2011

Assignment on Brand
Management

Group 9 (Section A):

Ajanta Boro
Pranabesh Chatterjee
Pritom Pangging

6/22/2011

Contents
History ..................................................................................................................................................... 2
4 Ps model .............................................................................................................................................. 2
Product ................................................................................................................................................ 2
Price .................................................................................................................................................... 2
Place .................................................................................................................................................... 2
Promotion ........................................................................................................................................... 2
BRAND PERFORMANCE ........................................................................................................................... 3
PESTEL ANALYSIS................................................................................................................................. 3
ANSOFF MATRIX FOR MCDONALDS .................................................................................................... 3
Brand Positioning .................................................................................................................................... 4
Attracting: ....................................................................................................................................... 4
Engaging: ......................................................................................................................................... 4
Relating: .......................................................................................................................................... 4
RESEARCH APPROACH ............................................................................................................................ 4
1.

Brand Awareness: ................................................................................................................... 4

2.

Brand Usage: ........................................................................................................................... 4

3.

Brand performance: ................................................................................................................ 4

4.

Brand Association: .................................................................................................................. 4

5.

Perceived Quality: ................................................................................................................... 4

Questionnaire ......................................................................................................................................... 4
Brand Awareness: ............................................................................................................................... 4
Brand Usage ........................................................................................................................................ 5
Brand Performance ............................................................................................................................. 6
Brand Association ............................................................................................................................... 6
Perceived Quality ................................................................................................................................ 6
FACTOR ANALYSIS ................................................................................................................................... 7
References: ............................................................................................................................................. 7

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HISTORY
McDonalds is one of the best brands known worldwide. McDonalds Corporation is the worlds
largest chain of hamburger fast food restaurants and is the leading global foodservice retailer with
more than 32,000 restaurants in 121 countries. About 80% of the restaurants are run by franchisees or
affiliates. The business was started in 1940 by brothers Richard and Maurice McDonald in San
Bernardino, California. The present McDonalds Corporation dates back to April 15, 1955, when Ray
Kroc purchased and opened a franchised restaurant in Des Plaines, Illinois. The Company first filed
for a US trademark in 1961 with the description Drive in restaurant services. The company became
listed on the public stock markets in 1965.
The first McDonalds restaurant outside the US was opened in Canada on June 1, 1967. Today,
McDonalds is present in 121 countries. Six countries Canada, Japan, Germany, Australia, France
and England provide about 80 percent of McDonalds international operating income, and are known
as the Big Six.
McDonalds currently employs 400,000 employees (January 2010) and serves 64 million people in 121
countries in each day.
4 PS MODEL
PRODUCT

According to the geography and the taste and belief of the people, the menu for a
McDonald restaurant changes and it offers a regionalized version. Example: In India they
dont have beef and pork products while in Japan, one can get Shrimp and Pork Burgers.
Burgers being their strength, they have a variety of it in the form of Big Mac being their
best seller. Followed by Fries, Chicken Nuggets, McChicken etc. Recently, they have
launched Spicy Chicken in India.
Menu includes special combinations like Spicy Delights, Extra Value Meals, Happy Price
Menu, Breakfast Menu etc.
McDonald's India is committed to sourcing almost all of its products from within the
country. For this purpose, it has developed local Indian businesses, which can supply
them the highest quality products required for their Indian operations. Fresh Lettuce is
sourced from Pune, Delhi, Nainital and Ooty as an example.

PRICE

Pricing is the USP of McDonalds. Quality food at cheap price makes it stand out from the
other brands of the same league. They have been effectively marketing their products as
affordably priced in India, for instance, the McAloo Tikki advertisement.

Located mostly at malls, multiplexes, express highways and gas stations etc, it has been a
strategic way of branding their product as fast serviced, affordable and easily available.
McDonalds has around 31000+ outlets with presence in around 121 countries. The first
outlet in India was in Delhi which was opened on 13th Oct 1996 and presently it has 192
outlets in India.

PLACE

PROMOTION

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Targeted children of the age group 3-12 through their happy meal pack which offered
new toys with every meal .Recently Kung-fu-Panda was used in their promotional
campaign and its toys were given as takeaways.

Ronald McDonald is a clown character used as the primary mascot of the McDonald's
fast-food restaurant chain. In television commercials, the clown inhabits a fantasy world
called McDonaldland, and has adventures with his friends Mayor McCheese, the
Hamburglar, Grimace, Birdie the Early Bird, and The Fry Kids. In recent years,
McDonaldland has been largely phased out, and Ronald is instead shown interacting with
normal kids in their everyday lives.
Famous taglines of McDonalds:
a) "We Love to See You Smile"
b) McDonald's is Your Kind of Place (1965)
c) We Do It All For You (1975)
d) Nobody Can Do it Like McDonald's Can (1979)
e) You Deserve a Break Today (1981)
f) McDonald's and You (1983)
g) It's a Good Time, for the Great Taste of McDonald's (1984)
h) Good Time, Great Taste (1988)
i) Im lovin it(2003)

BRAND PERFORMANCE
PESTEL ANALYSIS
Political

Economic

Social
Technological
Environmental
standards

In each country that Mc Donalds operates, it is influenced by the

government policies and its own operating policies are aligned to the state
policies.
Market Leader
High target Market
Economies of scale
Mc Donalds has survived economic hardships
Increasing employment for local people
Works within many social groups
Use of advanced technology in preparation and packaging
Quality packing use of paper bags for takeaways
Quality standards in preparation
Use of locally produced supplies

