mcdonalds marketing case study

Mcdonald's consumer profile, mcdonald's advertising strategy , promotion for broadcast, billboard ads, outdoor ambient marketing, mcdonald's digital marketing strategy, become a digital marketer in 2022, mcdonald's marketing strategy - a case study.

In 1940, California was where the first McDonald's opened. It became well-known quickly for its tasty hamburgers and friendly service. Eight years later, it was one of the first places to switch from traditional table service to fast food. It added new kinds of burgers and milkshakes to its menu. The success of the development led the company to sign its first franchise agreement in 1952, which led to rapid growth worldwide. The company runs about 40,031 restaurants worldwide, and sales in other countries brought in about $21.076 billion in 2019.

McDonald's marketing strategy has helped the company achieve the success it commands today. From the start of its growth, the company wanted to build strong brand recognition and market penetration to help promote its growing franchise business. As the company's number of customers grew, they did more research on demographics to help them target easily. McDonald's marketing strategy includes investing in online and offline marketing methods that spread its clear, brand-centered messages to a large audience and using other channels like its dedicated mobile app to reach and keep loyal customers.

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McDonald's has a wide range of customers because it uses mass marketing and has low prices at fast-food restaurants. Most of the chain's customers are between 35 and 54. Buyers, both men and women, often have low to average incomes. They are known as brand-loyal casual diners who spend an average of $7.79 each time they eat.

Many of these customers are parents of young children who like that the brand's atmosphere and food are good for families. This market group was first targeted in 1979 when Happy Meal, a set of children's meals with a free-themed toy, was introduced.

McDonald's website wants to create a "pleasant, entertaining environment for everyone to enjoy." This shows how many different kinds of people it wants to attract. The brand does primary market research to determine how to market itself and make sure it fits the demographics of the people it wants to reach. McDonald's uses surveys and questionnaires in stores, on social media, and through its mobile app to find out how happy customers are with the food, service, delivery, and other things. McDonald's Community and other digital channels are always being watched to keep track of what customers say and do.

McDonald's spends a lot of money on billboards and TV ads. In 2018, the company spent nearly $1.5 billion on advertising in the US alone. Outdoor, TV, and radio ads aren't likely to reach many people, so digital marketing strategies are used to send consistent information to people who aren't likely to see or hear the ads.

McDonald's marketing strategy uses TV and radio to get the word out about its brand and promote new menu items, meal discounts, and charitable work. Its broadcast channels and times are chosen so that most people will watch or listen. In November 2018, when the NFL season was at its peak popularity, McDonald's is expected to have spent $52.9 million on TV ads in the United States. This shows the importance of the fast-food chain getting the most prominent broadcast ad positions.

McDonald's has a lot of traditional billboard ads, which have the same marketing goals and content as its TV ads. With billboards that range from static to digitally interactive and are placed in high-visibility, high-traffic areas, the company tries to keep its target demographic and other connected consumer groups thinking positively about its brand.

This is a great example of how multiple ways to promote the same goals can make the campaign more successful compared to campaigns that only use one method.

McDonald's also does creative and interesting outdoor ambient marketing. Ambient advertising is when promotional materials are put in places or on things that are very unusual or unexpected or that aren't usually used for advertising. McDonald's is using this type of guerrilla marketing to make more of an impact on customers. McDonald's campaign shows this for its "Massive McMuffin Breakfast." During the whole year of 2010, the company put up big paper takeout bags with the name of its new breakfast item on major streets in New Zealand. The unexpected and hard-to-miss image got a lot of attention from people walking by, as shown by the many photos of the scene people took and shared on social media. This helped promote the McMuffin breakfast.

The brand's street markings at pedestrian road crossings are another example. They are meant to look like fries sticking out of a McDonald's-branded package of fries.

Online advertising helps the brand reach its goals of building brand awareness and creating demand. The information used online is similar to what you might see in a McDonald's TV ad or on a billboard. However, both the language and the graphics are made to work best on the social media platforms used, such as Twitter, Facebook, and Instagram. By asking customers to post pictures of their meals online, McDonald's takes advantage of the growing food photography trend. In fact, between September 2018 and February 2019, 4,9 million logos of McDonald's were posted on Twitter around the world. This made McDonald's the second most pictured brand.

The company also works on search engine optimization (SEO), but its "organic" SEO method does better than "sponsored" promotion. As of December 2019, 90.7% of the search traffic to mcdonalds.com came from natural search results, while 9.3% came from sponsored keywords.

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McDonald's marketing strategy in the digital medium includes customer interactions through social media like Facebook and Instagram. The customers interact with the brand and with each other on social media. Also, the company offers various discounts and coupons through their social media pages and the company app. McDonald's was one of the few companies that performed well during the 2000s recession. The reason for the success was that the company communicated its strategy to the consumers.

McDonald's digital marketing strategy allowed the company to fight back rumours circulating on social media in 2018. The company got a Long Term Excellence Award from the Marketing Society. The company responded directly to the allegations that it faced and was able to get its message out in the open.

McDonald's marketing strategy across the various offline and online methods has allowed the company to maintain its leadership position in the fast-food business. The target audience is families that allow most of the population to feel comfortable at the restaurant. McDonald's marketing strategy across the digital channels helps the company communicate clearly and directly.

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Jun 7, 2023

McDonald’s: Through the Golden Arches to Global Dominance

Customer Experience (CX)
Digital Management and Leadership

Written by Conor Ward

In marketing theory and analysis, we often stress that a brand is much more than just a logo. There are many factors involved when it comes to developing one that’s instantly recognizable (product offering, mission, tone, messaging and customer experience ).

But, McDonald’s is a brand that’s inextricably linked to one particular brand element: its Golden arches logo. It’s a powerful and meaningful image, built up over decades that evokes familiarity and a sense of fun for many customers.

Let’s look at how McDonalds used marketing and innovation to become a leading brand in a competitive market. We’ll also look at some of the challenges faced and consider how the company continues to modernize and adapt to embrace the changing digital landscape including artificial intelligence .

The Origins of Empire

Brothers Richard and Maurice McDonald opened the first McDonald’s restaurant in San Bernardino, California in 1940. The restaurant’s early years’ success led the brothers to franchise their concept to further locations, and the Golden Arches logo was first introduced in 1953 in Phoenix, Arizona.

Ray Kroc, a Chicago native and distributor of a milkshake mixing machine, visited the McDonald brothers in 1954, which led to him becoming their franchise agent. Kroc ended up buying the rights to expand McDonald’s throughout the US.

How McDonald’s Built a Global Brand

Kroc’s ambition was to bring the company to a larger scale which he did largely through clever and creative marketing.

Kroc - subject of the 2017 film The Founder - established a partnership with Coca-Cola in 1955 to be the McDonald’s beverage supplier, a key alliance which has endured to this day and helped drive both companies to global expansion.

One standout piece of marketing to drive this growth was the “Look for the Golden Arches!” campaign, introduced in 1960. With the logo gaining increased prominence and traction, this message was genius in its simplicity.

Ronald McDonald was introduced in 1965, and the character began appearing in advertising to target their audience of children, adding that all-important element of fun: albeit one that hasn’t continued so well into this century, despite going through a 2012 makeover.

The company ramped up its advertising campaigns during these years, involving major spending on media – TV, radio and newspapers – with billboards and outdoor signage also playing a role in building brand awareness. The emergence of McDonald’s as a major brand coincided with the golden era in TV advertising, and the company leveraged the medium to its advantage.

Another arena for brand exposure is McDonald’s ongoing sponsorship of sporting events, such as the FIFA World Cup, although their 41-year partnership with the Olympic Games ended in 2017 due to heightened competition, the need to fund menu changes and tech improvements along with bad press for selling ‘junk food’.

McDonald’s Braves Stormy Waters

The company has often been the focus of controversy over the years. As its power and prominence have grown, its business practices, environmental record, working conditions, and health issues have come under the microscope.

In 1990, activists from a small group known as London Greenpeace distributed leaflets entitled ‘What’s wrong with McDonald’s?’, criticizing its environmental, health, and labor record. The company sued them for libel and the case turned out to be the longest running legal action of all time in the UK, referred to as the ‘McLibel’ case .

Morgan Spurlock’s 2004 documentary ‘Super Size Me’ claimed that McDonald’s food was contributing to the increase of obesity in society, and the company was failing to provide nutritional information to its customers. Just weeks after the film premiered, McDonald’s announced that it was eliminating the super-size option from its menu, and creating the adult Happy Meal. Aside from nutritional and health issues, McDonald’s has been a key target of the “Fight for $15” movement which started in the U.S in 2012 as a ground-level push from fast-food workers who started to walk off the job in an effort to raise the minimum wage. Their efforts have had some effect, with 22 million workers seeing raises, and the issue is expanding into other sectors, like the “gig economy” and ride-share workers.

Modernization and Improving Image

Coming into the 21st Century, the company worked on addressing its deficiencies, improving its image and keeping up to speed with technologies. McDonald’s published its first ever Social Responsibility Report in 2002.

The tagline “I’m lovin’ it”, launched in 2003, has been a success, enduring in marketing campaigns ever since. Menu items continue to change according to health and environmental trends. The brand’s charity work is well known, like the ‘McHappy Day’ annual event and the Ronald McDonald House Charities. The corporate website highlights many areas of the company’s corporate and social responsibility , like climate action, beef sustainability, packaging, diversity, recycling and more.

Most recently—under the leadership of current CEO Chris Kempczinski—the brand rolled out its pivotal “Plan For Change”: an engaging and informative piece of content that outlines key objectives surrounding its revamped net zero emissions, sustainable food sourcing, efficiency, and inclusion and diversity initiatives.

Digital Transformation and Investment

“How do you transition from mass marketing to mass personalization? To do that, you’ve really got to unlock the data within that ecosystem in a way that’s useful to a customer.” McDonald’s CEO Steve Easterbrook

McDonald’s is in the midst of a digital transformation , adapting to new trends and leveraging technology to its advantage.

Pioneering AI decision technology

In 2019, McDonald’s purchased big data start-up Dynamic Yield Ltd, becoming one of the first global restaurant brands to integrate decision technology into its restaurants.

By leveraging its AI technology, McDonald’s enabled personalization in its drive thru menu and in-store kiosk displays by showing relevant items based on factors such as the weather, time of day or regional preferences. While Dynamic Yield was sold to Mastercard in 2022, McDonald’s will continue to scale and integrate the technology to further enhance customer experience.

However, some customers were not fans of this new software, Ren Adams (@resinsbiren) made a drive thru order only to have the passenger’s order who pulled up beside her also included! Other users have reported mishaps with the AI technology adding multiple orders or misinterpreting requests.

Customer Loyalty

Its ‘My Rewards’ app is so successful that in 2021 alone it earned 100% more downloads than its main loyalty competitor, Starbucks.

By developing a cohesive eco-system based on automated technologies, the brand plans to drive extra loyalty from its existing customers while creating a far more bespoke experience by tracking key insights from digital menus, food collection points, and mobile app interaction.

Speaking on the initiatives, McDonald’s President and CEO Chris Kempczinski, explained:

“Digital changes everything. So today, with 90% of the customers coming into my restaurant, I don’t know who they are. I don’t know their prior purchase. I don’t know what their buying pattern is. As I get better and better visibility into that customer, I can actually track and identify their preferences over time.”

The idea here is not only to drive an immense level of personalization , but to also improve operational efficiency in a way that improves output as well as speed of service.

Driving centralization

McDonald’s has centralized its digital strategy for its social media accounts, simplifying their entire social operation, and allowing them to respond to customers in a personalized manner.

The launch of McDonald’s global brand hubs , a series of offices around the world, employs a ‘follow the sun’ model of engagement to track and interact with customers in real-time, on a constant basis. With thousands of brand mentions a day to deal with, this forms a key part of the digital strategy.

Inspiring communications and campaigns

Recent advertising campaigns have focused on advances in customer experience and digital innovations, highlighting how the brand is making life easier for customers.

The brand’s most recent forward-thinking campaigns include its artistic ‘McDelivery Pins’ print billboards, its star-studded influencer-led ‘Wanna Go To McDonald’s?’ initiative, and its quirky ‘Raise Your Arches’ campaign.

Spearheaded by British filmmaker, Edgar Wright, this stand-out video ad likens raised eyebrows to the famous Golden Arches.

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Amplified by the hashtag #raiseyoureyebrows, the campaign has earned droves of engagement from various channels.

By partnering up with trending celebrities for its Famous Orders collaborations - including its Travis Scott Meal and J Balvin Meal - McDonald’s has tapped deep into the consciousness of Gen Zers while boosting in-app loyalty exponentially in recent years. In fact, the app installs skyrocketed by 23% during the initial week of its big BTS Meal promotion. No small feat in such a saturated industry.

However, McDonald’s has reprioritized its advertising budget in a bid to get more value and efficiency from its spending. A reduction in overall ad spend (a drop from $98.7 million in 2014 to $63.8 million in 2022) as well as more focused campaigns has proved to be a winning approach.

Tapping into community

The lion’s share of McDonalds’ traffic comes from organic search, direct engagement, and paid advertising—but what’s particularly interesting is the fact that community platform Reddit is one of the brand’s most engaged social channels.

It appears that the colossal impact of its various marketing initiatives, irresistible consumer deals, and commitment to making change has resulted in an ever-growing online community where fans share thoughts, opinions, and insider McD’s hacks.

This Subreddit provides the brand with access to no end of consumer insight for future marketing initiatives while offering an opportunity to connect with its audience on a personal level.

This video ad showcases McDonald’s ability to tap into memorable everyday moments to position the brand as a fast food purveyor for the people. With a wealth of content, from the funny and inspirational to the enlightening and educational, McDonald’s also earns healthy levels of engagement from its YouTube channel .

McDonald’s: Analysis and Final Thoughts

The digital revolution represents a major challenge for McDonald’s, a brave new world where it needs to adapt to remain strong and profitable. The company is showing that it’s up for that challenge, however, making some smart moves in order to stay ahead of the chasing pack.

“Long-term vision and commitment to staying the course goes a long way. Too many digital transformation projects are launched with the flawed expectation of jam tomorrow. McDonald’s is chasing the digital secret sauce over a far more pragmatic time frame,” according to digital commentator Stuart Lauchlan.

Millions of people continue to engage with, and buy from, the company daily. It’s an incredible success story, and it will be interesting to see how this powerful brand will continue to evolve.

Published 2019, updated 2023

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McDonald's Marketing Strategy: How McDonald's makes you love it!

Learn about mcdonald's iconic marketing strategy and advertising campaigns. read how mcdonald's aces the 4ps of marketing mix - product, price, promotion & placement..

overview#goto" data-overview-topic-param="brief">Brief history
overview#goto" data-overview-topic-param="believes">What McDonald's believes in
overview#goto" data-overview-topic-param="present">McDonald's as a company today
overview#goto" data-overview-topic-param="strategy">McDonald's Marketing Strategy?
overview#goto" data-overview-topic-param="iconic">Iconic Marketing Campaigns
overview#goto" data-overview-topic-param="burgers">Thinking beyond burgers
overview#goto" data-overview-topic-param="hungry">How McDonald's makes you hungry?
overview#goto" data-overview-topic-param="model">Franchise business model
overview#goto" data-overview-topic-param="key">Key Takeaways

McDonald's is one of the world's most popular and successful fast-food restaurants worldwide. The company has a long and storied history, where its business model is widely studied and imitated.

Cars parked in front of McDonald's restaurant during night time

In this case study, we will take a closer look at McDonald’s marketing strategy that is set to help them maintain a 34.3% market share by 2026.

A brief history of McDonald's brothers

McDonald brothers franchised brochure in 1952.

Source - McDonald's Corporation

McDonald brothers Richard and Maurice McDonald found the fast food chain in 1940.

The brothers originally operated a hot dog stand but eventually transitioned to a hamburger stand.

They developed a new and innovative business model that relied on standardized procedures, assembly-line production, and low prices. Their Speedee Service System included a 15 cents hamburgers, fries and shakes of limited menu.

In 1954, Ray Kroc became involved with McDonald’s as a franchise agent. He was so impressed with the McDonald brothers’ fast food company that he convinced them to let him expand the chain nationally.

He envisioned scaling McDonald's food with 1000+ fast food restaurants across the US alone. Ray Kroc played a crucial role in developing McDonald's business strategy to achieve this feat and beyond. He recognized the importance of creating a strong brand identity , and he made sure that McDonald's focuses on quality, convenience, and value.

The famous Golden Arches

The McDonald brothers were particular about the basic idea of its architectural design too. McDonald's invested to ensure its fast food restaurant was catchy across the driveway with its Red and White Mansard Roof design, also known as their famous Golden Arches.

Early blueprints for signature McDonald’s Red and White restaurant with Speedee road sign.

The above image shows early blueprints of McDonald’s signature Red and White golden arches with a road sign. Today these golden arches contribute to uniquely positioning their brand in the fast food industry.

What McDonald's believes in

McDonald's corporation mission statement is -

T o make delicious feel-good moments easy for everyone .

This indicates a strong focus on being a global and accessible brand in the food and beverages industry.

