Case Study on McDonald's from Philip Kotler Management textbook. Marketing Management Internship Assignment under the guidance of Prof. Sameer Mathur.

1. GOLDEN ARCHES
A Case Study on McDonald’s

2. INCEPTION OF McDONALD’S
ABOUT McDONALD’S
McDONALD’S REALM
REASON BEHIND ITS SUCCESS
QUESTIONNAIRE
BUILDING BRAND EQUITY

3. INCEPTION OF McDONALD’S
• Richard & Maurice McDonald built hamburger
stands with golden arches in California.15¢
hamburgers were very popular.
• Ray Kroc, a milkshake machine salesman,
bought world franchise rights from them and
spread the golden arches around the globe.
• In 1961, he purchased the company from the
brothers for $2.7 million. Ray Kroc The original
staff of the McDonald's brothers hamburger
restaurant
• Sales Sky Rocket just after few ad campaigns
due to the presence of Ronald McDonald.

6. McDONALD’S REALM
• The Company Has over
35,000 outlets all over the
world.
• It has 1.9 million
employees around the
world.
• It generated a total of
$25.4 billion of revenue for
the year 2015

7. Why is McDONALD’S Successful?
• Quality, Service, Cleanliness &
Value.
• Innovative way of presenting
itself among people.
• Welcoming all category’s
people.
• Regional taste and menu.
• Various kinds of ventures in
market.
• Increasing demand of fast
food over the world.

8. McDONALD’S COMPETITORS
According to Hoovers
• Main Competitors are
• Subway
• Burger King
• Taco Bell (a.k.a Yum!)

9. BUILDING BRAND EQUITY
 WIDE ARRAY OF MARKETING CAMPAIGNS
 GOING BEYOND BURGERS THROUGH
BRAND EXTENSION

10. BUILDING BRAND EQUITY
 AFFORDABLE PRICES FOR THE MASSES.
 LOCALIZED PRODUCT AUTONOMY.

11. BUILDING BRAND EQUITY
 ADS and PROMOTION

12. What are McDonald’s core brand values?
Have these changed over the years?
 The core values of the company was Quality, service, cleanliness
and value (QSC&V).
 Their values were reflected on their Products and their service.
 Through the 80’s they lost their sense of direction due to the
aggressive expansion of the company.
 They recovered by implementing “ Plan to Win” which provided the
company’s 5 Ps – People, Product, Promotions, Price and Place.

13. With the economy turning around for the better,
should McDonald’s change its strategy? Why or
why not?
 The product that is selling a product is consumed more when
people have less money.
 The product it was selling would meet the requirements of people
who are struggling during the economic crisis by giving them food
at a cheaper price than most restaurants would.
 McDonalds should in fact change its strategy to keep its customers
only slightly by possibly improving the quality of their food
broadening their menu.

14. What risks do you feel McDonald’s will face
going forward?
 McDonald’s should offer more premium options and establish itself
as a provider of normal goods while maintaining the value that its
customers expect.
 Increasing health conscious consumers are opting for
natural/healthier products.
 Increasing Competition in the fast food sector.
 Wider options for consumers to reach out for other than just Burgers
and fries.

15. Summary
• 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.

16. DISCLAIMER
Sameer Mathur
IIM Lucknow,
Marketing Professor 2013 -
McGill University
Marketing Professor 2009 – 2013
Carnegie Mellon
Ph.D and M.S (Marketing) 2003 - 2009
Vedanth Prakash
PES Institute of Technology,
Marketing Management Intern - 2016.