This Slide is About McDonald's Case Study

1. Case Study

2. Brief History of McDonald’s
The first McDonalds was built in 1940 by the
McDonald brothers (Dick and Mac) . Started off as a
hot dog stand in CA [1937] The McDonald brothers
realized that hamburgers were their most profitable
menu item, and changed their business to serve a
limited menu.

3.  McDonald’s is World’s Leading Hamburger Company
 The motto of the organization ,i.e., Quality, Service,
Cleanliness and Value
 Supporting social issues and believes in sustainable
development
 The Head Quarters of The McDonalds Corporation is
at Oak brook, Illinois.

4. Figures Pertaining To McDonald’s
 Expanded Across 118 countries with over more than
36,000 restaurants, 2nd Largest Employer in USA Just
After Walmart
 More than 75% Restaurants Running on Franchisees
serving simple, fast and enjoyable food experience over
58 Million of People each day globally

5. Location

6. Revenue statistics For McDonald’s
For FY 2009
 Revenue worldwide :- US $ 22.6 Billions.[Rs.994
Crores]
 Operating Income :- US $ 6.51 Billions.[Rs.286 Crores]
 Net Income :- US $ 4.31 Billions.[Rs.189Crores]
 Total Asset value :- US $ 29.2 Billions.[Rs.1284 Crores]
 Total Equity :- US $ 13.2 Billions.[Rs.580Crores]
[NASDAQ and Dow Jones.]

7. Key People’s at McDonald’s
 Enrique Hernandez, Jr. [Chairman of McDonald’s
Corporation ]
 Stephen J. Easterbrook[President and Chief
Executive Officer]
 Mr. Amit. Jatia [JV Partner, McDonald’s India] (West
and South)
 Mr. Vikram. Bakshi [JV Partner McDonald’s India]
(North and East)

8. McDonald’s India
 McDonald’s in India works on a Joint Venture
agreements between the McDonald corporation and
the Franchisee.
 Connaught Plaza Restaurants Pvt. Ltd is the franchisee
partner for North and East region.
 Hard Castle Restaurants Pvt. Ltd is the franchisee
partner for West and South region.

9. Products

10. Target Segments And Positioning

11. Types of Restaurants
 "McDrive" locations near highway offer no counter service or
seating
 McCafé is a café-style accompaniment to McDonald's
restaurants and is a concept created by McDonald's Australia
(also known, and marketed, as "Macca's" in Australia), starting
with Melbourne in 1993.At the end of 2003 there were over 600
McCafés worldwide.
 Create Your Taste restaurants:Using the dedicated Create Your
Taste (CYT) kiosks a person can choose all ingredients including
type of bun and meat along with additional extras. The CYT food
is presented on wooden boards, fries in wire baskets and Salads
in china bowls and metal cutlery. These services are a slightly
higher price due to the gourmet ingredients and cost of labor.

12. Sustainability
McDonald's is putting people, processes and practices
into place to make sustainability the new normal – for
business, society and the world at large.
 Sustainable Packaging of Food Products.
 Animal Health And Welfare
 Care about changing Global Climate
 Sustainable Dependency on Beef

13. Sustainability &
Charity

14. McDonald’s Core Brand Values
 Simple, easy and enjoyable food experience for its
customers.
 Focus on high quality food, faster home delivery
service while maintaining hygienic food conditions.

15. What Happened to Those Values Over
Years?
The company’s aggressive deployment policy during
1990s and early 2000s of opening around 2000 new
restaurants, lost focus and direction resulting in
untrained employees, dirty condition of restaurants
and irresponsive customer service. This led to sharp
decline in brand equity and huge setback to company’s
brand image .
Hence, company Could not keep pace with its expansion and forgot its core values.

16. What Happened Afterwards?
 The company analyzed all their faults and implemented a
strategic effort called “Plan To Win”.
 The new framework refocuses on offering a better higher
quality consumer experience rather than a quick and cheap
fast-food option.
 Refurbished restaurants , colorful Packaging and aware
customers about McDonald’s health consciousness by
adding green vegetables and salads in meals.
 Better implementation of 5 Ps- People, Products,
Promotion, Price and Place and adapted to different
environment and cultures to reflect different tastes in
different regions.
 The famous “Supersize “product placed in Guineas Book of
World Record – sold like hot cakes.

17. As a result stock prize increased to 170% and sales
continued to increase and topped $23.5 billion in 2008.
Hence, McDonald’s did very well in recession through
the strategic planning to win.

18. Probable Risks that Company Face Going
Forward
 McDonald’s expanding strategy should be a balance between
quantity as well as maintaining proper quality of products.
 There may be huge financial loss if the plans and strategy
doesn’t work properly due to ineffective management or
unfamiliar terrain.
 McDonald’s plan of expansion requires huge investments and
training of employees as well as maintaining quality foods and
on-time delivery.
 Company have to tackle against unscrupulous people who are
illegally selling fake products under McDonald’s brand.

19. .

20. Summary
 McDonald’s- A brief Introduction
 McDonald’s Products
 Target Segments And Positioning
 Sustainability
 Core Brand Values, Was It Remain Consistent Over
Years
 Marketing Strategy After The Setback–Leads to
increased Brand Positioning & Profit to the Company
 Future Risks

21. This Slide Is Based On The Knowledge and Experience Gained By
Mr. Prashant Kumar , Jadavpur University, during An Internship
on “Marketing Management” Under Prof. Sameer Mathur, IIM-L