McDonald’s corporate vision is -

To move with velocity to drive profitable growth and become an even better McDonald’s serving more customers delicious food each day around the world.

This indicates a focus on profits and growth, but in a way that makes them a better version of themselves. This is evident as McDonald's is known to constantly innovate by entering new markets and experiment with products.

The present day McDonald's as a company

McDonald's success is widely studied for its guerilla marketing tricks, bundle pricing strategy and business model. The company has weathered many storms over the years, including the recent global pandemic, which forced most of its restaurants to close.

At present, it faces issues with the Russian invasion of Ukraine, as covered by Trung Phan's substack issue , yet enjoys an increase in overall sales as stated prior in the case study.

An analysis of McDonald’s marketing plan and business strategy reveals that the brand is incredibly successful.

But what about its pricing strategy for profits?

Today, McDonald's is also extremely profitable, with its latest Q3 2022 earnings revealing a 9.5% increase in sales. Also, it enjoys a recession-proof revenue stream.

McDonald's is the world's largest restaurant chain by revenue serving over 69 million customers daily in over 100 countries in more than 40,000 outlets as of 2021. - Wikipedia

So, what makes McDonald’s business model and marketing strategies successful?

There are several factors at play, but the key among them is how McDonald's focuses on product innovation and customer satisfaction. With this, McDonald’s is able to curate its services for its global target audience.

Let us understand their marketing mix deeper by highlighting its marketing strategies.

What is McDonald's Marketing Strategy?

McDonald’s brand positioning strategies have shaped McDonald’s to make it an approachable brand across age groups. Their digital marketing mix is designed to appeal to their target market which is looking for affordable fast food.

Product focus areas

McDonald's primarily sells food products like delicious burgers, cheeseburgers, chicken products, french fries, breakfast items, soft drinks, milkshakes, and desserts. In response to changing consumer tastes, McDonald's has expanded its menu items to include salads, wraps, smoothies, and coffee. Its new restaurants across international markets also adapt to local food products to suit customer demands.

Let us learn more about its key marketing mix strategies across price, placement, product and promotion in the following sections.

1. McDonald’s Promotion

McDonald's leads in the fast food industry with its promotional techniques that include offers and freebies to regularly attract customers.

For example, McDonald's offers a "Happy Meal," which consists of a main meal, side, and drink for a discounted price. They have successfully fostered brand loyalty through their McDonald's Rewards program which allows 26 million customers to earn redeemable points for free.

Its marketing plan primarily includes advertising, public relations, online ads, and direct marketing. They also utilize point-of-sale materials and sponsorships to promote its brand.

Source - McDonald's Company Blog

2. McDonald’s Product

McDonald's product offerings include fast food items such as burgers, fries, soft drinks, milkshakes, and breakfast items. This includes some iconic menu items like Big Mac, French Fries, Christmas-themed McFlurry, Chicken McNuggets, etc. A key to McDonald's success is how it is consistent in terms of taste and quality, no matter which location you visit worldwide.

You can watch this interesting documentary on how McDonald's 'manufactures' consistent French Fries across the globe:

3. McDonald’s Pricing Strategies

McDonald’s marketing objectives include appealing to the price point of a target market that is looking for fast food service at low costs. This consists of families with children, middle-class income earners and anyone who needs less wait time for food.

Ray Kroc focused on adopting bundle price strategy, like, the Big Mac Meal, that becomes profitable when sold in bulk at low prices. This leads to an impressive 37% profit margins , which is much higher than 6-9% average QSR margins.

Today, it also focuses on self-serve kiosks and meal-based menu items to further reduce labour costs. Their pricing also follows purchase power parity to adapt to the international market segment.

For example, in India, McDonald's finally became profitable after 22 years by focusing on local tastes and spending habits of their target audience.

4. McDonald’s Placement

McDonald’s has a global presence in over 100+ countries. Their marketing strategy involves strategically placing restaurants in high-traffic locations near schools, shopping centres, and major highways. It was one of the first fast-food chains to introduce drive-thru service in 1975.

This basic idea at the time allowed McDonald's to tap into a new market – busy people who wanted to eat on the go. Today, their drive thrust is one of the fastest in the world with a 5.11 minutes record.

Infographic: America’s Fastest Drive-Thrus | Statista

They also grabbed market share by localising their menu to the customer demands in that country. This enables them to tap into local marketing channels and create unique experience for foreign travellers from their otherwise monotonous consistency.

Iconic Marketing Campaigns by McDonald's

McDonald’s marketing campaign don't just include Ronald McDonald or frequent discounts. Their marketing mix is includes iconic marketing strategies, partnerships, and aligning to target market demands that are today their competitive advantage.

Let's explore some of the most innovative tactics from McDonald's marketing mix -

McDonald’s Cobranding Strategy to Double Down its Reputation & Cut on the Advertising Cost

McDonald's has had a long and successful history of partnering with other brands to create mutually beneficial relationships. One of the most iconic examples, that is also its competitive advantage, is McDonald's partnership with Coca-Cola.

Here, McDonald's sells Coke products in its restaurants, while Coke promotes McDonald's products in its advertising. Thus, both are promoting each other to their customer bases.

This partnership began in 1955, just a year after McDonald's was founded, and continues to this day.

Partnership with other brands and creators that complement their fast service

McDonald's has partnered with other companies in various industries, including children's toy manufacturers for their happy meal offer, movie franchises, fashion designers, and even delivery brands like Uber Eats.

Such partnerships allow them to run exclusive products and a multi-brand experience that is complimentary in nature.

For example, McDonald's has partnered with Nike to create a line of McDonald's-branded athletic shoes.

Riding pop culture wave as marketing strategy with McInfluencers

McDonald's marketing plan includes working with pop stars and influencers to keep itself relevant with the times.

For example, Rapper Travis Scott partnered with McDonald's for an exclusive line of shoes and Travis Scott meal. A similar partnership was done with Michael jordan called McJordan which was a huge hit.

Running marketing campaign like these helps them align their brand value with the celebrity's fan base.

The Travis Scott Meal - McDonald's Official Commercial - YouTube

Showing up in movies as a marketing strategy

Just like Apple, McDonald's too uses the marketing strategy to makes movie cameos. It has sponsored many movies where their branding is carried out via product placements and featuring the golden arches.

These include The Sleeper (1973), All the President's Men (1976), Mac and Me (1988), The Flintstones (1994), Pulp Fiction (1994), The Pink Panther (2006), 13 Hours (2016), etc.

McDonald's has many documentaries made on their manufacturing processes. This includes McDonald brother and Ray Kroc founding story, with The Founder being a well-celebrated movie. The 1985 Santa Claus The Movie and McDonald's commercial is also a memorable example.

A scene snapshot from the movie 'The Founder'

Mcdonald's Green Marketing Strategies: Initiatives for making healthy food and a Sustainable Future

Recently, the company plans to use reusable packaging to reduce paper and plastic waste that the fast food industry is notorious for.

McDonalds France Starts Reusable Packaging To Reduce Waste

The McDonald’s brand has set a goal to be completely carbon Neutral by 2025. They are also working with suppliers to source more sustainable ingredients and packaging.

Such green marketing strategy measures appeal to the present generation that is eco-conscious. Reducing its own carbon footprint helps the company achieve an alignment with SDG goals.

Ronald McDonald and McDonaldland as competitive advantage

Did you know McDonald's has its own cinematic universe?

Ronald McDonald is an iconic character that represents McDonald's brand. They have built a fictional world too called McDonaldland that features other characters like the Hamburglar, Mayor McCheese, Birdie, Grimace, the Fry Kids and the Early Bird.

Clicking photos in the famous McDonald's bench with Ronald McDonald is a childhood memory that makes McDonald's a favourite fast foods joint. These characters have movies made too as a part of McDonald's marketing plan.

Very few fast food joint are able to match the brand value created by McDonald's Corporation with mascot-like marketing strategy.

woman in black jacket sitting on yellow and red chair of McDonald's

Dissing competitor brands as marketing strategy

It's very difficult to make pricing strategy as a competitive advantage in low priced fast food industry. So such brand have to compete with each other with massive marketing budget spends, that includes - outwitting each other too!

Many people enjoy thesee public advertising rants across billboards, commercials and even tweets. McDonald's vs Burger King or 'The Burger Wars' is a well-known brand battle covered by marketing nerds and international journal for businesses worldwide.

Such tricks help both brands benefit across their target markets, give audience exposure and reduce ad spends. It makes them more recognisable and earn media attention.

Ronald McDonald eating in a Burger King outlet

McDonalds marketing strategy with jingles

McDonald's marketing by using mass media to promote its products made it even more popular in the 1960s. The famous “I’m Lovin’ It" jingle was introduced in 2003, which has helped keep the McDonald's brand top-of-mind as the favourite fast food joint for millions of consumers worldwide.

This includes a song by the same name by Justin Timberlake credited to Tortora, Batoy, Pharrell Williams and Heye creative director Andreas Forberger:

The Hamburger University as a means for excellent customer satisfaction

McDonald's takes its customer service seriously. The company believes in training their high potential employees across managers, franchise owners and executives to ensure a consistent and pleasant customer service worldwide.

Here, they team leadership principles, pricing strategy, identifying competitive advantages with respect to placement, how to improve sales volume and other business strategies.

Thinking beyond burgers by venturing into new markets

McDonald's went ahead from burgers to further increase their target market segments with its famous breakfast menu and McCafe brand. The McEgg meal and McMuffin food proudcts are very popular worldwide.

Its pricing strategy fits the consumers who are looking for quick bite as they move for their work or school.

McCafe has proven to be an affordable alternative to expensive Starbucks coffee. The menu items are bundled such that it complements well with the breakfast menu.

How McDonald's marketing strategy makes you hungry?

The Red and Yellow colors were not randomly selected by the brand. These colors play a very important role in making you feel hungry!

Red color makes you feel an impulse and a sense of urgency. While yellow is comforting, yet energetic enough to take action.

Also, the red ketchup and mustard dips which are usually used along with fast food products also align with these colors.

McDonald's shop during night time where its logos are distinctly visible

Such color psychology tricks along with the scent of fries make you immediately hungry when you enter any McDonald's restaurant. These colors are also distinctly visible and bright during night time.

Why the franchise business model works for McDonald's

Opening new restaurants to rapidly scale was possible thanks to McDonald's franchise model. Running a franchise model isn't easy. But a strong focus on consistency and branding has made McDonald's a must read business strategy case study.

It's successful mainly due to below reasons -

McDonald's is a real estate company

McDonald’s owns most of its restaurant properties, which gives it greater control over costs and profits. This also allows McDonald’s to generate income from franchising and rent, which account for a significant proportion of its revenue.

It owns $28.4 billion worth of buildings and lands across the world!

Scale with Efficiency and Repetition

The company’s restaurants are designed for quick service and high throughput, which helps to keep costs down. McDonald's also benefits from having a relatively simple, limited menu that can be easily replicated across its thousands of restaurants worldwide.

McDonald’s Unique Refinancing Strategies During Recession

During the recession, all the banks offer loans at the lowest interest rates so that they continue to buy, and the economy recovers soon.

McDonald's used this strategy in 2019 to their advantage and opened many global outlets.

Refinancing helps it pay off old debts (taken at higher interest rates before the recession) from certain banks and pay them off by taking loans from other banks during the recession when the interest rates are lower.

Thus, the company makes a profit by purchasing its own shares and selling them shares again when the market recovers.

Moreover, the surplus capital is used to acquire more franchises with its global outlets by refinancing.

Key Takeaways from McDonald's for entrepreneurs

If you're an entrepreneur looking to venture into fast food industry, here are some major takeaways from McDonald's business and marketing strategy -

Less is more

Focus on key products and deliver them well. Do not offer too much and compromise on quality.

Build systems and processes

Focus on building systems that can work consistently and develop SOPs around them to scale.

Larger target market means more marketing budget

If you are targeting EVERYONE - be ready to finance the necessary marketing strategy to acquire customers.

Be adaptable

Figure out a way to adapt to changing customer demands, while still maintaining your core values. McDonald's is a clear example of how one can innovate with consistency.

Adpot a Bundle Pricing strategy

Study McDonald's bundle pricing strategy to club complimentary products together and offer discounts on them to increase sales.

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McDonalds marketing strategy: Inspiring Findings from a Case Study

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Published on Feb 23 2023

McDonalds marketing strategy: Inspiring Findings from a Case Study

Introduction to mcdonald’s, about mcdonald’s, mcdonald’s marketing strategy – the 5ps, mcdonald’s challenges.

The History of McDonald’s growth was something more than what had been expected. From being just a drive-through restaurant to earning college credits from Hamburger University, they’ve had a great journey, not just as a food service but as a great competing business in the market as well. And the market competition that its competitors face is no exception.

Right after World War II, there were a lot of businesses introduced to keep up with the economy for survival. This is where most of the food-serving business came into the picture. With the increase in services, there was also an increase in market competition.

Case studies were conducted to thoroughly examine the causes of such difficulties in order to adequately explore how to solve them for businesses. They strive to identify a solution to the issue after conducting a thorough examination.

Here is another Sprintzeal article that will introduce you to some of McDonald’s successes from their business case studies. This is a compilation of the top five inspiring McDonald's solutions gleaned from the case study on McDonald's marketing and service.

The McDonald brothers, Maurice ("Mac") and Richard, established the first McDonald's restaurant in San Bernardino, California, in 1940. At first, it operated as a drive-in with a limited food menu. This made it easier to provide a high-quality service while also being quick and efficient.

This limited menu included a 15-cent hamburger, a few varieties of shakes, and fries. This helped the McDonald brothers operate their speed service system effectively and introduce it to other places by franchising it. To adapt to mass expansion and engage more customers, they continued to add new varieties of shakes and burgers.

In 1955, Ray Kroc opens the first franchised McDonald's in Des Plaines, Illinois as its franchising. The first advertisement for MacDonald’s was done in the 1960s as a first mode of promotion for the business.

20 years into the business, McDonald’s brothers began to face heavy competition within the same business and service. Yet again, for being a quick-service restaurant, they had to face a lot of direct competition. Most of its competition came from Taco Bell, Subway, Burger King, and KFC. Here is how McDonald's tackled its competitors to become a worldwide success.

Since the competition in the field was heavy, every business began to come up with their own unique strategy to compete with one another. Direct competition's harsh reality is that it must be met with new, similar, and relevant products. Another unavoidable fact is that you must attract customers away from your competitors while also providing satisfactory service.

" To grow under such competition is to make a way out, to reach out to the world..." And so they did. Here are some of the findings that contributed to McDonald’s worldwide success. The 5Ps marketing strategy allowed them to reach a wide audience. The 5Ps are five important factors to consider: place, product, price, people, and promotion.

One of McDonald’s primary objectives is to ensure that the product fulfills every customer’s demand and also to maintain the same bond over the long term. McDonald's cherishes its customers, which is why they adapt their services to suit customer preferences and lifestyles. They value building long-term relationships with their clients and customers.

The following are some inspiring findings for McDonald’s worldwide succession:

McDonald’s marketing strategy – Place

McDonald's franchised locations are one of the best strategies they have implemented for the best results. They majorly target people of young ages, like college students and family, since almost every McDonald's outlet is a fun place to visit and to play at. With this, McDonald’s customer count grew due to its loyalty to its customers.

After a small survey, it was noticed that, on average, an adult is spending about 7+ USD for a single meal. This was because the outlets are easily accessible, but more than just being accessible, it was because the pricing was very reasonable and affordable.

McDonald’s marketing strategy – Pricing

The strategic planning done with pricing based on the customer’s profile can be called a masterplan. Another masterpiece was making it as affordable as possible while also not making it super cheap, which would cause them to run loose.

As the customer’s profile said, it was seen that the majority of people using the service were college adults and family members. This forced them to rethink their franchise placement. It was also discovered that the buyers for the chain were both men and women who frequently worked for low to average pay. This data allowed McDonald’s to precisely strategize their pricing for their service in the most appropriate way.

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McDonald’s marketing strategy – Product

As previously stated, McDonald's was founded in 1940 in San Bernardino, California, with a very limited menu in order to provide quality service while also being quick. They had to make some changes to their products as franchising grew in order to maintain that loyal bond with their customers.

Initially, McDonald’s was known for their burgers, which were made of pork and beef. Due to religious reasons, customers felt uncomfortable with all other products. With this, there was a gradual decrease in the number of customers. Hence, to bring the customer count up and satisfy customers' demands, McDonald’s then began to work on burgers with chicken and fish as an alternative.

Customers stayed loyal to the brand, and McDonald’s paid them in exchange by giving first priority to customer satisfaction.

McDonald’s marketing strategy – Promotion

The companies’ promotion strategies are yet another well-designed master strategy. Utilizing multiple forms of promotion, they had the chance to reach more new customers and stay engaged with their existing loyal customers.

Promotional communication methods such as billboard advertising, contests, broadcasts, coupons, and other emotionally connecting marketing contents make a good impression on customers and also aid as a step towards brand awareness. When the topic is about advertising and promotion, being presentable plays a key role.

McDonald’s marketing strategy – People

Due to the mass marketing done by McDonald's, they generate a large number of customers. McDonald's always conducts primary research on its customers, utilizing the massive customer profiles now available to clearly understand the demands and satisfy them in the required manner.

