McDonald's Case Analysis
History
• Started in 1940 by McDonald Brothers
• Ray Kroc opened it’s first franchise in 1955
• Ray Kroc took over major equity
Expansion
• Started expanding as a franchise led by Ray Kroc
• In next 10 years, 700 McDonald restaurants in US
• First international store in 1967
As of Today
• 119 countries!
• Largest market share in fast food joints
• Serves approx. 70 million people daily
Brand Equity
• Effective Brand Element
• Holistic Marketing Activities
• Other Associations
Maintaining Brand Equity
Strengths
• Brand Awareness
• Franchise establishment
• Geographical Locations
Product
Different TypesBrand Extension
Price
All Price RangeAffordable for Everyone
Place
Franchise StructureReached to many countries
Promotion
Innovative MarketingTargeted Campaigns
Marketing Mix
Range of Products
Proper Segmentation
Effective Promotion and Advertising
Cheap Prices and Offers
Geographical Reach
Core Brand Values
• Customer Value
• Quality, maintaining the price
• Service Management
What are the risks faced over the years?
Bad Customer Service due to over expansion
Potential Health Risks
Emergence of Competitors
Decrease in Sales and Profit
Emergence of Competitors
Improvements in the past decade
• Plan to win strategy
• Healthy products in menu
• Different Prices in US according to region
• Better quality of restaurants and service
Summary
• History
• Growth
• Brand Equity
• Marketing Strategies
• Risks and Improvements
Disclaimer
This presentation was created by Lakshya Ghuliani, BITS Pilani Goa during an internship( Jan-Feb 2017) with Prof. Sameer Mathur, IIM
Lucknow
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