THE

SECRETINGREDIENT OF

McDonald’s is…..

McDonald’s, franchised by Ray Kroc from McDonald brothers, first offered simple foods like famous 15 cent hamburger

Core values of McDonald’s

Providing hot & Quality foodEntertaining families

the

SECRETINGREDIENT is

BRAND name

Importance of BRAND

In a survey conducted, children felt better taste when the same burger is wrapped in McDonald’s covers

The fun part and creativity

McDonald’s uses various cartoon characters to attract children..

What is the USE ???

ItIncreases Brand equity..

BRAND EQUITY..

It is the Added value endowed on products and services.

Brand Equity arises from differences in

consumer response.

How else can we build BRAND EQUITY

• Choosing brand elements• Designing Holistic Marketing activities• Leveraging secondary associates• Communities

How to measure BRAND EQUITY

Direct approach

Assesses the actual impact brand knowledge on consumer’s response to different aspects of marketing

Indirect approach

Assesses potential sources of brand equity by identifying and tracking consumer brand knowledge structures

How to manage BRAND EQUITY

Brand Reinforcement

Marketers can reinforce by consistently conveying the meaning of brand, what it represents, how brand makes products superior, etc.

Brand Revitalization

If brand has to come back, it has to concentrate on understanding what source of brand equity were to begin with.

Coming back to McDonald’s

McDonald’s is

known to serve

quality food for

people of lower

socio-economic

groups

In 2008

McDonald’s one of

the two companies in the Dow Jones Industrial Average whose share price rose in 2008

Some of McDonald’s substitutes..

Risks

Companies like Burger king are offering food at more lower prices

Risks

People are being attracted towards pizza and other fast-food items

Yet

We Always love

McDonald’s :P

Summary..

• Core values of McDonald’s• The secret ingredient• Defining Brand equity• How to build, measure, manage Brand equity• McDonalds survival during recession times• Risks associated with McDonald’s

Disclaimer

Created by Adidala Yashwanth, IIT Madras, during a marketing internship by Prof. Sameer Mathur, IIM Lucknow