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

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