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Growing the McDonald’s BrandSubmitted By
Khushboo Solanki (PGP31412)
IIM Lucknow
Brand Elements
Name• McDonald’s
Slogan• I’m Loving it!
Color• Red & Yellow
Character• Ronald
Brand Mantra
Food
Folks
Fun
Evolution of the brand element - Logo
Brand Identity• Trusted for service quality• Cleanliness & hygiene• First choice for burgers• Hangout place for youngsters• Also a place for family• Happy & cheerful atmosphere• Personality – family oriented
Brand Image –Social & Family Oriented
McDonald’s as a Brand
Brand Positioning
Frame of Reference Points of Parity
Points of difference
Veg options Toys
Low price
Low Price Strategy• “Happy Price Menu”
introduced items starting at Rs. 20 in India• Later increased the same
starting at Rs. 25.• Slogan – “Humaare
Zamaane Ke Daam”
Market Penetration Strategy
Initially launched new outlets each
year
Later, focused on upgrading existing• Facilities• Operations
24-hour store services
Introduced Breakfast menu
Market Penetration Strategy
Breakfast menu introduced
• Generates 50% revenue• McMuffin & McGriddle
Drive-thru snacks 60% sales
Penetration in different Segments
Core• Mother and
Child: Happy Meals
Peripheral• Working Men:
Drive-thru breakfast
Market Development Strategy
Spread• 33,000 restaurants in 119 countries• 1.7 million employees• 64 million customers served daily
Different target segments• Happy meals for children & parents• Salads for younger women
Children & Parents
Young Women
Market Development Strategy
Teriyaki Burger in Japan
Vegetable McNuggets in
England
Maharaja Mac in India with
mutton instead of beef
McMasala & McImli sauces
in India
Specialized Menu Items
Menu items - India• More veg options were added• Indian spicy flavors were
introduced
Product Development Strategy
Issues related to poor health and
obesity
Healthier options were introducedFresh saladsHealthier Happy Meals for kidsBottled water and pedometer in adult Happy Meals
Other health initiativesBalanced Lifestyles platform for childrenGoActive! Campaign promoted by celebritiesRonald McDonald re-casted as sports enthusiast
Brand Repositioning
Product Development StrategyPremium coffee Shared meal segments like KFCcheaper than Starbucks
Vs.
Diversification Strategy
McCafe• Gourmet coffee shop – Portugal &
Austria
McTreat• Ice-cream & dessert shop
Diversification StrategyGolden Arcs Hotels• Failed in Switzerland
Wedding packages in Hong Kong• Warm and Sweet Wedding• 50 guests for $1,300
• Additional $165 for rented gown
Financials
Sales decline due to health issues
Gained back by taking new measures
Growth has slowed down due to price pressure
Advertising – Innovative Print Ads
Advertising – Ads promoting friendship• Mac Maharaja – Social Burger• “Familiarity Test” in India• It suggested spending more time
with your near ones and know them better• Slogan – “Thoda Time Aur”
Sports Celebrity Endorsements
Social Media – Best Brand in Category
Social Media to Answer Customers
Recent NewsWashington Post : “Why you might want to be skeptical of McDonald’s latest food changes”• Remove artificial components• Overcome losses
TechTimes: “McDonald's Latest Attempt To Make Happy Meals Seem Healthy Has Backfired”• Skin irritation on wearing device• Device perceived as toy by children• A very late move
Failed Brand Repositioning
Sustaining Number 1 position - Laddering Up
Listening to Stay on Trend
Customer centric
Remaining Authentic and Transparent
Personal social engagement
Quality service
Conclusion
Growth - Reached Maturity
Continues to grow with• Innovation• Flexibility• Diversification• Maintains standards
Disclaimer• Created by Khushboo Solanki,
IIM Lucknow• For Brand Management Course
• Under the guidance of Prof. Sameer Mathur, IIM Lucknow
References• http://www.mcdonaldsindia.com/• http
://www.socialmediatoday.com/content/how-mcdonalds-wins-social-ranking-number-one• http://
www.techtimes.com/articles/174117/20160818/mcdonalds-tried-make-happy-meals-seem-healthy-now-paying-price.htm• https://www.washingtonpost.com/news/wonk/wp/2016/08/02/why-
you-might-want-to-be-skeptical-of-mcdonalds-latest-food-changes/• http://marketrealist.com/2013/12/mcdonalds-global-footprint-bringi
ng-obesity-developed-emerging-markets/
Thank You!