McDonald Brand Equity

McDonald’s Brand Equity Marceline Pierre American College of Education

Brand Equity The perceived value attributed to a brand used to designate an entity.Brands are used to indicate a products credibility, improve consumers perception in a company,lower uncertainty and information cost (Erdem,2008). Brand equity fluctuates with the society in which it is exposed to hence the need for a brand to be well known and relatable in order for it to gain value (Vignali,2001)

The Company • Founded in 1948 • Ranked # 1 in the Fast Food industry • Location: more than 35000 location in more than 121 countries • Employing more than 1.5 million worldwide (235000 US) • Fortune 500 #131 $22,820.4M (2018) • Main Products: Burgers, French fries, salad, value meals and ect

Values Vision Mission • "McDonald's vision is to be the world's best quick service restaurant experience. Being the best means providing outstanding quality, service, cleanliness, & value, so that we make every customer in every restaurant smile." • McDonald's brand mission is to be our customers' favorite place and way to eat and drink. Our worldwide operations are aligned around a global strategy called the Plan to Win, which center on an exceptional customer experience – People, Products, Place, Price and Promotion. We are committed to continuously improving our operations and enhancing our customers' experience.

Competitors

McDonald Vs Competitors Differences • Toys and Happy meal (Targets youth mostly) • Low prices • Huge Golden Arches that are really visible • Lack of Variety in meals (standard ) • Diversification of beverages ( non Soda ) • Part of the culture and advertisement.

Brand Lost of Values • Lost of Identity • Culture value Shift • Economic influences • Negative publicity

Lost of Identity • McDonald does not promote a specific product to be identified with • Lost of customer interaction/empathy in quest of fast service • Low quality products for targeted segment ( I am loathing it)

Culture value Shift Our Society’s culture slowly shift from Family oriented to single life Younger Generation are distancing themselves from the old style burger in favor of taste diversity More health conscious youth

Economy • McDonald is dependant on its customers economic status since it dictates their choices.A poor economy will cause customer to look for products that are at a lower price and more healthy than McDonald such as home cooked meal.

Economy McDonald growth over the years US employment population ration over the year

Negative Publicity Direct Indirect • Substandard meat/product from around the world • Poor customer service • unhealthy menu • lack of diversity in food selection • Lawsuits • Indirectly associated with mistakes of top competitors • Shift in customer taste unrelated to price • Poor treatment of all fast food employees

McDonald’s positioning strategy & Action Strategy Family Oriented franchise ( targeting youth) low cost Action • $1 sodas • $2 Coffee Drink (McCafe) • Pokemon Go location • App for faster service • More drive through lines • Home delivery

Proposed Solution to repositioning the Brand • McDonald Brand is well known due to an extensive advertising over the years, but McDonald needs to go back to its roots of high quality burgers for a low price. • Low price • high quality burgers • Healthy choices • No more use of the clown

Necessary Changes Target millenials in advertisements similar to youths Target working class individuals More appealing,categorized,simpler menu Offer more healthy vegetarian option instead of bite size apples Faster service at the drive through Remodel the image to that of a cozy environment at store instead of a party location Offer guarantees on the quality of the products

AttractingMillennials Advertise in area with a large concentration of millenials such as Universities, the Malls Give away free samples of their easily transportable products (drinks) More healthy alternatives/ ingredients in products such as fresh vegetables

Attracting Millennials • Open partnership with companies that have a cleaner image such a whole food • Diversification of the meals bases on demography (ethnic food,Taste) • More involvement in localized community by offering various sponsorship

Conclusion Millennials and younger generation are more interested in the quality and taste of the product that is being purchased along with the service that is being provided versus price,which only plays a small part. The slow cultural shift from a family oriented society to favor that of a single life diminish the market segment targeted by McDonalds.Allowing individual restaurants to offer menus that best represent the demography of their customers will further increase McDonald presence in the communities, improving loyalty and be at the forefront of individual’s mind in decision making.

Reference Claudio Vignali, (2001) "McDonald’s: “think global, act local” – the marketing mix", British Food Journal, Vol. 103 Issue: 2, pp.97-111, https://doi.org/10.1108/00070700110383154 Erdem, T., & Swait, J. (2008, January 25). Brand Equity as a Signaling Phenomenon. Retrieved June 7, 2018, from https://onlinelibrary.wiley.com/doi/abs/10.1207/s15327663jcp0702_02 Durden, T. (2014, October 21). 19 Surprising Facts About The Messed Up State Of The US Economy. Retrieved June 9, 2018, from https://www.zerohedge.com/news/2014-10-21/19-surprising-facts-about-messed-state-us-economy Fortune500. (n.d.). McDonald's. Retrieved June 9, 2018, from http://fortune.com/fortune500/mcdonalds/ Trout, J. (2008). Differentiate or Die. Retrieved June 8, 2018, from https://books.google.com/books?hl=en&lr=&id=IJN-a827qPkC&oi=fnd&pg=PT12&dq=What differentiates McDonald’s from its competition?&ots=Sgx8XG0C8A&sig=Ca9pr6Lfb_Ka-4flAqDfPDDLHeI#v=onepage&q=What differentiates McDonald’s from its competition?&f=false

McDonald Brand Equity