McDonald's, founded in 1940 by Richard and Maurice McDonald and later franchised by Ray Kroc, has grown to become the world's largest fast-food chain with over 36,000 locations and over 1.9 million employees globally. The company focuses on core values of quality, service, cleanliness, and value while adapting its menu offerings to changing customer preferences and facing competition from other fast-food chains. Future risks include adapting to health-conscious consumer demands, new market entrants, and the need for continued brand innovation.

1. CASE STUDY
Mc Donald’s

2. Flow of Presentation
History
Journey of the company
Figures of the company today
Locations
Revenue
Success of the company
Competition
Building Brand Equity
Risks to be faced by the company

3. Brief History of McDonald’s
• The first McDonalds was built in 1940 by the McDonald
brothers Richard and Maurice. It though started of as a
hotdog stand in california transformed in to a business of
limited menu hamburgers.
• The popularity rose because of the 15cents hamburger.
• A milk shake salesman namely Ray Kroc bought the world
franchise rights and spread them throughout the world.
• In 1961, he purchased the company from the brothers for
$2.7 million.

4. Brief History of McDonald’s
• The world famous golden arches were incoporated
in the company logo in 1962 and the mascot Ronald
McDonald was introduced in 1967.

5. Journey of McDonald’s
The Brothers-1937
Goes international - 1967
New logo - 1969
First Drive-Thru -1975 Launch of McDonalds.com - 1996
Ray Kroc - 1952

6. Figures of McDonald’s today
• Expanded across 119 countries with over more than
36000 restaurants.
• Head quarters of the McDonald’s Corporation is at Oak
brook, Illinois.
• More than 1.9 million employees worldwide.
• 2nd largest employer in USA after Walmart
• More than 75% restaurants world wide are running on
franchises serving fast and enjoyable food experience over
58 million people each day throughout the world.

8. • Revenue World wide – US $ 22.6 Billions(2009)
• Operating Income – US $ 6.15 Billions
• Net Income – US $ 4.31 Billions
• Asset Value – US $ 29.2 Billions
• Equity – US $ 13.2 Billions
Revenue $$$

9. Reasons For Success

10. Quality and Cleanliness
New innovations like Drive-Thru
Social service and customer service

11. Competition

12. Building Brand Equity
Choice of
Brand
Elements
Marketing
activities
Affordable
Products and
Brand
Extension
ADS and
Promotions

13. Target Segments and Positioning

14. Risks to be Faced By The Company
• Rivals are offering more customized options to attract
customers.
• Expanding too fast, hence drop in quality.
• Health conscious customers shifting to healthier options
• Food safety issues.

15. Risks to be Faced By The Company
New Entrants and
Substitute Products

16. Facing Risks
• Introduction of Healthier options
• Expansion control with improvising quality.
• Customizing menu.
• Introduce new products such as McCafe and
McFloat.
• Cheaper options such as McSavers.
• Dollar menu

17. What are the McDonald’s core brand
values? Have these changed over years?
• The core values of McDonald’s were Quality, Service, Cleanliness and
value.
• The core brand values are reflected in their products, outlets and
employees.
• During the 80’s McDonald’s lost its focus due to a lot of expansion
which resulted a drop in quality.
• They recovered by implementing “Plan to Win” by following the theory
of 5P’s People, Product, Promotions, Price and Place.
• Even after so many years McDonald’s try its best to put their core values
in the first place which eventually became their business model.

18. How has Mc Donald’s grown its brand equity throughout
the years? Has McDonald’s changed in different economic
times or in different parts of the world? Explain
• Yes, Ads and Promotion helped McDonalds in increasing
its Brand Equity throughout the world.
• When compared to its competitors, McDonald’s did very
well during the difficult economic times due to its cheap
offerings for all the people.
• McDonald’s can change its strategy with locality specific
products and customized menus by improvising the
quality of their food.

19. What Risks do you think McDonald’s will face in the
future?
• Changing life styles will be a huge threat to face and the
company need to adapt on par with the modern world.
• New Entrants and local fast food chains with cheaper
options are a risk for market share.
• Health conscious people are opting for healthier options
in the menu.
• Substitute products with increasing competition in fast
food sector brought new products such as Pizza which
may lure customers.

20. Summary
• Two brothers Richard and Maurice started the hamburger outlet in California.
• Ray Kroc a milkshake machine salesman, bough the franchise rights and then later
purchased the company from the brothers.
• Started as a franchise in 1955 , it has grown to be the world’s largest food chain
with more than 1.9 million employees.
• Became the 6th most recognizable brand in the world.
• Customized and diverse menu to tackle the competition.
• Cheaper and Affordable pricing introduced to maintain the core brand values.
• Continued to grow at an alarming rate with huge endorsements and sponsor-
ships.
• Political issues associated it with obesity but gave a came back by providing
healthier options.
• Risks to be faced from new entrants and substitute products by providing more
options and introducing new products.

21. DISCLAIMER
Created by Kandukuri Sai Omkar, BITS Pilani K.K Birla Goa Campus during a Marketing
Internship under Prof. Sameer Mathur, IIM Lucknow.