ANSOFF MATRIX FOR MCDONALDS

Present
Present

New

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Market Penetration

Market Development

New

Product Development
Diversification
Diversification

Mc Donalds has vigorously pursued the path of diversification through new product development and
by venturing into multifarious markets in multiple countries which has enabled it to be the brand that
it currently is.
BRAND POSITIONING
Mc Donald used the following strategy to position its brand:
Attracting:

Secondary advertising -customer videos and employee videos Youtube

Metatags
Advertising on products happy meals, monopoly

Macromedia Flash used extensively

Games for the kids
Online calculators for nutrition information
They use a map locator to show you how to get to McDonalds (inaccurate map no
road names)

Engaging:

Relating:
They are collecting data, and possibly using it to make the site efficient
They also use telephone, e-mail, and regular mail as forms of relating
RESEARCH APPROACH
For gauging the image of the brand in the consumers mind, we will prepare survey questions
that will help us in determining the customer opinion about McDonald. The questions will be
based on the following heads which are the core of Brand management and Brand Equity.
1. Brand Awareness: This concept speaks about how well the brand is known to the
customers, more importantly to the target customers. Brand Awareness measures
the customers ability to identify the brand under different conditions. This is the
first step in measuring the Brand Equity as a customer would associate with a
brand only once they are aware of it.
2. Brand Usage: Brand Usage talks about trend in the usage of the brand in terms of
the demographic profile of the target population as well as the impact of social
groups and lifestyle in the usage of the brand.
3. Brand performance: This is used to define customers perception about the brand
in terms of quality, cost, availability, durability.
4. Brand Association: This refers to anything linked in memory with reference to the
brand.
5. Perceived Quality: On the basis of above discussion, the customer forms an
overall judgment about the brand that defines his attitude and repeat purchase
intentions and also how he spreads the knowledge about the brand.
QUESTIONNAIRE
BRAND AWARENESS:
1. When you think of fast food joints, what comes to your mind first?
_________________

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2. Have you heard of Mc Donalds?

_________________
3. What meal do you prefer at McDonalds?
a. Chicken Burger
b. Ham Burger
c. Cheese Burger
d. French Fries
e. Others
4. How many menu items does McDonalds have?
5. What is the best selling food in Mc Donalds?
6. Do you know about the following products of Mc Donalds?
Yes

No

Green Salad
Grilled Chicken
Fresh Corn cup
Mini salad
7. Do you know McDonald's provide healthy food?
8. How did you come to know about Mc Donald?
a. T.V. Advertisements
b. Print Media
c. Internet
d. Word of Mouth
e. Recommendations by beauty salons/experts
BRAND USAGE
1. Which place is your favorite as a fast food joint?
2. Have you ever visited McDonald's?
3. How often do you visit McDonald's every month?
A.)Never
B.)1-3 times
C.)4-5 times
D.)More than 5 times
4. Do you think McDonald's product is over-packaging?
A.)Yes
B.)No
5. For which age group do think Mc Donald food is most appropriate?
a. 16 years 20 years
b. 21 years 29 years
c. 30 years 40 years
d. Above 40 years
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Maybe

6. In a month, how much would you roughly spend there?

A.)0-100
B.)100-1000
C.)1000-2000
D.)More
BRAND PERFORMANCE
1. According to you, how does Mc Donald food perform on following parameters?
Poor
1

Best
2

Quality
Cost Effective
Availability
Taste
Hygiene
2. How important do you think is packaging?
a. Not Important
b. Somewhat Important
c. Important
d. Very Important
BRAND ASSOCIATION
1. Can you recall the logo of McDonald?
2. Do you feel McDonald is associated with excellent ambience for eating and hanging out?
PERCEIVED QUALITY
1. Which of the following qualities do you think apply to Mc Donald?
Yes
Suave
Innovative
Reliable
Concerned about their customers
Concerned about society as a whole
2. Do you think eating at Mc Donald is a social status?
Yes
No

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No

FACTOR ANALYSIS

Assuming Brand awareness, Brand Usage, Brand performance and Brand Judgment as the various
factors affecting Brand Equity, we can model our marketing research using factor analysis method to
determine the relative importance of various variables and which all affect the brand equity best.
Let Y1 -- Brand awareness
Y2-- Brand Usage
Y3-- Brand performance
Y4Brand Association
Y5Percieved Quality
Y1 = b1 + a11.x11 + a12.x12 + + e1
.
.
Y4 = b5 + a51.x41 + a52.x52 + + e5.
Where, b1...b4 ----- are the constants, e1e4 --- are the error terms, x11, x21, x41 etc are
the various underlying factors assigned to the various questions under each factor. We can
derive the result from any statistical tool like SPSS.
For e.g. For Perceived Quality, the factors are: Reliability, durability, serviceability etc.

REFERENCES:
1.
2.
3.
4.

www.mcdonalds.com
www.aboutmcdonalds.com
http://www.bandagroup.com/ideas/advisor-2011-summer.html
http://www.yorku.ca/ptryfos/f1400.pdf

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