This case analysis is a part of marketing internship under Prof. Sameer Mathur.

1. “GOLDEN ARCHES”
AND
BRAND EQUITY

2. WHAT IS MCDONALD'S?
• It was founded in 1940 by Richard and Maurice
McDonald's and then sold to Ray Kroc.
• McDonald's is the world’s leading fast food chain
providing their 58 millions customers daily and in
119 countries.
• Ray Kroc further expand it internationally in 36,900
locations

3. WHAT MAKE IT SO BIG??

4. MANY FEELS ITS MORE BRAND PROMINENCE THAN
COMPETITOR HELP TO CREATE DISTINCTIVE IMAGE
IN CONSUMERS THAT IS BRAND EQUITY.

5. WHAT
IS
BRAND EQUITY

6. BRAND VS BRAND EQUITY
• Brand is a name, term or design which helps to distinguish
between services and goods of different sellers.
• Brand equity is the added value to products and service with
consumers. No brand can sustain without brand equity.

7. HOW
TO
CREATE THIS EQUITY?

10. McDonald’s constantly use Television Ads, print ads and digital
platforms to stimulate its awareness.

11. • Sponsoring global events like FIFA world cup helps to create
its global awareness.

12. SETUP STRONG BRAND
ASSOCIATION

13. McDonald finally become “Healthy”

14. “I’m Lovin’ it.”
connect with
McDonald’s
large consumer
base and keep
them coming
back again and
again.

15. McCafe is the
best brand
extension for
McDonald’s as it
now helps to
compete with
Coffee giants like
Starbucks.
SUCCESSFUL
BRAND
EXTENSION

16. THIS IS WHAT “SUCCESS” IS

17. What are McDonald core brand values? Have these
changed over the years?
Aggressive expansion around 1980s lead to its core value
dilution.
McDonald’s prefer 5 P’s : people, products, promotions, price
and place vary according to different environment and culture.
Core values of company are Quality, cleanliness, services and
value.

18. Should McDonald’s changed its strategy with oscillating
economic times in different parts?
McDonald’s should always regulate its pricing strategy for
same products in response to consumers.
Include regional food products in their main menu help to
connect to its expanding consumer base.
For introduction of new brand product McDonald’s mass
communication and tracking consumer response is crucial for
its success.

19. What risks McDonald’s will face in the future?
Health consciousness is a major concern which McDonald’s
need to resonate with their quality.
Increasing fast food market competitors which provide more
than just burgers and hamburgers.
“Cheaper fast food” still limited to narrow urban market.

20. SUMMARY
Richard and Maurice McDonald started 15cents
hamburger with golden arches in California
Ray Kroc further bought it for $2.7 million.
Build strong brand community in 119 countries and
serving 70 million people daily.
Maintain its brand equity by successful creating brand
awareness, build strong brand association and generate
consumer loyalty.
McDonald’s regulates its food menu according to regional
needs.

21. DISCLAIMER
Created by Navdeep Jain,IIT Kharagpur during a marketing
internship by Prof. Sameer Mathur, IIM Lucknow.