McDonald's started in 1940 and became the world's leading hamburger chain after being franchised by Ray Kroc in 1955. It expanded globally through reinforced quality, service, cleanliness and value. Key to its success was targeting children through Ronald McDonald and maintaining consistency. However, international expansion led to decreased quality. More recently, it faces risks from health-conscious consumers avoiding high-fat products. McDonald's responded by adding healthier options and refurbishing restaurants.

1. CASE STUDY

2. History
Flow Of Presentation
Globalisatio
n
Competitors &
Revenues
Reasons For
Success
Risks
Tackling
Risks
Case Study
QuestionsSummary

3. How the journey started
• Founded in 1940 by Richard and Maurice McDonald.
The worlds famous golden
arches were incorporated in
1962 and mascot Ronald
McDonald was introduced
in 1967
Ray kroc , a multi-mixer salesman
,franchised hamburger restaurant
fom Mcdonald brothers in 1955.

4. •Domestic and international expansion with
reinforced quality ,service ,cleanliness and
value.
•Product line expansion and
widespread advertising

5. McDonaladization
•The company is found
in 119 countries ,more
than 34,000 restaurants
Serving 70 million
consumers ,
Employing 42000
people

7. REASON FOR SUCCESS
 Consistency in quality,service,cleanliness and
value.
 Innovation in the products to stay updated.
 Affordablity of product attracts masses.

8. 2003 SRATEGY

9. Brand revitalization through brand extension
Local restaurants to adapt regional tastes

10. Business Model
• It earns a revenue as an investor in
properties,franchisees of restaurants and as
operator of restaurants.
• 80% of McDonald’s restaurants are owned and
operated by franchisees.
• It owns an estimated property of $16 to $18
billion.
• In addition to ordinary franchise fees and
marketing fees, McDonald's may also collect rent,
which may also be calculated on the basis of sales

11. Competition

12. REVENUE
•Sales continued to increase and in 2012 McDonald’s
experienced record revenue of $27 billion.

14. Smart choice of brand elements
Holistic marketing activities

15. McDonald’s Advertising Campaign
• promotes the idea of Sharing with friends
•Targeting family ,kids and youngsters with Happy Meal

16. What risks do you think McDonald’s will face in
future?
• Growing Health conscious
people avoiding too much
fat products .obesity a
serious concern.
•Competitors are offering
healthier options
•With large expansion
compromise in quality

17. McDonald's Response
•The company included healthy foods in menu
• Making products more affordable, refurbishing restaurants

18. What are McDonald’s core brand values ? Have
these changed over the years?
• Easy and enjoyable food experience for its customers
• Proper geographic and demographic segmentation to
lure customers
• Believes that a well trained individuals can work
effectively to serve better.
• quality, service, cleanliness and value
• fairness ,honesty and integrity and high moral ethics.
• Virtue of social responsibility ,runs Ronald Mcdonald
charitable house.
• Affordable products for all class of consumers.
• Innovation to enhance customer experience.

19. 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
• Smart choice of brand elements. For example- Ronald
McDonald to target children and families for a happy
time.
• Through its holistic marketing activities.
• Brand extensions like McCafe.
• “I’m lovin it campaign”.
• Refurbishing restaurant,1$ menu
• Plan to win strategy.
• The company’s mission has changed from ‘’being the
world’s best quick service restaurant’’ to ‘’our
customers’ favorite place and way to eat’’

20. SUMMARY
 World’s leading hamburger fast food chain.
 Ray kroc franchised it in 1955 and expanded it worldwide
 Reinforced cleanliness, service, quality and value.
 Targeted children and youngsters
 Opened Ronald Mcdonald house to help fight lukemia.
 Expansion lead to a decrease in quality
 2003 implemented Plan to Win.
 Local restaurants for regional taste.
 obesity leading people to avoid fat product ,serious concern
for company.
 Created brand equity though brand elements and brand
extension.
 I’m lovin it campaign running currently.

21. DISCLAIMER
Created by Nishant Srivastava ,NIT Raipur,
during a marketing internship by Prof Sameer
Mathur,IIM Lucknow