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McDonald’sWhy is Everyone Lovin’It
WHY IS EVERONE LOVIN’ IT?
dates back to 1955 when Ray Kroc , a multi mixer Salesman , franchised a hamburger restaurant from the McDonald brothers.
10 years later, McDonald’s had expanded to more than 700 U.S restaurants.
How it All Started
TimelineIntroduction of Ronald McDonaldIn a TV commercial
1965
First Ronald McDonald House
1974
during1990s and early2000s
Rapid growth and the company lost focus
2003
Plan to win
2012
Record revenueOf 27$ billion
Laid emphasis on the importance of quality, service, cleanliness and value.
Opened the Ronald McDonald House, a charitable cause to help children with leukemia.
McDonald’s brand mission is to “be our customers’ favorite place and way to eat.”
Missions and Visions
McDonald’s vision is to be world’s best quick service restaurant experience.
Missions and Visions
Current scenario
The rapid growth of McDonald’s overseas led to many struggles.New employees weren’t trained fast enough or well enough, which led to poor customer service, dirtier restaurants.
Controversies
ControversiesHealth related problems such as obesity was a major concern.
Implemented a strategic effort called “the plan to win”
Introduced different products across United States according to the regional tastes.
Improved its drive-thru services, added more snack options , and refurbished restaurants with leather seats and other features.
Improvements
Reasons for Success
Consistency: Same quality throughout the world in terms of products and services.
They tried to improve on the company’s 5 Ps-people , products , promotions , price , and place-yet allow local restaurants to adapt to local cultures.
Achieving the most powerful brand image.
Reasons for success
Strong focus on building brand equity through :Smart choice of brand elements
Holistic marketing activities
Building Brand Equity
Advertisements and promotions targeted at its core audience- children and teens
Games, toys with happy meals attract children
Emphasis on cheapness and affordability.
Advertising Campaigns
The core values include quality, service, cleanliness, and value.
McDonald’s faced controversies because of the poor customer service and dirtier restaurants during its rapid expansion.
What are McDonald’s core brand values? Have these changed over the years?
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
Strong focus on building brand equity through smart choice of brand elements.
Provided more customer based service, focused on cost reduction and quality enhancing strategies during the recession times.
They also varied prices slightly across the United States to better reflect regional tastes.
What risks do you think McDonald’s will face in the future?
Health issues like obesity can be a major concern for the company.
Also faces competitions from direct rivals like Yum Brands etc.
Training employees rapidly and effectively during expansion drives.
How it all started Timeline Missions and visions Global market share Controversies Improvements Reasons for success Building brand equity Advertising Campaigns Case study
DISCLAIMER Created by Ayushi Tripathi , Indian Institute
of Technology, Kanpur during a marketing Internship by Prof. Sameer Mathur, IIM Lucknow.
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