BUT WHY ?

RICHARD AND MAURICE McDONALD BUILT HAMBURGER STANDS WITH GOLDEN ARCS IN CALIFORNIA.

RAY CROC a MILKSHAKE MACHINE SALESMAN PARTNERED WITH THE BROS AND TURNED THEIR SMALL IDEA INTO A BIG FRANCHISE.

IN 1961 CROC PURCHASED THE COMPANY FROM THE BROTHERS FOR 2.7 MILLION DOLLARS.

YES YOU HEARD IT RIGHT, JUST 2.7 MILLION DOLLARS.

ABOUT MCDONALDS.A LARGE CORPORATION IN FAST FOOD INDUSTRY..MAJORITY OF RESTAURANTS OWNED THROUGH FRANCHISES..THEY EMPLOY ABOUT 447000 PEOPLE..HENCE ONE OF THE MOST WELL KNOWN BRANDS OF THE WORLD

COMPETITION

& MANY MORE………

GOING INTERNATIONAL

1971-MCDOANALDS GOES INTERNATIONAL ASIA-TOKYO,JAPAN EUROPE-GERMANY,NETHERLANDS1967-CANADA1971-AMSTERDAM,SYDNEY1979-RIO,BRAZIL1990-RUSSIA,CHINA1996-INDIA( 2 GREAT THING HAPPENED IN THIS YEAR FOR INDIA, ONE WAS McD AND THE OTHER WAS ME……)

The First McDonalds Drive-Thru opened in 1975 in Arizona

Happy Meals added to McDonalds menu in 1979

McDonalds launched the new worldwide Balanced Active lifestyles publicity campaign in 2005

What is the secret?

A billion dollar question

CONSISTENCY: Same Quality everywhere (Not a Myth But a Miracle)

Innovativeness : Introduction of new products and services

BUILDING A STONG BRAND EQUITYA WIDE ARRAY OF MARKETING CAMPAIGNS

GOING BEYOND BURGERS TO INTRODUCE A NEW PRODUCTLINE THROUGH BRAND EXTENSION

AFFORDABILITY-THE KEY FOR LURING THE MASSES

CLEANLINESS-ALL MCDONALDS STORES ARE VERY NEATLY MAINTAINED

SWOT ANALYSISSTRENGTHS:

LARGEST FAST FOOD MARKET SHARE

CHILDREN TARGETTING

LOCALLY ADAPTED FOOD MENUS

WEAKNESSUNHEALTHY FAST FOOD

NEGATIVE PUBLICITY

NEW PRODUCTS

THREATSTRENDS TOWARDS HEALTHY EATING.

LOCAL FAST FOOD CHAINS.CONTROLLED EXPANSION.

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

.CLEAN ENVIRONMENT

.FAST FOOD

.HIGH QUALITY SERVICE

.AVAILABLE TO EVERYONE

YES ,THEY HAD A CRISIS IN THE MIDDLE,BUT THEY CAME BACK STRONG AND STUCK TO THEIR CORE BRAND VALUES.

How has McDonald's grown its brand equity over the years? Has McDonald's changed in different economic times or in different parts of the world? Explain.

THROUGH:GREAT MARKETING CAMPAINS NEW PRODUCTLINES

NO,MCDONALDS WAS ONE OF THE FEW RESTAURANTS THAT DID GOOD EVEN DURING RECESSION,HENCE SHOULD STICK TO ITS STRATEGY OF PROVIDING AFFORDABLE QUALITY FOOD

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

.HEALTHY DIET

.INCREASING COMPETITION(PIZZA HUT, SUBWAY).COMMODITY COST INFLATION

SUMMARY.HISTORY-STARTED IN 1955(FRANCHISE)..ALWAYS HAS BEEN THE WINNER AMONG THE COMPETITORS..HAS ITS PRESENCE WORLDWIDE HENCE A VERY SRONG BRAND..AMAZING MARKETING ,AFFORDABILITY LEADING TO A SALES HIKE..HAS A HEAVY COMPETITION ..NEEDS TO TAKE CARE OF FOOD SAFETY AND INTRODUCE HEALTHIER ITEMS IN THE FUTURE.

DISCLAIMERCREATED BY A THEJ THANAY, NIT TRICHY, DURING A MARKETING INTERNSHIP UNDER Prof SAMEER MATHUR,IIM LUCKNOW.