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Origination
• Began in 1940
• Opened by Richard McDonald and Maurice
  McDonald & promoted further by Ray Kroc
• McDonalds for first filed for
  U.S Trademark on the Name
  “McDonald’s” on May4,1961
  with the descriptions
  “Drive in restaurant services”
Advertising
• McDonald's has for decades maintained an
  extensive advertising campaign.


   Television         Radio    Newspaper


                         Sponsoring
           Internet
                         for Events
Global Marketing Collaterals
• McDonalds has 23 different slogans .
• This is to grab Public attention and fantasize
  customers.
E.g.
Facilities
• Drive thru

• Available in Major cities across the world.

• Can order food through phone and website

• Home Delivery
Customer Perception & Expectation

   Customer Group                          Motive

                                   Visits McDonalds' to give them
    A parent with two children
                                               treat



            Children                   As it is fun place to eat



                                 As service is fast, food is good ,can
      A business customer           be eaten anywhere without
                                         affecting the work


                                 To hangout with Friends and keep it
            Teenagers
                                             affordable
Mission Statement

McDonald's brand mission is to "be our customers' favorite
place and way to eat." Our worldwide operations have been
aligned around a global strategy called the Plan to Win centering
on the five basics of an exceptional customer experience –
People, Products, Place, Price and Promotion. We are
committed to improving our operations and enhancing our
customers' experience.




                                                                    6
Brand Strategy


                               It was created by Heye &
2003 - till date “I’m Lovin’
                                   Partner, a longtime    It was the company's first
  it” is an international                                                                  Target Market is
                                   McDonald's agency          global advertising
 branding campaign by                                                                  Children/ Elderly People
                                        based in                  campaign.
    McDonald’s Corp.
                                Unterhaching, Germany.




                                                                                                                  7
McDonald’s Franchise
•Most Owner/Operators enter the System by purchasing an existing
restaurant, either from McDonald’s or from a McDonald’s
Owner/Operator.
•Financial Requirements/Down Payment
     •Initial down payment is required when purchasing a new
     restaurant (40% of the total cost) or an existing restaurant
     (25% of the total cost).
           •The down payment must come from non-borrowed
           personal resources, which includes cash on
           hand, securities, bonds.
           •Generally require a minimum of $300,000 of non-
           borrowed personal resources to consider you for a
           franchise.
           •Remaining balance of purchase price must be paid off with
           in 7 years. McDonald’s does not offer financing but they
           work with many national lending institutions.
           •McDonald’s owns all buildings and properties.



                                                                        8
Ray Kroc Formula for
     Success:
•Quality
•Service
•Cleanliness
•Value




                       9
Ray Kroc - Business Model
•Ray Kroc- Developed a business
model known as “The Three Legged
Stool.” Owner/Operator, Suppliers
and Employees

•Just as all three legs of a stool need
to be equal to support the weight, all
three elements of the McDonald’s
system are equally important
partners in McDonald’s success.




                                          10
CSR INITIATIVES
Ronald McDonald House Charities
        •The mission of Ronald McDonald Charities is to
        create, find and support programs that directly
        improve the health and well being of children.
        •Ronald McDonald Houses are located all around
        the world and provide families a way to stick
        together in times of need when their children are
        ill.
        •Service Provided:
             •Home-cooked meals
             •Private bedrooms
             •Playrooms for children
             •Special suites for children with suppressed
             immune systems
             •Accredited education programs
             •Recreational activities
             •Non-clinical support services
             •Sibling support services
                                                       12
Going Green
•McDonald’s has taken the initiative to incorporate
used cooking oil into their operations.

•In several countries across the McDonald’s
System, restaurants are recycling their used
cooking oil to sell to companies that specialize in
refining the product into clean burning diesel for
consumer use.

•In 2006, McDonalds in the U.S has began
developing green restaurants.
    •Floor Tiles with a high recycled content
    •Efficient Lighting Products, Skylights and
    Daylight controls
    •High efficient rooftops
    •Water conserving toilets

                                                  13
World Children Day

McDonalds restaurants around the
world celebrate world children’s day
with fundraising activities. In
2006, McDonalds raised more than
$25 million worldwide to benefit
Ronald McDonald House Charities and
other local children’s charities.




