“Burgers for every Taste”- McDonald’s

Introduction

World's largest chain of hamburger fast food restaurants

Started in 1940 as a barbecue restaurant

Operated by Richard and Maurice McDonald

Ray Kroc joined the company as a franchise agent in 1955

Annual revenues of $27.5 billion, profits of $5.5 billion in 2012

Serves 68 million customers daily

He subsequently purchased the chain from the McDonald brothers

Primarily sells Hamburgers, Cheeseburgers, Chicken, French fries,

Breakfast items, Soft drinks, Milkshakes & Desserts

Operates in 119 countries across 35,000 outlets

.

As word of their success spread, franchisees started showing interest.

However, the franchising system failed

McDonald's was started as a drive-

in restaurant by two brothers, Richard

and Maurice McDonald in California,

US in the year 1937.

Mcdonald’s History

The original mascot of McDonald's

was a man with a chef's hat on top of

a hamburger shaped head whose

name was Speedee

• At this point, Ray Kroc (Kroc), distributor for milkshake

machines . Expressed interest in the business, and he

finalized a deal with the McDonald brothers in 1954.

•He established a franchising company, the McDonald

System Inc. and appointed franchisees.

•In 1961, he bought out the McDonald brothers' share for

16.2 Cr and changed the name of the company to

McDonald's Corporation. In 1965, McDonald's went

public...

Currently McDonald's operates in 121 countries & having more

than 30000 restarunt

McDonald’s History

Change in Logo’s

McDonald's Market Share {Globally}

McDonald's Market Share {INDIA}

Source : https://simconblog.wordpress.com

Current status of McDonald’s

McDonald's is the world's #1 fast-food company by sales

Serving burgers and fries, it operates more than 36,250 restaurants

It serves in more than 121 countries on six continents

On a day-to-day basis, more than Rs.318 Crorescustomers world-wide are served

Employs more than 4,47,000 people

The Boston Market and Chipotle Mexican Grill fast-casual chains are also owned by McDonald's

Global sales of McDonalds is Rs.5,34,780 Crores in 2013

Marketing Mix

The 4P’s used in Marketing Mix

are :-

ProductPrice PlacePromotion

Product

New Product

Consumer Brand Response

What about you?

63% trust McDonald's for Quality Service, Cleanliness &

Value

McDonalds is the First Choice for Burgers

McDonald’s will retain 44% consumer’s even if they start

selling Pizza instead of Burgers

56% Love McDonalds as a brand

Jud

gm

en

tFeelin

g More than 48% feel Comfortable @ McDonald’s

Kids feel Excited & Happy when @ McDonald’s

Fun place to go with friends

Place

McDonald's opened its doors in India in October 1996. Ever since then,

our family restaurants in Mumbai, Delhi, Pune, Ahmedabad, Vadodara,

Ludhiana, Jaipur, Noida Faridabad, Doraha, Manesar and Gurgaon have

proceeded to demonstrate.

Promotion

The various promotion channels

being used by McDonalds to

effectively communicate the product

information are-

Organizational Chart

STP Model

McDonald’s has segmented their products

according to 3 different bases

Segmented groups -

Adults, kids, students and family

The 3 bases for segmentation are :

Demographic Segmentation

Psychographic Segmentation

Behavioral Segmentation.

Target Segment What is McDonalds for me?

A Family with children A treat to children, a fun place to be for the children

Urban customer on the move Great taste, quick service without affecting the work schedule

Teenager Hangout with friends, but keep it affordable.

Click here -

Targeting

Bargaining power of buyers:Pay attention to customer demands and trendsOffer specialty products for all segmentsFirst mover- salads, cooking oil

Bargaining power of suppliers:McDonald’s relies on strong supplier and distributor relationships Help suppliers lower costsSuppliers include: Coca-Cola

Porter’s Five Competitive Forces

Rivalry within industry:Burger King, Wendy’s, In & Out etc.Brands - Big Mac, Filet o’ FishInnovation – celebrity endorsements, monopoly Online presence - company info, links to charity works

Threat of new entrants:Eg.. Burger King

Threat of substitutes:Any other food industry – high-class restaurants to hot dog stands.

Summary

1

• History and Brand value of McDonald’s

2

• Market Share of McDonalds

3

• Marketing Strategy with Marketing Mix

4

• Brand Equity creation in India

5• Porter’s 5

competitive forces.

6

• McDonalds And its Customer Value

DISCLAIMERThis mini case is a submission for an

internship under

Prof. Sameer Mathur(IIM-L).

See: www.iiminternship.com