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McDonald's Case Study
McDonald's Case Study
McDonald's Case Study
McDonald's Case Study
35000+
outlets
119
countries
More than 68m
worldwide
McDonald's Case Study
McDonald's Case Study
McDonald's Case Study
39.7
%
21
%
33.7
%
5.4
%
Reasons For Success
McDonald's Case Study
Building Brand Equity
McDonald's Case Study
Marketing Activities
McDonald's Case Study
Affordability & LocalizedOfferings
What areMcDonald'scorebrandvalues?Have
thesechanged overthe years?
The corebrandvalue duringMcDonald'searlydaysin 1960sand1970sweremaintaininghigh quality,service,
cleanliness andvalue which wasreflectedin theiroutlets, productpricing whilemaintaininghigh qualityand
in theiremployeecustomerrelationship.Althoughthe companywent astraymidway,deflecting fromits core
values, itdida greatjob tosprungbackhardandlearnfromall its mistakemadein the past.Thenew core
valuesnowincludes-
1. Consistency-Delivering samequalityproductandservice aroundthe globe.
2. Innovation-Constantlyinnovatingnew productsaspercustomersneed andenhanceconsumer satisfaction.
3. Strongemphasis oncleanliness, qualityandcustomerservice.
Aftermaintainingastronggrip forso manyyearsandrevolutionizingtheworldmarket,its refreshingtosee thatstill
the companystrives tomaintainits corevalues
McDonald'shasenhancedits brandequityover theyearsby-
1. Smartchoiceofbrandelements forinstance"I'm Lovin it"
2. Holistic marketingactivitieslike building threedifferentzonesthatgitstheneed ofeachtargetaudience.
3. Gaining high importanceamongmasses via its5 Ps implementation.
4. Following a processofBrandRevitalizationthroughBrandExtensionlike McCafe.
How has McDonald's grown its brand equity over the years? Has
McDonald's changedin different economictimes or in different parts of
the world? Explain.
McDonald's has enhanced its brand equity over the years by-
1. Smartchoice of brand elements for instance "I'm Lovin it"
2. Holistic marketing activities like building three different zones that satisfies the need of each
target audience.
3. Gaining high importance among masses via its 5 Ps implementation.
4. Following a process of Brand Revitalization through Brand Extension like McCafe.
5. Attracting teenagers through affordability of products to as low as 1$ and providing free
internet in form of free WiFi.
McDonald's definitely changed in different economic times bychanging its policy when it
suffered a setback during the early 2000s and its newfood offering failed on many front and
cameback hard gaining on capital since then, even during the recession. It also aggressively
expanded overseas in Europe, Asia, Malaysia etc. , always keepingin mind the local
environment and needs. In this way it changedits brand equity overthe years
What risks do youfeel McDonald's will
face going forward?
RisksMcDonald'smightfacegoingforwardare-
1. Itwaslinkedwith obesityin the past and itsready to eatprecooked products are getting
associatedwithobesity once more, which could leadto majorsetbacksin the future, if not
monitoredashealthconscious customersare shiftingto healthieralternatives.
2. Food safetyissuemightoccur.
3. Rivalsof McDonald'slikeSubwayareoffering new customizedofferingswhichcould bring
problemsto the brand.
4. The rateof itsexpansionisveryfastwhich mightlead to dip in itsquality.
5. Competitionfrom local fastfood chains asthey have to servea smallareawhich can be done
moreefficiently.
6. Trainingitsemployeeswellduring thisexpansionto the optimumstandardsmightcreate a
problemaswell.
But,having saidall this,the abovementionedriskscan be tackledby followingmeans-
DISCLAIMER
CreatedbyKrishnaKumarBajoria,MMMUT,
duringaninternshipwithProf.Sameer
Mathur,IIMLucknow

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McDonald's Case Study

  • 18. What areMcDonald'scorebrandvalues?Have thesechanged overthe years? The corebrandvalue duringMcDonald'searlydaysin 1960sand1970sweremaintaininghigh quality,service, cleanliness andvalue which wasreflectedin theiroutlets, productpricing whilemaintaininghigh qualityand in theiremployeecustomerrelationship.Althoughthe companywent astraymidway,deflecting fromits core values, itdida greatjob tosprungbackhardandlearnfromall its mistakemadein the past.Thenew core valuesnowincludes- 1. Consistency-Delivering samequalityproductandservice aroundthe globe. 2. Innovation-Constantlyinnovatingnew productsaspercustomersneed andenhanceconsumer satisfaction. 3. Strongemphasis oncleanliness, qualityandcustomerservice. Aftermaintainingastronggrip forso manyyearsandrevolutionizingtheworldmarket,its refreshingtosee thatstill the companystrives tomaintainits corevalues McDonald'shasenhancedits brandequityover theyearsby- 1. Smartchoiceofbrandelements forinstance"I'm Lovin it" 2. Holistic marketingactivitieslike building threedifferentzonesthatgitstheneed ofeachtargetaudience. 3. Gaining high importanceamongmasses via its5 Ps implementation. 4. Following a processofBrandRevitalizationthroughBrandExtensionlike McCafe.
  • 19. How has McDonald's grown its brand equity over the years? Has McDonald's changedin different economictimes or in different parts of the world? Explain. McDonald's has enhanced its brand equity over the years by- 1. Smartchoice of brand elements for instance "I'm Lovin it" 2. Holistic marketing activities like building three different zones that satisfies the need of each target audience. 3. Gaining high importance among masses via its 5 Ps implementation. 4. Following a process of Brand Revitalization through Brand Extension like McCafe. 5. Attracting teenagers through affordability of products to as low as 1$ and providing free internet in form of free WiFi. McDonald's definitely changed in different economic times bychanging its policy when it suffered a setback during the early 2000s and its newfood offering failed on many front and cameback hard gaining on capital since then, even during the recession. It also aggressively expanded overseas in Europe, Asia, Malaysia etc. , always keepingin mind the local environment and needs. In this way it changedits brand equity overthe years
  • 20. What risks do youfeel McDonald's will face going forward? RisksMcDonald'smightfacegoingforwardare- 1. Itwaslinkedwith obesityin the past and itsready to eatprecooked products are getting associatedwithobesity once more, which could leadto majorsetbacksin the future, if not monitoredashealthconscious customersare shiftingto healthieralternatives. 2. Food safetyissuemightoccur. 3. Rivalsof McDonald'slikeSubwayareoffering new customizedofferingswhichcould bring problemsto the brand. 4. The rateof itsexpansionisveryfastwhich mightlead to dip in itsquality. 5. Competitionfrom local fastfood chains asthey have to servea smallareawhich can be done moreefficiently. 6. Trainingitsemployeeswellduring thisexpansionto the optimumstandardsmightcreate a problemaswell. But,having saidall this,the abovementionedriskscan be tackledby followingmeans-