By, Hemasree P

Contents

 Where it all begin

 McDonald’s Today
 What made McDonald’s successful ?
 What are McDonald's core brand values?
 Have these changed over the years?
 With the economy turning around for the better, should McDonald's change its strategy?
Why or why not?
 What risks do you feel McDonald's will face going forward?
 McDonald’s fast growing competitors
 Summary
Where it all begin
Richard & Maurice
McDonald built hamburger
stands with golden arches in
California. 15$ hamburgers
were very popular.

Ray Kroc, a milkshake

machine salesman, bought
world franchise rights from
and spread the golden
arches around the globe.
 McDonald Brothers

Now we
know where
they met !

A Milk Shake mixer

Richard McDonald Maurice McDonald

Kroc became convinced that the setup of this small chain had the
potential to explode across the nation, and he offered his services to the
McDonald brothers.
McDonald’s is a real estate company !

McDonald's makes money on real estate via two methods.

McDonald's makes money on real estate via two methods.
First, it buys and sellsFirst, properties,
it buys and sellsas one might
properties, suspect.
as one might suspect.
Secondly, on top of the franchise fee (usually 8%) which McDonald's charges it's franchisees to the corporately-owned
Secondly, on top of the franchise fee (usually 8%) which McDonald's charges
properties
it's franchisees to the corporately-owned properties.
McDonald’s Today

McDonald's (Or simply McD or Micky D's) is

an international hamburger and fast food Serves 68 million
restaurant chain. McDonald's primarily sells customers daily
Serves 68 million customers daily
hamburgers, cheeseburgers, chicken
products, French fries, breakfast items, soft 36,900 outlets
36,900 outlets in
in 120 countries

drinks, wraps, and desserts. A McDonald's 1201.9countries

million Employees
restaurant is operated by either a franchise,
an affiliate, or the corporation itself. 1.9 million Employees
About McDonald’s

Goal :
Quality, Service, Cleanliness and value (QSC&V) for each and every customer.

McDonald's brand mission “is to be our customers' favorite place and way to
eat and drink. Our worldwide operations are aligned around a global strategy
called the Plan to Win, which center on an exceptional customer experience –
People, Products, Place, Price and Promotion”

Business Model:
Three legged stool of Owners, suppliers and company Employees.
What made McDonald’s
successful ?
Building brand equity

Creative marketing campaigns

Brand extension

Localised menus

Low priced menus

for masses

Advertisements

Promotions

McDonald's Cultural Adaptation with localized menus

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

The core values of the company was Quality, service, cleanliness and value
(QSC&V).

Their values were reflected on their Products and their service.

Through the 80's they lost their sense of direction due to the aggressive
expansion of the company.

They recovered by implementing "Plan to Win" which provided the

company's 5 Ps
- People, Product, Promotions, Price and Place.
With the economy turning around for the better,
should McDonald's change its strategy?
Why or why not?

The product that is selling a product is consumed more when people have less
money.

The product it was selling would meet the requirements of people who are
struggling during the economic crisis by giving them food at a cheaper price than
most restaurants would.

McDonalds should in fact change its strategy to keep its customers only slightly by
possibly improving the quality of their food broadening their menu.
What risks do you feel McDonald's will face going
forward?

McDonald's should offer more premium options and establish itself as a provider o
normal goods while maintaining the value that its customers expect.

Increasing health conscious consumers are opting for natural/healthier products.

Increasing Competition in the fast food sector.

Wider options for consumers to reach out for other than just Burgers and fries.
McDonald’s fast growing competitors
 Summary
• Richard & Maurice McDonald started 150 hamburger stands with golden arches in
California.

• Ray Kroc, a milkshake machine salesman, bought world franchise rights. He later purchased
the company from the brothers for $2.7 million.

• Builds the most recognizable brand in the world.

Diversifies its menu to stay in the competition.

• Low pricing and intensive marketing campaign fuels the growth of the company.

• Health conscious society might move on to healthier options,

• Needs to introduce healthier options to stay in the competition

Thank
you !