McDonalds Case Study Presentation

[Audio] Good morning everyone. It is a pleasure to be here today to present our case study on McDonald's. We will be exploring the history of the world-renowned franchise, their success in the Indian market, and the strategies they have adopted..

[Audio] Two brothers, Richard and Maurice McDonald, opened their restaurant in San Bernardino, California in 1940. Two years later, it was rebranded as McDonald's. In 1954, Ray Kroc visited the brothers' restaurant and went on to grow it into a globally renowned business. In 2018, McDonald's shifted its corporate headquarters to Chicago, Illinois. Since then, it has further extended its reach by creating subsidiaries such as McDonalds Ocean Eve and McDonalds Canada..

[Audio] McDonald's, the iconic restaurant, is head quartered at Oak, Brook, Illinois, U.S, and is set to move to Chicago in 2018. It has 36,525 global restuarants headed by Steve Esterbrook and their popular slogan is “I’m Lovin’ It”. Their global size is significant, with 15 million employees and a total revenue of 25.4 billion in 2015. Let us take a closer look at their current situation..

[Audio] When McDonald's entered India in 1996, they had to adjust their marketing strategy to fit the Indian customer's taste, values, lifestyle, language, perception, and buying power. They opened restaurants in cities such as Mumbai, Delhi, Pune, Ahmedabad, Vadodara, Ludhiana, Jaipur, Noida Faridabad, Doraha, Manesar, and Gurgon. Despite the challenges, McDonald's was eventually successful in their Indian expansion and gained a strong position in India's markets..

[Audio] McDonald's had to take various strategies into consideration when entering the Indian market. One of these was Product; with the majority of religions not allowing beef or pork, McDonald's had to adjust its menu in order to suit Indian customers. This included introducing vegetarian burgers like McVeggie and McAlooTikki, as well as ensuring all sauces used were completely vegetarian. Place was also an essential factor - McDonald's opened up outlets in areas such as malls, marketplaces, theatres, multiplexes, airports, railway and metro stations, and amusement parks, so customers could obtain their products in the correct quantity and location..

[Audio] McDonalds' pricing strategy focuses on making their products accessible for people in all social classes. Prices are set to be affordable by the lower and middle class, while also offering a variety of meal options such as the Happy Meal, Combo Meal, Family Meal, and Happy Price Menu. This makes it possible for anyone to enjoy their products..

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[Audio] McDonalds is an iconic brand that has achieved success through their franchising approach. Franchisees are obliged to abide by the brand's standards that guarantee quality, service, cleanliness and value. The fast food giant has also established a highly efficient cooking process, through the breakdown of tasks into small, repetitive steps. This model designates a well-trained staff that facilitates the business's profitability. Furthermore, McDonalds has benefited from diverse national marketing campaigns that allows the company to stand out from competition..

[Audio] McDonalds is a well-recognised fast food outlet renowned for its strong adherence to Quality, Service, Cleanliness and Value. Despite being profitable, the chain stays true to its policies, demonstrated by the closure of a French restaurant that failed to live up to standards. McDonalds has an international presence in Japan, Canada, Germany, Australia and England, due to their ability to use economies of scale, a cost reducing technique from the large scale of their operations. The franchise has also shown remarkable flexibility, accommodating to various customer needs and demands..

[Audio] McDonald's is one of the largest fast-food companies in the world, yet it has various weaknesses. Competition from other fast-food companies has caused its revenues to decline as it has expanded too quickly compared to its competitors such as Burger King and Wendy's which offer more appetizing meals. Furthermore, its size has had a detrimental impact, with products having a low shelf life and stores having high rates of employee turnover. Apart from that, McDonald's still has not adapted to the growing trend of organic and healthy food options..

[Audio] I'd like to talk about the threats McDonalds faces in the marketplace. These threats can be divided into regional and cultural differences, and competition. McDonalds needs to adapt to different regions by altering their menu or product, or risk losing customers. As an example, menu items in Arab countries must comply with Islamic food preparation laws. McDonalds must also contend with the competition of other fast food restaurants such as KFC, Pizza Hut, Burger King, and Wendy's. Additionally, there is the health concerns associated with fast food, as well as foreign currency fluctuations which can cause major problems..

[Audio] McDonald's had the potential to explore the market with no real competitors when they opened their fast food chain restaurant. Taking advantage of low priced food and services, they gained a major foothold in the food service industry, while also providing Quality, Service, Cleanliness and Value (QSC&V). To build brand awareness, they chose a bright and bold red and yellow logo that has become instantly recognizable worldwide, a symbol of McDonald's values and commitment to their customers..

[Audio] McDonalds is a renowned brand globally, however it faced a number of obstacles when it had just started. Its challenge was to win public acceptance and adjust with regional and cultural diversities. To battle these, McDonalds tied up with local companies to customize its menu and products in keeping with the nation's preferences and laws. Also, it mixed local dishes with the standard menu for greater variety. It further had separate menus for India and Jerusalem, had a research and development team to make products more mouth-watering and competitively priced them..

[Audio] Since its entrance to the European market, McDonald's has proven to be an innovative company. Understanding the need to be family friendly to create a positive public image, the restaurant chain provided welcoming environments with crayons and paper, play lands, and Ronald McDonald speaking multiple languages. When expanding to Asia, McDonald's was able to adjust their marketing strategies to suit local customs and traditions. For instance, in Japan, McDonald's had to promote their burgers as snacks rather than full meals. Through the willingness to develop and adjust strategies to fit market needs, McDonald's has formed one of the most widely recognized brands worldwide..

[Audio] McDonalds' philosophy is focused on being first in a market and establishing their brand through heavy advertising. Quality, service, cleanliness and value are paramount in ensuring customer satisfaction. To maintain these standards, McDonalds set certifications and liaise with universities to properly train their employees. Adapting to a different environment requires a comprehensive environment scan to understand the local people and market. In addition, McDonalds' advertising campaigns are tailored for local themes to reflect the environment..

[Audio] McDonalds is a global brand that has seen success due to its consistent menu. In the current market however, it needs to expand its menu to remain competitive. Local tastes and laws should be taken into account, including offering healthier options to appeal to those looking to avoid fast food. Additionally, more options could keep customers from becoming bored with the same menu. To remain the leader in the fast food industry, McDonalds must adapt its menu to customers' changing tastes..

[Audio] McDonald's is a remarkable example of global success. To be successful in the different markets they enter, they invest time to understand the local cultures and tastes. This has allowed them to tailor their marketing strategies to reach customers in each country. At the same time, their near-uniform presence across the globe has helped create an iconic brand image, as well as developing a strong sense of loyalty among their customers..

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