                                       14
Mom Knows Best
“Loved by kids, approved by mom”
is one of McDonalds important
goals. McDonalds created a global
moms advisory panel of 10
mothers from 7 countries to
provide input and guidance on a
broad range of topics, including
their food to help better serve the
needs of moms and families
around the world.



                                      15
Responsible Suppliers

“Only purchase from suppliers who meet our
stringent food safety standards, but who also share
our commitment to social responsibility and
sustainability.”
             -animal welfare
             -rain forest and antibiotics policies
             -supplier social accountability program
PRODUCT PROMOTION
Product Promotion
     •Toys with Happy Meals
     •Cars
     •Pirates of the Caribbean
     •Games- Monopoly/ Uno –Win various prizes
     and trips
     •Collectibles- Coca Cola Glasses, Beanie Babies
     •Olympic Games- Global partner of the Olympic
     games- reflects our commitment of the
     importance of sports and physical activities.
     •World Champions- 1,400 children from 51
     countries had the opportunity to meet the
     world’s best soccer players at the 2006 FIFA
     World Cup.




                                                  18
Global Competitors




                     19
Internal Audit- Strengths

   1. Strong Global Presence (located in over-
      100 countries)
   2. Strong Real Estate Portfolio
   3. Brand Recognition
   4. Revenue Growth 9% (Above Industry Average of
      7.5%)
   5. The Ronald McDonald House (Children Charity)
   6. Systemization and Duplication (Consistency)



                                                     20
McDonald's strategies – Key
             Elements

•   Adding 700-900 restaurants annually
•   Being highly selective in granting franchises
•   Focusing on limited product line & consistent quality
•   Careful attention to store efficiency
•   Extensive advertising & use of Mc prefix
•   Hiring courteous personnel; paying an equitable
    wage; & providing good training`
McDonald’s product strategy

• Friendly, fast-served healthy food
• Consumer’s like-dislike, taste, preference, health
  etc. are taken into consideration.
• Provides quality food
• Adapts itself to the local culture
• Resources to Get the Job Done
McDonald’s pricing strategy
• Value-pricing
• very large cross section of the Indian
  population can afford it.
• does not sacrifice quality for value
Mc donalds

