A case study presentation on McDonalds.

1. Presented By
Neethu S Jayan

2. 
In May 15, 1940, at San Bernardino, California, two
brothers named Richard and Maurice McDonald
opened their “McDonald’s Bar-B-Que” restaurant.
HISTORY

3. 
 On December 12, 1942, the name was changed to “McDonald”.
 In 1954, Ray Kroc, a seller of Prince Castle brand multi mixer
visited “McDonald’s” and offered to open franchise the restaurant
elsewhere.
 . In April 15, 1955, Ray Kroc opened his first Mc Donald’s
restaurant at Des Plaines, Illinois.
 The McDonald’s restaurant was head quartered at Oak, Brook,
Illinois, U.S. they decides to move it to Chicago in 2018.
 The subsidiaries of McDonald include McDonalds ocean Eve, SF,
McDonalds Canada etc.

4. 
 The Mc Donald’s restaurant was head quartered
at Oak, Brook, Illinois, U.S. they decides to move
it to Chicago in 2018.
As per 2015 survey they own 36,525 restuarants
globally.
The present CEO and President of McDonald is
Steve Esterbrook.
Their slogan is “I’m Lovin’ It”
PRESENT SCENARIO

5. 
The total number of Mc Donald’s restaurants
globally was about 36,000.
The number of McDonald’s employees globally
was 15 million.
The total McDonald’s revenue in 2015 was 25.4
billion.

6. 
MC DONALD’S IN
INDIA
 Mc Donald’s opened its doors in India in October 1996 at
BasantLok in Vasant Vihar
 They have restaurants in Mumbai, Delhi, Pune, Ahamedabad,
Vadodara, Ludhiana, Jaipur, Noida Faridabad, Doraha,
Manesar and Gurgon.
 The Indian market was different in terms of customer’s tastes,
value systems, lifestyle, language, perception and purchasing
power, as compared to most of the other countries where they
had a presence. To establish themselves in Indian market, they
realized that they had to reengineer their entire marketing
strategy.

7. 
STRATEGIES ADOPTED
IN INDIAN MARKET
1) Product:
 The hamburgers are prepared from beef and pork but in
India, most religions do not allow the consumption of
these meats.
 McDonald’s first had to study the eating habits and
preferences of Indian consumers and provide an entirely
different menu.
 They completely removed pork and beef, and introduced
varieties such as the McVeggie burger and the
McAlooTikki. Even the sauces used are 100% vegetarian.

8. 
2) Place:
 It plays a very crucial role because the product should be
available to customer at the right place in the right
quantity without any delay.
 The number of McDonald’s outlets in India is increasing
exponentially, with one outlet in almost every mall,
marketplace, theatre, multiplex, airport, railway station,
metro station and near amusement parks.

9. 3) Promotion:
 McDonald’s promotion strategy consists of a mix of advertising,
personal selling, sales promotion, public relations and direct
marketing.
 Three main objectives of McDonald’s marketing are to make
people aware of the item, feel positive about it and remember it.
4) Price:
 The products are priced such that they can also be afforded by
middle class and lower middle class people.
 McDonald’s also offers various meals like happy meal, combo
meal, family meal, happy price menu etc.

10. 
 McDrive
 Mcexpress
 McCafé
 Create your taste restaurants
RESTUARANTS

11. 
 Hamburgers
 Chicken
 French fries
 Soft drinks
 Milk shakes
 Salads
 Deserts
 Coffee
 Breakfast
 Sandwiches
 Snacks & sides
MC DONALD’S MENU

12.  Mc Donald’s is an example of brand franchising. Being their own
boss in return, the franchise agrees to operate the restaurant in
accordance with Mc Donald’s standards of quality, service,
cleanliness and value.
 The cooking process in Mc Donald’s restaurants are broken into
small, repetitive tasks, enabling the staff to become highly
efficient and adept in all tasks.
 It recognizes that the success and profitability of Mc Donald’s is
directly linked to the success of the franchises.
 Benefits from National marketing carried out by Mc Donald’s A
brand is a name, term, sign, symbol or design which identifies
one organization’s products from those of its competitors.
BRANDING

13. 
COMPETITIVE
ADVANTAGES
 Striving to be cost leaders
 The speedy delivery of the products.
 Greater buying power
 Increased name recognition
 Rapid expansion
 Market dominance
 Increased advertisement and marketing budget.
 New revenue streams are created.

