CASE STUDY ON McDonald's

In 1954, Ray Kroc visited a restaurant in San Bernardino, California. There he found a small but successful restaurant run by brothers Dick and Mac McDonald, and was stunned by the effectiveness of their operation. They produced a limited menu, concentrating on just a few items – burgers, fries and beverages – which alloMcDonald'sd them to focus on quality and quick service.

They McDonald'sre looking for a new agent and Kroc saw an opportunity. In 1955, he founded McDonald’s System, Inc., a predecessor of the McDonald’s Corporation, and six years later bought the exclusive rights to the McDonald’s name. By 1958, McDonald’s had sold its 100 millionth hamburger.

Ray Kroc

HISTORY

The 1st set of staff

ABOUT McDonald's

McDonald's/HeadquartersOak Brook, Illinois, United States

Ronald McDonald MASCOT

McDonald's logo

McDonald's and its franchisees employ approximately1.9 million employees.

McDonald’s is committed to providing the highest quality food and superior service, at a great value, in a clean and McDonald'slcoming environment. At the restaurant level, McDonald’s is focused on energy conservation, sustainable packaging, and waste management.

Quality, service, cleanliness and value (QSC&V) for each and every customer, each and every time. 

“Three-legged stool” of owner/operators, suppliers, and company employees.

VISION

GOAL

BUSINESS MODEL

ABOUT McDonald's

Our purpose goes beyond what McDonald's sell. McDonald's’re using our reach to be a positive force. For our customers. Our people. Our communities. Our world.

GOOD FOODMcDonalds promote choices. Real ingredients. Great taste. Transparency.

GOOD PEOPLEMcDonalds create opportunity. Encourage diversity. Offer training. Facilitate teamwork. Reward achievement.

GOOD NEIGHBORMcDonalds champion happy, healthy kids. Keep families together through Ronald McDonald House Charities. Commit to reducing our footprint. Using less energy. And recycling more.

AmbitionMcDonald's

McDonald's  Key business potential

Extended Hours

Pricing

Food Innovation

Operation Excellence

Brand Trust 

"McDrive" locations near highway offer no counter service or seating

McCafé is a café-style accompaniment to McDonald's restaurants and is a concept created by McDonald's Australia (also known, and marketed, as "Macca's" in Australia), starting with Melbourne in 1993.At the end of 2003 there McDonald'sre over 600 McCafés worldwide.

CreateYourTasterestaurants:Using the dedicated Create Your Taste (CYT) kiosks a person can choose all ingredients including type of bun and meat along with additional extras. The CYT food is presented on wooden boards, fries in wire baskets and Salads in china bowls and metal cutlery. These services are a slightly higher price due to the gourmet ingredients and cost of labor.

McDonald's Restaurants

McDonald's MENU

McDonald's is putting people, processes and practices into place to make sustainability the new normal – for business, society and the world at large.

McDonald's Sustainability

Customers - McDonald's exist because of our customers. McDonald's stay focused by listening to our customers' needs. Clients are always telling us McDonald's have exceeded their expectations at the end of a job. McDonald's know you're on a budget, so McDonald's work within your means to deliver the best available product for your budget.

            People - McDonald's people are the strength of the company. Their involvement, teamwork, and professionalism build customer confidence. With years of experience in modular building and design, our employees bring a McDonald's alth of knowledge and expertise in construction, engineering and logistics. And as part of a family run operation, they also bring warmth and a genuine desire to do the best job possible. McDonald's have LEED Accredited Professionals with skills that exceed industry expectations and standards. Our employees are active in business associations and professional development programs that further their knowledge of the business.

               Products & Service - Our dedication to providing quality products and services to the customer enables us to be the best choice for office, storage and modular space. The flexibility of our modular buildings enables us to design exactly what you need at a price you can afford. If you need room to grow, McDonald's can help. If you need improvements on an existing building, McDonald's can update. If you need a complete build from start to finish, McDonald's will be there for you. McDonald's can handle everything from building security to interior design and landscaping. All of your modular needs met in one convenient place.

