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Brand Audit McDonalds 2012

Brand Audit Objectives, Approach & Scope


Assessing and understanding the current status of a corporate identity is an important step
to take in determining how that brand will evolve. Bulls-i conducts Brand Audits to take
stock of existing brands, including identifying gaps between the vision for the brand and the
actual brand, and gaps between audience expectations of the brand and the existing brand.

Brand Audit Process


We begin by getting to the core of what your brand is and should be by measuring the
perceptions of corporate executives and other key stakeholders. Through confidential brand
audit surveys, one-on-one interviews and small-group sessions, we will capture the brand
goals, perceived brand values, and intended brand experience.
Through interviews with outside stakeholders, we will reveal the perceptions that
customers, partners and others have about the current brand. This understanding of the
actual customer experience with your brand will help to guide the process of brand
development.

Brand Experience Strategy


Brand Audits are important contributors to effective brand experience strategies and can be
complemented by stakeholder research, customer personas & scenarios, and a view of
the competitive landscape.
In addition, we are able to ensure that all visual instances of your corporate identity are
conveyed through individuals experiences with your product packaging, software user
interface, mobile application, websites and portals, service, and others.

Brand Audit McDonalds 2012

Background of the Brand : McDonalds


A Locally Owned Company:
McDonald's is the world's leading food service retailer with more than 33,000 restaurants in
118 countries serving more than 67 million customers each day. In India, McDonald's has
two Indian entrepreneurs: Amit Jatia, Vice Chairman, Hardcastle Restaurants Pvt. Ltd, which
has been awarded a Development Licensee status by McDonald's Corporation, U.S.A,
spearheads McDonald's operations in West & South India, while McDonald's restaurants in
North & East India is managed by Vikram Bakshi's Connaught Plaza Restaurants Private
Limited, which is still a Joint Venture with McDonald's Corporation.
Celebrating over 15 years of leadership in food service retailing in India, McDonald's India
now has a network of over 250 restaurants across the country. McDonald's India is a leader
in the food retail space, with a presence of more than 250 restaurants serving more than 6.5
lakh customers daily in India. McDonald's India and HRPL in particular has an aggressive
expansion plan - including market expansion, new customer outreach formats and menu
expansion. With HRPL becoming a Development Licensee in the year 2010, there are strong
and robust commitments to investments, expansion and growth. By 2014, HRPL plans to
double the number of restaurants it currently has.
HRPL is expanding its reach by expanding the portfolio and access points with formats like
from kiosks, drive thrus, web-delivery and petrol pumps in addition to the restaurants. In
2012, HRPL plans to open another 35-40 McDonald's restaurants in West and South India.
An Employer of Opportunity:
McDonald's India is an employer of opportunity, providing quality employment and longterm careers to professionals across the country. The average McDonald's restaurant
employs 40- 60 people from crew to restaurant manager. McDonald's invests in its
employees, leveraging world class-training inputs to create ambassadors of the brand and
creating food service professionals with global outlook. The brand currently has over 10,000
employees in India.
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Brand Audit McDonalds 2012

Respect for Indian Customs and Culture:


McDonald's worldwide is well known for the high degree of respect for the local culture of
each market it operates in. In line with this respect for local culture, India is the first country
in the world where McDonald's does not offer any beef or pork items. McDonald's has
developed a menu especially for India with vegetarian selections to suit the Indian palate,
and has also re-engineered its operations to address the special requirements of
vegetarians. Special care is taken to ensure that all vegetable products are prepared
separately, using dedicated equipment and utensils. This separation of vegetarian and nonvegetarian food products is maintained throughout the various stages of procurement,
cooking and serving. So much so that the mayonnaise and soft serves are also 100%
vegetarian, and McDonald's uses only vegetable oil as a cooking medium in India.
Quality, Service, Cleanliness & Value (QSC&V):
McDonald's is driven by the philosophy of Quality, Service, and Cleanliness & Value for
Money. This translates into a commitment to provide customers high quality products,
served quickly with a smile, in a clean and pleasant environment at an affordable price. This
effectively means that the McDonald's menu is priced at a value that the largest segment of
the Indian consumers can afford, while at the same time ensuring that quality is not
sacrificed for value - rather, McDonald's leverages economies to minimize costs while
maximizing value to customers.
McDonald's Corporation earns revenue as an investor in properties, a franchiser of
restaurants, and an operator of restaurants. Approximately 15% of McDonald's restaurants
are owned and operated by McDonald's Corporation directly. The remainder is operated by
others through a variety of franchise agreements and joint ventures. The McDonald's
Corporation's business model is slightly different from that of most other fast-food chains.
In addition to ordinary franchise fees and marketing fees, which are calculated as a
percentage of sales, McDonald's may also collect rent, which may also be calculated on the
basis of sales. As a condition of many franchise agreements, which vary by contract age,
country and location, the Corporation may own or lease the properties on which
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Brand Audit McDonalds 2012

