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Branding service: The

McDonalds Way

Introduction
It was started by two brothers on May 15, 1940
Then it was incorporated by Ray Kroc on Apr 15, 1955
They have presence in 121 countries with 30000 stores
Its was also the worlds largest advertising spender
80% of the stores are operated by independents
The main competition was Burger King, Wendys, and
Subway

The San Bernardino discovery


Raymond Albert Kroc (Ray Kroc) sales person to
changer of the food habit
Opened the 1st restaurant in Des Plaines outside
Chicago
Standardized operating procedures for easy replication
everywhere and anywhere
He started selling franchisees and by 1958 he had sold
79 franchises
Insolvency (1960) sales $75 million earnings were just
$159000

Ray Kroc Raised 2.7 million of loan from pension funds


and bought McDonalds from McDonalds brother in
1961
After the finances stabilized Ray focused on expanding
the chain
He launched a training program1961 and the main
focus was on (QSCV) Quality, Service, Cleanliness and
Value

McDonalds Rise
1960 1st jingle look for the Golden Arches
1963 they started sponsoring local childrens show
Bozos Circus
Ronal McDonalds debut on TV
During the same time they started 1st restaurant outside
USA
1968 Launched Big Mac
1972 Introduced Egg McMuffin
1971 new tag line You Deserve a Break Today
1972 2200 outlets

1973 1st McDonalds in college, Zoo


1975 1st drive thru
1977 Entire breakfast line
1979 Happy meal
After 1983 they launched several products but couldnt
sustain
1997 55 cent campaign failed
1998 Big extra burger failed
1999 Braille menus

McDonalds Partner Brands


1999 acquired
Chipotle Mexican Grill
Donatos Pizza
Boston Market

2000 Refresh campaign


We love to see you smile
2002 1st loss since its inception

The Im lovin it Campaign


2003 In December they launched this new campaign
They replaced the old slogan we love to see you smile
It was launched in all languages and projected
McDonalds as forever young
Singer Justin Timberlake was signed for musical
campaign
Signed in a multiyear global partnership with NBA
superstar Yao Ming
It was launched in over 100 countries simultaneously
and the company spent between $1 billion to $1.5
billion

CURRENT SCENARIO
McDonalds (MCD) is a fast food, limited service
restaurant with more than 35,000 restaurants in over
100 countries
It employsmore than four million people. McDonalds
serves 70 million customers per day, which is greater
than the population of France
According to IBIS World, in 2014, McDonalds had the
largest share in the fast food restaurant industry of 17%
in the U.S. The closest competitor, Yum! Brands (or
YUM), had a market share of 11%

McDonalds offers a uniform menuthatincludes fries,


the Big Mac, etc
However, to ensure that it connects with the
international markets, McDonalds offers locally relevant
food menus as well. For example, In India McDonalds
has a diversified product range focussing more on the
vegetarian products as most consumers in India are
primarily vegetarian

Serving food to 70 million customers daily requires


consistency, which comes from the ingredients as well
as the food preparation process
McDonalds has set strict standards for its suppliers to
adhere to
McDonalds (MCD) has been diversifying its portfolio to
maintain growth
McCafewould also help McDonalds increase foot traffic
during breakfast, or non-peak, hours

Learnings
Market Penetration
Adjustments and Customized
Standardisation
Effective target audience massive
Played on the emotional aspect of the consumer
Low cost
Happy Meal

Future Prospects
Technology
Tie up
Table service
Bigger space