Quality Service

• Standard menu structure • Fast served food

• Consistent taste • Multiple stores
• Familiar smell • Accessible locations
• Recognizable logo • Family-friendly outlets
McDonald’s 4 value • Friendly service
propositions (QSCV),
consistent since 1955

Copyright © 2019 by Boston Consulting Group. All rights reserved.

Cleanliness Value
• Assembly line production • Everyday value deals
• Food hygiene • Set meals
• Low prices through:
• Economies of scale
• Franchising model
• Real estate ownership

Source: Team Analysis, https://www.mcdonalds.com.sg/our-brands/mcdonalds-brand/,

https://www.thebalancesmb.com/mcdonalds-ray-kroc-quotes-2892155 0
Digital competition challenges 2
of McDonald’s 4 value propositions

Compete with McDonald’s values of “service”

3 broad categories of digital F&B apps and “value”

Service Value

• Food on demand • Lower switching

• Geolocation costs & easier
• User-friendly comparisons
designs between

Copyright © 2019 by Boston Consulting Group. All rights reserved.

• Improved food competitors
service • Customer loyalty
• Versatile payment programs
methods • Discounts &
promotions
Standalone Platform Payment
F&B apps F&B apps apps

Source: https://www.newgenapps.com/blog/how-mobile-apps-have-changed-
the-food-beverages-industry 1
McDonald’s develops global app, to compete at Zero Moment of Truth (ZMOT)

Stimulus ZMOT 1st MOT 2nd MOT

Awareness Search Purchase Consume

• McDonald’s logo on apps • McDelivery • In-app order, pay, track • Customer feedback
screen
• Store locator • In-store QR coupons &
• Push notifications deals
• Universal app for 48

Copyright © 2019 by Boston Consulting Group. All rights reserved.

countries

• Nutritional information

• In-app menu

Source: Team Analysis 2

 Key Performance Objectives
Purchase Frequency Ticket Size
(Traffic x Conversion) ($)

• Deals / Order winners • Deals & promos Cross / Up selling

promos

Online
• McDelivery Offline consumers

McDonald’s focus was

Sales Channels
on Online-to-Offline
(O2O) conversion
• Deals / Order winners • Deals & promos Cross / Up selling

Copyright © 2019 by Boston Consulting Group. All rights reserved.

promos
• Logo branding Entice consumers

Offline
• In-app menu Facilitate decision
making
• Stores locator Improved offline
presence
• Nutritional Healthy consumer
info market

Source: Team Analysis 3