McDonald's core values

McDonald’s“ Plan to Win” which provided the company’s 5 Ps – People, Product, Promotions, Price and Place.

ProductProduct consists of how the company must design, manufactures the products which improve the experience of every customer. Product refers to physical product and services provided by the business to its patron.PlaceThe place for the most part includes distribution outlet and channel of the business. It is very essential because the service or the product should be accessible to the consumers at the right time, right place and right quantity.PricePricing strategy is one of the most significant aspects when it comes to marketing. This includes price breakdown, when any discount service or payment available.

McDonald's marketing strategy

PeopleMcDonalds understands the significance of both consumers and employees. It understands the truth that happy workers can serve properly and led in happy customers.

PromotionThe endorsement activities implement by the Company aids communicate effectively with the potential consumers. Ad targeted to catch the interest of the people it reaches to massive number of customer at a time. Ad plays an important role for product promotion such TV advertisement, billboard and posters which also used by some ground breaking business including McDonald’s Company.

McDonald's core values

McDonald's SWOT Analysis

McDonald's Competitors

BRAND EQUITY

WIDE ARRAY OF MARKETING CAMPAIGNS

GOING BEYOND BURGERS THROUGH BRAND EXTENSION

AFFORDABLE PRICES FOR THE MASSES.

McDonald's

ADS and PROMOTION

LOCALIZED PRODUCT AUTONOMY.

BRAND EQUITYMcDonald's

McDonald's being one of the finest and leading brand in the fast-food chain has committed to doing the right thing. And everyday, all around the globe, they put people, processes and practices into place to make quality food, more responsible sourcing choices, a stronger community and a better planet. Thus creating a difference in the market.

Its core values include

1.Better quality and service

2.Cleaner surroundings and added values

3.Healthier food options

4.Sustainability Priorities

5.Refurbished restaurants based on consumers needsThe company did lose track of their market in the 80's but has learnt from their mistakes and now they are more focused on to their core brand values thereby their economy turned around for the better.

What are McDonald’s core brand values? Have these changed over the years?

McDonald's is a premier example of the business model. With roots that trace back to a single drive-in started by a pair of brothers, Dick and Mac McDonald, in Southern California, McDonald's has grown to a network of well over 35,000 locations in more than 100 countries. McDonald’s adjusts product offerings to satisfy needs – like relatively lower cost, healthy alternatives for mom's and $1 menu options for lower income consumers and teens. It also redesigned restaurants with consumer needs in mind and adapted it menus to different regions based on consumers needs. It also expands its consumer base through product offerings like McCafe and via global growth. This led to its growth in brand equity over the years.

With the economy turning around for the better, should McDonald’s change its strategy? Why or why not?

The major risk's that McDonald's will face going forward is that,

1.Most people will give a value for eating a healthy diet thereby leading to a downfall in their profit margins.

2.Training employees rapidly and less effectively during expansion drives will pose a major threat in the future.

2.As people's tastes and liking's changes , theyll have to adapt to these changes to supply a better product.

3.Competitors like Domino's, Pizza Hut etc., will posses a threat if McDonald's is not consistent in innovating newer products in their menu.

What risks do you feel McDonald’s will face going forward?

• Richard & Maurice McDonald started 15¢ hamburger stands with golden arches in California. • Ray Kroc, a milkshake machine salesman, bought world franchise rights. He later purchased the company from the brothers for $2.7 million.• Builds the most recognizable brand in the world. • Diversifies its menu to stay in the competition. • Low pricing and intensive marketing campaign fuels the growth of the company. • Health conscious society might move on to healthier options.• Needs to introduce healthier options to stay in the competition.

SUMMARY

Sameer Mathur IIM Lucknow, Marketing Professor 2013 –

McGill University Marketing Professor 2009 – 2013

Carnegie Mellon Ph.D and M.S (Marketing) 2003 – 2009

DISCLAIMER

NARESH R

Vellore Institute Of Technology (VIT University , Vellore)

Marketing Management Intern-2017