This mini case based on McDonald's is prepared and presented by Arnav Das, IIT Kharagpur under the guidance of Prof. Sameer Mathur, IIM Lucknow during a Marketing Internship.
2. Founded in 1940 and established as McDonald's
corporation in 1955, McDonald's is the world's leading
hamburger fast food chain with more than 34,000
restaurants in 119 countries serving more than 70 million
people each day.
3. Vision Statement Mission Statement
"To become a modern, progressive
burger company delivering a
contemporary customer experience"
"To be our customers'
favorite place and way to eat
and drink."
6. Points of Parity Points of Difference
• Free service
• Core product
• Standardized and similar quantity of
ingredient
• Serving any kind of people
• Unique pork burger
• Targets children with the "Happy meal"
• 24-Hour drive-thru service
• Offering breakfast and dinner menu
• Specialized training for managers in
Hamburger University
10. Communication Strategy
• New campaign theme is called "Lovin & Livin it"
• Designed to help connect with consumer all over the world
• New campaign is fun, relevant, compelling and hip
11. "Plan to Win" Strategy
The main purpose of the strategy is to bring improvement in the company's
performance by building it around five key drivers of customer experience -
People, Product, Price, Place and Promotion and by identifying opportunities
on the basis of the four basic aspects of its mission statement - Quality,
Service, Cleanliness and Value.
"To recapture the essence of its mission statement to make the customer
happy"
12. Integrated Marketing Communication
Direct Mailing
• Repeated exposure
• High selectivity
TV Ads
• Creates emotional
appeal
• Reaches most
viewers at once
Radio Ads
• Suited for all personalities
and ages
• Used especially during rush
hours such as morning and
after work
13. Integrated Marketing Communication
Billboards
• Used all year round
• Location specific
promotion
Sales Promotion
• Coupons, contests
etc.
Public Relations
• Through press release,
event sponsorship, social
work.
14. Brand Transformation
• McDonald's India is launching a series of concept restaurants with enhanced
digital capabilities to improve customer experience.
• They call it EOTF – 'Experience of the Future'.
• Self-order kiosks, table service, healthy option on the menu.
• Sustainability efforts – Smart handwash systems, bio-degradable cutlery,
LED-lighting and reusable cups.
15. Brand Extension
• Launched McCafe to build excitement and drive traffic.
• McDonald's utilized their existing brand name and they focused on brand
awareness by leveraging their existing brand.
16. What are McDonald's
core brand values? Have
these changed over the
years?
• Committed to people
• Place the customer experience at
the core
• Operate business ethically
• Grow the business profitably
• Strive continually to improve
In the quest to expand overseas in 1980s
McDonald's lost its direction and focus from its core
value that was to place the customer experience at
core. New employees weren't trained enough and
customer service was poor.
The new strategy "Plan to Win", helped the company
focus on offering a better consumer experience
rather than a cheap and quick fast food option.
But the company otherwise always did abide by its
core brand values be it working on innovations or
providing a rewarding work environment.
17. How has McDonald's grown its brand equity over the
years? Has McDonald's changed in different economic
times in different parts of the world? Explain.
• Communicating key advantages through creative advertising campaigns
• Smart choice of brand elements
• Integrated marketing communication
• Specialized training for managers in it's one of a kind Hamburger University
• Adapting different cultures around the world
• Breakfast, Lunch and especially Happy Meals focusing on children
18. What risks do you think McDonald's will face in the
future?
• Unhealthy food image of fast-food chains
• Intense competition
• Competitors offering healthier options
• Compromise in quality of food served with expansion
• Compromise in training of employees, especially managers
19. SUMMARY
• About
• Vision and Mission Statement
• Brand elements and mantra
B
BUILDING BRAND EQUITY
• Brand Resonance Pyramid
• Points of parity and differences
• Marketing Strategies:
1. Creative
2. Market Penetration
3. Communication
4. Plan to Win
Integrated Marketing
Communication
• Direct Selling
• TV Ads, Radio Ads and Billboards
• Sales Promotion and Public Relations
BRAND TRANSFORMATION
AND EXTENSION
20. DISCLAIMER
Created by Arnav Das, IIT Kharagpur, during a Marketing Internship by Prof.
Sameer Mathur, IIM Lucknow