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Mc donalds

  • 1. Origination • Began in 1940 • Opened by Richard McDonald and Maurice McDonald & promoted further by Ray Kroc • McDonalds for first filed for U.S Trademark on the Name “McDonald’s” on May4,1961 with the descriptions “Drive in restaurant services”
  • 2. Advertising • McDonald's has for decades maintained an extensive advertising campaign. Television Radio Newspaper Sponsoring Internet for Events
  • 3. Global Marketing Collaterals • McDonalds has 23 different slogans . • This is to grab Public attention and fantasize customers. E.g.
  • 4. Facilities • Drive thru • Available in Major cities across the world. • Can order food through phone and website • Home Delivery
  • 5. Customer Perception & Expectation Customer Group Motive Visits McDonalds' to give them A parent with two children treat Children As it is fun place to eat As service is fast, food is good ,can A business customer be eaten anywhere without affecting the work To hangout with Friends and keep it Teenagers affordable
  • 6. Mission Statement McDonald's brand mission is to "be our customers' favorite place and way to eat." Our worldwide operations have been aligned around a global strategy called the Plan to Win centering on the five basics of an exceptional customer experience – People, Products, Place, Price and Promotion. We are committed to improving our operations and enhancing our customers' experience. 6
  • 7. Brand Strategy It was created by Heye & 2003 - till date “I’m Lovin’ Partner, a longtime It was the company's first it” is an international Target Market is McDonald's agency global advertising branding campaign by Children/ Elderly People based in campaign. McDonald’s Corp. Unterhaching, Germany. 7
  • 8. McDonald’s Franchise •Most Owner/Operators enter the System by purchasing an existing restaurant, either from McDonald’s or from a McDonald’s Owner/Operator. •Financial Requirements/Down Payment •Initial down payment is required when purchasing a new restaurant (40% of the total cost) or an existing restaurant (25% of the total cost). •The down payment must come from non-borrowed personal resources, which includes cash on hand, securities, bonds. •Generally require a minimum of $300,000 of non- borrowed personal resources to consider you for a franchise. •Remaining balance of purchase price must be paid off with in 7 years. McDonald’s does not offer financing but they work with many national lending institutions. •McDonald’s owns all buildings and properties. 8
  • 9. Ray Kroc Formula for Success: •Quality •Service •Cleanliness •Value 9
  • 10. Ray Kroc - Business Model •Ray Kroc- Developed a business model known as “The Three Legged Stool.” Owner/Operator, Suppliers and Employees •Just as all three legs of a stool need to be equal to support the weight, all three elements of the McDonald’s system are equally important partners in McDonald’s success. 10
  • 12. Ronald McDonald House Charities •The mission of Ronald McDonald Charities is to create, find and support programs that directly improve the health and well being of children. •Ronald McDonald Houses are located all around the world and provide families a way to stick together in times of need when their children are ill. •Service Provided: •Home-cooked meals •Private bedrooms •Playrooms for children •Special suites for children with suppressed immune systems •Accredited education programs •Recreational activities •Non-clinical support services •Sibling support services 12
  • 13. Going Green •McDonald’s has taken the initiative to incorporate used cooking oil into their operations. •In several countries across the McDonald’s System, restaurants are recycling their used cooking oil to sell to companies that specialize in refining the product into clean burning diesel for consumer use. •In 2006, McDonalds in the U.S has began developing green restaurants. •Floor Tiles with a high recycled content •Efficient Lighting Products, Skylights and Daylight controls •High efficient rooftops •Water conserving toilets 13
  • 14. World Children Day McDonalds restaurants around the world celebrate world children’s day with fundraising activities. In 2006, McDonalds raised more than $25 million worldwide to benefit Ronald McDonald House Charities and other local children’s charities. 14
  • 15. Mom Knows Best “Loved by kids, approved by mom” is one of McDonalds important goals. McDonalds created a global moms advisory panel of 10 mothers from 7 countries to provide input and guidance on a broad range of topics, including their food to help better serve the needs of moms and families around the world. 15
  • 16. Responsible Suppliers “Only purchase from suppliers who meet our stringent food safety standards, but who also share our commitment to social responsibility and sustainability.” -animal welfare -rain forest and antibiotics policies -supplier social accountability program
  • 18. Product Promotion •Toys with Happy Meals •Cars •Pirates of the Caribbean •Games- Monopoly/ Uno –Win various prizes and trips •Collectibles- Coca Cola Glasses, Beanie Babies •Olympic Games- Global partner of the Olympic games- reflects our commitment of the importance of sports and physical activities. •World Champions- 1,400 children from 51 countries had the opportunity to meet the world’s best soccer players at the 2006 FIFA World Cup. 18
  • 20. Internal Audit- Strengths 1. Strong Global Presence (located in over- 100 countries) 2. Strong Real Estate Portfolio 3. Brand Recognition 4. Revenue Growth 9% (Above Industry Average of 7.5%) 5. The Ronald McDonald House (Children Charity) 6. Systemization and Duplication (Consistency) 20
  • 21. McDonald's strategies – Key Elements • Adding 700-900 restaurants annually • Being highly selective in granting franchises • Focusing on limited product line & consistent quality • Careful attention to store efficiency • Extensive advertising & use of Mc prefix • Hiring courteous personnel; paying an equitable wage; & providing good training`
  • 22. McDonald’s product strategy • Friendly, fast-served healthy food • Consumer’s like-dislike, taste, preference, health etc. are taken into consideration. • Provides quality food • Adapts itself to the local culture • Resources to Get the Job Done
  • 23. McDonald’s pricing strategy • Value-pricing • very large cross section of the Indian population can afford it. • does not sacrifice quality for value