As it all boils down to one sole reason, the main objective of McDonald's marketing and advertising is to make people aware of its brand, its products, and its services. To get more details and questions from the customers, they perform surveys and questionnaires at stores. They use this data to help them build a better brand by meeting the needs of their customers.

Referred article: A CASE STUDY ON MCDONALD’S MARKETING STRATEGIES

One of the most challenging things faced by McDonald's was bringing their menu to India while franchising. Because the majority of the Indian population is lacto-vegetarian and eats meat, they needed to find alternatives for beef and pork, as well as for religious reasons.

McDonald's prioritized their customers' demands and accepted the challenge. With this, the burger filling was replaced with a potato base, naming it the McAloo Tikki for the Indian vegetarian customers. And, as read from one of the blogs read on the internet, written by the McDonalds Company, they say “ McAloo Tikki burger is a balanced meal, with recommended amount of protein, fat, and carbohydrates.”

In addition to the Indian menu with alternatives like chicken and fish was made for the Indian non-vegetarian customers.

McDonald's even decided to separate vegetarian and non-vegetarian cooking methods in order to provide a completely vegetarian experience.

McDonald's always prioritizes its customers' comfort and demands. This allows them to stay loyal to their customers, allowing a huge number of families to feel comfortable with the brand at the restaurants.

By opting to make use of multiple marketing communication methods, McDonald's makes its way to the top over all other fast food businesses. Marketing strategies not only help businesses grow with respect to revenue but also help spread awareness to wide audiences.

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McDonald’s Marketing Strategy Explained

McDonald’s transcends mere burgers. It’s a symbol of globalization, serving millions daily across more than120 countries. Its ubiquity reflects the rise of a standardized consumer culture. The golden arches represent familiarity, offering comfort food and predictable service amidst cultural differences. Yet, it adapts! Local menus cater to diverse palates, showcasing its cultural sensitivity. From economic engine to community hub, McDonald’s impact is undeniable, shaping food trends, influencing business models, and even sparking cultural debates. It’s not just fries and shakes; it’s a snapshot of our interconnected world, bite by bite.

Why Marketing is Critical to McDonald’s Success

McDonald’s marketing strategy is like a secret sauce, carefully concocted to maintain its position as the world’s biggest burger chain. Here are some key ingredients:

Building Brand Recognition

The famous Golden Arches are everywhere, and are instantly recognizable, plastered on restaurants worldwide, creating a sense of familiarity and trust. From packaging to uniforms, McDonald’s maintains a consistent brand image, reinforcing its identity across cultures – wherever you are in the world, you can always easily spot a McDonald’s restaurant, and be confident in what kind of food it will serve.

Targeting Families

Appealing to children with Happy Meals, fun toys and characters like Ronald McDonald fosters brand loyalty from a young age. Playgrounds and indoor play areas create a welcoming environment for families, making McDonald’s a go-to destination for parents with kids.

Value and Convenience

McDonald’s offers affordable budget-friendly options, making it accessible to a broad customer base, including young people and families on low-incomes. Drive-thru and online delivery options cater to people busy lifestyles with quick and convenient service – for most people McDonalds represents the ultimate convenience food. McDonald’s is known to be a brand that pioneered the whole concept of fast food.

Adapting to Local Tastes

McDonald’s tailors its menus to regional preferences, offering items like the McSpicy Paneer in India or the Samurai Pork Burger in Japan. So even though you can get a Big Mac anywhere in the world, you’ll also be able to buy something more in tune with local tastes. Understanding and respecting local customs and traditions fosters a positive brand image in diverse markets. McDonalds is good at becoming a part of local cultures.

Embracing Technology

The McDonald’s mobile app allows for easy ordering, delivery, and loyalty rewards, enhancing customer experience and engagement, while the brand’s use of social media and targeted online advertising helps it to reach new audiences and stay relevant.

By combining these elements, McDonald’s marketing strategy creates a powerful recipe for success. It builds brand loyalty, attracts new customers, and adapts to changing tastes and technologies, ensuring the golden arches continue to shine brightly in the fast-food landscape.

McDonald’s marketing strategy has also faced criticism for unhealthy food options and targeting children. However, the company has made efforts to address these concerns by introducing healthier menu items and promoting responsible marketing practices.

The company’s marketing strategy is a masterclass in building a global brand that resonates with people of all ages and cultures. It’s a testament to the power of marketing in driving business success.

Beginnings of McDonald’s Marketing Strategy

In the early days, McDonald’s wasn’t the burger behemoth we know today. To grab a foothold in the competitive food scene, it had to get creative with their marketing.

Introduced in the 1950s, the Speedee Service System streamlined cooking process ensured fast service, appealing to families with hungry kids.McDonald’s was one of the first fast-food chains to add playgrounds, making it a destination for families and fostering brand loyalty among young customers.

Ronald McDonald, the world famous cheerful clown mascot, was introduced in 1963 and became an instant hit with children, further solidifying McDonald’s image as a family-friendly restaurant.

Affordability was always a key part of McDonald’s strategy. Launched in 1983, the Dollar Menu offered a selection of popular items for just $1, making McDonald’s an accessible option for budget-conscious families.

The company has made good use of catchy jingles and slogans in its advertising, for example “I’m Lovin’ It”- This instantly recognizable jingle, introduced in 2003, became a global phenomenon, further boosting brand recognition and positive associations. Also “You Deserve a Break Today” used in the 1970s and 80s, resonated with working families, positioning McDonald’s as a reward and a break from the daily grind.

Community Engagement

McDonald’s actively involved itself in local communities, fostering goodwill and building positive relationships with customers, through activities such as sponsoring local events and sports teams.

Supporting Ronald McDonald House Charities, which provide housing and care for sick children, helped build McDonald’s image as a caring and responsible corporate citizen.

These early marketing strategies laid the foundation for McDonald’s global success, and continue to resonate with customers around the world.

Brand Positioning

McDonald’s brand positioning revolves around being a convenient, family-friendly, and affordable fast-food option. Consistency in branding and messaging is crucial for reinforcing this image across diverse markets. The golden arches, iconic logo, and recognizable color scheme serve as visual anchors, instantly associating the brand with familiarity and reliability worldwide.

Consistent messaging, whether through slogans like “I’m lovin’ it” or advertising campaigns featuring Ronald McDonald, creates a cohesive brand identity. This consistency cultivates trust, allowing customers to know what to expect regardless of location, fostering loyalty and ensuring McDonald’s remains a top-of-mind choice in the competitive fast-food landscape.

Product Innovation

McDonald’s consistently innovates its menu to cater to evolving consumer preferences and local tastes. Introducing new items like regional specialties or adapting classics to suit local cuisines demonstrates its commitment to embracing diversity. For instance, offering items like the McSpicy Paneer in India or the Teriyaki McBurger in Japan showcases this adaptability.

Moreover, responding to health concerns, McDonald’s has expanded its menu to include healthier options, such as salads, grilled items, and fruit sides. Menu changes, like reducing portion sizes and incorporating nutritional information , align with shifting consumer demands for healthier eating habits.

Continual menu evolution not only reflects responsiveness to health trends but also demonstrates McDonald’s agility in staying relevant and appealing to a wide customer base while respecting regional tastes and dietary preferences.

Audience Segmentation

McDonald’s exemplary target audience segmentation is the cornerstone of its successful marketing campaigns. By understanding and catering to diverse demographics, McDonald’s maximizes its appeal and relevance across different consumer groups. The brand’s ability to resonate with various audiences is evident through its tailored campaigns, each crafted to speak directly to specific demographics.

One standout example is McDonald’s approach to children and families. The inclusion of Happy Meals with toys, colorful play areas, and cheerful advertising featuring beloved characters like Ronald McDonald has made the brand synonymous with family outings. This targeted strategy not only entices children but also appeals to parents seeking a family-friendly dining experience.

In contrast, McDonald’s doesn’t solely focus on families; it also caters to young adults and teenagers. Campaigns often feature trendy music, youth-oriented promotions, and collaborations with pop culture icons. Initiatives like the “McDonald’s All-American Games” or tie-ins with popular movies resonate with this demographic, positioning McDonald’s as a cool and relevant choice.

Campaigns emphasizing fresher ingredients, nutritional information, and the introduction of salads and other healthier options aim to attract individuals seeking balanced food choices. This targeted approach acknowledges the importance of health without alienating its broader customer base.

The brand effectively targets specific regional preferences. In Asian markets, for instance, McDonald’s offers items like the McSpicy Chicken Burger or rice-based dishes, aligning with local tastes. Meanwhile, in European markets, emphasis on coffee offerings and cafe-style ambiance caters to consumers seeking a coffeehouse experience.

By segmenting its audience and crafting tailored campaigns, McDonald’s resonates with diverse demographics, ensuring its messaging speaks directly to each group’s desires and values. This nuanced approach allows the brand to maintain a strong connection with a wide array of consumers, contributing significantly to its global success.

McDonald’s Advertising and Promotion Strategy

McDonald’s advertising strategy has been a masterclass in capturing attention across various mediums, embracing everything from traditional TV and print to modern digital platforms. Their multi-faceted approach ensures a ubiquitous presence that remains top-of-mind for consumers globally.

The company’s TV commercials have been iconic, employing vibrant colors, catchy jingles, and relatable scenarios. From heartwarming family moments to youth-focused narratives, their ads strike emotional chords while showcasing menu items. These commercials often feature happy faces enjoying meals, promoting a sense of community and joy around the brand.

McDonald’s leverages social media platforms exceptionally well to engage with its audience. Engaging campaigns, interactive content, and user-generated campaigns keep the brand relevant and connected. They utilize platforms like Facebook, Twitter, Instagram, and TikTok to share promotions, behind-the-scenes glimpses, and user-generated content, fostering a sense of community and participation.

It also invests in print media and outdoor advertising. Bold and visually appealing designs are used in print ads, showcasing the iconic products alongside limited-time offerings. Outdoor ads, strategically placed in high-traffic areas, reinforce brand visibility and often include playful or mouthwatering imagery to attract attention.

The brand has consistently utilized memorable slogans like “I’m lovin’ it” which has become synonymous with the McDonald’s experience. These slogans resonate across cultures, creating a lasting imprint on consumers’ minds.

Mascots like Ronald McDonald play a pivotal role in the brand’s identity, appealing to children and fostering a friendly, approachable image. Happy Meal toys, tie-ins with movies or events, and seasonal promotions add an element of excitement, creating anticipation and encouraging repeat visits.

McDonald’s runs innovative and attention-grabbing promotions. The “Monopoly” game, McRib limited-time offers, or the “McDonald’s All-Day Breakfast” promotion have been immensely successful, driving sales and creating buzz among customers.

The consistent use of catchy slogans, engaging mascots, and memorable promotions has contributed to McDonald’s maintaining a strong foothold in consumers’ minds. The brand’s ability to adapt these elements to various mediums and cultural contexts has ensured its advertising remains impactful and relevant, leading to enduring success in a competitive market.

McDonald’s Global Strategy

McDonald’s global expansion strategy is a testament to its adaptability and localization while preserving its core brand identity. The brand enters new markets by carefully analyzing cultural nuances and consumer preferences, ensuring a tailored approach for each region.

Franchise partnerships play a pivotal role in McDonald’s expansion. The company often collaborates with local entrepreneurs who possess a deep understanding of the market. This fosters smoother operations and cultural integration while benefiting from local expertise.

Adaptation is key to their global success. McDonald’s doesn’t impose a uniform menu but rather adapts it to suit local tastes. This means offering items like the Maharaja Mac in India or the Teriyaki McBurger in Japan. Such flexibility showcases the brand’s commitment to embracing diversity and catering to regional preferences.

The brand maintains a consistent level of quality and service worldwide. Whether in bustling city centers or remote locations, customers can expect the same standards, fostering trust and reliability. McDonald’s global expansion isn’t just about reaching new territories; it’s about embracing cultural diversity while upholding the essence of what McDonald’s represents globally.

Lesson From McDonald’s Marketing Strategy

McDonald’s marketing approach offers valuable lessons for other businesses:

Adaptability and Localization: McDonald’s showcases the importance of adapting to local tastes and preferences while maintaining a consistent global brand. Businesses should tailor their products, services, and marketing strategies to resonate with diverse markets.
Targeted Segmentation: Understanding and catering to various demographics is crucial. McDonald’s success stems from effectively targeting different consumer groups with tailored campaigns. Businesses should identify their audience segments and craft specific messaging to address their unique needs and preferences.
Consistency in Branding: McDonald’s demonstrates the power of consistent branding across various channels. Businesses benefit from creating a cohesive brand identity with recognizable logos, slogans, and visual elements to enhance brand recall and trust.
Innovation and Adaptation: The brand’s continual innovation in menu offerings, promotions, and technology integration highlights the importance of staying relevant. Businesses should continuously evolve, introducing new products/services, embracing technological advancements, and responding to changing consumer trends.
Global Expansion Strategy: McDonald’s expansion strategy emphasizes collaboration with local partners, understanding cultural nuances, and adapting to regional preferences. Other businesses can learn to navigate global markets by embracing local expertise and respecting cultural diversity.
Community Engagement and Social Responsibility: McDonald’s engagement in social responsibility initiatives has contributed to its positive brand image. Businesses should prioritize community involvement, sustainability, and ethical practices to build trust and goodwill among customers.

McDonald’s marketing strategy isn’t just about burgers and fries; it’s a finely tuned recipe of familiarity, convenience, adaptation, and emotional connection, all sprinkled with a dash of technology.

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The (epic) mcdonald’s marketing strategy: serving up growth.

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Introduction to McDonald’s Marketing Strategy

It is safe to say that wherever you are in the world, you will probably find a McDonald’s around the corner. This hyper-local permeation is just one of the many proofs of the brand’s success. Not only are they everywhere, but they are also thriving everywhere too, thanks to the McDonald’s marketing strategy.

From the recent data, it can be concluded that McDonald’s is way ahead of the competition when it comes to sales, revenues, and marketing strategies, even with worthy competition in the likes of Domino’s, Burger King, Wendy’s, and more fast-food joints. Not to mention, McDonald’s is currently ranked as the world’s highest-revenue making fast-food business in the world! Not just that, McDonald’s is ranked 9 th in the world’s most powerful brands. These are just a few of the impressive feats they have been able to achieve by deploying smart and modern marketing strategies at McDonald’s.

So, how did a simple pie-and-fries business go so global? Raymond Albert Kroc, the man behind this global legacy, believed it was McDonald’s marketing strategies. During his run with the brand in the 60s and the 70s, he took McDonald’s from the USA to all around the globe. Though he ran the company 40 years ago, he was a pioneer and a far-sighted leader who knew that marketing was more than just billboards.

In his own words, “McDonald’s is a people’s business, and that smile on that counter girl’s face when she takes your order is a vital part of that image.” His agenda and policies continue to shape McDonald’s marketing strategies.

And in true Mickey D’s fashion, the world is lovin’ it!

So, in this article, we take a look at the brand, its history, its legacy, and more importantly, the marketing strategies of McDonald’s that just make it work.

Table of Contents

Now, before we start with the marketing strategies that make McDonald’s a global household name, we have to first understand what it is that McDonald’s actually does. On the surface, it sells junk food. However, as good marketers would tell you: It’s not always about the product, but the need or immediacy that you sell. So, let us understand the core business right from its humble beginnings.

McDonald’s: A Recap

The foundation of McDonald’s goes back to the late 1940s when brothers, Maurice and Richard McDonald (Yes! Hence the name “McDonald’s”), opened a restaurant with affordable yet tasty burgers. These were simple $0.15 burgers, but, what really stood out was the speed and the service.

The focus of their one-store restaurant was to produce large quantities of food at very low prices and to achieve this goal. The McDonald brothers limited the menu to only Hamburgers and Potato chips (which were later replaced by French fries), pie, and beverages. They developed a simple yet efficient service system and named it Speedee Service System . They eliminated the need for waiters by including a self-service system. What started as a humble restaurant in San Bernardino, California soon became a chain of 6 restaurants. However, at even this point, it was beyond fathoming what would eventually become of McDonald’s. And this is where Ray Kroc and his genius marketing prowess start to have an immeasurable impact on the course of the McDonald’s franchise.

The brothers were purchasing shake mixers from Ray Kroc for all of their restaurants. Realizing the potential of the food business, Kroc became the franchise agent of McDonald’s in 1955.

Then, 5 years later, with an amount of $2.7 Million, the Corporation bought the franchise from the brothers. Ray took over the reins as the acting COO.

Now, Ray had ideas. He revolutionized the way people thought about fast food. Generous billboards with bright red McDonald’s packaging became far too common and engrained in the collective social psyche. This marked the early days of what would become the McDonald’s influential marketing strategy.

Ray Kroc understood food that looks good sells better. He also knew, food that feels good sells best. Enter: Ronald McDonald!

Yes, the fan-favorite face of fast food, and McDonald’s inanimate brand ambassador. He chimed in 1963 and instantly became a character that kids could rally behind. This was another genius invention of Ray Kroc, and yet another McDonald’s marketing strategy that paid dividends over the decades. In an instant, kids across America knew and loved Ronald McDonald.

