CASE STUDY

Pratik Shelke

by

Introduction

McDonald's is an American hamburger and fast food restaurant chain

The name McDonald’s was coined in 1952 by Ray Kroc – who bought a hamburger restaurant from McDonald’s brothers. Since then it has been growing rapidly around the world, adding 1000s of McDonald’s every year.

McDonald’s is the world's largest restaurant chain, serving approximately 68 million customers daily in 119 countries across approx. 36,615 outlets. It

CORE VALUES

• Quality• Cleanliness • Service• Value

Core Audience Notable Works

The brand understood early on that its core audience consisted of children and families. Therefore, he focused McDonald’s advertising efforts at these groups, and introduced Ronald – Mascot of McDonald’s!

Cute, isn’t it?

Oh,

I mean that ‘Plan to Win!’

Market Segmentation

Geographic

McDonald’s allowed local restaurants to adapt to different environments and cultures. For example, McDonald’s introduced a Bacon Roll breakfast sandwich in the United Kingdom, a premium M burger in France, and an egg, tomato, and pepper McPuff in China. Prices also varied slightly across the United States to better reflect different tastes in different regions.

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Market Segmentation

Income

Prices are listed by analysing people’s income in particular regions.

Also, introduction of $1 menu for teenagers and low-income bracket customers.

AgeWomen – Low fats, Diet items and even Salads

Children – Play Space, Ronald Mascot and Ice-creams

Young people – Wifi and Sofas to gather comfortably

Working class – Chairs area to grab a quick bite and leave

Market Segmentation Market Segmentation

Psychographic

• Children – Fun place

• Teenagers – Hangouts and Dates

• Efficient people – Quick meals

Behavioural

• Frequency and Quantity

• Reason and Occasion

• Product usage

• Source of purchase

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Pricing Strategy

• Product bundle pricing

• Value pricing

• Product line pricing

• Promotional pricing

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Biggest Challenges for McDonald’s today

1. Declining the trust in McDonald’s / Distraction of customers by the competitors.

2. Competitors: Burger King, Domino’s, Subway, Pizza Hut, Taco Bell, Papa John’s, and the most brutal – KFC.

3. Lazy service / Unwelcoming Staff

4. Food safety scandals in China

5. Complex menu

6. Unhealthy food/Obesity enhancer

1. Win back customers who have fallen out of love with McDonalds

2. Take on competitors by lowering the prices or improving the quality of food and ambience

3. Tackle the bad PR by paying staff more

4. Sort out China, supply fresh meat and improve the quality to restore people’s faith.

5. Slim down the menu. And keep the meal sets as simple as possible.

6. Bring in as low calories and raw food as possible. While

Likely Solutions

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The Conclusion • McDonald's is one of the largest fast food companies in the world. Competitors are rising,

but they can easily continue their path for success by keeping their consumers in mind regarding their product selection, quality, as well as their prices.

• McDonald’s encourage their employees to do a good job, usually promotes from within, and offers several scholarships to encourage education. Though, providing some leisure or entertainment to the employees may better the PR.

• Though McDonald's is a centralized, "wait and see" company, they find ways to use technological products that will increase their productivity, service, and sales, everywhere from using the Nintendo DS to train staff to using New POS touch screen registers.

• McDonald's will certainly be around for plenty more years to come.

A Presentation on McDonald’s by Pratik Shelke, Author getting published by a major traditional publisher; Blogs at www.pratikshelkeofficial.quora.com

During a Marketing Management Internship under Professor Sameer Mathur, PhD in Marketing from Carnegie Mellon university; present faculty at IIM Lucknow.