McDonald's franchises are located. In most, if not all cases, the franchisee does not own the
location of its restaurants. The UK business model is different, in that fewer than 30% of
restaurants are franchised, with the majority under the ownership of the company.
McDonald's trains its franchisees and others at Hamburger University in Oak Brook, Illinois.
In other countries McDonald's restaurants are operated by joint ventures of McDonald's
Corporation and other, local entities or governments. As a matter of policy, McDonald's
does not make direct sales of food or materials to franchisees, instead organizing the supply
of food and materials to restaurants through approved third party logistics operators.
Products
McDonald's predominantly sells hamburgers, various types of chicken sandwiches and
products, French fries, soft drinks, breakfast items, and desserts. In most markets,
McDonald's offers salads and vegetarian items, wraps and other localized fare. This local
deviation from the standard menu is a characteristic for which the chain is particularly
known, and one which is employed either to abide by regional food taboos (such as the
religious prohibition of beef consumption in India) or to make available foods with which
the regional market is more familiar (such as the sale of McRice in Indonesia and McArabia
in Middle-East countries).
Advertising
McDonald's has for decades maintained an extensive advertising campaign. In addition to
the usual media (television, radio, and newspaper), the company makes significant use of
billboards and signage, sponsors sporting events from ranging from Little League to the
Olympic Games, and makes coolers of orange drink with their logo available for local events
of all kinds. Nonetheless, television has always played a central role in the company's
advertising strategy. To date, McDonald's has used 23 different slogans in United States
advertising, as well as a few other slogans for select countries and regions. At times, it has
run into trouble with its campaigns.

Brand Audit McDonalds 2012

Problems / Challenges

Health conscious customers Obesity Issue

With the range of unhealthy fast food products, McDonalds is facing a big time issue of
unwholesome food. With the changing trend of diet-friendly food, the company seems to be
losing out on its market share. Over the years, speculation has grown as to the quality of the food
being served at its restaurants around the world. McDonalds has been criticized for not providing
any nutritional value to its meals. However, McDonalds has tried to combat such accusations by
providing a nutrition guide on the front of all its packaged meals. However, critics have slated these
facts and figures for being irrelevant and absurd to even think such mass-produced hamburgers and
chips are a useful or nutritious part of any diet. On average, a McDonalds meal is high in fat, sugar,
animal-products and sodium, while being low in fibre, vitamins and minerals. Unsurprisingly, a poor
nutritional diet, obesity and other heart diseases are often being link with what McDonalds serves
to its consumers on a daily basis.

Wide variety of fast food brands leading to easy switch Call for Newness

Competitors have increased and competition will continue to increase in future. Fast
food seems to have become a weakness of this brand. Easy switch to other healthy
brands is posing a big big problem for the brand

Better, not just bigger.

When you go to any of its outlet you buy not only food but also an unforgettable
experience. But how to create this experience, that customer would want over and over
again? How to keep customers satisfied and eager every time they enter the door?
Expanding is not the only factor left with McDonalds.

Brand Audit McDonalds 2012

BRAND INVENTORY
Ranked 11th Best Brand (source: www.rankingthebrands.com)

How McDonald's evolved its marketing in India


When McDonald's India launched in 1996, urban Indians in Mumbai and Delhi typically ate
out three to fives times a month, according to AT Kearney, the management consultancy. In
the 12 years since then, that average frequency has doubled and analysts forecast that by
2011 the Indian quick service restaurant market will be worth 30,000 crore (about $6.3bn at
October 2008 exchange rates).
But from their earliest investments in India, multinational company (MNC) owners of
restaurant chains have struggled to adapt to the needs of India's many markets. Some
pulled out of the country after failed ventures. At the time, consolidation of the hugely
fragmented Indian retail sector had also barely begun, and there was scepticism that Indians
would prefer burgers and fast food to local food offerings.
However, in the intervening decade, McDonald's has continued to open new outlets in the
country, evolving its marketing strategy through several phases.
Twelve years of McDonald's India
McDonald's India was set up as a 50:50 joint-venture between McDonald's at a global level
and regional Indian partners such as Hardcastle Restaurants Private Limited in western
India, and Connaught Plaza Restaurants Private Limited in northern India.
The first Indian McDonald's outlet opened in Mumbai in 1996. Since then, outlets have
begun trading in metropolitan and Tier II towns across the country. By September 2008, it
had premises in Mumbai, Bangalore, Baroda, Pune, Indore, Nasik, Chennai, Hyderabad,
Surat and Ahmedabad.
Amit Jatia, Managing Director, McDonalds India, said: "The past decade has witnessed a
marked change in Indian consumption patterns, especially in terms of food. Households in
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Brand Audit McDonalds 2012

middle, upper, and high-income categories now have higher disposable income per member
and a propensity to spend more."
Phase I: Launching the brand
The starting point for McDonald's India was to change Indian consumers' perceptions, which
associated it with being 'foreign', 'American', 'not knowing what to expect' and 'discomfort
with the new or different'.
McDonald's wanted to position itself as 'Indian' and a promoter of 'family values and
culture', as well as being 'comfortable and easy'. Simultaneously, the brand wanted to
communicate that, operationally, it was committed to maintaining a quality service,
cleanliness and offering value for money.
Says Arvind Singhal, Head of Marketing at McDonald's India: "From a marketing
communications standpoint, we chose to focus on familiarizing the customer with the
brand. The brand was built on establishing functional benefits as well as experiential
marketing."
Until 2000, McDonald's India did not have enough reach to use mass media such as
television advertising. Instead, most of its marketing effort focused on outlet design, new
store openings and PR about its attempts to tailor a menu to Indian tastes.
Amit Jatia said: "Products like McAloo Tikki burger, Veg Pizza McPuff and Chicken McGrill
burger were formulated and introduced using spices favored by Indians. The menu
development team has been responsible for special sauces which use local spices do not
contain beef and pork. Other products do not contain eggs and are 100% vegetarian. The
Indianized products have been so well received that we even export McAloo Tikki burger
and Veg. Pizza McPuff to the Middle East."
However the company did not escape food criticism in the country. For instance, it hurt the
religious sentiments of Indians by using beef flavoring for its "Vegetarian" French Fries.