14. 
 They focus on Q,S,C & V.
 They stick on to their policies. For example, they shut
down their restaurant at France for not maintaining
standards, though it was yielding a high profit.
 McDonalds dominates most of the international markets
like Japan, Canada, Germany, Australia, England.
 It uses economies of scale for reducing the cost as it
operates on a huge scale.
 It is flexible with its products.
STRENGTH

15. 
 It is recognized as the world’s most recognized logos.
 It has a strong global presence and is considered as a
market leader in both domestic as well as international
market.
 To target or attract customers, they moderately priced their
products.

16. 
 Competition with the competitors in the fast food section
resulting in low revenue.
 Mc Donald’s expanded too fast, but Burger King and
Wendy’s have tastier meals.
 Negative impact due to sheer size of the organization.
 Low shelf life of majority of products.
 High employee turn over in stores.
 Yet to accomplish going with the trend of organic and
healthy food.
WEAKNESS

17. 
 In 1955, no such fast food providers as competitors against
McDonalds, in their home country.
 After they flourished in their home country they found
opportunities in introducing their products globally.
 It can adopt to the needs of the society and undergo an
innovative product line.
 It can research ways to include healthy products in their
menus across the world.
 It can upscale some of its restaurants locations to attract
more customers.
OPPORTUNITIES

18. 
 It can use digital media as a new way of advertising to
carter to a larger target base.
 Also can use text messaging updates to keep their guests
informed about the location of outlets.

19. 
 Regional and cultural differences.
 They had to alter their menu or product for different
countries and risk of people denying it. For example, the
menus in Arab countries comply with Islamic food
preparation laws.
 Other competitors like KFC, Pizza Hut, Burger King,
Wendy’s, etc.
 Health issues regarding fast food chain.
 Foreign currency fluctuations are regarded as a major
problem.
THREATS

20. 
1) What opportunities and threats did McDonald’s face?
How did it handle them? What alternatives could it have
chosen?
 The opportunities that McD had at the time of opening
was the potential of fast food chain restaurants.
 No real competitors were there to explore the market.
 As they were newly opened, products were moderately
priced.
 To be a major player in food services around the world.
 To provide something other than just Food and
beverages(QSC&V)
Questions

21. Threats
 The main threat that McD had
was acceptance from the
public as being a new brand.
 Regional and cultural
differences.
 Had to alter their menu and
products in accordance with
the country’s taste, preference
and laws.
 Now, competition from other
fast food chain restaurants like
Burger king, Wendy’s, Taco
etc.
How did they handle?
 By moderately pricing and
limited menu.
 By incorporating the local
dishes with its standard menu.
 Separate menu for India ,
Jerusalem etc.
 Special R&D team for making
their products more tastier and
eye appealing.

22. 
2) Before McD entered the European market , few
people believed that fast food could be succesful in
Europe. Why do you think McD succeeded. What
strategies did it follow? How did these differ from its
strategies in Asia?
 Mc Donald's succeeded as it was one of the first
restaurant to welcome children and family and thus
created an image of a family restaurant.
 It come forward with better cooking procedure and
smarter kitchen layouts with strict controlling.

23. 
 The children not only received a warm welcome but
also they were entertained with crayons and paper, a
play land and also by the clown Ronald Mc Donald
who could speak 20 languages.
 Asia was viewed as a potential customers but with
so much diversity, customs and traditions.
 The marketing strategies has to be changed in order
to get established in Asia. For example, in Japan a
burger is considered as a snack and it should be sold
as such.

24. 
3) What is McD’s basic philosophy? How does it enforce
this Philosophy and adapt to different environments?
 Be 1st in a market & establish your brand by advertising
heavily.
 McD also gives emphasis to Quality , Service, Cleanliness
and Value. They maintain close contact with customers ,
provide them quality products and fast service.
 To enforce this philosophy they have set standards,
layout of an outlet , tied up with universities to train
employees to maintain standards.

25. 
 They adapted to different environments by proper
environment scanning about the place, people and
local market. Advertising campaigns are based local
theme and reflect the different environments.

26. 
4) Should McD expand its menu? Yes or No? Why?
 Yes, McD should expand its menu.
 Firstly, they should consider the country’s eating
habits and laws. As per the current situation people
are more health concise and are avoiding fast food.
So addition of healthy foods to the menu can target
them as well.
 Secondly, a customer may become tired of the same
menu; additions to the menu can keep the customer
expectant.

27. 
5) Why McD is successful in many countries around the
world?
 The marketing strategy of McD is based on uniformity.
 They have different strategies for different countries
based on the local market.
 They do proper environment scanning about the country,
population, local taste and preferences of local market
before entering into the market.
 So proper planning yields good results.

28. 
A McD advertisement!

29. 

30. 