McDonald's was founded in 1940 in San Bernardino, California. It now operates over 36,000 restaurants in 120 countries, serving around 68 million customers daily. McDonald's developed its brand equity over the years through focusing on its core values like quality food and customer experience. It has changed its products and marketing over time to suit different regions and economic conditions. However, in the 1980s, overseas expansion caused it to lose focus on its core values, leading to health issues. But it has since refocused on being more customer-centric and offering healthier options, helping it perform well even during recessions. Going forward, it may face risks from health-conscious consumers and increased competition.

2. Where & when it all began
It was founded in
1940 as a small
restaurant
First restaurant
was operated in
San Bernardino,
California, USA.

3. Where it has reached till now…!!!
It has reached in more than
120 countries
It serves on an average 68
million customers each day
It operate 36899
restaurants worldwide

4. Core
Brand
Values
Service Values
CleanlinessQuality

5. Success factors…!!!!

6. Same Quality Throughout the World
Introduction of Innovative Products
Affordability of Product Attracted People
Core Values of Utmost Importance

7. Localization
Of
Products
Holistic
Marketing
Activities
Smart Choice
of
Brand Elements
Paneer Salsa Wrap
McVeggie

8. Brand Reinforcement through advertisements
Sharing is Caring

9. Brand Reinforcement through advertisements
Targeting Family and Children’s

10. Co
re
Va
lu
es

12. Where McDonalds lost track...???
Faced strong competition because
of healthier products from
competitors
During overseas
expansion around 1980s,
it lost focus on offering
core values
Its most products were linked to
obesity because of which consumer
shifted to its competitors

13. How did it come back…!!!!
Refocused in providing better
consumer experience
It came up with more
healthier options for its
target audience
It controlled its expansion plan to
focus on its core values

14. It refocused on its Core Brand Values

15. Benefits
of
maintaining
brand
image
During recession,
it was one of the
two companies
whose share
prices rose up
It experienced record
revenues of $27 billion in
2012

17. How has McDonald’s
grown its brand
equity over the
years ? How has it
changed in
different economic
times and in
different parts of
the world?Explain
It has developed its brand equity over the
years by focusing on its target audience
through many campaigns such as “Plan to
Win” & “I’m lovin’ it”. McDonalds
improved over time on its customer
experience by providing better services.
Diverse products with affordable prices
lured consumers across the world.
During recession, it performed very well
which was the achievement in those
crucial economic times.

18. What are
McDonalds core
brand values?
Have these
changed over the
years?
• Hot & high quality food
• Offer lasting consumer experience
• Customer Centricity
• Customer loyalty
• Satisfy consumers hunger
• Products for every customer
• Make available its products to everyone
• To provide children best of their
experience at McDonalds
Changes in its values started around 1980s
where because of expansion it lost focus
on its values. Later time it realized and
became more customer centric to
maintain customer loyalty

19. What risks do you
think McDonald’s
will face in the
future?
• Competition from local food chain vendors
• Shifts by health conscious consumers because its
healthy products are available at premium price
• Direct competition from the same segment
companies like Burger King, Subway
• Brand dilution because of lots of product in the
same product category with little variation which
might confuse consumers.

20. S u m m a r y

21. DISCLAIMER
Created by Akhil Yash Tiwari, Welingkar Mumbai, during a
marketing internship by Prof. Sameer Mathur, IIM Lucknow