Case Study Analysis: McDonald's Brand and Product Management - MKT304A

This case study analyzes McDonald's brand and product management strategies, examining how the company excels in delivering customer benefits, maintaining relevance, and implementing effective pricing strategies based on consumer perception. The analysis covers brand positioning, marketing program consistency, brand portfolio structure, and the use of marketing activities to build brand equity. The study also explores McDonald's understanding of consumer perception and its ongoing marketing programs, providing insights into the company's success in the fast-food industry. The assignment addresses key aspects of brand management, offering a comprehensive overview of McDonald's approach to marketing and its impact on consumer behavior and brand equity. The analysis is based on the provided case study brief and the framework outlined by Kevin Lane Keller in "The Brand Report Card."

Running head: BRAND AND PRODUCT MANAGEMENT
BRAND AND PRODUCT MANAGEMENT
Name of the Student
Name of the University
Author Note

1. How does McDonald excel at delivering the benefits customers truly desire?
The customers of McDonald are interested in buying the products offered by the
company not only because it is a collection of different set of attributes. It is only because
the company is known to offer its customers with the best products together with the
goodwill of the brand image, the customer services which are offered coupled with many
other types of tangible and intangible factors. All these factors are known to create an
attractive package for the customers (Thompson et al., 2018).
Considering the company McDonald in the case study the company is not only
known for offering fast food and hamburger services. In the previous years of setup and
establishment the entrepreneur of the company who are Maurine McDonald and Richard
McDonald used to sell hamburger in the streets of California. But as for now McDonald
is a brand which is known for varieties of dishes ranging from the veg dishes to the non-
veg dishes from soft drinks to the grilled chickens. McDonald is serving in more than 153
countries worldwide. The company has provided much effort in setting up the official
building and store of the company and creating a soothing culture inside for having meals
with friends and family members. According to Christensen and Raynor (2015) the rich
in taste of the products, attractive art work and music being played in the background, the
cozy feeling from the tables and chairs are the most appealing to the customers.
Therefore it can be said that the company has excelled in delivering thee benefits to the
customers.
2. How does McDonald stay relevant?
In strong brands like the McDonalds various intangible factors and quality of the
products and services are tied with the brand equity. The intangible factors which affects

the brand equity are the type of the person who is having the product, the type of
condition where the product and services offered by the company, the type of relationship
the user have with the company and the type of personality the brand is known to portray
with its products and services. McDonald has been making a lot of expenses for ist
Research and Development which makes the brand different from the other brand
providing fast food services to its customers. With the use of the advanced technologies
in serving food and preparing a beautiful environment has kept the brand relevant
through the past years.
The products and services which are offered by McDonald are famous and much
preferred by the customers than the other brand because of the superiority of the food and
services. According to McDonald & Wilson (2016) McDonald also has varieties of
products which is healthy for a kid. The contemporary trends of the brand with the
advertisement where the consumers say “ I am loving it “ are tweaked through images
and advertisement. The increase in the perception of the customers has also increased the
strengths of the brand.
3. How is the pricing strategy based on the consumers’ perception of value?
In the business marketing the pricing strategies are generally are followed by
three main factors which are the differentiation of cost , focus of the company and
leadership. When it comes to the pricing strategy which is based on the choice and
preferences of the customers of the products, the company has been bundling the pricing
strategies by offering the happy meals and other products on discounts. According to
McDONALD, (2016) McDonald is known for setting its price to the nearest and much
affordable price such as the $9.99 dollars instead of rounding it to the nearest dollars.

Based on the customer preferences and choices the company has been known for setting
the price of the products which has helped the company in gaining a competitive
advantage over other competitor brands. These elements which are used by McDonald in
setting the process of the products have highlighted its marketing mix. The importance of
the price bundling and providing much discounts in seasons are ways which has
encouraged the customers to buy more and more products in the recent years. In the
words of Luca, Hibbert & McDonald, (2016) McDonald had been vague about its
pricing strategies, the company very well understands that the customer perception of
value is a very important element of the charged price. Using the low prices as a
marketing tool might be able to promise the customers a product of compromised quality.
4. Is the brand positioned properly?
McDonald have successfully occupied a part of its customers mind in the present
years with its brand value. McDonald is similar to and different from its competitor
brands in different ways. Most of the successful brands in the world are known for
creating a point of difference with the competitor brand. Furthermore this helps them to
gain a competitive advantage over others. Whereas in the case of McDonald the brand is
known for offering its customers with high end products and services. The quality of the
food which are offered by the brand is of superior quality and does not match the
competitors level of service. McDonald has been known as the leader in the fast food and
healthy meal market and holds their own goodwill with the unmatched quality and
services provided. These are the factors which provide a strong competition in the
performance. McDonald has made itself to be a family friendly low cost restaurant in the
fast food business. The computer operated machineries are used by the company in order