With more than 38,000 locations in more than 100 countries and over 2,00,000 employees , McDonald’s is no longer restricted to being an entity of net worth, but also, a whole ecosystem.

The McDonald’s franchise, however, has remained true to its origin, it is best known for its burgers and fries. But, they don’t stop there, with over 75 items on their menu, they have something for everyone.

But just because they stay true to their core offering, doesn’t mean they haven’t evolved over the years. What started with a dine-in restaurant upgraded itself to a drive-through, order-taking, multi-national, people’s pick, digital fast food joint. Serving over 69 million customers per day, McDonald’s is one of the world’s largest chains of fast-food restaurants.

Now, for any business to work, it has to have the right mix of price, promotion, product, and place. In the case of McDonald’s, be it a McFlurry or a McTikki Burger, it’s approachable, affordable, and filling, to say the least. Taste, however, remains to be debated. While some are die hard McDoanld’s fans, others resent the brand for their ubiquitous presence and impact on diets across the globe.

For such a polarizing brand often trolled as unhealthy and the exact opposite of eco-friendly, how has McDonald’s remained at the top? Simple! McDonald’s marketing strategy to the rescue!

Does McDonald’s Take its Marketing Seriously?

Well, if we take a closer look at the figures as shared by the brand itself publicly, we come to know: McDonald’s and marketing are truly synonymous.

Not only does McDonald recognize that regardless of a business’ stature, it has to invest in marketing—and invest they do.

How Costly is McDonald’s Marketing Strategy?

McDonald’s spent almost $447.3 million in the year 2019 on advertising worldwide. The expense rose to $654.7 million(approximate) in 2020.

Advertising costs were divided into two categories: Contributions to advertising cooperatives, which amounted to $325.5 million and production costs for radio and TV advertising which was $329.2 million in 2020. McDonald’s runs, both, true brand advertising that keeps the brand current and top of mind, as well as retail advertising that is local and menu-driven. And, that’s not all: McDonald’s also takes its online game pretty seriously.

Although figures for the same aren’t out, one must also consider that social media is by far the cheapest marketing channel on the list of resources that any company can use. Needless to say, just having a large offline base isn’t enough anymore. Thanks to the marketing minds at McDonald’s, their social media presence is top-notch as well.

Here’s a diagram on McDonald’s US advertising budget

What’s the result? When you think “fries and burgers,” you think McDonald’s. Though a plethora of other outlets now serve this type of food, McDonald’s marketing strategy has made the brand name and their offering synonymous in the minds of consumers across the globe!

So, how does one translate the expenditure into actionable points at McDonald’s marketing strategies? What are the marketing strategies that are being executed at McDonald’s?

Believe it or not, McDonald’s is pretty darn good at it, they call it “McDonaldization”.

Let us dive in.

McDonald’s Marketing Strategies:

The product mix of mcdonald’s marketing strategy.

McDonald’s menu offers a vast range of products like burgers, salads, wraps, fries, sandwiches, desserts, snacks, coffees, and refreshers. The main components include bread, potatoes, milk, chicken, and beef.

However, what truly makes the product quotient stick out for Mickey D’s is the fact that they are open to change. In more poultry-fan communities such as the Philippines and Mexico, they have been open to introducing chicken-specific items. In more vegetarian communities as in India, they have customized their usually meat-first meals to be perfectly prepped using vegetables and not mellowing down the experience at that.

Their menu is altered on a frequent basis to accommodate changing demands and trends. Before a new product is added, it is thoroughly market-tested to determine if the product has potential.

Some standard products you are likely to find across all Mickey Ds would include the iconic “Big Mac”, Fries, Apple Pie, McMuffin, Happy Meal, and Fillet-O-Fish.

What’s more is that the “Big M” or otherwise known as the “Golden Arches” have become the very face of McDonald’s and still thrives even 50 years later.

Price—The Ultimate McDonald’s Marketing Strategy

With items available as low as $1 in the USA, it makes the franchise accessible for teens, college students, and young adults too.

This highlights a brand that is coming with the geographical and socio-economic briefing. Part of the reason why McDonald’s has worked everywhere is their sensitivity towards the locale and their ability to deploy a marketing strategy that successfully matches the target demographic.

Moreover, McDonald’s has always been a brand that values loyalty, further converting their dormant and passive customers into more active sales by offering rewards and discounts. Here’s an example:

With that, McDonald’s also follows some pricing strategies like “Special Meals” and offers which are at a discounted price as compared to when purchased separately.

The McDonald’s Billboard Marketing Strategy—a Match Made in Heaven

It started back in the 60s when people mocked the brand for having spent a fresh $2 million just for ads. Such budget for marketing! That too, 70% of it going into billboards! That was unheard of.

McDonald’s proudly captivates its offline audience even today on highways, near malls, restops, you name it. Anywhere a billboard could be put up, McDonald’s marketing strategy initially was to buy the space and immediately feature massive high resolution shots of their fries and burgers in their trademark red and yellow hues.

Here an example:

McDonald’s marketing strategy was to not just buy the billboard space, but maximize it with a flair for the creative.

McDonald’s Exceptional Digital Marketing Strategy

Most businesses have gone digital, in the sense that you can reach them via social media at anytime. Such is the case with McDonald’s too.

The brand enjoys over 80M+ followers on Facebook, 4.2M+ followers on Instagram, 4.4M followers on twitter, and 600k+ subscribers on YouTube. In addition, keeping true to the McDonald’s localization marketing strategy, they have dedicated country-specific handles too, where one could browse through new launches, employee appreciation posts, advertisements, client stories, or quirky posts like these by country.

Not averse to going digital at all, McDonald’s has in fact, continually beaten their competition to maximize their impact in digital.

This comparison dates back to 2014, however, not much has changed in the lead. And McDonald’s investment in their digital marketing strategy has just grown since.

But what really makes the McDonald’s marketing strategy a true force of nature you may ask at this point? Here are a few elements that make their marketing strategy so special.

Innovate. Innovate. And did McDonald’s mention Innovate?!

The purpose of a good marketing strategy is to attract new customers and keep them coming back for more.

With so many franchises now serving the same burger and fries, how has McDonald’s managed to stay on top of the heap?

Innovation and customer experience as a marketing strategy answers it.

They call it the “Experience of the Future” or EOTF, a mission at McDonald’s to make present dining futuristic. Examples of this include their digital drive-through menus, kiosks that enable customers to order with minimal human contact . In 2020, McDonald’s also started working on a voice-activation setup as well as AI-backed orders.

These innovations have helped McDonald’s cut its drive-through times by a good 30 seconds for each client. On an estimate, 95% of Mickey D’s in the US alone have a drive-through facility.

The company also facilitates orders via its own app and customers can reach out to McDonald’s via WhatsApp too. Digital sales have accounted for over $10 billion in just the past year in their top 6 markets.

Not just that, did you know McDonald’s isn’t behind on the NFT train as well? They launched their own McRib NFT as 2021 came to an end. While many see it as a continuation of a trend, it goes on to show the McDonald’s Marketing Strategy doesn’t miss a beat when new opportunities arise to stay current.

Hyper-localization and Personalization: McDonald’s Marketing Strategy Since the Start

As they say, a tree that grows tall bends too. McDonald’s knows that well! Most marketers are afraid to experiment, and hence, they stick to the same recipe and eventually get surpassed by a leaner, more innovative company. McDonald’s however, relies on their hyper-localization marketing strategy to constantly evolve and better serve the needs of their target markets.

For Japan, they introduced Teriyaki burgers. For India, they invented the Maharaja Burgers . For a more health-conscious Australia, McDonald’s marketing strategy is purely focused on the choicest and healthy ingredients.

Germany is more meat-focused, and so, naturally they get more meat in their hamburgers. While being a singular brand, they have managed to create diverse products for each topography.

However, their localization doesn’t stop there. McDonald’s works with translation service providers to ensure the messaging is done as per the tastes of the local audience they’re trying to attract.

Adaptability: A Key to McDonald’s Evolving Marketing Strategy

When the pandemic hit, it shook the food and hospitality industry. Not so much at McDonald’s! The company had been preparing for such disruption for long, it would seem. Their kiosks, app, drive-throughs, all made for a seamless McDonald’s customer experience regardless of the external climate.

Not just that, McDonald’s understood a very emotional side to such times, going so far as to even offering 20% off to NHS workers in England as an opportunistic Marketing Strategy to raise awareness of their brand and do a good deed at the same time.

Not surprisingly, McDonald’s grew its profits in 2020’s as we will dive into later in this article.

Brand: The Ultimate Differentiator in McDonald’s Marketing Strategy

Ronald Donald, that iconic bright yellow double-arched M over a stark red background: That’s McDonald’s. Also, how does the jingle go?

“Ba Da BA BA BA… I’m lovin’ it!” Simple, effortless, and memorable. It has been around for 50 years and it has worked for 50 years!

Needless to say, McDonald’s has evolved in terms of color palettes and typefaces even. Here’s how the logo changed over the years:

Since the 60s, one thing has stayed a constant: those magnificent golden arches!

Branding doesn’t just stop with a logo…McDonald’s is often the butt of the joke on Twitter. It’s all good trolling material: A frosty machine that doesn’t work in any McDonald’s or the Sprite that hits different! Or trains of “McDonald’s made me fat” jokes.

It seems the brand has always kept a cool and refined composure to such instances. Brand is ultimately what people will say about your company when you’re not in the room…and McDonald’s manages to always take the route that spreads positive sentiment across all of their brand assets, even if they’re broken (almost) all the time.

McDonald’s has learned how to successfully use internet chatter as a major brand marketing strategy. When loads of users asked why does the McDonald’s sprite hit different:

The Company issued an unanimous response explaining the ice volumes may have a role to play, and McDonald’s thicker straws too somehow change the flavor.

But, it isn’t always fun and sarcastic, McDonald’s does introduce stuff to warm its customers with an emotional free sample!

Customer Service: The not-so-Missing piece of the Marketing Strategy at McDonald’s!

Remember how we told you right at the start that Ray Kroc was a fan of marketing, and he didn’t see customer support or front desk as foreign entities. He counted it all as critical in the overall McDonald’s marketing strategy.

The training process at McDonald’s ensures that each employee is in line with the brand’s values and reputation. Apart from a uniform and manuscript, they also get an orientation into the brand’s values: quality, speed, cleanliness, and friendliness.

In fact, it is said that McDonald’s has never left a single employee mail unanswered, so much so that some of the McDonald’s flagship Marketing Strategies weren’t even Ray’s ideas! McFlurry, Big Mac, and even Ronald are all suggestions that came from workers.

Standardization and McDonald’s Marketing Strategy

No matter what McDonald’s you go to across the country or even world for that matter, they all essentially look and feel the same. You can get the exact same cheeseburger in taste, presentation, and flavor 20,000 miles across the globe in a bustling metropolis like Tokyo as you can in a tiny mid-west American town with 100 residents. The straws are the same, the ketchup, the uniforms, the fries, my god the fries!

This induces a sense of comfort, belonging, and homeliness that can comfort you no matter where in the world you may be—the instant you bite into a cheeseburger, you’re taken back to being a kid and getting a happy meal. Even as we travel around the world, we are on the lookout for a McDonald’s nearby, aren’t we? That same old trust and well-acquainted customer experience is a huge part of the McDonald’s marketing strategy.

Collaborations as a Modern McDonald’s Marketing Strategy

Collaboration has been an essential element in the McDonald’s marketing strategy for decades. Just look at the happy meal. What’s the first thing your kids ask for when those iconic red and yellow cardboard boxes enter through the window with golden yellow arches as handles? That’s right, the toy!!

McDonald’s has been collaborating with major movie houses for decades bringing to life the latest kid-focused offering and driving profits from their parents as a result.

Recently however, McDonald’s has modernized their approach to collaboration.

Here’s a recent collaboration they had with Travis Scott. For every Quarter Pounder and fries with a McFlurry or the Travis McDonald’s order , the user could feel more connected with their favorite pop star. Along with the meal, they also launched a clothing line in collaboration with the star. Result: Their sales for the given quarter of 2020 rose by 4.6%!

The Competitive Edge of McDonald’s Marketing Strategies

As the saying goes, ‘‘only the strongest survive,’’ and McDonald’s has been using its marketing strategies to stay ahead of its competition and on top. But, what is it that the franchise does, which is better than its competitors?

Accessibility

This goes without saying that no other food outlet has a global territory as wide as McDonald’s. Being present in over 175 markets opens the business up to a higher density of the crowd.

Approachability

If we were to compare the prices of a burger at Wendy’s, McDonald’s, and Subway, it would appear that McDonald’s is the most reasonable. This again benefits the pricing strategy of McDonald’s overall marketing mix.

The above graph also shows McDonald’s has a higher ad-viewership.

Most of these fast food joints are self-servicing with people behind the counters. However, McDonald’s comes with kiosks, digital menus, and an easier-to-use application (Sorry, Domino’s!). If digital is the future, McDonald’s has won in the present. Also, let’s not forget, McDonald’s has far more rewarding rewards. How?

Recently, McDonald’s in Great Britain announced a new plan, where buyers get 100 reward points for every pound spent. Customers also get an option to donate these rewards to BBC Children in Need, and this program encapsulates over 56 stores in the region. This is just an example of the many rewards offers McDonald’s carries out in a larger marketing strategy.

Memorable Marketing Strategies: The Tagline

Most of these competitors don’t have a face (ok, maybe Wendy’s) and lack a voice too. What’s the tagline of Five Guys? or Domino’s?

But, you won’t forget McDonald’s. Ba Da Ba Ba Ba, I’m Lovin’ it. And this tagline did not come out of nowhere. Back in 2001, McDonald’s was looking to revamp its image and modernize their marketing strategies to appeal to a changing audience. As a result, they put out a call for ad agencies around the world to submit their best proposal for a new tagline. They received hundreds of proposals, but a German agency called Heye & Partner won out with “I’m Lovin’ it.”

But in true McDonald’s fashion, they maximized the impact of this marketing strategy by hiring Butch Stewart, a famous jingle writer to polish the jingle up a bit for a mass audience . But they didn’t even stop there—next up, they hired pharrell to write a pop song around the new jingle, then paid Justin Timberlake $6million to perform it. Again, another great example of how McDonald’s successfully leverages their collaboration capabilities to maximize their marketing strategies.

Tonality as a Marketing Strategy

A look at the social media feed of Subway and KFC shows the gap. Their posts are more centered around discounts and upsells.

However, McDonald’s keeps the product info at a bare minimum, while focusing more on customer engagement and genuine, interesting communication. McDonald’s has an edgy, quirky, funny, and witty spoken manner— even if it means they’re the butt of the joke . This translates well with their target audience, which is Gen Z and the millennials.

Colors inspire different moods. Blues and Greens may inspire a notion of healthy food (Good point, Subway!), however, red and yellow stick out. Warmer colors excite the mind and prompt a purchase decision, which again helps! Colder colors like Browns and Blues lack that. But ultimately, there’s no denying when you see a McDonald’s billboard ad in their striking yellow and red palettes—it has almost a pavlovian response on most drivers…you can practically taste the cheeseburger in your mouth simply by seeing their iconic color combo. If ever McDonald’s had a secret marketing strategy, colors are it.

Something for Everyone!

Vegan, vegetarian, non-vegetarian, dieting, foodie, into a specific type of meat, not looking for salty, maybe just looking for fries – Whatever is your ask, you would find it with McDonald’s.

Is The McDonald’s Marketing Strategy Working?

2 metrics to prove mcdonald’s marketing strategies are genius.

We can surely say that the franchise has been constantly growing and becoming better over the years with updated and effective marketing strategies, but, if we are to measure McDonald’s success at present times, we need to look at some metrics.

Sales Revenue as a Result of McDonald’s Marketing Strategy

Sales revenue is the income of a company which it earns exclusively from the sale of its goods or services. It is generally calculated over a constant period, like a financial year. This allows a business to compare its sales from time to time on a yearly basis.

As we can see that the revenue generated from sales show a major decline in FY19 to FY20, which was the time when the COVID-19 pandemic hit us all and the major industries felt an impact, some positive but most of them negative. But soon enough in the next financial year, the company stood back up with more than 14% increase in its sales which is indeed a positive sign.

Source: https://www.macrotrends.net/stocks/charts/MCD/mcdonalds/revenue

The McDonald’s Net Promoter Score

NPS is a metric used to calculate the loyalty of the customers to a company. For example, how is their overall experience, would they recommend your brand to a friend or colleague or are they a detractor of your brand and spread negative word of mouth?

Promoters are those customers that spread a good review about a company, chat about the amazing burger they had recently, or suggest everyone eat at McDonald’s when it’s up for debate.

Passives are customers who aren’t enthusiastic about recommending the company, but not necessarily unhappy. They’re indifferent.

Detractors are customers who won’t revisit, recommend, or reconsider purchasing at McDonald’s ever again.

McDonald’s Net Promoter Score (NPS) is a 31 with 52% Promoters, 27% Passives, and 21% Detractors.

These metrics hint at a brand that’s successful, but what really hits home the impact of McDonald’s many successful marketing strategies over the years is this chart:

That total returns McDonald’s has produced for its franchisees over a 15 year period as a result of effective marketing strategies is staggering when compared to major market indexes.

