Growing the McDonald’s BrandSubmitted By

Khushboo Solanki (PGP31412)

IIM Lucknow

Brand Elements

Name• McDonald’s

Slogan• I’m Loving it!

Color• Red & Yellow

Character• Ronald

Brand Mantra

Food

Folks

Fun

Evolution of the brand element - Logo

Brand Identity• Trusted for service quality• Cleanliness & hygiene• First choice for burgers• Hangout place for youngsters• Also a place for family• Happy & cheerful atmosphere• Personality – family oriented

Brand Image –Social & Family Oriented

McDonald’s as a Brand

Brand Positioning

Frame of Reference Points of Parity

Points of difference

Veg options Toys

Low price

Low Price Strategy• “Happy Price Menu”

introduced items starting at Rs. 20 in India• Later increased the same

starting at Rs. 25.• Slogan – “Humaare

Zamaane Ke Daam”

Market Penetration Strategy

Initially launched new outlets each

year

Later, focused on upgrading existing• Facilities• Operations

24-hour store services

Introduced Breakfast menu

Market Penetration Strategy

Breakfast menu introduced

• Generates 50% revenue• McMuffin & McGriddle

Drive-thru snacks 60% sales

Penetration in different Segments

Core• Mother and

Child: Happy Meals

Peripheral• Working Men:

Drive-thru breakfast

Market Development Strategy

Spread• 33,000 restaurants in 119 countries• 1.7 million employees• 64 million customers served daily

Different target segments• Happy meals for children & parents• Salads for younger women

Children & Parents

Young Women

Market Development Strategy

Teriyaki Burger in Japan

Vegetable McNuggets in

England

Maharaja Mac in India with

mutton instead of beef

McMasala & McImli sauces

in India

Specialized Menu Items

Menu items - India• More veg options were added• Indian spicy flavors were

introduced

Product Development Strategy

Issues related to poor health and

obesity

Healthier options were introducedFresh saladsHealthier Happy Meals for kidsBottled water and pedometer in adult Happy Meals

Other health initiativesBalanced Lifestyles platform for childrenGoActive! Campaign promoted by celebritiesRonald McDonald re-casted as sports enthusiast

Brand Repositioning

Product Development StrategyPremium coffee Shared meal segments like KFCcheaper than Starbucks

Vs.

Diversification Strategy

McCafe• Gourmet coffee shop – Portugal &

Austria

McTreat• Ice-cream & dessert shop

Diversification StrategyGolden Arcs Hotels• Failed in Switzerland

Wedding packages in Hong Kong• Warm and Sweet Wedding• 50 guests for $1,300

• Additional $165 for rented gown

Financials

Sales decline due to health issues

Gained back by taking new measures

Growth has slowed down due to price pressure

Advertising – Innovative Print Ads

Advertising – Ads promoting friendship• Mac Maharaja – Social Burger• “Familiarity Test” in India• It suggested spending more time

with your near ones and know them better• Slogan – “Thoda Time Aur”

Sports Celebrity Endorsements

Social Media – Best Brand in Category

Social Media to Answer Customers

Recent NewsWashington Post : “Why you might want to be skeptical of McDonald’s latest food changes”• Remove artificial components• Overcome losses

TechTimes: “McDonald's Latest Attempt To Make Happy Meals Seem Healthy Has Backfired”• Skin irritation on wearing device• Device perceived as toy by children• A very late move

Failed Brand Repositioning

Sustaining Number 1 position - Laddering Up

Listening to Stay on Trend

Customer centric

Remaining Authentic and Transparent

Personal social engagement

Quality service

Conclusion

Growth - Reached Maturity

Continues to grow with• Innovation• Flexibility• Diversification• Maintains standards

Disclaimer• Created by Khushboo Solanki,

IIM Lucknow• For Brand Management Course

• Under the guidance of Prof. Sameer Mathur, IIM Lucknow

References• http://www.mcdonaldsindia.com/• http

://www.socialmediatoday.com/content/how-mcdonalds-wins-social-ranking-number-one• http://

www.techtimes.com/articles/174117/20160818/mcdonalds-tried-make-happy-meals-seem-healthy-now-paying-price.htm• https://www.washingtonpost.com/news/wonk/wp/2016/08/02/why-

you-might-want-to-be-skeptical-of-mcdonalds-latest-food-changes/• http://marketrealist.com/2013/12/mcdonalds-global-footprint-bringi

ng-obesity-developed-emerging-markets/

Thank You!