pgp31263 sanjay gupta mcdonald's
TRANSCRIPT
Brand Extensions the McDonald’s way
How it all began
Established in 1940 by Richard and Maurice McDonald’s
They invented what we today know as ‘Fast Food Restaurants’ with the introduction of ‘Speedee Service System’
Today world’s largest chain of fast food restaurants serving more than 64 million customers daily
Over the Last Decade has been facing Challenging environment owing to -
Market Saturation
Global Health Concerns
Slumping Economy
Mcdonald’s tackled these challenges by using various
growth strategies as categorized by Ansoff’s Growth
Matrix and using brand extensions
Market Penetration Strategy
Product Development
Strategy
Market Development
Strategy
Diversification Strategy
NewMarkets
Current Markets
Current Products New Products
ANSOFF’S GROWTH MATRIX
Shifts from market development strategy to market penetration strategy
‘Better Not Bigger’Generate Greater
Returns
Upgrading existing Facilities and Operations
Market Penetration Strategy
Product Development
Strategy
Market Development
Strategy
Diversification Strategy
NewMarkets
Current Markets
Current Products New Products
ANSOFF’S GROWTH MATRIX
Adap
ting
its M
enu
to d
iffer
ent
cultur
al p
refe
renc
es
Market Penetration Strategy
Product Development
Strategy
Market Development
Strategy
Diversification Strategy
NewMarkets
Current Markets
Current Products New Products
ANSOFF’S GROWTH MATRIX
Role of Fast food in obesity problemhighlighted through various
mediums…..McDonalds reports first quarterly loss
Menu Overhaul
Other Initiatives
* Premium Coffee -> Cheaper than competitors* New line of hamburgers
* Chicken McNuggets
Market Penetration Strategy
Product Development
Strategy
Market Development
Strategy
Diversification Strategy
NewMarkets
Current Markets
Current Products New Products
ANSOFF’S GROWTH MATRIX
HotelsCafé
Wedding Packages
Brand Extensions
Line Extensions
Brand Extensions
Category extensions
McDonalds Promotion (Then and Now) – Brand resonance model
Initial communication was targeted towards the needs satisfied. The TVC’s focused on the
speedy delivery of quality foods
Subsequent communication focuses on the characteristics of the products. Quotes like
McDonald’s Cheese burgers are so delicious that you have to smile.
Ads show kids having a ‘happy’ time with the
happy meal toys. Initial promotion targets were
kids, gradually they shifted towards the
whole family
The brand promises consistent quality across different outlets. Also the service and the
ambience also add to the standard service
available throughout
Latest TVC’s shows family having a meal together and moms trusting Mcdonald’s
for the nutrition of her child
Toys and delicious food = Feelings of warmth, fun and
happiness
Summary
Challenging Environment
Tackles by getting into new markets
and new products
Shifts focus from tasty and delicious to
healthy
Increases breadth and
depth of awareness by introducing new product
Shifts target from consumer (Kids) to the customer (parents)
Sources• http://www.slideshare.net/102brandstrategy/ponds-men-brand-extension-abhinav-anand-
pgp30297brand-management-51977029 slide 2
• http://www.intrahealth.org/files/images/the-top-10-global-health-issues-to-watch-in-2013/10-to-watch-12.png slide 3
• https://consumermediallc.files.wordpress.com/2016/03/mcdonalds-full-breakfast-menu-all-day.jpg?w=680 slide 5
• https://upload.wikimedia.org/wikipedia/en/thumb/9/9e/Flag_of_Japan.svg/1280px-Flag_of_Japan.svg.png slide 7,8
• http://assets.nydailynews.com/polopoly_fs/1.2519956.1454598507!/img/httpImage/image.jpg_gen/derivatives/article_635/kale5f-4-web.jpg slide 9
• http://cdn.foodbeast.com/content/uploads/2014/04/new-ronald-mcdonald.jpg slide 10
• https://www.youtube.com/watch?v=etmC6tPaHSo slide 16
• Prof Sameer Mathur Notes – Slides 17,18,19
These slides were prepared during the PGP brand management at IIM Lucknow, under the guidance of Professor Sameer Mathur
Sanjay GuptaPGP Student
Indian Institute of Management, Lucknow