Brand Audit McDonalds 2012

Says Sridhar, National Creative Director, Leo Burnett: "When McDonald's launched we took
a conscious call of not introducing any beef or pork in our products. Thus, when
controversies around McDonald's products started during the early and growth stages of
the Indian business, we reacted quickly.
"We educated our customers about the build of our products and did extensive kitchen
tours for our customers. We showed them how we use separate vegetarian and nonvegetarian platforms for cooking a first in any market for McDonald's."
II Phase: brand advertising
By 2000, McDonald's India was ready to begin TV advertising. Arvind Singhal said: "The first
Indian TV commercial, Stage Fright, attempted to establish an emotional connection
between the (Indian) family and the brand. Over the years advertising has reinforced this
positioning, supported by promotions."
The Stage Fright campaign aimed to establish McDonald's as a familiar, comfortable place. It
featured a child who suffers stage fright and is unable to recite a poem. On entering
McDonald's, he easily recites it in the store's familiar environment. A second campaign
featured a child and his family moving into a new place. He misses his previous surroundings
until McDonald's provides something familiar.
A still from the Leo Burnett/McDonald's campaign featuring a family moving home
These storylines were supported by other initiatives. The company's one-minute service
guarantee attempted to reinforce its reputation for fast, friendly and accurate service and it
also ran in-store events for mothers and children.
Mr Singhal says: "To kids sitting on the Ronald McDonald bench, pumping sauce from the
sauce machine became brand rituals."
K.V. Sridhar, National Creative Director, Leo Burnett, the company's agency in India, adds:
"In the launch phase the communication focused solely on building brand and product
relevance. The brand's scores on relevance to families and kids were very high."
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Brand Audit McDonalds 2012

Later, McDonald's realized there was untapped potential in the youth audience who
considered McDonald's expensive and mainly for children.
Sridhar says: "In 2004, we launched the Happy Price Menu with a value message for a
younger audience. For the first time McDonald's India saw a surge of younger consumers
and people from socio-economic class B walk into our stores.
"We had realized that the Indian consumer was price sensitive and even though the
organization managed to establish a sense of familiarity, Indian consumers continued to
perceive McDonald's as an expensive eating out option."
McDonald's "Happy Price" campaign
Phase III: Appealing to both ends of the age spectrum
In 2008, the latest campaign from the McDonalds-Leo Burnett stable uses father-son duos
from the Indian film industry to reiterate the theme of "Yesteryear's Prices". It features
Bollywood stars from past decades together with their sons and a message that prices have
not risen in line with the passage of time.
The Happy Price campaign has also been promoted via virals. Outdoor has also promoted a
home delivery option in a country where home delivery is common in urban areas.
McDonald's has also been exploring strategic tie-ups with Indian sports properties such as
the IPL cricket tournament, where it was one of the event's food providers.
Amit Jatia, however, says: "The eating out market in India is very large and has huge
potential fuelled by rising disposable incomes. There are many Indian and international
players who have entered in the market since the last decade and unbranded food chains
have also grown significantly. "The Indian consumer has seen value in what we have to offer
at our restaurants which is a testament to our model."

Brand Audit McDonalds 2012

Brand Elements
The first group presented are brand elements. There are many elements McDonalds uses and each
of them very often performs more then one function. What is more, McDonalds uses multiple
elements for the same function so the influence they have on potential buyers is much more faster.
Every one of brand elements provides positive contribution to the brand equity.
Brand name is the most important element when designing a brand. The name McDonalds is
famous, recognizable and cannot be mistaken with any other company. From the very first moment
it is spotted we know what it stands for. The big yellow name is always easily noticeable and its
bright colors attracts our attention instantly. Such a well thought out name allows introduction of
new items to the menu very easily, by simply adding Mc as a prefix to the product offered. Such an
easy operation allows McDonalds to feel safe, since its products cannot be mistaken by any other
product on a market.
The logo McDonalds use is strongly connected to the brand name. The capital M, sometimes
called Golden Arches, with the distinctive smooth shape looks the same as the one in the name. This
kind of smart connotation increases memorability and recognition of the brand. The direct
connection between those two leaves no room for a mistake. Easiness on putting it on any product
offered or in any form of advertisement invented, is an important brand building element. Having
such a simple, and on the other hand, so distinctive in shape and color logo allow legal protection
that does not need ant other special effort.
Another brand building element which McDonalds has invented is character Ronald McDonald. A
slim clown, with typically big red clown shoes, yellow clothes, red hair and big smile is a character no
child, after seeing it once, can forget. Characteristic friendly appearance makes it very easily to like
him. Nevertheless it might seem that it is geared towards children, McDonalds present him as a
friend of children and adults. The neutral appearance allows to place him in every restaurant. The
smile on his face suggests that after eating at McDonalds you will feel relaxed and happy.
The element of the brand that is difficult to describe is a jingle, which in case of McDonalds was
always used with a slogan. McDonalds has used many jingles in process of brand building, however
it was always one at a time. Since 1975 to 2003 the company has changed it 9 times, what gives
average of around 3 years per jingle. The current characteristic for McDonalds slogan, Im lovin it
is unchanged since its introduction in 2003. It is easy to memorize, nice to hear and likable. Using I
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Brand Audit McDonalds 2012