In Conclusion

McDonald’s would not be the brand we know and love today without a massive investment in effective marketing strategies. As detailed above, McDonald’s has successfully diversified their marketing strategies over the years and evolved with changing market preferences to stay the top fast food brand in the world.

McDonald’s owes this lofty title in large part to their constant investment in effective and impactful marketing strategies that ultimately raise the status of the brand. And let there be no doubt, McDonald’s stock owners are truly “lovin” the results…

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Ian has marketed for some of the world's best-known brands like Hewlett-Packard, Ryder, Force Factor, and CIT Bank. His content has been downloaded 50,000+ times and viewed by over 90% of the Fortune 500. His marketing has been featured in Forbes, Inc. Magazine, Adweek, Business Insider, Seeking Alpha, Tech Crunch, Y Combinator, and Lifehacker. With over 10 startups under his belt, Ian's been described as a serial entrepreneur— a badge he wears with pride. Ian's a published author and musician and when he's not obsessively testing the next marketing idea, he can be found hanging out with family and friends north of Boston.

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How McDonald's Became The Benchmark For Fast Food

Table of contents.

The McDonald brothers developed a system to make it all happen. Yet we know them for Ray Kroc, who created one of the world's largest chains of restaurants, real estate and toy retailers, while 'outmaneuvering' the founders.

Although McDonald's has not been the largest fast-food chain in the world since 2011, it is still the best-known brand. Even in Israel's Negev Desert, 100 kilometers from the nearest city, there is a restaurant, because franchising has given the company such a huge boost worldwide.

A few key facts about McDonald’s:

The Kellogg Company was founded in 1940.
McDonald’s and its franchise partners employ more than 200,000 people globally.
McDonald’s reported $8.1 billion in sales by corporate-owned restaurants and $10.7 billion by franchise partners .
The gross profit in 2020 was $4.7 billion .
Global comparable sales decreased 7.7% in 2020 , mainly due to the COVID-19 pandemic.
McDonald’s spent over $100 million on the international markets to boost marketing in hope of recovery.
McDonald's operates more than 39,198 restaurants in more than 100 countries around the world .

You Don’t Sell Burgers! It’s A Real-Estate Business!

The first burgers.

Richard (Dick) and Maurice (Mac) McDonald opened their first diner together, a hot dog stands in Monrovia, California, in 1937. Later, in 1940, they moved to nearby San Bernardino and opened McDonald's Bar-B-Que. Over time, the eatery became more popular and profitable, but the brothers realized they could cut a lot of costs if they rethought their concept. They developed a series of revolutionary ideas and strategic measures that proved to be closely linked: reducing the range of products, preparing ingredients properly, keeping potatoes warm with an infrared lamp, and building a kitchen where food could be prepared more quickly. They also encourage people to take their orders and target families rather than young people.

In 1948, the McDonald brothers closed a well-established restaurant and reopened it a few months later with a slimmed-down menu - and by then under the McDonald's name. They realized that most of their income came from selling burgers, so they reduced the selection to almost nothing. (To give you the full picture, the fries and milkshakes were replaced with French fries and patties for a short time.)

Effectiveness above all

Kitchen work was sped up by having only two things to bake. Washing up was also kept to a minimum, as the food was served in disposable packaging. In 1952, the restaurant was closed again for several months to remodel the kitchen so that food could be served more quickly and efficiently than before. The new kitchen and associated system allowed all orders to be filled in as little as half a minute. Since the operation was supported by the "fast system," it's not hard to guess where the term "fast food" came from.

McDonald's goal at the time was to get people to store there, but not to eat there, but to take something there. This was achieved not only by the packaging of the products but also by the fact that there was no built-in canteen in the first restaurant; if you did not want to take what you bought home with you, you could either eat your lunch in your car or sit on a bench nearby. For a while, they also experimented with serving drinks in cone-shaped cups that customers could not put down, which encouraged them to eat faster.

Thanks to this incredibly efficient and fast operation, they were able to sell burgers for 15 cents - about half the price of other places. The fast service, consistent quality, and low price amply compensated customers for the inconvenience. Soon, the McDonald brothers wanted to open more restaurants, but they were not nearly as successful as their first location. The reason was simple: they could not be everywhere; they could only be personally responsible for quality assurance at the first restaurant. At the same time, the oldest McDonald's still in operation today opened in Downey, California.

The arrival of Ray Kroc

The brothers realized that they did not necessarily have to open new locations themselves to expand, but that others would do it for them. So in 1948, they began to reform their business model and set up a franchise system. By 1954, they had sold the royalties from 21 franchises.

1954 marked a turning point in the McDonald brothers' lives. To further speed up service, they ordered a new type of mixer that could ensure the preparation of multiple servings at once. The order put them in contact with Ray Kroc, a travel agent. Kroc was amazed at how efficiently the restaurant operated. He wanted to get into the business and eventually convinced the brothers to make him their franchise representative. From then on, he was in charge of who and where they could open new restaurants.

The new buildings were now built the way the McDonald brothers envisioned their dream restaurant. A clean, red and white exterior with a neon yellow golden arch on either side of the building attracts potential clients (aka bypassers) to the restaurant. The juxtaposition of these two golden arches became the familiar Meki logo, which also forms an "M," a reference to the initials of their name. It took on a similar look to today's image after Ray Kroc became the owner, or rather founder, of the company.

In 1955, Kroc founded the forerunner of today's McDonald's Corporation (McDonald's System, Inc.) and opened its first new restaurant. The first was followed by the second, the third, and within a year, the 18th. Kroc was entitled to 1.9% of gross sales for each of these restaurants, but under his agreement with the brothers, they were entitled to 0.5%. He could barely cover his expenses with the remaining amount. Then he met Harry Sonnenborn, who gave him a new perspective: McDonald's was in fact a huge real estate business.

Turn of events

Sonnenborn encouraged Kroc to buy the land on which he wanted to build restaurants and then lease it to operators. Kroc listened to him and took the biggest step toward owning the entire chain. This way, he received a steady stream of income and did not have to give any of it to the McDonald brothers. The latter, of course, was not happy about this situation. Everything in the restaurants had to continue to be done the way the brothers wanted, although Kroc tried to introduce several innovations. Finally, in 1961, Kroc bought out the brothers for $2.7 million. To raise this sum, he had to take out loans, 14 million of which he was later able to repay.

Years of rapid expansion

As part of the agreement, the brothers would continue to own the restaurant in San Bernardino, but they had to change the name because Kroc already owned the naming rights to McDonald's. So they continued to run the restaurant under the name "The Big M," but Kroc was upset that he could not have it. Soon after, he opened a Meki just around the corner from the M, which allowed the McDonald brothers to close the location in a few years. They probably regretted the deal for life, because, with their 0.5% share at the time, it would have guaranteed them $15 million a year until the late 1970s, while their heirs would have received $305 million in 2012. And Kroc probably got a good deal on that loan.

By 1965, the company was operating more than 700 restaurants. That year, they went public. McDonald's stock started at $22 a share, but within a week the price had risen to $49. By the end of the decade, they had 1,500 restaurants worldwide and has started at Sonnenborn's suggestion, they continued to own the land on which the Meccas operated. Now they are looking for new land with fairly high standards: it should be about 4,600 m2, with the possibility of building on 370 m2, and located on the corner of at least one, but preferably two, busy roads.

Also in 1965, the then very limited offer was expanded: the Filet-O-Fish sandwich was added to the national menu. The fish burger was invented to give Catholic customers a choice during Lent. In 1968, the Big Mac, the iconic double-decker burger, was introduced. The Egg Muffin was introduced in 1975, the Happy Meal in 1979, and Chicken McNuggets in 1983. Of these, the Happy Meal is perhaps the most interesting, as it has made McDonald's one of the largest toy sellers in the world: 1.5 billion toys are sold each year thanks to the Happy Meal.

Ray Kroc never stopped working for McDonald's until he died on January 14, 1984. To this day, McDonald's provides its customers with great-tasting, affordable food, franchisees and crew members with job opportunities, and suppliers with reliable ingredients and products.

Key takeaways

Successful market penetration does not always require a complete upheaval of the rules of the sector. The McDonald brothers did not invent any truly new dishes, but they did let awareness guide the design of their restaurants. So the number-one success factor for McDonald's is professional design and process management.

The second success factor is sales behavior. While other restaurants were slower to offer their products, the excellent policies encouraged employees to sell customers as many extras as possible. Even today, "go big" accounts for a significant portion of restaurant profits (industry rumors say 40%).

The third approach is the real estate-based approach. The franchising system that Ray Kroc perfected is still used today, and we know from the annual report that the company makes more revenue from franchisees than it can generate itself.

The McDonald’s Products

Core products.

McDonald's core products include burgers, which typically consist of a slice of beef, cheese, and sauce sandwiched between two halves of a bun - in all combinations and sizes. The smallest product is the standard burger, while the largest is the Big Mac. The sandwiches are available with chicken and fish, as well as localized versions in many countries around the world.

Core products include French fries, which also come in a variety of sizes. In addition, the Happy Meal menu specifically for children, as well as shakes and soft drinks, continue to be an integral part of fast food restaurant menus in almost all countries. According to market research , an average McDonald’s menu includes around 145 items.

Seasonal products

National holidays, Halloween, Christmas, or even Easter - whatever the occasion, McDonald's introduces new seasonal products every month in every country around the world. Some are country- or region-specific (for example, the foie gras sandwiches are made specifically for the European audience), but most products are available in other countries after a limited local testing period.

Typically, a traditional product, such as a standard burger, is enhanced with additional ingredients (e.g., spices, additional meat, or a special design) to reflect the seasonal event.

Localized products

McDonald’s has achieved this global success through maximizing localization techniques and appealing to local audiences. The company manages the menus to fit culturally and socially accepted norms; tailoring their traditional Big Mac meals to suit a local audience with specific requirements.

Argentina: McFiesta burgers are available at McDonald's restaurants in Argentina, which are quarter pounders with mayo instead of ketchup. There are typical US sides here like French fries and Coca-Cola. Consider getting ice cream in an Oreo cone for dessert.
France: Typically, you'd find the McBaguette combo at Mcdonald's in France - a sandwich that is topped with two hash browns and includes breaded chicken, ham, and cheese. The 'Le McWrap' and the 'Le Menu Happy Meal' are also available. Try their apricot and lime macarons for dessert, or their cherry tomatoes as a side dish.
Hungary: In Hungary, specialized seasonal menus are very common, both in terms of ingredients and appearance. This is also facilitated by the fact that, since 2019, Hungarian McDonald's restaurants have been managed by a centralized, Hungarian-owned company, while the American McDonald's company provides only the brand and franchise rights. Foie gras is a regular item on Hungarian menus, as is "Dotted McFlurry" (a cottage cheese-based ice cream) made in cooperation with a very popular local dairy supplier. ‍
India: McDonald's has created the Maharaja Mac by substituting chicken patties for the traditional beef patties in its Big Macs. In India, cows are regarded as sacred animals, thus the reasoning behind this change. Indians also enjoy the Vegetable Pizza McPuff, a unique side dish. However, fries and Coca-Cola are just as popular here as they are everywhere else.

Middle East: Specifically for Middle East dining, Mcdonald's has created the McArabia Pita, which is served with beef or chicken patties (pork is not allowed in the predominantly Muslim diet), onions, and tahini sauce.
New Zealand: Despite being removed from the permanent McDonald's menu in New Zealand, the 'Georgie Pie' is still available in some restaurants. With fries and frozen Coke, a square pie topped with steak and cheese is served.
Sweden: Scandinavian countries tend to favor healthy diets, especially vegetarian food. McDonald's capitalizes on localization with its vegetarian McBean Patty. Served in a bun with lettuce, tomato, and sauce, it has cannellini and kidney beans, onions, green peppers, and carrots.
Thailand: There is a Samurai Pork Burger on Thailand's national McDonald's menu, which is a pork patty dipped in teriyaki sauce with lettuce, onions, tomato, and mayonnaise. Besides the usual apple pie, you'll also find corn and pineapple pies that aren't available anywhere else.

Partnerships with other companies

Coca-Cola: The story of McDonald's and Coca-Cola began in 1955 when the fast-food restaurant was looking for a soft drink supplier. The partnership has continued ever since, with Coca-Cola selling not only soda but also other products to the restaurant chain.
Oreo: Oreo is a worldwide popular dessert brand that mainly produces biscuits. The filled biscuits have become so popular that McDonald's has become a major supplier of Oreo to Mondelez International. In most countries, the biscuit pieces are served with ice cream, but in 2019, McDonald's China team tested the market with a burger with spam and Oreo biscuits . (It was not a global hit.)
Beyond Meat: The trend toward vegetarian diets is spreading like wildfire around the world, and McDonald's is no stranger to it. According to the BBC , the McPlant burger will be available in British and Irish outlets as early as next year. The beef patty, made with pea protein, is available in 10 restaurants in Coventry, England, in the first round since the end of September, and then throughout the United Kingdom next year. The product's main ingredient is made for McDonald's by Beyond Meat, a publicly-traded startup.
Local suppliers: Whether we're talking about the US or any other country in the world, one of McDonald's main and most forward-thinking efforts is to source its ingredients from local suppliers. To ensure that the fish, meat, or burger bun is always made to the same standard, McDonald's applies incredibly strict and centralized guidelines.

Healthy or not healthy?

The restaurant chain has made great strides in the area of healthy eating in recent years: think supply chain with only local suppliers or the introduction of gluten-free, lactose-free, and vegetarian options. The calorie content of a hamburger today is much lower than that of a burger from 1980. In addition, the McDonald's team places great emphasis on healthy living - and they are trying to recruit new colleagues who will promote this corporate image. But that's just one side of the big picture.

A very interesting post came to light in 2008 when Karen Hanrahan revealed a shocking picture. Out of curiosity, she had set aside a McDonald's burger she bought in 1996 to see how quickly it would disintegrate (since there were theories about "plastic" foods in the past). After 12 years, the burger looked exactly like the one she had just bought, except it had shrunk a bit.

Although this is not part of the company's strategy, the following sources have been criticized the company:

Jamie Oliver and his legal battle against the company
Super Size Me , a movie in which the protagonist eats only McDonald’s products
In 1986, Greenpeace distributed flyers against obesity, naming McDonald’s among the ones responsible.
There are also a lot of myths (most of them already busted) around the company’s procedures and products.

The product portfolio is the company's strength, so it's no wonder McDonald's is constantly improving and perfecting its recipes. Although the company has yet to build its healthy food image, its fast service and delicious, robust flavors win over millions of customers every month.

The range includes flagship products available in all restaurants (except were banned for religious or legal reasons). These include traditional burgers, fries, and cola.

The company also diversifies its menu with seasonal and localized items. In the latter category, offerings vary from country to country and region to region, usually in partnership with local businesses and brands.

Franchise System

What is a franchise system.

Franchising has spread throughout the world not as a separate form of business, but as a special kind of business.

Franchising is a form of business based on close cooperation in which the franchisor or the owner of the system sells a complex system that has been carefully designed professionally and commercially in every respect and successfully tested in a market environment. The system is handed over to the franchisee with full training, branding, and ongoing support and supervision. Franchisors operate the franchise system to the specifications of the transferor, in the agreed territory, for a fee, for a fixed period.

McDonald’s Franchise Costs & Requirements

When purchasing an existing restaurant or a new restaurant, an initial down payment of 40% is required. Down payments must be made from non-borrowed personal resources, such as:

cash on hand
vested profit sharing
business or real estate equity

The down payment amount will vary depending on the total cost of the restaurant. McDonald's generally requires $500,000 of non-borrowed personal resources before considering a new franchise partner. With less cash available, most opportunities to participate in the program are limited and depending on the transaction's specifics, financial requirements may be much higher. Additional or multi-restaurant opportunities may be more available to those with additional funds.

Franchise financing

To purchase a McDonald's restaurant, the buyer must pay a down payment of at least 25% cash. It is possible to finance the remainder of the purchase price for a period of up to seven years. Although McDonald's does not offer funding the project, McDonald's Owners/Operators benefit from established relationships with many national lenders.

Franchise - Ongoing Fees

Service fee: Currently, a service fee of 4.0% of monthly sales is based on the restaurant's sales performance.
Rent: Rent that is based on a percentage of sales monthly.

Other costs of setting up a new franchise

Costs usually range from $1,2 million to $2,2 million. Most of the costs are related to the construction of the restaurant, such as building and interior design, but the franchisee also pays for equipment, furniture, and kitchen appliances.

General franchising strategy in 2021

McDonald's restaurants provide quality food and beverages in 119 countries, which are franchised and operated by the company. At year-end 2020, McDonald's will have 39,198 restaurants, of which 36,521 are franchised, or 93 percent.

McDonald's franchise restaurants fall into one of the following categories: conventional franchises, development licenses, and affiliates. Optimal ownership structures for restaurants, trading areas, and markets (countries) depend on a variety of factors, including financial resources and entrepreneurial abilities, as well as legal and regulatory frameworks in key areas such as property ownership and franchising. McDonald's business relationship with independent franchisees is governed by standards and policies, which are of fundamental importance to the company's performance as well as its brand protection.

