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INTRODUCTION
 Headquartered in Oak Brook, Illinois.
 World’s largest foodservice retailing chain
with 36,615 stores worldwide.
 Known for its burgers and fries.
 Offers a standard, consistent menu at all
locations
 Nearly one in eight workers in the US has at
some time been employed by McDonald’s.
 Since its founding in 1955, McDonald’s has
sold well over 100 billion hamburgers.
 More than 50,000 students from all over
the world have graduated with “Bachelor
of Hamburgerlogy” degrees from
McDonald’s from Hamburger University.
MISSION STATEMENT
McDonald's brand
mission is to "be our
customers' favorite place
and way to eat."
OBJECTIVES:
To serve good food in a
friendly and fun environment.
To be a socially responsible
company.
To provide good returns to
its shareholders.
To provide its customers
with food of a high standard,
quick service and value for
money.
WIDE OFFERINGS
HISTORY
Ray Kroc’s Business Model:
•Quality
•Service
•Cleanliness
•Value
•Ray Kroc- Developed a business model known
as “The Three Legged Stool.” Owner/Operator,
Suppliers and Employees
•Just as all three legs of a stool need to be
equal to support the weight, all three elements
of the McDonald’s system are equally
important partners in McDonald’s success.
SPEEDEE SERVICE SYSTEM:
1. Introduction of production line principles.
2. Instead of skilled cooks, many unskilled
workers did one small step.
3. Instead of preparing a wide variety of items,
it prepared a large quantity of small varieties
of items.
4. Features:
a. Large grill where one person
cooked burgers.
b. Dressing station: where same
condiment was added to each
burger.
c. Fryer for Fries.
d. Soda Fountain
e. Counter for order placement.
• Located in a 119 countries around the world,
McDonalds is seen as a symbol of – Capitalism,
Globalization and the American way of Life .
• Offers a standard menu at all locations, though some
locations may have some variation based on
geographic variations in taste preference.
• Sensitive to local customs and traditions.
INTERNATIONAL PRESENCE
GLOBAL McDonald’s,
Local Taste.
McDonald’s tailors its menu in different
markets to cater to local tastes.
In this process it takes care of
respecting the local customs and
traditions.
For ex.
• No Beef or Pork is sold in India.
• Asian McDonalds serve Soup.
• Mc Rice is offered in Indonesia.
• Prawn burgers are offered in
Singapore and Japan.
• Alcoholic drinks like Beer are served
in German Mc Donald’s.
• Meat Pies are a speciality in New
Zealand.
• Mc Donald’s in Israel offer Kosher
meat.
One Brand. Different Stores.
• Mc Donald’s has built different types of stores in different
locations depending upon:
i. Convenience
ii. Availability of Space
iii. Products offered.
• Mc Drive
• Mc Café
• CYT- Create Your Taste
• Mc Express
• Mc Stop
Mc Donald’s marketing campaigns not only drive footfall
to stores, but also help to increase brand loyalty and
engagement.
Mc Donald’s creates targeted advertisement which
concentrate on its points of difference and human
emotions alike:
1. Large Serving Size
2. Fast Service Time
3. Friendly Staff
4. Care for Customers
5. Long Operating Hours
6. A Family Place – A place for everyone.
Mc Donald’s Marketing Campaign:
4 P’s
Product Price Promotion Place
4 P’s of Marketing for Mc Donald’s:
Mc Donald's: Entry into India and Regional
Challenges:
1. Entered India in 1996: Separate Franchisees
handle operations in North and West India.
2. Challenges faced:
a) Vegetarianism and
Regiocentricism
b) Competition from Local
Food Retailers
c) Pricing Strategy
d) Eating Habits
e) Nutrition and Health
f) Employment
g) Ethics and Social
Responsibility
DID YOU KNOW? McDonalds India offers the cheapest burgers and Switzerland the costliest?
Mc Donald’s and India While globally, Mc Donald’s advertisements
focus on the convenience of Mc Donald’s; In
Indian market it takes a completely different
turn. Advertisements focus on:
1. “Larger Serving Size in Lesser Cost.”
2. “ Introduction of Sharing Packs which are
cheaper than Individual Meals”
3. These advertisements focus on the family
and friendship oriented culture of Indians.
Also, to respect the cultural traditions and
religious sentiments, Mc Donald’s has opened
Vegetarian only restaurants in India. This
shows its commitment towards respecting
Indian Traditions.
EVERYTHING HAS CHANGED…BUT NOTHING HAS CHANGED CAMPAIGN. (2016)
Focus on:
• Consistency over the years.
• Family Place
• Place for Celebrations and new
beginnings.
• Mc Donald’s ever presence –
“Through Thick and Thin –
Through Floods, Heavy Rains .
• Emphasis on commitment to
customers.
Around rest of the world:
• Around rest of the world, Mc Donald’s focus on
values like-
• Loyalty
• Integrity
• Team Work
• Care for customers
• Long operating hours.