as a subject suggest that it applies to everybody. The word lovin concerns the feeling connected to
the last part of the slogan it. It is not explained what it means, is it the food, is it the restaurant,
is it the experience, or is it the brand. By using such an universal word, the slogan allows for every
consumer to put in his mind a word that suits best for him or her. Slogan which in advertisements
is accompanied with five characteristic tones etch in memory so deep that one can recall it instantly.
The adaptability of this element is rather low, however changes do not require as high costs as
changes in previous brand elements.
Another brand element of McDonalds is packaging. Always with the logo and slogan, specific for
different items. When having product in hands it cannot be mistaken with any the product of the
competitor. By having packages with colors, logo and brand specific appearance we feel that after
making the purchase we are still connected with the restaurant. However the packaging is changing
together with brand sponsoring or associations. The elements of the cups are different, so does the
cardboards, nonetheless the changes are always minor and product bought at McDonalds cannot be
mistaken with any other.
One more brand element that increases remembrance of McDonalds is signage. Easily noticeable,
attracting yellow neon McDonalds is always easy to notice. The attention is instantly directed on
this sign. Situating it on the roof of every McDonalds restaurant, regardless the geographic location
it is always unchanged, and so does the sign itself. Also the logo of McDonalds, Golden Arches,
when placed on substantial height is noticeable from long distances easily, thus function it perform
form the brand is exceptional. Together with specific colors and shape of the building there is no
chance for a mistake. Even if some element is not memorized entirely, there are other which will
make customer aware of the brand.
The last brand building element presented are web pages. In the era of internet contact with every
company and finding information about it, if it cannot be performed personally, is most likely to
happen by using internet. McDonalds offers very extended website, where all information needed
can be found, and if not, there is a place to ask them. McDonalds website promotes the brand very
well. The appearance suggests, that McDonalds know how to make everything smooth and well
connected. The domain mcdonalds.com is easily recalled since it is no different from brand name.
Even though making a typo can result in going to different website, McDonalds is monitoring
carefully the web for unauthorized use of their brand.

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Brand Audit McDonalds 2012

All brand elements presented are useful in brand building and help in creating McDonalds brand
equity. Each of them plays specific role in establishing and supporting the brand. Because
McDonalds uses all possible elements, the brand recognition and awareness level are so high. The
elements used by McDonalds are not different from other contemporary brand building strategies.
This diversity of brand elements and synergies between them are typical for companies which have
established a strong brand. The cohesion of strategy and form of communication, together with
lengthy duration is McDonalds key to success.

Supporting Marketing Programs


The McDonalds Corporation has created the Ronald McDonald House Charities (RMHC) in a bid to
create an organisation that will serve to help sick children and children in need
McDonalds has accepted and cherished that the majority of its customers are families with young
children. The organisation that has been built is to acknowledge all the children around the world
and to demonstrate how special each and every child is to its corporation. Annually, McDonalds
brings the top high school basketball talents in the nation together to raise money for this particular
charity.
With global warming becoming an ever-increasing threat to our environment and planet, the
McDonalds Corporation has taken responsibility to ensure each of its workplaces will become more
green
In 2008, in their efforts to provide eco-friendly workplaces and restaurants, McDonalds opened its
first corporate- owned pilot green restaurant. Such green attributes for instance included energyefficiency equipment and lighting.
The option for a healthier alternative has now become a reality for the McDonalds Corporation. In
recent years, McDonalds has actively strived to promote positive effects on the world and how we
as consumers are drawn to fast-food restaurants for their convenience and simplicity
Healthy eating is a very big part of society today, and, as a result, the McDonalds Corporation has
taken responsibility in providing healthier choices on its menu. With the introduction of organic
ingredients found in their coffee, milkshakes and ice-cream, as well as salads and a selection of
sandwiches instead of the typical burger and chips meal, McDonalds has recognised the need to
redesign its menu to benefit the health of the people who consume it.
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Brand Audit McDonalds 2012

Points-of-Parity and Points-of-Difference

The most important steps in developing a positioning strategy is to establish the pod and
pop. These should be done by establishing the competitive frames of reference by defining
the customer target markets and the nature of competition associated with each target,
they can define the appropriate points-of-difference and points-of-parity associations for
positioning.
POINTS-OF-DIFFERENCE
Points-of-difference (PODs) are attributes or benefits consumers strongly associate with a
brand, positively evaluate, and believe they could not find to the same extent with a
competitive brand. For McDonald the strongest set of association would be the friendly
environment

and

the

value

for

money

proposition

of

the

company.

