countries.
4.It created an affable and universal image.
5.It is currently the leader of the fast food world but has seen
some decline in sales. Thus, it needs to rethink it’s strategy
and adapt itself to the health based psychology of today.

21. DISCLAIMER:
This presentation was created in a marketing
management internship under Professor
Sameer Mathur, IIM LucknOW.
By SAHIB KAUR