Case study during an internship with IIM professor Sameer Mathur.

1. Whyso delicious ??

2. HISTORY8
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3. TODAY
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4. COMPETITORS
&
REVENUES
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5. Reasons For
Success
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6. Risks
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7. TACKLING
RISKS
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8. Questions
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9. SummarY
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10. BY
Richard and Maurice McDonald
Started in 1940 with hotdogs.
Yes, that’s right! Not burgers.

11. Timeline 1
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12. So How Big
Really Is
The
Company
Today?

13. The Company Today
• Operates more than 35,000 outlets in more
than 119 countries.
• More than 1.9 million employees worldwide
• Feeds more than 68 million people worldwide
everyday. (In case you are wondering, that’s
more than the population of UK!)
• Generated $25.4 billion in revenues in the
year 2015. Also owns assets worth $38 billion
worldwide.

14. Let’s Race

16. Where Do These Revenues Come
From?
UNITED STATES.
EUROPE
APMEA
OTHERS

18. Innovation: Introduction of innovative
products and services to enhance
customer experience
 Strong emphasis on cleanliness, quality
and customer service.
Consistency: Same quality throughout the world
both in terms of products and services

19. Strong focus on building of brand equity
through
Smart choice of brand elements
Holistic marketing activities

20. Brand revitalization through brand
extension
Affordability of products. Attracts masses and
youngsters.
Localized product offerings satisfies local
tastes

21. Innovative and targeted advertising campaigns
and products
Ads and promotions targeted at kids and teens
Promotes the idea of sharing with friends
Emphasis on cheapness and affordability

22. Risks Faced
Associated with obesity all over the world.
Health conscious customers shifting to healthier
alternatives. Food safety issues also exist.
Rivals are offering more customization
options to lure in customers.
Expanding too fast => Dip in quality

23. Tackling Risks
Controlled expansion will keep focus on
core brand values and undiluted quality
of products and services.
Introducing healthier items in the menu
Slimming the menu down & focusing on
customization

24. What are McDonald’s core brand values?
1. Giving back to communities
2. Believe in Mecca's system
3. Strive continually to improve
4. Operating business ethically
5. Placing customers at core
Have these changed over the years?
In late 2000s McDonald start to make more profit and changed its core
values due to that it has to face a decline but later on it applied:"plan to
win" strategy and again McDonald's was on track
Initially McDonald's has served only hamburger but later on it also served
Big Mac, Quater Pounder, Happy Meal and according to different culture
and locations like McAloo Tikki in India pepper McPuff in China.

25. Q2. McDonald's did very well during the recession in the late 2000s.
With the economy turning around for the better, should McDonald's
change its strategy? Why or why not?
Ans.
McDonald's has won in the period of recession by providing more
customer based service and focusing on cost reducing and quality
enhancing strategies. It also focused mainly on children and
introduced Ronald McDonald's clown to attract children. So in the
economy turning around McDonald shouldn't change its main
strategy. Once customer decided that now McDonald has changed
and shifted to earning profit they will start to leave and competitive
brands will start to take advantage of that

26. Q3. What risks do you feel McDonald's will face going forward?Q3. What risks do you feel McDonald's will face going forward?Q3. What risks do you feel McDonald's will face going forward?
Q3. What risks do you feel McDonald's will face going forward?
Ans.
Although McDonald's serves great quality and service food but after all it is
mainly a fast food. Over the years many health issues like obesity have been
seen due to fast food chain. Thus McDonald's should prepare itself to face such
kind of problem in future. These problem can be overcome by introducing new
green healthy food to its fast food chain. McDonald's can expand to a full time
restaurant serving veg and non-veg food. It can also extend its Desserts chain
value giving more ice cream flavors and designs which have nothing to do with
obesity and still attract more children to McDonald's

27. Summary
• Started in 1955(franchise), the company has grown to be the world’s largest fast food chain
with assets worth around $38 billion and 1.9 million employees.
• Miles ahead of its competition in terms of sales.
• Has managed to build a very strong brand. The 6th most recognizable brand in the world.
• Continues to expand and grow at am alarming rate.
• Innovative marketing campaign along with good quality and affordability of both services
and products and localization fueling growth.
• Often associated with increased obesity which might lead to customers migrating to
healthier alternatives.
• Plagued with food safety issues in many countries.
• Needs to introduce healthier options and control its expansion to maintain lead in the fast
food industry.

28. DISCLAIMER
Created by PRATEEK, IIT kanpur during the
marketing internship by Prof. Sameer Mathur,
IIM Lucknow
Prof. Sameer Mathur
PRATEEK