These associations that make up points-of-difference are based on virtually any type of
attribute or benefit. Creating brand associations that are strong, favorable, and unique that
can become points-of-difference is a real challenge, but essential in terms of competitive
positioning.
McDonalds has truly differentiated it from the competitors in ters of prices and has made
the pricing its USP, it has understood that Indians are highly price sensitive and considering
that established a pod which by far is one of the only food joint talking about its low prices.
The

reason

McDonalds

pod

are

successful

is

coz:

These are desirable to consumer. The brand association in case of McDonalds are seen as
personally relevant to consumers as well as believable and Deliverable by the company.
Differentiating from competitors. Finally, the brand association McDonalds focuses on are
unique, are seen by consumers as distinctive and superior compared to relevant
competitors.
Any attribute or benefit associated with a product or service can function as a point-ofdifference for a brand as long as it is sufficiently desirable, deliverable, and differentiating.
POINTS-OF-PARITY (POPs), on the other hand, are associations that are not necessarily
unique to the brand but may in fact be shared with other brands. These associations come
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Brand Audit McDonalds 2012

in

two

basic

forms:

category

and

competitive.

Category points-of-parity are associations that consumers view as essential to a legitimate


and credible offering within a certain product or service category. which in case of
McDonalds are the food variety, the comfortable dining/sitting area etc - but these are not
sufficient - conditions for brand choice. Consumers might not consider going to McDonalds
based on only the basic fact that it provides food unless quality, service etc are associated to
it. Category points-of-parity may change over time due to technological advances, legal
developments, or consumer trends, but they are the "greens fees" to play the marketing
game. MC.D might change its category point of parity based on competition eg, if there is a
trend of offering complimentary drinks in the food joints then Mc.D doing the same is not a
pod bt. A pop instead. Competitive points-of-parity are associations designed to negate
competitors' points-of- difference. If, in the eyes of consumers, a brand can "break even" in
those areas where the competitors are trying to find an advantage and achieve advantages
in other areas, egg subway focuses on freshness of its produce, the ingredients , MC.D can
make this point a pop by stating "freshness has to be there no matter what, but what we
offer is more than just freshness, we offer taste" preposition.

Brand Architecture
The brand architecture of McDonalds is very simple.
For all the products (food and beverages) there exists an umbrella brand name as the
corporate brand is highlighted and used all the items i.e.mc float, mc grill, mc veggie, mc
aloo tikki, mc nuggets etc..
The corporate name visibility is maximum in all the products which clearly signify the
corporate dominance.
The product portfolio is simple with major prominence of burgers and the beverages. The
portfolio can be enhance and is under a great need of revamping the existing portfolio. This
can be done by adding up of more product lines and proper extensions.

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Brand Audit McDonalds 2012

To decide upon what has to be killed or sold off, its important the company understands it
has to add and remove its products a little more quickly than it does (e.g. Shake shake fries
are introduced and discontinued more frequently) likewise adding and removing other
category of products is important.
Market coverage is a big plus point for the company as McDonalds is available in every nock
and corner of almost every city and available in every vicinity of big cities.
There exists a great degree of commonality between the products i.e. spicy range has all
spicy products and the classic range had mild flavors in fact the portfolio is filled only with
the products which are too similar and have very less difference, which for now is fine but if
this is how McDonald keeps going it will soon face a problem of product overlapping.
Has a majority of flanker brands i.e. within same category mild changes and even the new
products launched are flanker. They should try coming up with high level entry brands to
compete with higher segment as well to widen its scope.
Lastly the company very strongly sticks to the line brand strategy, which is good but in the
long run addition and introduction of new products is required.
McDonalds

Burgers &
Sandwiches

Breakfast
Menu

Chicken

Salads

Snacks &
Sides

McCafe

Dessert

Brand Identity
McDonalds brand identity is more than just one offer. It is the set of offerings which make the brand
desired by the customers. McDonalds brand mission is "be our customers' favorite place and way to
eat". The enhancement of customer experience is a crucial element used by the company in building
brand equity. In the mission statement quality or the taste of the food is not mentioned. McDonalds
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Brand Audit McDonalds 2012

aims to be the favorite place, no matter where exactly and at what time. It is the place of not only
eating but also meeting. The way to eat presents the ideas that eating is more than just biting and
chewing food. It is the unforgettable experience involving more than one sense. Lets have a look at
the brand id prism:

Core Identity
Value offering: McDonalds provides value as defined by the product, special offers, &
buying experience given the price
Food quality: consistently hot, good-tasting at any McDonalds in the world
Service: fast, accurate, friendly, & hassle free
Cleanliness: operations are always spotless on both sides of the counter
User: families & kids are a focus, but serves a wide clientele
Extended Identity
Convenience: most convenient, quick-service restaurant located close to where people
live, work, & gather; features efficient, time-saving service; & serves easy-to-eat food
Product scope: fast food, hamburgers, childrens entertainment
Sub-brands: Big Mac, Egg McMuffin, Happy Meals, Extra Value Meals,
Corporate citizenship: Ronald McDonald childrens Charities, Ronald McDonald House
Brand personality: family oriented, all-American, genuine, wholesome, cheerful, fun
Relationship: family/fun associations are inclusive, McDonalds is part of the good times
Ronald McDonalds Childrens Charities engender respect, liking, & admiration
Logo: Golden Arches
Characters: Ronald McDonald; McDonalds dolls & toys

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Brand Audit McDonalds 2012

Value Proposition
Functional benefits: good-tasting hamburgers, fries, & drinks that provide value, extras such
as play grounds, prizes, premiums, & games
Emotional benefits: Kids fun via excitement of birthday parties, relationship with Ronald
McDonald & other characters, & feeling of special family times
Adults warmth via link to family events & experiences reinforced by the McDonalds
emotional advertising

Physical features M shaped arch logo, Ronald etc

Personality Friendly, adaptable, fun & warmth

Culture - American Culture, wholesome & quick service.

