McDonald's started in 1940 and has grown to become the world's largest restaurant chain, serving over 68 million customers daily in over 120 countries. Key to its success has been maintaining quality, catering to all customer types, and tailoring products to local tastes. McDonald's faces risks from health-conscious consumers shifting to healthier options and from competitors offering more customization. The document discusses McDonald's history and growth, current performance, marketing strategy, and potential future risks.

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2. How did it all start
• It was started by the McDonald brothers- Richard &
Maurice with hamburgers in 1940.
• In 1955, Ray Kroc, a businessman, franchised a
hamburger restaurant from the McDonald brothers.
He later bought the company for $2.7 million in 1961.
• Ronald McDonald, their mascot was introduced in a
60-second commercial in 1965.

3. So how is it performing in today’s time?

4. McDonald’s today
• McDonald’s is todays the world’s
LARGEST restaurant chain!
• They serve 68 million customers daily in
over 120 countries.
• They have about 37,000 outlets!
• Generated $24.6 billion in revenues in
2016.
• World’s second largest private employer
with 1.5 million employees and
counting!
China
UAE
India

5. Competitors
1. Starbucks
2. Yum Foods, Inc- Taco Bell,
KFC, Pizza Hut
3. Subway
4. Burger King

6. So what really made it this successful?

7. Key to success
• McDonald’s have maintained
their level of quality all over the
world in terms of products and
services.
• Catering to the demands of all
kinds of people.
• Special products for different
places according to their tastes
and preferences. Eg. Bacon Roll
breakfast sandwich in the UK.
• Emphasis on cleanliness, service
and quality.

8. So what really is their marketing strategy?

9. 5 Ps approach
1. People
2. Products
3. Promotion
4. Price
5. Place

10. 1. People
• Targets
children
• Food for all
• Happy Meals

11. 2. Products
• Salads
• Beverages
• Hamburgers
• Deserts
• Snacks

12. 3. Promotion
• Advertising
• Sales Promotion
• Direct Selling
• Public Relations

13. 4. Price
• Extremely affordable
• Psychological pricing
• $_.99 prices
• Price bundling

14. 5. Place
• Restaurants
• Mobile apps
• Kiosks

15. So what risks does McDonald’s face?

16. Risks faced by McDonald’s
• Health conscious consumers have
shifted to more healthier options
like Subway.
• Other companies like Subway, KFC
are offering more customization
options to attract consumers.
• They have also expanded too
quickly which has led to a fall in
their service and cleanliness
standards.

17. Q1. What are McDonald’s core brand values?
Have these changed over the years?
• The core brand values of McDonald’s include quality,
service, value and cleanliness.
• Their core values are reflected in their outlets, their pricing
of the products and in their employees.
• Though, the company lost focus during their expansion in
the 1980s, they have managed to learn from their mistakes.
• They made the ‘Plan to Win’ which includes the 5 Ps- Place,
Promotion, Price, People, Products.

18. Q2. How has McDonald’s grown its brand
equity over the years? Has McDonald’s
changed in different economic times or in
different parts of the world? Explain.
• McDonald’s fared extremely well during the recession
period especially when compared to its rivals.
• It did so well because of their cheap products which
attracted customers even during the recession.
• They should stick to their current strategy, because it did
well in tough economic periods, so it should benefit them
even more in financially easier times.

19. Q3. What risks do you think
McDonald’s will face in the future?
• With concerns regarding the quality of the products,
health conscious consumers might start looking at
healthier options like Subway.
• Changing tastes and preferences of the consumers
will cause problems because they’ll have to adapt
quickly.
• They face stiff competition from local fast food
chains who only need to focus on a smaller area.
• They will have to be careful when training
employees during expansion in order to maintain
quality and service standards.

20. Summary
• History of McDonald’s
• McDonald’s today
• Competitors
• Key to success for McDonald’s
• Marketing Strategies
• Risks faced
• Case Study questions

21. Disclaimer
Created by Jasjit Singh, S.G.T.B. Khalsa College during
a marketing internship by Prof. Sameer Mathur, IIM
Lucknow.