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McDonald’sDoes McDonald’s sell Burgers?

https://www.pinterest.com/pin/549509592011179686/

Created by : Divyanshu Goyal

Does McDonald’s sell Burgers?

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McDonald’s with the burgers sells, its brand power in term of brand equity.

https://www.linkedin.com/pulse/relationship-marketing-brand-equity-beq-company-value-cornetthttp://oldcastlemeath.com/for-sale/

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According to book Philip Kotler and Kevin Lane Keller, Brand Equity is the added value endowed to products and services with consumers. It may be reflected in the way consumers think, feel, and act with respect to the brand as well as in the prices, market share, and profitability it commands.

What is Brand Equity?

https://wvuimc.wordpress.com/2015/09/24/brand-equity/

https://www.exposingtruth.com/tasty-wood-pulp-burger/

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About McDonald’s McDonald’s is world`s leading hamburger

fast-food chain with more than 34,000 restaurants in 119 countries.

More than 80% of McDonald’s restaurant are owned and operated by franchises.

It’s a multi-billion dollar brand today serving about 70 million people each day

Has assets worth 38 billion, and had a revenue of billion 25 in 2015

http://www.rd.com/culture/mcdonalds-facts-trivia/

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McDonald’s : History

It started back in 1955, when Ray Kroc franchised hamburger restaurant from McDonald brothers.

He also helped in building the company’s red-white sides and single golden arch.

BRAND RESONANCE PYRAMID:

Famous multinational food chain Have more than 34000 restaurants

Have presence in more than 120 countries

Sells tasty, cheap quality food

Value of money

Happy meal etc

Quality, loyalty, attatchment

leads to repeat sales

Target children, fun, excitement

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McDonald’s : core brand value

Its core values are quality, service, cleanliness, value to customer.

http://www.kwintessential.co.uk/quality-assurance.htmlhttps://pixabay.com/en/service-gear-wrench-help-support-1220327/

https://3qdigital.com/featured/case-sem-cleanliness/http://www.officerreports.com/blog/customers-value-security-services/

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McDonald’s: Products

Burger Fries Beverages

http://cape-town-active.com/mcdonalds-the-south-african-burger/http://www.potatopro.com/topics/french-fries-and-potato-specialtieshttp://www.rd.com/offensively-huge-beverages-07-mcdonalds-sweet-tea-sl/

And Many More…..

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McDonald’s: Competitions

Provide a good alternate to burgers

Provide more customizable and healthy products

A good competition in same segment

http://www.gsmnation.com/blog/2012/09/17/apple-samsung-world/pizza-hut-or-dominos/https://commons.wikimedia.org/wiki/File:Subway_restaurant.svghttps://twitter.com/burgerking

And Many More…..

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McDonald’s Response to

Allegations And Demands

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Allegation: McDonald generally provide large burger and unhealthy fast food leading to obesity.

Solution : Company responded to consumer needs and removed super size options and as well extended its services to salads and apple slices etc.

Obesity Allegation?

http://www.opengeek.net/mcdonalds-obesity-people-images-pictures.htm

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Solution : Company responded to consumer needs and introduced the $1 menu for teenagers and low-income groups

Mac is Costly?

https://www.countryfinancial.com/en/investments/individual-retirement.html

McDonald’s: ExtensionsMcDonald’s has extended their service to many sectors

McDonald’s burger, fries etc.

McDonald’s breakfast

McCafe

Salads etc.

http://www.wbnq.com/2015/11/30/win-free-mccafe-coffee-with-mugshots-contest/

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McDonald’s: Campaigns and sales

McDonald’s has always attracted consumers by different marketing tactics and offerings:

Campaign like “ I’m Lovin’ It” connects it to its large customer base and keep them coming back

Sale all around world by franchises which reduces risk with expansions and cost to company.

http://www.mcdonaldsindia.net/happy-meal.aspx

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Continued……

Offerings like coffee, breakfasts, salads attracted new segment of customers.

Drive thru opens up gate to new consumers, in hurry of meetings or offices etc.

“Happy Meal” was quite successful to invocate children to eat at McDonalds.

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Q1) What are McDonald's core brand values? Have these changed over the years?Ans1) McDonald`s core brand values are :Quality, service, cleanliness and value. Although it lost focus during 1990s and 2000s, company has learnt from mistakes. But it try its best to stick to these core values with being more conscious to higher-quality customer experience rather than being quick and cheap.

Q&A from case study from book Philip Kotler and Kevin Lane Keller

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Q2) 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.?Ans2 Mc Donald`s created its brand equity by:1)Continuously responding to customer needs including convenient locations, easy dining and affordability, be it be healthier foods for health conscious ones or $1 menu for lower income customers.2) By being technologically innovative and by its Plan to win strategy .3)By good marketing strategies and marketing campaigns like “I`m Lovin` It” etc.4)By consistency of values and continuous trust buildup among customer.

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Continued……

Yes McDonald`s allow local restaurants to adapt to different environments and culture.Example: It introduces a Bacon Roll Break-fast sandwich in United Kingdom. a premium M burger in France etc. And like prices also varied slightly in United States to better reflect different regional tastes.

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Q3) What risks do you feel McDonald's will face going forward?

Ans3) Risks to McDonald`s are:1) Customers tastes and eating trends may change.2) Competition from other food chains like Burger King, Pizza Hut, Subway etc.3) More Health conscious customer may shift to healthier options.4) Competition from local fast foods as they have to focus on small areas.5) Customers may shift to food chains giving more freedom for customized food like Subway.6) Training employees rapidly and efficiently during expansion drives and when older employees quit away.

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RECAP

What McDonald’s sale and Brand Equity

McDonald’s an introduction

Brand resonance Pyramid

McDonald’s Values, competition, products etc

McDonald’s response, campaigns etc

Q&A from case analysis from book Philip Kotler and Kevin Lane Keller

http://wellkeptny.com/index.php/qa/ http://www.namebadgesandbuttons.com/store/corporate-buttons/im-lovin-it-button/

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Prof. Sameer Mathur

IIM Lucknow

Divyanshu Goyal

IIT Jodhpur

DISCLAIMERThis presentation is created by Divyanshu Goyal, IIT Jodhpur, during a Marketing Internship by Prof. Sameer Mathur, IIM Lucknow