Relationship Family/fun associations

Reflection Cheap, all demography, quick service.

Self projection quick service & good quality food.

Brand Image
Brand image is one of the most crucial elements for McDonalds. Throughout the years image of the
brand have changed many times. It is not something unexpected, since the world is changing,
influencing and causing changes on many fields. The important for McDonalds was to identify these
changes on time, adjust performance of the company, and communicate what was done. All new
products, special offers, extensions or changes in doing business are communicated in various media
in order to keep customers well informed. The proper understanding of what brand stands for is a
key to successful brand building. However McDonalds had also problems with its brand image. The
company was criticized for high-calorie, high-saturated-fat menu. Items like milk shake or Big Mac,
the icons, were disapproved by some customers.

Brand Positioning
Positioning is a process of creating an image in the mind of consumers by which consumers can
understand the uniqueness about your product when compared to competitors product. In India
positioning of McDonalds has been directed as a Family restaurant. Then they started positioning
according to the kids as well by introducing new advertising of toys with their products such as
Happy Meal. In the start they made certain special efforts to not allow it to convert into a teenage
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Brand Audit McDonalds 2012

and adults (20 to 24 years of age) hangout place. Now youngster and adults has became so use to
fast foods that McDonalds should also target them and try to position McDonalds as a place for all.
They should target adults also because they can pay for quality and variety of products. This will help
McDonalds to be most recognizable brand in India for people of all ages. Or we can say that they
should follow concept of undifferentiated marketing in which they should offer same marketing mix
to mass audiences. This is due to the fact that in India has second largest population in the world and
if they adopt this approach and try to do positioning according to this approach then they will be
benefitted and their sales and revenue will surely increase.

Brand Mantra
McDonalds brand philosophy of Food, Folks, and Fun captures their brand essence and core
brand promise. Brand mantras must economically communicate what the brand is and what the
brand is not.

Brand Extension
The most recent McDonalds brand extension is into the gourmet coffee outlet industry
through its McCaf concept in particular countries as of now. It was already into beverages
but now altogether it has its own extension of beverages. Lets understand its brand
extension perimeters in detail.
A. Core/ Kernel
Focusing on the core/ kernel of McDonalds is a fun based, family oriented fast food chain.
B. Spontaneous Association
Cheap priced & quick service restaurants is what comes instantly in our minds when we talk
about McDonalds.
C. Latent Association
The Hidden associations of McDonalds can be quality, image, experience and variety.
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Brand Audit McDonalds 2012

D. No Go Areas
The core brand attributes of McDonalds make it easy to understand/logical in the eyes of
consumers for McDonalds to extend its brand into another restaurant concept, however not
easy to understand/ logical the eyes of consumers for McDonalds to open a chain of grocery
stores, weddings, water parks etc.
Hong Kongs Mcdonalds is the first city to start actual wedding packages for couples who
want to save some money, or perhaps just love McDonalds. As some of you (McDonalds
fans out there) may have dreamt of, your perfect wedding would consist of saying your
vows under the Golden M, having a baked apple pie wedding cake stacked up 10 feet tall,
and of course you cant forget your beautiful wedding dress made of colorful balloons. Is
McDonalds Brand extension going a little too far now?
THE STAGES MCDONALDS SHOULD GO THROUGH WHILE PLANNING AN EXTENSION
Understanding the level of consumer knowledge both desired. The level of knowledge that
people have about the company is close to the desired level as people are aware of its
origin, its ingredients and hygiene etc.
o

Determining the level of awareness: McDonalds has an awareness level of


98% in urban and sub urban areas.

The recall and recognition is high with 93% people able to recall the brand
and recognise it.

The major attitudes associated with McDonalds are those of preference and
positive outlook towards the brand.

The benefits associated: there is an absolute value benefit relationship


between people and McDonalds.

User association and symbols associated: Ronald and M logo are greatest
association McDonald possesses and the user profile varies from students to
families of income up to middle group.

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Brand Audit McDonalds 2012

Brand philosophy: which lie with McDonalds whole idea of providing with
people a whole meal and making people take time out of their lives and enjoy
with family and also providing them food that doesnt cost much

Brand Strengths & Weaknesses:


1. Strengths:
a. Outstanding IT capabilities and utilization, efficient supply chain management.
b. Offer consumer product value, convince and huge selection.
c. Expertise in Fast Food industry.
d. Brand Equity worldwide.
e. Consistency of food.
2. Weaknesses:
a. Some people consider McDonalds is not a good place for healthy diet, that serve
nothing but deep fried garbage.
b. Contributes to obesity.

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Brand Audit McDonalds 2012

BRAND EXPLORATORY
Brand Associations
Understanding brand equity involves identifying the network of strong, favorable, and
unique brand associations in memory. This association network constitutes a brands image,
identifies the brands uniqueness and value to consumers, and suggests ways that the
brands equity can be leveraged in the marketplace. This map not only identifies important
brand associations but also conveys how these associations are connected to the brand and
to one another. First, the map pinpoints several associations that are connected directly to
the McDonalds brand, such as service and value, and therefore are more closely tied to
the brands meaning. Second, the map shows how other associations are connected to
these close brand associations. For example, hassle-free, convenient and fast are
connected to the service association. Third, the map shows additional linkages between
associations. For example, several core associationsmeals, value, and service are
connected to one another but are not connected to other core associations, such as social
involvement.