• Delicious Food
• Large Servings
BABY Advertisement:
Shows:
1. Care for Customers
2. Speed of Delivery
3. Friendly and Caring Servers
4. Late Working Hours
5. ‘A Family Place’
Strengths Weaknesses
Opportunities
Threats
1. Market Leader, strong global presence.
2. Most universally recognized logo.
3. Huge Brand equity.
4. Community oriented and socially
responsible.
5. Sensitive Towards local customs and
traditions.
1. No healthy food in core product line.
2. Quality issues in franchisees.
3. Lack of new innovative products.
4. Few seasonal and fresh products.
5. Huge preservative content.
6. Low Variety
1. Green, re-usable packaging
2. Slow down expansion and increase
profitability.
3. Instead of owning franchise property, let the
franchise buy/lease the shops.
4. Increase stores in upcoming markets of
Africa and Asia.
5. Differential pricing in price sensitive regions.
1. Competition from healthy cum fast
servicing food outlets.
2. Low payment to workers may lead to drop
out of workers.
3. Increasing awareness towards
environment and healthy food.
COMPETITION WITHIN SAME SECTOR:
1. Stiff competition from same sector.
2. Many points of parity (PoP) but only a few points of
difference (PoD).
3. Highly similar product offering.
CHARITY and CSR:
1. Ronald McDonald House Charities was founded in
1974.
2. Mission: The mission of RMHC is to create, find and
support programs that directly improve the health
and well-being of children and their families.
3. Vision : A world where all children have access to
medical care, and their families are supported and
actively involved in their children's care.
4. It also raises funds to help children with leukemia.
5. Thus, creating a “We care for you” image in the
minds of consumers.
CONCLUSION:
1. We saw how Mc Donald’s grew from a small BBQ Outlet to a
multinational company.
2. We saw the innovative Speedy Service System introduced by Mc
Donald’s which was based on industrial assembly line.
3. We understood the vision and mission statement of the restaurant
chain and its plans ahead.
4. We saw the brand power of Mc Donald’s and how its global presence
makes it the world leader in fast food services.
5. We did a SWOT analysis of the company and identified its Strength,
Weaknesses, Opportunities and Threats.
6. We saw the marketing strategies of Mc Donald’s and how it manages to
stay relevant in times of recession and down markets.
This PowerPoint presentation has been created by Mr. Prathamesh Mahesh
Saygaonkar, Pune Institute of Computer Technology, during an internship under
Professor Sameer Mathur, IIM Lucknow.
Professor Sameer Mathur
IIM Lucknow
Prathamesh Mahesh Saygaonkar
PICT, Pune
prathamesh8296@gmail.com
+91 9561961831

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Mc Donald's Case Study - Marketing Management

  • 1.
  • 2. INTRODUCTION  Headquartered in Oak Brook, Illinois.  World’s largest foodservice retailing chain with 36,615 stores worldwide.  Known for its burgers and fries.  Offers a standard, consistent menu at all locations  Nearly one in eight workers in the US has at some time been employed by McDonald’s.  Since its founding in 1955, McDonald’s has sold well over 100 billion hamburgers.  More than 50,000 students from all over the world have graduated with “Bachelor of Hamburgerlogy” degrees from McDonald’s from Hamburger University.
  • 3. MISSION STATEMENT McDonald's brand mission is to "be our customers' favorite place and way to eat." OBJECTIVES: To serve good food in a friendly and fun environment. To be a socially responsible company. To provide good returns to its shareholders. To provide its customers with food of a high standard, quick service and value for money.
  • 6. Ray Kroc’s Business Model: •Quality •Service •Cleanliness •Value •Ray Kroc- Developed a business model known as “The Three Legged Stool.” Owner/Operator, Suppliers and Employees •Just as all three legs of a stool need to be equal to support the weight, all three elements of the McDonald’s system are equally important partners in McDonald’s success.
  • 7. SPEEDEE SERVICE SYSTEM: 1. Introduction of production line principles. 2. Instead of skilled cooks, many unskilled workers did one small step. 3. Instead of preparing a wide variety of items, it prepared a large quantity of small varieties of items. 4. Features: a. Large grill where one person cooked burgers. b. Dressing station: where same condiment was added to each burger. c. Fryer for Fries. d. Soda Fountain e. Counter for order placement.
  • 8. • Located in a 119 countries around the world, McDonalds is seen as a symbol of – Capitalism, Globalization and the American way of Life . • Offers a standard menu at all locations, though some locations may have some variation based on geographic variations in taste preference. • Sensitive to local customs and traditions. INTERNATIONAL PRESENCE
  • 9. GLOBAL McDonald’s, Local Taste. McDonald’s tailors its menu in different markets to cater to local tastes. In this process it takes care of respecting the local customs and traditions. For ex. • No Beef or Pork is sold in India. • Asian McDonalds serve Soup. • Mc Rice is offered in Indonesia. • Prawn burgers are offered in Singapore and Japan. • Alcoholic drinks like Beer are served in German Mc Donald’s. • Meat Pies are a speciality in New Zealand. • Mc Donald’s in Israel offer Kosher meat.