McDonald's franchise partners are not financial investors, but committed partners who not only put up the capital to open a restaurant, but are also willing to participate in the day-to-day operations and running of the restaurant. They know all the ins and outs of the business, but they also reinforce the McDonald's brand through their involvement in the local community.

The potential partner does not have to have a suitable location, as the location of the restaurants is always determined by the company and handed over to the franchisee.

The Company’s Old/New Strategies

Accelerating the Arches is the Company's new growth strategy for 2020. As the leading global omnichannel restaurant brand, McDonald's Strategy encompasses all aspects of the company's business as well as updated values and new growth pillars that leverage the company's competitive advantage.

Growth Pillars

Marketing: Investing in new, culturally relevant marketing approaches to effectively communicate the brand's story, food, and purpose. Customers will be provided with more personal services through enhanced digital capabilities.
Products: Focusing on serving delicious burgers, chicken, and coffee. Chicken and beef will be the company's primary focus as they represent the largest growth opportunities. McCafe’s brand, experience, value, and quality will be leveraged by the markets to drive long-term growth for McDonald's.
Digital, Delivery, and Drive-Thru: McDonald's plans to accelerate technology innovation to meet the needs of customers as they interact with the company.
Digital Experience: Known as "MyMcDonald's", the new digital experience platform will transform the company's digital offerings across drive-thru, takeaway, delivery, curbside pickup, and dine-in options. Through the digital tools available on the platform, customers will receive tailored offers, will be able to enroll in a new loyalty program, and will have the option to order and receive McDonald's food using their preferred channel.
Delivery expansion: McDonald's has expanded its delivery service to nearly 30,000 restaurants in the last three years and plans to expand further.
The increasing importance of Drive-Thru: More than 25,000 restaurants globally have drive-thrus, including nearly 95% of the over 13,000 in the U.S. This channel has gained in importance since the COVID-19 outbreak, and leadership expects that it will play an even greater role as customers demand more flexibility and choice. In the U.S. and International Operated Markets, the vast majority of new restaurants will have a drive-thru. In addition to automated order taking, the Company plans to test a drive-thru express pick-up lane for customers with digital orders and a restaurant concept that offers drive-thru, delivery, and takeaway only for customers to enjoy a faster and more convenient experience.

For decades, McDonald's sales efforts focused on the cash register and drive-thru. One of the strongest elements of this was the introduction of the "Go Large" theme. By sizing and pricing the products, even those who had no real need chose the largest product, believing it to be the best and most appropriate offering.

Today, in addition to physical sales, digital sales have become a priority. An app developed by the company not only speeds up the ordering process but also offers additional discounts that can further increase the cart value per customer.

With the introduction of home delivery, McDonald's has begun working with several partners including UberEats, FoodPanda, and Wolt. For a long time, these online marketplaces did not offer fast food products like McDonald's, but they have now become serious players in the market. The company's offering is particularly strong when it comes to speed: on average, food is delivered in 15-20 minutes, compared to 50-80 minutes for a traditional restaurant.

There are several cornerstones of the company's marketing strategy that have contributed greatly to McDonald's success:

The Ronald McDonald figure: An owner of a McDonald's franchise introduced Ronald McDonald in 1967. To appeal to children, franchise partners decided to use a clown icon as an advertising tool. 96% of American children knew the name Ronald McDonald by 1973. Ronald McDonald is the second most recognizable fictional character among US schoolchildren, behind Santa Claus.

The McDonald’s logo: There's no doubt that McDonald's golden arches are one of the most recognizable logos in the world. It was created in 1940. During the '60s, McDonald's decided to simplify their logo and focus on branding the company. A brilliant move was choosing the golden arches as the logo for the fast-food restaurant. The McDonald's logo looks very much like two golden-brown French fries bent into a letter M, and this is one of the most effective design features of the logo. McDonald’s is advertising one of its most popular menu items without viewers even noticing it.

“Para PaPa Paaaa… I’m lovin’ it”: McDonald's has been using this jingle for a very long time. McDonald's jingle highlights a positive dining experience. The musical theme makes the diners feel at home during their meals there, as well as conveys how friendly and helpful the staff is.
Promotion campaigns: Television advertising has become a favorite field for all fast-food restaurants with the proliferation of TVs. To this day, McDonald's is a loyal advertiser on channels aimed at children and their parents. Its campaigns focus on delicious food, fun, natural ingredients, and health.

The company is one of the biggest innovators in the food industry and is credited with inventing or perfecting the following:

McDonald's put in place order-taking kiosks in 2015, making it one of the first fast-food chains to do so. A touchscreen machine located near the front of restaurants lets customers place their orders without the need for a cashier.
The introduction of specialty coffee at McDonald's changed McDonald's from a fast-food restaurant to something more. McDonald's introduced its specialty coffee line in mid-2007.
The company separated a part of larger restaurants and re-branded it as McCaffes, a place where customers can buy coffee and desserts. Now it competes with Starbucks for coffee-lovers.
McDonald's was one of the first fast-food chains to organize even the smallest details of its operations in a manual. This manual is still being improved today.

The 2020 growth plan contained nothing new compared to the path taken a year earlier. The key elements were digital customer access, which was a key driver of the company's continued growth during the COVID epidemic.

Sales and marketing go hand in hand at McDonald's: over the past 80-plus years, the techniques used have been perfected, all aimed at getting customers to buy. Advertising builds on this image of cheap and healthy food.

Final Thoughts And Key Takeaways

Growth by the numbers.

McDonald's has seen steady growth since its founding. Because of the relative cheapness of its products, it is a truly crisis-proof company, which even COVID could not bring to its knees - unlike millions of small catering businesses.

The company has emerged from the crisis as a winner, thanks in particular to digital developments, drive-thru, and the spread of home delivery.

Key takeaways from the McDonald’s story:

Real estate business: The McDonald's business model has evolved from a restaurant to a complex system in a relatively short period, with some revenue coming from franchise fees, some from land leases, and some from food sales.
Thoughtful processes: While other restaurants are constantly experimenting with food, McDonald's has focused on improving its production technologies from the beginning. In addition to innovative machinery, internal processes have also been organized to ensure that products reach customers as quickly and consistently as possible.
Franchise system: Behind the amazingly dynamic growth of McDonald's has been a well-constructed franchise system, the foundations of which were laid by the McDonald brothers, but perfected by Ray Kroc.
Core, seasonal and localized products: The main feature of the company's product range is that it is extremely consistent, as we can also get fries and cola in the farthest corners of the world. At the same time, local companies, at their discretion, can launch the menu with seasonal and localized products, enabling them to engage their customers even more.
Strong marketing: Mcdonald’s has consciously built up the dining experience - regardless of whether we’re eating a hamburger in the car, in a restaurant, or at home. The logo, the iconic clown figure, the company’s theme song, the packaging, the internal design, and many other elements add up to become an unforgettable experience.
Home delivery: Delivery was the largest innovational step from McDonald’s for decades, and partnering with food delivery startups, like UberEats or Wolt helped the company not only to survive the pandemic but get in shape for rapid growth.

Consumer opinion on McDonald's is certainly divided: some say it's plastic, others say it has grown up to meet consumer expectations. As a publicly-traded company, the owner of the golden arch has no choice but to march forward, pioneering innovation as it has throughout its history. What does the future hold for the company? An even broader product range, a stronger home, and digital experience - and, investors expect, continued revenue growth.

McDonald’s Branding Strategy and Marketing Case Study

Analysis and examples of mcdonald’s identity, positioning, key messages, tone of voice, brand archetypes, customer benefits, competitors, and marketing content..

Back To The Branding Strategies Homepage

Brand Overview

Food Service

Business Type

Physical Products

https://www.mcdonalds.com

Target Customer

Classic Fast Food Consumers

Primary Need ( Job To Be Done )

Eat the same fast comfort food I’ve had my whole life

Brand Visual Identity & Content

Primary brand colors, brand typefaces, hero content.

Hero Content Type

Content features people, brand messaging, key messages, benefit or feature focus, tone of voice, brand archetypes.

( Learn More About Brand Archetypes )

Everyperson

Brand Positioning Strategy ( Elements of Value )

( Learn More About The Elements of Value )

Aspirational

Affiliation / Belonging

Sensory Appeal

Reduces Cost

Brand Benefits

Get nearly the exact same meal from any location around the world

Eat and share the same meals that I’ve had my entire life

Save money on a quick meal that fills me up

Competition

Key competitors.

Burger King , Wendy’s, Jack In The Box, Carl’s Jr., Chipotle , Arby’s, KFC, In-N-Out, Five Guys, The Habit, Taco Bell , Subway

Get Help Growing Your Brand

Get a 10 page workbook on Purpose, Vision, and Values. Plus resources for Archetypes, Tone, Messaging, and more.

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McDonald's Corporation: The World's Leading Fast Food Chain [Case Study]

Devashish Shrivastava , Anik Banerjee

McDonald's Corporation is an American fast-food organization established in 1940 as a café by Richard and Maurice McDonald, in San Bernardino, California, United States. They rechristened their business as a burger stand and later transformed the organization into an establishment; the Golden Arches logo being presented in 1953 at an area in Phoenix, Arizona.

Ray Kroc, a businessperson, joined the organization as an established operator in 1955 and continued to buy the chain from the McDonald's siblings. McDonald's had its base camp in Oak Brook, Illinois, and moved its worldwide base camp to Chicago in mid-2018.

McDonald's is worth $185+ bn today. It is the world's biggest eatery network by revenue. It was last registered to be serving 69+ million customers each day in more than 120 countries across over 39,000 outlets.

Although McDonald's is best known for its burgers, cheeseburgers, and french fries, its menu also includes chicken items, breakfast things, sodas, milkshakes, wraps, and sweets. In light of changing buyer tastes and a negative backfire on account of the wretchedness of its food, the organization has added mixed greens, fish, smoothies, and natural products to its offerings.

McDonald's Corporation's income originates from leases and charges paid by the franchisees. According to two reports distributed in 2018, McDonald's is the world's second-biggest private manager with 1.7 million representatives (behind Walmart with 2.3 million workers).

Here's bringing you the McDonald's company profile that will present to you McDonald's company overview, when was McDonald's founded, McDonald's growth over the years, about McDonald's, McDonald's owner name, founder of McDonald's corporation, McDonald's history and background, McDonald's case study marketing, and more.

McDonald's - Company Highlights

McDonald's - Startup Story and History McDonald's - Mascot/Logo McDonald's - Business Model And Market Strategy McDonald's - Target And Mission McDonald's - Growth McDonald's - Restaurants And Services McDonald's - Future

McDonald's - Startup Story and History

Richard and Maurice McDonald in 1940, opened the primary McDonald's at 1398 North E Street at West fourteenth Street in San Bernardino, California; however, it was not the McDonald's you know today. Ray Kroc made changes to the siblings' business and modernized it.

MacDonald's Founders - Richard McDonald, Maurice McDonald and Ray Kroc (From Left to Right)

The siblings presented the "Speedee Service System" in 1948 by extending the standards of cutting-edge drive-thru eatery that their antecedent White Castle had tried over two decades earlier. McDonald's emerged with a delivery model where it made its food on a supply belt and delivered it within 2 minutes.

It looked like a fantastic and impossible eatery that had:

• Only burgers, fries, and shakes on the menu • No plates or waiters to serve the customers

However, when Ray Kroc came, he was astonished by the never-ending waiting lines that were there waiting for their orders from McDonald's.

Kroc was then 50 already and was selling milkshake mixers door to door. Ray Kroc had earlier tried his hand in many things but never had attained success in his whole life. He already worked as a musical director, pianist, and had also worked as a real estate guy, in the paper cup industry, and as a seller of kitchen appliances, but he couldn't hold on to one thing among them all. Thus, Kroc was a person who lived from paycheck to paycheck.

Kroc came to McDonald's to deliver an absurd order of 8 milkshake mixers for just one area. He wondered "why would someone want to make 40 milkshakes at a time?" This is why he drove to California, at McDonald's to see the place himself.

Seeing the huge demand for McDonald's burgers, fries, and shakes, Kroc sensed a huge opportunity. He soon pushed the founders of the store to embrace a franchise model. The McDonald's brothers who owned the business, were living a comfortable life then, getting rich by the day, and buying Cadillacs as they filled their pockets. They didn't have vision nor they were eager to expand. However, Ray convinced them and rushed to work, as soon as he did that.

He assumed the role by taking 2 major steps back to back:

Mortgaging his house when he was already 52
Opening 18 new outlets in the very first year

This has helped the company scale big time, and McDonald's now boasts of:

Serving 2.3+ billion burgers a year
Serving 39,000+ restaurants across more than 120 countries
Being the 4th largest employer in the world
Being the largest toy distributor in the world

Though it was Ray's idea and the expansion was promising, the McDonald's brothers made an unfair deal with him. Kroc was allowed only 2% of the profits. McDonald's being to scale aggressively but the founders of McDonald's wasn't really happy with Ray and his scaling. This is why Ray borrowed and bought them out for $2.7 mn, thereby becoming the 100% owner of McDonald's.

The organization attributes its success to Ray Kroc. Kroc later bought the McDonald siblings' value in the organization and was responsible for McDonald's overall reach. He was seen as a forceful colleague, driving the McDonald siblings out of the business. Kroc and the McDonald's siblings battled for control of the business, as recorded in Kroc's life account.

The San Bernardino eatery was torn down (1971, as indicated by Juan Pollo) and the site was offered to the Juan Pollo chain in 1976. This zone currently fills in as central command for the Juan Pollo chain, and a McDonald's and Route 66 museum.

With the development of McDonald's into numerous universal markets, the organization has turned into an image of globalization and the American lifestyle. Its unmistakable quality has additionally made it a regular point of open discussions about heftiness, corporate morals , and shopper obligation.

McDonald's - Mascot/Logo

The first mascot of McDonald's was a cooking cap over a burger who was alluded to as "Speedee" . In 1962, the Golden Arches supplanted Speedee as the all-inclusive mascot. The image of jokester Ronald McDonald was presented in 1965. Ronald McDonald showed up to promote amongst children.

On May 4, 1961, McDonald's initially petitioned for a U.S. trademark on the name "McDonald's" with the portrayal "Drive-In Restaurant Services". By September 13, McDonald's, under the direction of Ray Kroc, petitioned for a trademark on another logo—a covering, twofold curved "M" image.

Before the twofold curves, McDonald's used a solitary curve for the design of its structures. Even though the "Brilliant Arches" logo showed up in different structures , the present form was not utilized until November 18, 1968, when the organization was given a U.S. trademark.

McDonald's - Business Model And Market Strategy

The business and revenue model of McDonald's includes almost 37000 outlets which spread to more than 120 nations. Today, McDonald's is the biggest eatery network on the planet in terms of income.

Initially launched as a Drive-In Hamburger Bar, the idea was advanced in 1940 by The McDonald Brothers, Richard James (Dick), and Maurice James (Mac) McDonald. It was after the presentation of the Speedee Service System with shakes, fries, and burgers costing as low as 15 pennies that the McDonald Brothers started the establishment of McDonald's Hamburgers.

In 1954, Ray Kroc turned into the establishment operator of the McDonald Brothers. The main McDonald's eatery was opened by Kroc in 1955 in Des Plaines, Illinois, USA. It was in the year 1961 that the rights to the eating joint of the kin were obtained by McDonald's for a powerful total of $2.7 million.

You may likewise be astonished to realize that when the first McDonald's eatery opened, the extremely well-known McD french fries were eaten with no ketchup! The revenue model of McDonald's, the world's quickest developing food chain, is an interesting one.

McDonald's - Target And Mission

McDonald's endeavours hard to be its clients' "most loved spot and approach to eating". McDonald's plan of action is fixated on the ground-breaking strategy "Plan To Win", which is placed into requests around the world.

With the mission of "Quality, Service, Cleanliness, and Value", McDonald's has clung to each of these characteristics. Client experience is improved by the selection of five fundamentals: people, products, place, price, and promotion.

Additionally, McDonald's plans to give high-review nourishment, at effectively reasonable costs to individuals over the globe. The deals at McDonald's are furrowed through an efficient deals channel which guarantees remarkable consumer loyalty on all occasions.

Astounding Vision

When Ray Kroc opened the Original McDonald's in Illinois, he had a dream of expanding the franchise across the globe with more than 1000 outlets in the States itself. Remaining consistent with its guarantee, McDonald's widened its worldwide handle by opening joints outside the US as early as 1967.

The first international outlets were opened in Canada and Peurto Rico. By January 2018, McDonald's was situated in 120 nations and had about 37200 cafés with 1.9 million workers. It was serving more than 69 million individuals every day. At one point in time, McDonald's was opening a new outlet every 14.5 hours!

Significant Growth Strategy

McDonald's has clutched a promising development technique to serve customers and spread its wings. The presentation of the "Speed Growth Plan" in March 2017 enhanced the development of the business.

McDonald's development system depends on retaining, regaining, and converting. McDonald's strives to hold on to its old clients, recapture the lost trust, and convert easygoing clients into ordinary ones.

