McDonalds: A Comprehensive Analysis of Marketing Strategies

This report provides a detailed analysis of McDonald's, focusing on its marketing strategies, brand equity, and consumer preferences. The report begins by examining the company's core brand value, which initially emphasized consumer satisfaction through efficient food products. However, the analysis reveals that the company's rapid global expansion led to a shift away from this core value, impacting its competitive position. The report then explores how McDonald's brand equity has evolved through changes in its restaurant policies, particularly those focused on consumer needs and adapting to local cultural preferences. The report also identifies potential future risks for the company, such as changing consumer preferences towards healthier food options and challenges related to franchise agreements. The analysis is supported by references to academic research, providing a comprehensive overview of McDonald's business strategies and market dynamics.

Running head: MCDONALDS
McDonalds
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Table of Contents
Answer to Question 1:................................................................................................................2
Answer to Question 2:................................................................................................................2
Answer to Question 3:................................................................................................................2
References:.................................................................................................................................4

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Answer to Question 1:
The core brand value of the company McDonalds was to provide efficient food
products which are fresh and tasty to the consumers. The core value was to provide consumer
satisfaction which is highlighted from the creation of Menu which tends to cater the different
needs of the consumers.
However, due to the fast expansion of the company around the globe, the company
forgot its core value of consumer satisfaction. The company began its expansion without the
efficient training of the employee and maintaining the restaurants cleanliness. Thus, this shift
of focus from the core value of the company led to the loss of business to the competitors of
the company (Chandra, 2019).
Answer to Question 2:
The brand equity of the company has changed due to the modification of the
restaurant policy which is consumer friendly. The company kept in focus the requirements of
the consumers and made significant changes in the food option, leading to creation of
consumer satisfaction. The company tends to cater the menu as per the location in which it
operates, thus respecting the cultural faith which is present in different geography and
conducting business within the same principle. This leads to the creation of brand equity
which is seen during global recession when all stocks fell but McDonalds had provided a
positive value to the markets (Howse, & Freeman, 2018).
Answer to Question 3:
The risk which the company can face in the future is the change in the consumer
preferences as the company deals with fast food, consumers can prefer the use of healthier

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food options which can lead to loss of business for the company. The company can also lose
on sales when the tenancy agreement of the franchise ends which leads to greater
complication for the renewal of the agreement on new terms (Rodrigues, Nikhil & Jacob
2016).

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References:
Chandra, M. (2019). DYNAMICS & MARKETING TRENDS IN FAST FOOD
INDUSTRY-A SPECIAL CASE STUDY OF MCDONALDS IN DELHI
(NCR). NOLEGEIN-Journal of Consumer Behavior & Market Research, 18-29.
Howse, E., Hankey, C., Allman-Farinelli, M., Bauman, A., & Freeman, B. (2018). ‘Buying
Salad Is a Lot More Expensive than Going to McDonalds’: Young Adults’ Views
about What Influences Their Food Choices. Nutrients, 10(8), 996.
Rodrigues, J., Nikhil, S., & Jacob, S. (2016). Promotional Strategies of McDonalds and
Market Effects. Journal of Management Research and Analysis, 3(1), 53-55.