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Brand Audit McDonalds 2012

CBBE Model
a. Salience
i. When consumers think of fast food, they think of McDonald's.
ii. The numerous stores also satisfy consumers on convenience.
iii. TV Commercials
iv. Home Delivery, Take-away & Drive through
b. Performance
In 2010, The McDonalds Corporation started their year determined to build momentum and
focused on its main goal; to strengthen the McDonalds brand on a global scale. The results were
more than satisfying with global competitive sales increasing by 5% and their operating income
growing by 9%. The McDonalds Corporation recorded a total revenue of $24,075 million in the
financial year 2010 (FY2011) an increase of $1.33 million compared to the financial year (FY2010). In
addition to these results, the McDonalds Corporation returned $5.1 billion to its shareholders
through share repurchases and dividends paid, and further provided a 27% return to investors for
the year. Moreover, McDonalds achieved a net income of $4,946 million in FY2011 compared to
$4,551 in FY2010. The operating income increased by $632 million to $7,473 million in FY2010.
In 2011, the total brand value of McDonalds increased by $4,019 million to $24,211 million.
McDonalds has further improved its brand rating from AAA- in 2010 to AAA in 2011 and increased in
its brand ranking from 18 to 17 within The BrandFinance Global 500 2011.
c. Imagery
A family with children

A treat to children , a fun place to be for the children

Urban customer on the move

Great taste, quick service without affecting the work schedule

Teenager

Hangout with friends but keep it affordable

Location

Global-presence

Brand Personality

Family friendly, low cost fast food business & eco-friendly

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Brand Audit McDonalds 2012

d. Judgement
i. Value offering: McDonalds provides value as defined by the product, special
offers, & buying
ii.

experience given the price

iii. Food quality: consistently hot, good-tasting at any McDonalds in the world
iv. Service: fast, accurate, friendly, & hassle free
v. Cleanliness: operations are always spotless on both sides of the counter
vi. They strive to be cost leaders and offer food at prices that cannot be
matched by their competitors
e. Feelings
i. Kids fun via excitement of birthday parties, relationship with Ronald
McDonald & other characters, & feeling of special family times
ii. Adults warmth via link to family events & experiences reinforced by the
McDonalds emotional advertising
f.

Resonance
i. Behavioral loyalty Cheap, quick service & tasty
ii. Attitudinal attachment Im lovin it!

Consumer perception analysis

As people are very health conscious these days, they want to know the nutritional
benefits of the food items they consume. Therefore, Mcdonalds should take action
to become the first in the world to make extensive nutritional information and
comprehensive ingredient listingsand other food facts available to the customer.

Mcdonalds has a strategy to provide the nutritional information on food wrappers,


tray placemats, their official website etc.

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People usually have an unhealthy perception about Mcdonalds.

Brand Audit McDonalds 2012

The strategy to provide nutritional facts will increase the turnover of customers as
well as create a healthy lifestyle.

Mcdonalds outlets often provided information on tray liners and food wrapper. This
information was available to them after they had ordered the meal.

Customers ability to interpret nutrition information on nutritional labels are limited.

Mcdonalds faces a negative perception for serving unhealthy food, limited menu and
limited service.

Mcdonalds is now facing changes due to consumers new tastes and health concerns.
Thus they are expanding their product range.

The core problem is that consumers still buy fast foods even they have a negative
perception about mcdonalds as regards to unhealthy food.

Mcdonalds has to overcome this issue by firstly changing its image from junk food
restaurant to a healthy food restaurant as this will attract health conscious
customers and enlarge the market scope. Secondly , by changing the behavior of the
existing customers by persuading them to buy balanced meal with mcdonalds new
healthy foods.

Mcdonalds did not want to replicate the existing packaged foods format whereas
customers are expecting more innovation in this field.

But it came up with new nutritional labels by including visual icons that represent
key nutrients.

As compared to different fast foods chains, mcdonalds has taken active steps to
create an awareness of nutritional labels through different channels.

Mcdonalds can encourage the public to make informed food choices before purchases. By
knowing how to interpret the labels, people can manage their diet effectively based on a
healthy diet. The labels should be attractive. The company should also do road shows or
trade fairs to create awareness on the importance of practicing the nutritional labels.
Mcdonalds can change its image of being unhealthy to healthy by promoting healthy food

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Brand Audit McDonalds 2012

SWOT Analysis
STRENGTHS

Affordable menu options.

Very socially responsible.

Global operations all over the world.

Cultural diversity in the foods that are provided based on location of the restaurant.

Excellent locations in theme parks, airports, Wal-Mart stores, and along most well
traveled roads.

Food safety guidelines are strictly adhered to.

WEAKNESSES

Strong competition from similar businesses.

Training costs are elevated due to high turnover.

Very minimal concentration on providing organic foods.

Quality concerns due to franchised operations.

Focus on burgers and grease fried foods thus aggravating the problem of obesity.