What's more, it has additionally embraced three quickening agents: digital, food delivery, and experience of things to control its monstrous development. It keeps on reshaping cooperation with clients and raising the level of consumer loyalty and experience through innovation and human endeavours.

Decent Variety

Monetarily, McDonald's has affected the world more significant manner than some other organizations. McDonald's adheres to the conviction "Decent variety is Inclusion" and doesn't leave a solitary opportunity to make each person from every network feel regarded. Its suggestion of "Decent variety is Inclusion" has affirmed its situation at the top position.

The McDonald's way of life revolves around the following: customer-obsessed, better together, and committed to lead. These coupled with its conviction has caused the fast-food chain to exceed expectations in the field of business enterprise and showcasing.

McDonaldization

McDonald's can appropriately be named as one of the best organizations to be involved in the worldwide system. The worldwide broadening of the McDonald's is regularly alluded to as "McDonaldization." Its accomplishment in more than 120 nations can be credited to its hierarchical structure.

The hierarchical structure of McDonald's mulls over expanding localization, and in this way, the entire plan of action of McDonald's is normally redone thinking about the mass intrigue in different nations.

Fruitful Acquisitions

The McDonald's Corporation Mergers and Acquisitions (M&A) have, since its inception, entertained itself with cautious acquisitions. Donato's Pizza which is a Midwestern chain of 143 eateries was obtained by McDonald's on 6 May 1999. Aside from securing Donato's, it acquired the Boston Market on 18 May 2000. Boston Market is a drive-through eatery chain that essentially focuses on home-style sustenance.

Supporting Employees

McDonald's doesn't, in any capacity, hamper the development of its workers. It bolsters its representatives in every possible way and empowers them to set up business systems.

At McDonald's, the work environment is brimming with positivity, connections are advanced, professional openings are supported, and business development is sustained.

Coaches, good examples, and backers are accessible at all times to direct the employees on successful initiatives, professional procedures, and prosperous business.

Engagement Of Community And Education

Aside from being one of the best good-quality fast food options, McDonald's investigates every possibility to endeavour for the network it serves. It effectively takes part in network administration and continues to have a critical effect on assorted networks.

The Global Diversity, Inclusion, and Community Engagement Team alongside its key accomplices have fabricated cherished relations with different network-based associations. McDonald's Hamburger University readies its workforce to maintain the multi-billion dollar business and worldwide initiative improvement programs.

McDonald's - Growth

McDonald's eateries are found in 120 nations and serve 69 million customers each day. McDonald's operates 39,000 restaurants/cafés around the world, utilizing more than 210,000 individuals as part of the arrangement. They help operate 2,770 organization possessed areas and 35,085 diversified areas, which incorporates 21,685 areas diversified to regular franchisees, 7,225 areas authorized to formative licensees, and 6,175 areas authorized to remote affiliates.

Concentrating on its centre image, McDonald's started stripping itself of different chains it had gained during the 1990s. The organization possessed a large stake in Chipotle Mexican Grill until October 2006 when McDonald's was completely stripped from Chipotle through a stock exchange .

Until December 2003, it likewise claimed Donatos Pizza, and it claimed a little portion of Aroma Café from 1999 to 2001. On August 27, 2007, McDonald's sold Boston Market to Sun Capital Partners.

Outstandingly, McDonald's has expanded investor profits for 25 back-to-back years, making it one of the S&P 500 Dividend Aristocrats. The organization is positioned 131st on the Fortune 500 of the biggest United States companies by revenue.

In October 2012, its month-to-month deals fell without precedent for nine years. In 2014, its quarterly deals fell without precedent for a long time, when its deals last dropped for the whole of 1997.

In the United States, McDonald's accounts for 70% of sales in drive-throughs. McDonald's shut down 184 eateries in the United States in 2015, which was 59 more than what they wanted to open.

Starting in 2017, the income was roughly $22.82 billion. The brand estimation of McDonald's is more than $88 billion; outperforming Starbucks with a brand estimation of $43 billion. The total compensation of the organization in 2017 was $5.2 billion; this worth saw an ascent of about 11% from the previous year.

McDonald's is, without a doubt, the quickest developing drive-thru eatery chain on the planet. In 2018, McDonald's developed as the most profitable inexpensive food chain with a brand worth nearing $126.04 billion. Also, the all-out resources of McDonald's were almost $33.8 billion.

The world's quickest developing cheap fast food chain partitions its market into four unique areas: U.S., International Lead Markets, High Growth Markets, and Foundational Markets and Corporate.

According to the report set forth by the organization in the year 2017, the market in the U.S. created the biggest measure of income at $8 billion. The International Leads Markets which includes Australia, Canada, France, Germany, and the U.K. created an income of $7.3 billion.

The High Growth Markets which incorporate China, Italy, Korea, Poland, Russia, Spain, Switzerland, the Netherlands, and comparative brought in about $5.5 billion in revenue.

The Foundational Markets and Corporate incorporate the rest of the business sectors. Furthermore, it additionally incorporates a wide range of corporate exercises. The income created by this section of the market represented roughly $1.9 billion.

McDonald's - Restaurants And Services

In certain nations, "McDrive" areas close to roadways offer no counter administration or seating. interestingly, areas in high-thickness city neighbourhoods frequently preclude pass-through service. There are likewise a couple of areas, found for the most part in the downtown locale, that offer a "Walk-Thru" administration instead of a Drive-Thru.

McCafé is a bistro-style backup to McDonald's cafés and is an idea conceived by McDonald's Australia (likewise known, and promoted, as "Macca's" in Australia), beginning with Melbourne in 1993. As of 2016, most McDonald's outlets in Australia have McCafés situated inside the current McDonald's eatery.

In Tasmania, there are McCafés in each eatery, with the rest of the states rapidly following suit. After moving up to the new McCafé look and feel, some Australian eateries have seen up to a 60% expansion in deals. There were more than 600 McCafés around the world some time back.

Create Your Taste

From 2015–2016, McDonald's attempted another gourmet burger administration and eatery idea dependent on other gourmet cafés, for example, Shake Shack and Grill'd. It was taken off without precedent for Australia in early 2015 and extended to China, Hong Kong, Singapore, Saudi Arabia, and New Zealand with progressing preliminaries in the US showcase.

In committed "Make Your Taste" (CYT) booths, clients could pick all fixings including a kind of bun and meat alongside discretionary additional items. In late 2015, the Australian CYT administration presented CYT servings of mixed greens.

After an individual had requested, McDonald's prompted that hold up times were between 10–15 minutes. At the point when the nourishment was prepared, the prepared group ('has') carried the sustenance to the client's table.

Rather than McDonald's typical cardboard and plastic bundling, CYT nourishment was exhibited on wooden sheets, fries in wire bushels, and servings of mixed greens in china bowls with metal cutlery. A more expensive rate connected. In November 2016, Create Your Taste was supplanted by a "Mark Crafted Recipes" program intended to be increasingly proficient and less expensive.

McDonald's Happy Day

McHappy Day is a yearly occasion at McDonald's during which a portion of the day's deals goes to philanthropy. The collections on this day go to Ronald McDonald House Charities.

In 2007, it was celebrated in 17 nations: Argentina, Australia, Austria, Brazil, Canada, England, Finland, France, Guatemala, Hungary, Ireland, New Zealand, Norway, Sweden, Switzerland, the United States, and Uruguay. As indicated by the Australian McHappy Day site, McHappy Day brought $20.4 million up in 2009. The objective for 2010 was $20.8 million.

McDonald's Monopoly Donation

In 1995, St. Jude Children's Research Hospital got a mysterious letter stamped in Dallas, Texas, containing a $1 million winnings McDonald's Monopoly game piece. McDonald's authorities went to the medical clinic, joined by a delegate from the bookkeeping firm Arthur Andersen, inspected the card under a diamond setter's eyepiece, took care of it with plastic gloves, and checked it as a winner.

Although game guidelines disallowed the exchange of prizes, McDonald's deferred the standard and made the yearly $50,000 annuity instalments for the full 20-year time frame through 2014, even in the wake of discovering that the piece was sent by an individual associated with a theft plan meant to cheat McDonald's.

McRefugees are destitute individuals in Hong Kong, Japan, and China who utilize McDonald's 24-hour cafés as transitory lodging. One out of five of Hong Kong's populace lives underneath the destitution line. The ascent of McRefugees was first archived by picture taker Suraj Katra in 2013.

McDonald's - Future

The reported objective is to source all visitor bundling from inexhaustible, reused, or ensured sources, reuse visitor bundling in 100% of eateries, and overcome framework challenges by 2025.

McDonald's turned into the principal eatery organization on the planet to set an endorsed Science-Based Target to lessen ozone-depleting substance emanations. It also joined the "We Are Still In Leader's Circle", driving activity to relieve environmental change.

McDonald's USA completed five years as the sole worldwide café organization to serve MSC-ensured fish in each U.S. area. It united with Closed Loop Partners to build up a worldwide recyclable and additionally compostable cup arrangement through the NextGen Cup Challenge and Consortium. Official pioneers called for atmosphere activity and offered arrangements at the primary Global Climate Action Summit (GCAS).

McDonald's co-facilitated the "Way to Greenbuild" occasion with Illinois Green Alliance at its new worldwide home office. The structure, a collaboration among Sterling Bay, McDonald's, and Gensler Chicago, got USGBC LEED Platinum accreditation.

McDonald's is establishing the tone for other inexpensive food organizations to pursue. Given the present want by numerous buyers to spend cash on organizations that are doing great on the planet, where McDonald's leads, others will pursue.

Who is the founder of McDonald's?

McDonald's was founded by Richard McDonald and Maurice McDonald on 15 April 1955 in California, United States.

Who is the CEO of Mcdonald's?

Chris Kempczinski is the CEO of Mcdonald's since Nov 2019.

Who is the owner of McDonald's in India?

In India, McDonald's is a joint-venture company managed by two Indians- Amit Jatia (M.D. Hardcastle Restaurants Private Ltd) and Vikram Bakshi ( Connaught Plaza Restaurants Private Ltd).

When was the fast-food chain McDonald's founded?

Mcdonald's was founded in 1940 in San Bernardino, California.

How much does a Mcdonald's franchise owner make?

An average Mcdonald's franchise generates $150,000 annually.

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Blog Extended Marketing Mix Evolution of the Internet Inbound Marketing Personal Branding Content Marketing Search Engine Optimisation Email Marketing

Extended Marketing Mix (7 Ps)

Commonly used in traditional marketing, extended marketing mix, also known as the 7 Ps of marketing (Product, Place, Price, Promotion, People, Process, Physical Evidence), can also be applied to digital marketing. To get an idea of how the 7 Ps are used in the real world, read this case study of what McDonald's extended marketing mix looks like.

McDonald's is best known for its range of burgers such as the cheeseburger and the Big Mac, and their French fries . The fast-food restaurant allows its customers to buy individual items or purchase a meal that includes a drink. In addition to its traditional menu, McDonald's offers a range of hot and cold drinks such as tea, coffee and milkshake. The dessert menu includes the chain's famous Apple pie, McFlurry ice cream, and more. The modern menu is very different from the first McDonald's Franchise restaurant's menu, which included only a handful of items.

How McDonald's Products Changed Over Time

What was on the original McDonald's menu
How the menu changed over time
What influenced the changes

When brothers Richard and Maurice McDonald's opened their 'McDonald's Famous Barbeque' restaurant in California in 1940, little did they know that their small business would go on becoming a global brand. The original restaurant served more than forty barbequed items. However, the brothers soon realised that most of their profit came from selling hamburgers. So in 1948, they redesigned their restaurant by implementing assembly line principles for speedy food preparation and started selling a limited number of items, including hamburgers, cheeseburgers , potato chips, cold drinks and coffee. The following year, the chips were replaced by French Fries and Triple Thick Milkshake was added to the menu. Despite McDonald's becoming a nationwide franchise in 1955 , the menu remained largely unchanged until 1965 when McDonald's franchisee Lou Groen based in Cincinnati, Ohio, created the Filet-O-Fish sandwich to increase Friday sales in his primarily Roman Catholic location. In 1967, a franchisee Jim Delligatti, who operated several McDonald's restaurants in Pittsburgh, created the Big Mac to compete with 'Big Boy hamburger' sold in a nearby Big Boy Restaurant chain's branch. Delligatti started selling The Big Mac in his restaurant in Uniontown, Pennsylvania. However, it proved to be so popular with customers that it was added to the menu of all American McDonald's restaurants the following year. Another product introduced in 1968 was the Hot Apple Pie . The Quarter Pounder was invented in 1971 by another creative franchisee, Al Bernardin, who owned two McDonald's restaurants in Fremon, California. Bernardin concluded that there was a gap in the market for burgers where the meat weights more than the bun. Two years later, the Quarter Pounder and the Quarter Pounder with Cheese were added to the national menu. The Egg McMuffin was the brainchild of Herbert Patterson, who operated a McDonald's franchise in Santa Barbara, California. The invention of the egg sandwich was revolutionary because it created a potential breakfast business idea for McDonald's. However, despite being invented in 1972, The McMuffin was not added to the national menu until 1975. The Happy Meal was created to bring in more families with small children and was added to the national menu in 1979. It comes with a small toy or a book along with food. McChicken sandwich was first introduced in the US in 1980. However, after failing to meet expectations, it was removed from the menu and replaced by chicken McNuggets in 1983 . McDonald's eventually brought McChicken back in 1988. In 1996, it was replaced in the US with the Crispy Chicken Deluxe. But once again, McDonald's started reviving the McChicken in 1997. Currently, McDonald's restaurants all over the world serve an extensive range of chicken burgers and wraps. One of McDonald's most popular desserts, McFlurry , was invented in 1995 in Canada and was added to the international menu in 1997. In 2002, the company committed to being a more responsible and sustainable brand by issuing McDonald's Social Responsibility Report . Since then, McDonald's restaurants started offering healthier options, such as salads and fruit bags , along with their regular items. The chain also significantly reduced the amount of packaging it uses. Perhaps most importantly, McDonald's became more responsible towards animal welfare , undertaking on-site audits of their meat supplier facilities around the world. In addition, the chain has recently introduced their first Vegan Burger, the McPlant , in selected restaurants.

The history of McDonald's goes back to 1940 when the McDonald's brothers opened a small barbeque restaurant in California. In 1948, the brothers refocused on selling burgers, chips, soft drinks and coffee, setting the foundation for the McDonald's we know now. McDonald's became a corporation in 1955 and has been growing ever since. There are now over 37000 McDonald's restaurants in more than 100 countries. The design of McDonald's restaurants differs from country to country and even city to city. However, the yellow arched letter M logo remains the same around the world.

Offering an extensive range of food items, McDonald's has different prices for different products. Having branches all over the world, McDonald's also works with multiple currencies . McDonald's uses Psychological pricing strategy, setting the price of their products lower than a whole number, e.g. £3.99 rather than £4. Another pricing strategy the chain uses is Bundling , offering a discount on the purchase of a full meal to encourage customers to spend more money.

McDonald’s uses TV and online media as one of its main advertising strategies. In addition, the chain uses posters and popular newspapers, such as Metro, to advertise its products. Newspaper promotions often include money off coupons for certain meal options. In-store promotions include the saver menu, limited-time offers on certain items and the Happy Meal , which includes a toy along with a smaller sized meal, to attract families with young children.

McDonald's became a franchise in 1955. Currently, as many as 93% of McDonald's restaurants worldwide are owned and operated by franchisees . McDonald's would not grow to be the large international corporation we all know without these independent local business owners. McDonald's restaurants employ over two million people worldwide, making the chain one of the largest employers in the world. McDonald's refers to its staff as crew members . The crew members are responsible for food preparation, customer service, cleanliness, and hygiene.

McDonald's is a market leader in engineering and process. They have implemented effective processes for ordering, preparing, serving and delivering food over the years. McDonald's makes sure that customers are served as fast as possible, whether they buy food in one of the chain's many restaurants , use a drive-thru , or order McDelivery.

Physical Evidence

The fact that you can find McDonald's restaurants all over the world, including in unusual locations, such as the desert near the Dead Sea in Israel, is clear evidence of the chain's success. McDonald's branding on their product packaging , such as drink cups and French fry and burger boxes, is another evidence of the restaurant's success.

Room for Improvement

McDonald's impressive ability to cater for different tastes and lifestyles is reflected in their marketing campaigns. However, one of the common complaints is that McDonald's restaurants do not offer gluten-free buns. With an increasing number of people suffering from gluten intolerance, it would be a good idea to introduce gluten-free burger options to the menu and include this in the marketing campaign.

About the author

Michaela mrockova, michaela has been working as a web designer and content writer for several years. michaela will be sharing content marketing and seo tips on this blog. .

Case Study 11: Marketing of Services: The McDonald’s Way

First Online: 01 January 2013

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For a lot of people, the name of McDonald’s instantly brings a smile. It is known for its crispy burgers and its wide network of outlets. The company started its business operations in India in 1996 as a 50:50 joint venture partnership between the two businessmen Amit Jatia (Jatia) and Vikram Bakshi (Bakshi). India was a challenging market, given local dietary preferences for vegetarian dishes. Tim Fenton pointed out that India’s eat out market was about $128 billion a year compared with $132 billion in China, but was growing faster than that of China.