to cut down the cost which are imposed by the company. According to Parnell, (2019)
the company has also made changes in the delivery time of the food that is the time
which was required in delivering the product to the customer has been decreased with an
increase n the volume served. Therefore it can be said that the company has very well set
its positioning on the forefront of fast food technology and sets the standards for the rest
of the industry.
5. Is the brand consistent with their marketing program?
McDonald has become the leader in the fast food industry with their strong focus
in the customers service, response to the competition from the competitors in the market,
coupled with the use of the latest technologies available in the market for upgrading their
development. The marketing strategies which were used by the company were and still in
the investment for the research and development in investing and advertising more in the
advertisements and the Franchising model. McDonald has also successfully advertised its
products to the children and the family members which helps the company to produce a
recognizable icon in the minds of the customers. McDonald has very usefully utilized the
four P’s of the marketing which are the price, product, promotion and place
(Diamantopoulos, 2019).
The prices of the products are low enough when compared with other brands. The
products which are offered to the customers are very attractive and superior quality
whereas the other competitor brands might lower the price impacting and diminishing the
quality of the product. Based on the choices of the consumers the products are designed
and made. The consumer preference and choices are given much attention in McDonald.
In terms of promotion the company offers various types of contest, coupons, attractive

low price and based on the public reaction they set the marketing strategies of the
products. In terms of place the company offers a very soothing and peaceful environment
for its customers to enjoy the meal. According to Chaffey & Ellis-Chadwick,
(2019)McDonald creates the atmosphere for the customers which they desire.
6. Does the brand portfolio and hierarchy make sense
Almost the famous and outstanding companies in the world do have a single
brand to work on they create or are known to maintain other brand in different market
segments. The different brand falls under the main brand umbrella of McDonald. The
different brands which falls under the home brand that is McDonald has different and
verities of products. Brands at each level of the hierarchy also contributes to the overall
brand equity of the portfolio through the individual ability to attract the customers and
make them aware of the numerous products which are available and foster favorable
association with the customers.
The McDonald’s brand port folio is known to provide the maximum market
coverage with a minimum number of market overall. According to ****** each brand is
known to offer its own sources of equity and has a distinct image in the market.
McDonald has wonderfully created its well designed and implemented hierarchy. In the
hierarcy level the company has its McDonald café where it provides varieties of fast food
services and coffee and cappuccino products. In its Desert Kiosk the company offers
various fast food services an deserts to the customers. The Happy meal brand is known to
offer food and services to the family members who generally come to have lunch and
dinner with the family members.

7. Does the brand make use and co-ordinates a full repertoire of marketing activities to build
brand equity?
McDonald is a brand is made up of all the elements which are necessary in
marketing of the products and services provided by the company. These elements mainly
include the logos, slogans and symbols used. It also involves the packaging of the food
products and customer care and support. A strong brand mix also matches the elements of
the company so that the company can perform a number of brand related functions. The
brand related functions mainly includes the enhancing and reinforcing of the customer’s
awareness of the brand image and also cooperating with tem in helping the company to
protect the brand from legal and competitive aspects (Montgomery 2019) .
The members of McDonald are always focused in showing the special food
products offered can be eaten and best tastes with. They provide a detailed information
about the essential ingredients used in the product. They associate their brand with
popular stars and person in different places in order to enhance and refine the brand
Ulaga & Chacour, (2016). McDonald uses various types of campaign with a special
message to convey to its customers. They sponsor different events and programs which
makes the consumers aware of the products and latest products if manufactured. Use of
media and interactive advertisements are eye catchy visual looks which reinforces the
values of the company.
8. Do you believe the brand understand what it means to the consumers eg “who am I?
According to Schyvinck & Willem, (2019)different consumers of a single brand
has different perception in their mind, might have a different belief, attitudes after
consuming different products from the same brand and the behavior they associate with

the brand. Managers of McDonald very minutely look into the matters and explains how
they have to make or impose a new decision regarding the brand and products offered. If
it is pointed out that whether the products is creating a craze in the mind of the customer
or not it will create a way to the manager that whether they have to implement any new
decision or not.
McDonald is a successful fast food provider as because it has made its customers know
that it is the only company which has a variety of food products available in the market as
well as the products are available at a very cheap price. The customers feel free to take
along with them their children as because it is claimed by the company that the company
provides healthiest food for the kids and children.
9. Do you believe the company who owns the brand or the brand itself offers proper
ongoing marketing programs to support the brand?
McDonald’s performance in the year of 2015 had created a very bad image for the
company because of its improper ongoing market program and decrease in the quality of
the food products. Consumers in the year of 2016 had an extremely negative image.
According to the market research there was a clear difference between the brand and the
major competitor brands of the company. Due to the lack of proper customer care and
support McDonald has a diminishing status in the present economy of fast food services.
The brand no longer enjoys the same amount of specialty and status in the eyes of the
customers anymore. But the company is still not losing hope in the market. In the recent
year of 2018 McDonald has launched many campaigns and popped up its sales in the
international market which returned to the original focus of the company (Palmatier&
Crecelius, 2019).

Therefore it can be said that McDonald has properly offered its ongoing marketing
programs.
10. In your opinion do you see evidence that the brand monitor’s its sources of brand equity?
Strong brand generally makes good and frequent use of in depth brand audits and
trends in the market. Brand equity is most useful when it is being scheduled in a term
basis. The ultimate power of the brand does lie in the hands of the customers, in what
they have experience and what they have learned about. Consumer knowledge and
experience is really at the heart of McDonald. According to Kingsnorth, (2019)
McDonald has been spending more than millions of dollars in the research, development
and investment in knowing how the customers feel, recall, belief about the brand and the
products offered to the customers. These are the evidences which prove that McDonald
monitors its sources of brand equity.

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