Case analysis of McDonalds

1. The Story of the Power of a Brand

2. INTRODUCTION

3. •World’s largest hamburger fast food chain.
•Serves 70 million people in a day.
•Operates more than 34000 restaurants in
119 countries.
•Promises ‘easy and enjoyable food
experience’ for its customers.

4. HISTORY:
THE BIRTH OF THE IDEA

5. In 1955, Ray Kroc franchised a
hamburger restaurant from the
McDonald Brothers.

6. By offering simple food items, such as, the
famous 15-cent hamburger, it grew
domestically and internationally in the 1960’s
and 1970’s.

7. ADVERTISING
Advertising was
ramped up to
target its core
audience i.e.
children and
families.

8. ADVERTISING
Characters like
Ronald
McDonald,
Hamburgler, etc.
were introduced.

9. THE DOWNFALL
Lost focus and direction
Added 2000 new
restaurants a year
Staff was not trained well
enough.
Poor customer service and
dirty restaurants.

10. “THE PLAN TO WIN”
THE PLAN TO WIN

11. High quality
customer
experience.
Offering varied
products across
different regions

12. Improving the 5 P’s

13. Certain Changes
•More chicken than beef as beef
•Premium salads and apple slices
instead of French fries.
•$1 Menu
•Improved Drive –Thru service and
outlook of restaurants.

14. RESULTS
2003-2006: Revenues increased by 33%
& Share price soared to 170 percent.
2012: Record revenue of 2012 of $27
billion.

19. Changing
Lifestyles

20. •INTRODUCTION
•HISTORY
•ADVERTISING
•DOWNFALL
•PLAN TO WIN
•RESULTS
•FUTURE RISKS

21. DISCLAIMER
Created by Kamini Singla, IPCW,DU,
during marketing internship by Prf.
Sameer Mathur, IIM Lucknow.