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CORE VALUES
Quality, Service, Cleanliness &
Value
“If I had a brick for every
time I’ve repeated the
phrase Quality, Service,
Cleanliness and Value, I
think I’d probably be able
to bridge the Atlantic
Ocean with them.” —Ray
Kroc
MARKET LEADER
• McDonalds is the world’s leading hamburger
fast food chain.
• McDonalds serves more than 70 million
people each day.
SO WHAT WERE THE
REASONS
FOR ITS SUCCESS?
• Smart choice of brand elements like
golden arches as logo and Ronald
McDonald as mascot.
• Holistic marketing activities to lure its
core audience.
Focused on building brand equity
• Consistency: Same quality
throughout the world both in
terms of products and services
• Innovation: World’s first drive
through was developed by
McDonalds.
• Customer Service
• Economic Pricing :
Affordability and reasonable
pricing for its products.
• Regional Product
offering: localized
offering of food
products depending on
preference of the
region.
Growing the brand through product
extension : To increase the customer
base through global growth and product
expansion, was launched
which became a great success.
However,
there was
an accident!
• Due to rapid growth, the company lost
focus and direction.
• New employees weren’t trained fast
enough, which led to poor customer
service.
INCREASING COMPETITION
• Other competitors like subway which offered
more healthy options popped up.
• New products launched by McDonald’s failed.
“We got distracted
from the most
important thing : hot,
high quality food at a
great value at the
speed and convenience
of McDonalds” – Jim
Skinner, McDonald’s
former chief executive
SO, HOW DID McDONALD’S DEAL
WITH IT?
McDONALD’s implemented a strategic
effort called Plan to Win. Idea was to
refocus on offering a better, higher
quality consumer experience.
Another Bump in the road!
McDonald’s link
to obesity
• A documentary “Super
size me” was released
directly linking McD
to obesity and its name
was derived from
“Super size” category
of burgers.
• Customers were
shifting to healthier
options.
McDonald’s responded
• “Super size” option was removed from the
burgers.
• Premium salads were introduced and french
fries were replaced by apple slices in happy
meals.
Other winning moves
• Introduced $1 menu to target teenagers and
low income consumers.
• Improved drive thru, refurbished restaurants,
installed TVs and Wi-Fi.
• Created 3 different zones for everyone to fit in.
Risk Analysis
• Since McDonald’s is linked with
obesity, customers are opting for
healthier options. More healthy options
should be added.
• Growing competition with other brands.
• Brands like subway offering more
customizability and healthy options.
• Expansion should be not be too rapid as
it may cause a dip in quality.
Summary
• McDonald’s is the world’s leading hamburger store that serves
more than 70million people each day.
• It has always reinforced its core values of : Quality, Service,
Cleanliness & Value.
• It has managed to build a very strong brand and is growing at a
very fast pace.
• Consistency, innovation, affordable pricing, customer service,
cleanliness and well built brand equity has been the main
reasons of success.
• It has faced challenges like inharmonious growth, deviated from
the right direction and got connected to obesity but has
responded well and came out of every challenge.
• It is still growing through its marketing and brand
extension(McCafe) and increasing revenues.
DISCLAIMER
This Presentation Is Based On The knowledge and
experience gained By Rishabh Bhutani , MSIT Delhi,
during an internship on “Marketing Management”
under Prof. Sameer Mathur, IIM-L.

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Mcdonalds

  • 1.
  • 2. CORE VALUES Quality, Service, Cleanliness & Value “If I had a brick for every time I’ve repeated the phrase Quality, Service, Cleanliness and Value, I think I’d probably be able to bridge the Atlantic Ocean with them.” —Ray Kroc
  • 3. MARKET LEADER • McDonalds is the world’s leading hamburger fast food chain. • McDonalds serves more than 70 million people each day.
  • 4. SO WHAT WERE THE REASONS FOR ITS SUCCESS?
  • 5. • Smart choice of brand elements like golden arches as logo and Ronald McDonald as mascot. • Holistic marketing activities to lure its core audience. Focused on building brand equity
  • 6. • Consistency: Same quality throughout the world both in terms of products and services • Innovation: World’s first drive through was developed by McDonalds. • Customer Service
  • 7. • Economic Pricing : Affordability and reasonable pricing for its products. • Regional Product offering: localized offering of food products depending on preference of the region.
  • 8. Growing the brand through product extension : To increase the customer base through global growth and product expansion, was launched which became a great success.
  • 10. • Due to rapid growth, the company lost focus and direction. • New employees weren’t trained fast enough, which led to poor customer service.
  • 11. INCREASING COMPETITION • Other competitors like subway which offered more healthy options popped up. • New products launched by McDonald’s failed.
  • 12. “We got distracted from the most important thing : hot, high quality food at a great value at the speed and convenience of McDonalds” – Jim Skinner, McDonald’s former chief executive
  • 13. SO, HOW DID McDONALD’S DEAL WITH IT?
  • 14. McDONALD’s implemented a strategic effort called Plan to Win. Idea was to refocus on offering a better, higher quality consumer experience.
  • 15. Another Bump in the road!
  • 16. McDonald’s link to obesity • A documentary “Super size me” was released directly linking McD to obesity and its name was derived from “Super size” category of burgers. • Customers were shifting to healthier options.
  • 17. McDonald’s responded • “Super size” option was removed from the burgers. • Premium salads were introduced and french fries were replaced by apple slices in happy meals.
  • 18. Other winning moves • Introduced $1 menu to target teenagers and low income consumers. • Improved drive thru, refurbished restaurants, installed TVs and Wi-Fi. • Created 3 different zones for everyone to fit in.
  • 19. Risk Analysis • Since McDonald’s is linked with obesity, customers are opting for healthier options. More healthy options should be added. • Growing competition with other brands. • Brands like subway offering more customizability and healthy options. • Expansion should be not be too rapid as it may cause a dip in quality.
  • 20. Summary • McDonald’s is the world’s leading hamburger store that serves more than 70million people each day. • It has always reinforced its core values of : Quality, Service, Cleanliness & Value. • It has managed to build a very strong brand and is growing at a very fast pace. • Consistency, innovation, affordable pricing, customer service, cleanliness and well built brand equity has been the main reasons of success. • It has faced challenges like inharmonious growth, deviated from the right direction and got connected to obesity but has responded well and came out of every challenge. • It is still growing through its marketing and brand extension(McCafe) and increasing revenues.
  • 21. DISCLAIMER This Presentation Is Based On The knowledge and experience gained By Rishabh Bhutani , MSIT Delhi, during an internship on “Marketing Management” under Prof. Sameer Mathur, IIM-L.