If you work just for money, you’ll never make it, but if you love what you’re doing and you always put the customer first, success will be yours. —Ray Kroc, Founder, McDonald’s Corporation.

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A Case Study of Sustainable Service-Based Marketing Strategy of Food Delivery Business in India

Joan Chow — Executive Vice President and Chief Marketing Officer, ConAgra Foods

Marketing for sustai nable living

Amit Jatia, the MD of Hardcastle Restaurants, joined the McDonald’s family as the youngest JV Partner in 1995. He took hands on training for a year at McDonald’s in Jakarta (Indonesia) as well as a degree in Hamburgerology from the Hamburger University, Oak Brook (Illinois, USA). He was also nominated for “The Economic Times Awards for Corporate Excellence” as “Entrepreneur of the Year” in 2004 and 2005.

Vikram Bakshi became the MD, McDonald’s India (North and East) on September 28, 2006. He was also nominated as the President of the National restaurant Association of India.

Tim Fenton was the president of Asia, Pacific, Middle East and Africa and was accountable for the 38 countries and more than 8,200 McDonald’s restaurants in this region. He served as president, East Division, for McDonald’s USA. He was responsible for more than 5,200 restaurants in the eastern United States, covering eight geographical regions in 21 states.

It is a vegetable burger, which includes a patty made out of potatoes, peas, and spices. It also includes tomato slices, onions, and vegetarian mayonnaise.

It starts with a rectangular shaped crust, but instead of a creamy sauce, it is flavoured with a tomato-based sauce and then is topped with carrots, beans, bell peppers, onions, peas and mozzarella cheese.

It looks similar to McAloo Tikki Burger, but starts with the sesame seed bun. In between the bread, there is a vegetarian patty made from peas, carrots, green beans, red bell pepper, potatoes, onions, rice, and seasoning. It is garnished with lettuce, and has mayonnaise spread thickly on the bread.

A samosa is a stuffed pastry and a popular snack in South and Southeast Asia. It generally consists of a fried or baked triangular, semi-lunar or tetrahedral pastry shell with a savory filling, which may include spiced potatoes, onions, peas, coriander, and lentils, or ground beef or chicken.

Kababs are a wide variety of meat dishes originating in Persia and later on adopted by the Middle East andTurkey, and now found worldwide.

Chole bhatura is a combination of spicy chick peas and fried bread called bhatura made of flour.

Pakoda is a fried snack (fritter) found across South Asia. It is created by taking one or two ingredients such as onion, eggplant, potato, spinach, plantain, cauliflower, tomato, chilli, or occasionally bread or chicken and dipping them in a batter of gram flour and then deep-frying them.

A paratha is an Indian flat-bread that originated in the Indian subcontinent. Parathas are usually stuffed with vegetables such as boiled potatoes, leaf vegetables, radishes or cauliflower and/or paneer (South Asian cheese). Aloo-paratha is the variety that is stuffed with boiled potato and spices.

The bhaaji is a vegetarian dish made from a vegetable. A typical north Indian lunch or dinner usually starts with Poori (flat bread), accompanied by one or more bhaaji(s).

Dosa is a fermented crepe or pancake made from rice batter and black lentils. It is indigenous and is a staple dish in the southern Indian states of Andhra Pradesh, Karnataka, Kerala, and Tamil Nadu.

Vada can vary in shape and size, but are usually either doughnut or disc shaped and are about between 5 and 8 cm across. They are made from dal, lentil, gram flour or potato. Vadas are preferably eaten freshly fried, while still hot and crunchy and is served with a variety of dip called sambar.

Rs = Indian Rupee (s), Re. 1 = 100 paisa, In February 2011, US$1 = Rs. 45 (approximately).

V S Rama Rao, “Fast Food Retailing in India,” www.citeman.com , September 17, 2010.

In India, highways are dotted with local restaurants popularly known as dhabas (singular: dhaba ). They generally serve local cuisine. They are most commonly found next to petrol stations, and are generally open 24 h a day.

“The Burger Story” www.tonicpanel.com .

Leo Burnett Worldwide is an American advertising company, created in 1935 by Leo Burnett. The company was opened in Chicago in 1935. In 1950 the company started its two first major advertising projects, for Kellogg’s and P&G.

Bollywood is the informal term popularly used for the Hindi-language film industry based in Mumbai, Maharashtra, India. The term is often incorrectly used to refer to the whole of Indian cinema; it is only a part of the total Indian film industry, which includes several regional film industries sorted by language.

The Indian Premier League (IPL) is a professional league for Twenty20 cricket competition in India. It was initiated by the Board of Control for Cricket in India (BCCI) headquartered in Mumbai, India.

The Associated Chambers of Commerce and Industry of India (ASSOCHAM) is the umbrella body of chambers of commerce in India. The organisation represents the interests of trade and commerce in India, and interacting with the Government of India on policy issues, and liaisoning with their international counterparts to promote trade between India and other nations.

India’s first Food Franchising Report by Franchise India and CIFTI-FICCI. The primary objective of the report is to provide a snapshot of current trends in Food Franchising vis-a-vis expert analysis of various elements having implications on it.

Established in 1991 by Arvind Singhal, Technopak Advisors is a Management Consulting firm in India, offering strategic advice, start up assistance, performance enhancement impetus, consumer insights and capital advisory to Indian and International companies.

Sagar Ratna is a well known brand of restaurant chain in northern India serving vegetarian cuisine with a speciality in south Indian delicacies.

Yo! China is India’s first and largest chain offering Indian Chinese cuisine in almost all corners of the country. It offers a trendy casual dining atmosphere and has 43 points of presence in trendy locations across India.

Haldiram’s is one of India's largest sweets and snacks manufacturers, based in Delhi, India.

Bikanervala is a chain of traditional restaurant in India which specializes in ethnic Indian food specially sweets and snacks.

Nirula’s is India’s oldest fast food restaurant chain, based in North India and most popular in NCR Delhi. It specialized in “Desi (local) version” of western fast food as well as offered Indian cuisine and casual dining.

Mavalli Tiffin Room (commonly known as MTR) is the brand name of a food related enterprise located in India. It is famous for the MTR restaurant located on the Lal Bagh Road in Bangalore and also for the pre-packed food articles which are sold in packets having the MTR brand. MTR also claims to be the inventor of the popular South-Indian breakfast item, Rava idli.

Murugan idli shop is considered among the best to taste South Indian dishes. Idly, Dosai and Meals are enjoying the prominent positions among the menu of a south Indian.

Denny’s Corp is a full-service coffee shop/family restaurant chain. It operates over 1,500 restaurants in the United States. Denny’s is known for always being open, serving breakfast, lunch, dinner, and dessert around the clock. .

Pollo Tropical is a fast food restaurant chain specializing in the Floribbean cuisine of South Florida (a fusion of Florida cuisine and Caribbean food). Pollo Tropical is owned and operated by Carrols Corporation. The chain has its headquarters in Kendall, unincorporated Miami-Dade County, Florida.

Johnny Rockets is an American restaurant franchise whose concept is to create a classic American restaurant atmosphere. The theme is the diner-style restaurant that had become a common sight by the 1950s.

Wendy’s Old Fashioned Hamburgers is an international fast food chain restaurant founded by Dave Thomas. As of March 2010, Wendy’s was the world’s third largest hamburger fast food chain with approximately 6,650 locations.

Arby’s is a fast food restaurant chain in the United States and Canada that is a wholly owned subsidiary of Wendy’s/Arby’s Group. It is primarily known for selling roast beef sandwiches and curly fries. The company's target market attempts to be more adult-oriented than other fast food restaurants.

CKE Restaurants, Inc. is the parent company of the Carl’s Jr., Hardee’s, Green Burrito, and Red Burrito restaurant chains.

Schlotzsky’s is a privately held franchise chain of restaurants, specializing in sandwiches, headquartered in Downtown Austin, Texas. As of November 20, 2006, Schlotzsky’s has nearly 380 franchised and company-owned locations in 36 states in the United States and in six other countries around the world, generating $210 million in systemwide revenue.

BannaStrow’s is a franchise concept that focuses on a menu of Crepes and Waffles, cooked to order in front of its customers for a wonderful show.

Moe’s Southwest Grill is an American chain of fast casual style Tex-Mex restaurants headquartered in Atlanta, Georgia.

Carvel is an ice cream franchise owned by Focus Brands. Carvel is best known for its ice cream cakes, which feature a layer of distinctive ‘crunchies’. It also sells a variety of novelty ice cream bars, ice cream sandwiches and soft serve ice cream.

Dunkin’ Donuts is an international doughnut and coffee retailer founded in 1950 in Quincy, Massachusetts by William Rosenberg.

Popeyes Chicken & Biscuits (sometimes named Popeyes Louisiana Kitchen or Popeyes Chicken & Seafood; often referred to as just Popeyes) is a chain of fried chicken fast food restaurants, owned since 1993 by the Sandy Springs, Georgia-based AFC Enterprises.

The Pizza Company is a restaurant chain and international franchise based in Bangkok, Thailand.

Swensen’s is a global chain of ice cream restaurants that started in San Francisco, California.

Burger King, often abbreviated as BK, is a global chain of hamburger fast food restaurants headquartered in unincorporated Miami-Dade County, Florida, United States.

Ipsos Indica Research is an independent company which ranks fifth among global research companies.

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Paul, R., Roy, S.K. (2014). Case Study 11: Marketing of Services: The McDonald’s Way. In: Mutum, D., Roy, S., Kipnis, E. (eds) Marketing Cases from Emerging Markets. Springer, Berlin, Heidelberg. https://doi.org/10.1007/978-3-642-36861-5_15

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Home » Management Case Studies » Case Study: McDonalds Marketing Strategies

Case Study: McDonalds Marketing Strategies

McDonald’s is the world’s largest fast-food restaurant chain. It has more than 30,000 restaurants in over 100 countries. Over one billion more customers were served in 2007 than in 2006. Although net income was down by $1.1 billion in 2007, McDonald’s sales were up 6.8%, and revenue was a record high of $23 billion. “The unique business relationship among the company, its franchisees and suppliers (collectively referred to as the System) has been key to McDonald’s success over the years. The business model enables McDonald’s to play an integral role in the communities we serve and consistently deliver relevant restaurant experiences to customers.”

McDonald’s overall strategic plan is called Plan to Win. Their focus is not so much on being the biggest fast-food restaurant chain, rather it is more focused on being the best fast-food restaurant chain. McDonald’s “ strategic alignment behind this plan has created better McDonald’s experiences through the execution of multiple initiatives surrounding the five factors of exceptional customer experiences — people, products, place, price and promotion”. McDonald’s also incorporates geographical strategic plans. In the U.S., McDonald’s strategic plan continues to focus on breakfast, chicken, beverages and convenience. These are the core areas in the United States. McDonald’s has launched the Southern Style Chicken Biscuit for breakfast and the Southern Style Chicken Sandwich for lunch and dinner. In the beverage business, McDonald’s starting introducing new hot specialty coffee offerings on a market-by-market basis. In Europe, McDonald’s uses a tiered menu approach. This menu features premium selections, classic menu, and everyday affordable offerings. They also “complement these with new products and limited-time food promotions”. In the Asia-Pacific, Middle East, and Africa markets, McDonald’s strategic plan is focused around convenience, breakfast, core menu extensions and value. With McDonald’s overall strategic plan and its geographical strategic plan, the company should start to see more positive financial results.

McDonald’s incorporates several organizational strategies. Some of the organizational strategies consist of better restaurant operations, placing the customer first, menu variety and beverage choice, convenience and daypart expansion, and ongoing restaurant reinvestment. McDonald’s plans to “continue to drive success in 2008 and beyond by leveraging key consumer insights and our global experience, while relying on our strengths in developing, testing and implementing initiatives surrounding our global business drivers of convenience, branded affordability, daypart expansion and menu variety”. One of the ways McDonald’s can obtain a positive net income is to maximize efficiency in its restaurant operations while at the same time placing the customer first. With strategic focus on menu variety and beverage choice, McDonald’s is hoping for increased sales and guest counts. With their convenience and daypart expansion initiative, McDonald’s is hoping to increase efficiency in its drive-thru pick up window, and the company is staying open later for those late-nighters who want a quick bite to eat. McDonald’s also has locally owned and operated restaurants which “are at the core of their competitive advantage and makes them not just a global brand but a locally relevant one”. They are in the process of remodeling and upgrading its franchises. The company is also opening up McCafe’s “with the expectation that the gourmet coffee shop would move it closer to its goal of doubling sales at existing U.S. restaurants over the next decade”. A couple other organizational strategies are branded affordability, and the development of their employees starting with recruitment and training and leading all the up to leadership and management .

McDonald’s strategic plan is influencing their marketing efforts by building better brand transparency. They want their image to be recognized globally. They are enhancing the customer’s experience. “Across their markets, they are making is easier for customers to enjoy a great McDonald’s experience. They are introducing drive-thrus to the increasingly mobile populations in China and Russia, while in the U.S. and Canada, greater drive-thru efficiency and double drive-thru lanes enable them to serve even more customers quickly”. In Germany, McDonald’s has a reimaging program that includes adding about 100 McCafes. They are also installing new kitchen operating systems so that they can continue to deliver high food quality . McDonald’s has already renovated about 10,000 restaurants world wide. They want their restaurants to be an expression of their brand. The company is also delivering greater value to the customer with new menu selections. “By serving a locally relevant balance of new products, premium salads and sandwiches, classic menu favorites and everyday affordable offerings around the world, they create value for customers and satisfy their demand for choice and variety”.

Types of marketing mix that McDonald’s use to achieve their marketing goals are longer operating hours, everyday value meals, and optimizing efficiency in the drive-thru. McDonald’s also uses marketing campaigns. In 2007, McDonald’s used the Shrek movie to give children a choice between milk, fruit, or vegetables as part of their Happy Meal. In addition to their commitment with children, McDonald’s is building their brand image “with innovated marketing transporting ideas across borders and using i’m lovin’ it to deepen their connection with customers who love their food and the unique McDonald’s experience”. In the 2008 Olympics held in Beijing, McDonalds offered the Beijing Burger, Carmel and Banana Sundae, and Rice Sticks. They featured nine Olympic and Paralympic athletes on their packaging. In Australia, McDonald’s held a marketing campaign where the people could decide what name to give its new hamburger. The name that won was Backyard Burger. With marketing campaigns like these, McDonald’s is trying to create a better brand image.

Other organizational and marketing strategies are “creating stronger bonds of trust by being accessible and maintaining an open dialogue with customers and key stakeholders ”. The company is reinvesting approximately $1.9 billion into their restaurants primarily to reimage existing restaurants and build new ones. McDonald’s is also moving towards a more heavily franchised, less capital-intensive business model. Although in some countries, such as China, this is not permissible due to governmental laws.

With McDonald’s growing global brand image and its emphasis on the five factors of exceptional customer service, this should help them increase sales and net income. With the initiative of remodeling and upgrading existing franchises, this will give the customer a more pleasant and friendly place to dine out at. With McDonald’s marketing campaign for the 2008 Olympics, they were an integral part of the games and this only enhanced McDonald’s brand image in a positive way. With the recruitment and training initiatives for current employees or future prospects, this will allow McDonald’s to achieve less of an already high turnover ratio.

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Table of Contents

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McDonald’s: Through the Golden Arches to Global Dominance

The Origins of Empire

How McDonald’s Built a Global Brand

McDonald’s Braves Stormy Waters

Modernization and Improving Image

Digital Transformation and Investment

Pioneering AI decision technology

Customer Loyalty

Driving centralization

Inspiring communications and campaigns

Tapping into community

McDonald’s: Analysis and Final Thoughts

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McDonald's Marketing Strategy: How McDonald's makes you love it!

A brief history of McDonald's brothers

The famous Golden Arches

What McDonald's believes in

The present day McDonald's as a company

But what about its pricing strategy for profits?

So, what makes McDonald’s business model and marketing strategies successful?

What is McDonald's Marketing Strategy?

Product focus areas

1. McDonald’s Promotion

2. McDonald’s Product

3. McDonald’s Pricing Strategies

4. McDonald’s Placement

Iconic Marketing Campaigns by McDonald's

McDonald’s Cobranding Strategy to Double Down its Reputation & Cut on the Advertising Cost

Partnership with other brands and creators that complement their fast service

Riding pop culture wave as marketing strategy with McInfluencers

Showing up in movies as a marketing strategy

Mcdonald's Green Marketing Strategies: Initiatives for making healthy food and a Sustainable Future

Ronald McDonald and McDonaldland as competitive advantage

Dissing competitor brands as marketing strategy

McDonalds marketing strategy with jingles

The Hamburger University as a means for excellent customer satisfaction

Thinking beyond burgers by venturing into new markets

How McDonald's marketing strategy makes you hungry?

Why the franchise business model works for McDonald's

McDonald's is a real estate company

Scale with Efficiency and Repetition

McDonald’s Unique Refinancing Strategies During Recession

Key Takeaways from McDonald's for entrepreneurs

Less is more

Build systems and processes

Larger target market means more marketing budget

Be adaptable

Adpot a Bundle Pricing strategy

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