OPPORTUNITIES

Opening more joint ventures with several different retailers.

Being more responsive to the social changes to healthier options

.Advertising the capabilities of Wifi internet services in the branches.

Creating more play places for the children in more of the restaurants.

Continue to venture into more enticing beverage choices.

THREATS

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Their marketing strategies that entice people from small children all the way to
adults and the criticism that they take because of it.

Lawsuits for offering unhealthy foods that have alleged addictive additives.

Brand Audit McDonalds 2012

The vast amount of eat in fast food restaurants that are open as competition.

Social changes to a more balanced meal including fruits and vegetables in servings of
five per day.

Focus on healthier dieting by consumers.

Down turn in economy.

Brand Evaluation
On the basis of convenience, the brand attribute approach has been used to evaluate the
brand. With the help of the attribute oriented approach we took a survey for McDonalds
by a 100 people on a random basis in which we basically told them to give ranks to these 4
brands on the basis of the attributes given, and as we can see from the above result that in
the case of HEALTHYNESS McDonalds rank given by majority of the people is low, which
easily states that one of McDonalds major concern in todays market is health conscious
customers.
McDonalds'

Subway

Subway

Wimpy

TASTE

FRESHNESS

QUALITY

HEALTHINESS

DESIRABILITY

40

43

32

27

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Brand Audit McDonalds 2012

Competitor Analysis (source: www.brandirectory.com)

This graph shows a comparison of brand values and enterprise values, allowing the user to
compare, for his/her selection of brands, absolute brand value, and the proportion of
business value represented by each brand.

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Brand Audit McDonalds 2012

This graph will show the relationship between brand rating and how hard a brand is working
for the business, for those brands selected.

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Brand Audit McDonalds 2012

Recommendations

Renovating the casual chain restaurant to increase foot traffic.

Rebuilding the lost trust, by introducing healthy food menu. Eg revamping of maybe
happy meal with fewer fries & more fruits.

Avoid customer confusion. McDonalds is not cognitive, it is reflexive . We treasure


not having to think about it. It just is. By extending its range with McDonald is
creating a need to think

Managing the brand is not an easy task. However there are certain models which are helpful
and provide good background for assessment of the brand. It cannot be denied, that brand
is minor part of doing business. It influences identification, practicality, loyalty and many
other operations which create differences between brands. Building a strong brand requires
not only strategy, but also tactics of how to implement it. Focusing on thorough evaluation
and creation of brand building process leads to success. And success is achieved, when
customers knowledge of the brand is inconvertible. The concepts presented are about
getting consumers or employees more involved with the brand. Proper development and
integration of brand elements is necessary to achieve this goal. Brand elements are integral
part of brand equity. Only the best companies, like McDonalds can use them to create the
magic moment which will stay with consumers for a long time. The creation of brand equity
is a main target of branding. The models which apply theoretical knowledge with consumer
surveys are the best valuator of brand equity. Choosing brand building strategy should be
done by carefully studying the current position of the brand.
Looking at the history of the leader in fast food business, analyzing its brand equity and
positioning on the market, helps understand the phenomenon of the Golden Arches. A
successful brand building proved to be a key to McDonalds success in todays world. When
competition is stiff, information flow unstoppable and consumer have more possibilities
then ever, getting attention is the crucial part of doing business. The role of McDonalds
brand is to keep customers engaged in the brand. Once they experience and understand the
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Brand Audit McDonalds 2012

complexity of brand values, their memories will lead them back to the company. Tying
product to the brand experience is as important as tying a feeling to the brand. It allows
consumers to discover the brand. McDonalds was successful in bringing brand personality
to life. McDonalds was also able to shape the entire generations what created a devoted
audience of potential customers. By selling not only features and benefits but also
experience, the specific lifestyle was promoted. Using relevant ways to reach customer is a
key to success of McDonalds. Keeping customer excited every time when making purchase
made consumers engaged with the brand. Every function is useful if it is managed properly
and applied to current needs.
World is changing, and so is McDonalds. Even though there were attacks on McDonalds
brand image, wise usage of branding strategies allowed to get away in one piece. Future of
the Golden Arches may not be easy, but it definitely is promising among other because of
careful brand building.

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Brand Audit McDonalds 2012

Conclusion
McDonalds, the leading global foodservice retailer, stands out because of its exceptional
brand management, significant global presence, leadership in sustainable practices and
admirable approach to consumer engagement. McDonalds has more than 33,500
restaurants in 119 countries and the Golden Arches continue to expand, most notably in
Asia. The company deftly manages its franchise model, delivering a remarkably consistent
customer experience while still allowing for locally relevant menu and service variations
(such as home delivery in India and China). The company is also working to respond to critics
by increasing the number of healthy menu options and effectively communicating its
sustainability efforts to both customers and employees, building energy saving and waste
reduction into staff incentives. Demonstrating its commitment to brand development,
McDonalds is repositioning itself to appeal to a broader audience, particularly by
redesigning its outlets and making them more modern, comfortable, and upscale. The
McCaf experience is another example of McDonalds flexibility and its efforts to appeal to a
broader group of customers. On the digital front, McDonalds Make Your Own Burger
campaign in Germany and the Netherlands used crowdsourcing to generate new recipes
and promotions. The campaign created significant digital buzz and positioned the brand as a
digital innovator, helping to further build the brands strength.

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