  • 10. One Brand. Different Stores. • Mc Donald’s has built different types of stores in different locations depending upon: i. Convenience ii. Availability of Space iii. Products offered. • Mc Drive • Mc Café • CYT- Create Your Taste • Mc Express • Mc Stop
  • 11. Mc Donald’s marketing campaigns not only drive footfall to stores, but also help to increase brand loyalty and engagement. Mc Donald’s creates targeted advertisement which concentrate on its points of difference and human emotions alike: 1. Large Serving Size 2. Fast Service Time 3. Friendly Staff 4. Care for Customers 5. Long Operating Hours 6. A Family Place – A place for everyone. Mc Donald’s Marketing Campaign: 4 P’s Product Price Promotion Place 4 P’s of Marketing for Mc Donald’s:
  • 12. Mc Donald's: Entry into India and Regional Challenges: 1. Entered India in 1996: Separate Franchisees handle operations in North and West India. 2. Challenges faced: a) Vegetarianism and Regiocentricism b) Competition from Local Food Retailers c) Pricing Strategy d) Eating Habits e) Nutrition and Health f) Employment g) Ethics and Social Responsibility DID YOU KNOW? McDonalds India offers the cheapest burgers and Switzerland the costliest?
  • 13. Mc Donald’s and India While globally, Mc Donald’s advertisements focus on the convenience of Mc Donald’s; In Indian market it takes a completely different turn. Advertisements focus on: 1. “Larger Serving Size in Lesser Cost.” 2. “ Introduction of Sharing Packs which are cheaper than Individual Meals” 3. These advertisements focus on the family and friendship oriented culture of Indians. Also, to respect the cultural traditions and religious sentiments, Mc Donald’s has opened Vegetarian only restaurants in India. This shows its commitment towards respecting Indian Traditions.
  • 14. EVERYTHING HAS CHANGED…BUT NOTHING HAS CHANGED CAMPAIGN. (2016) Focus on: • Consistency over the years. • Family Place • Place for Celebrations and new beginnings. • Mc Donald’s ever presence – “Through Thick and Thin – Through Floods, Heavy Rains . • Emphasis on commitment to customers.
  • 15. Around rest of the world: • Around rest of the world, Mc Donald’s focus on values like- • Loyalty • Integrity • Team Work • Care for customers • Long operating hours. • Delicious Food • Large Servings
  • 16. BABY Advertisement: Shows: 1. Care for Customers 2. Speed of Delivery 3. Friendly and Caring Servers 4. Late Working Hours 5. ‘A Family Place’
  • 17. Strengths Weaknesses Opportunities Threats 1. Market Leader, strong global presence. 2. Most universally recognized logo. 3. Huge Brand equity. 4. Community oriented and socially responsible. 5. Sensitive Towards local customs and traditions. 1. No healthy food in core product line. 2. Quality issues in franchisees. 3. Lack of new innovative products. 4. Few seasonal and fresh products. 5. Huge preservative content. 6. Low Variety 1. Green, re-usable packaging 2. Slow down expansion and increase profitability. 3. Instead of owning franchise property, let the franchise buy/lease the shops. 4. Increase stores in upcoming markets of Africa and Asia. 5. Differential pricing in price sensitive regions. 1. Competition from healthy cum fast servicing food outlets. 2. Low payment to workers may lead to drop out of workers. 3. Increasing awareness towards environment and healthy food.
  • 18. COMPETITION WITHIN SAME SECTOR: 1. Stiff competition from same sector. 2. Many points of parity (PoP) but only a few points of difference (PoD). 3. Highly similar product offering.
  • 19. CHARITY and CSR: 1. Ronald McDonald House Charities was founded in 1974. 2. Mission: The mission of RMHC is to create, find and support programs that directly improve the health and well-being of children and their families. 3. Vision : A world where all children have access to medical care, and their families are supported and actively involved in their children's care. 4. It also raises funds to help children with leukemia. 5. Thus, creating a “We care for you” image in the minds of consumers.
  • 20. CONCLUSION: 1. We saw how Mc Donald’s grew from a small BBQ Outlet to a multinational company. 2. We saw the innovative Speedy Service System introduced by Mc Donald’s which was based on industrial assembly line. 3. We understood the vision and mission statement of the restaurant chain and its plans ahead. 4. We saw the brand power of Mc Donald’s and how its global presence makes it the world leader in fast food services. 5. We did a SWOT analysis of the company and identified its Strength, Weaknesses, Opportunities and Threats. 6. We saw the marketing strategies of Mc Donald’s and how it manages to stay relevant in times of recession and down markets.
  • 21. This PowerPoint presentation has been created by Mr. Prathamesh Mahesh Saygaonkar, Pune Institute of Computer Technology, during an internship under Professor Sameer Mathur, IIM Lucknow. Professor Sameer Mathur IIM Lucknow Prathamesh Mahesh Saygaonkar PICT, Pune prathamesh8296@gmail.com +91 9561961831