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.