McDonald's Brand Building: A Marketing Analysis, Principles & Practice

This report provides a comprehensive marketing analysis of McDonald's, examining its brand creation, recognition, identity, positioning, personality, and affinity. It delves into how McDonald's has successfully built its brand through strategic marketing and service strategies, including its iconic logo, tagline, and customer service. The report also explores the CBBE model, standardization versus adaptation strategies, and the implications of entering the South African market, considering cultural differences and the company's approach to global expansion. It further analyzes the advantages and disadvantages of standardization and adaptation, and how McDonald's can tailor its strategies to resonate with consumers in different markets. Finally, the report discusses McDonald's workplace conditions and how they contribute to brand affinity, emphasizing the importance of employee satisfaction and engagement in fostering a positive brand image.

Principles and Practice of Marketing
Student’s ID:
Module title: Principle and Practice of Marketing
Module code: MOD003507
Word counts: 3303
Date: 09/12/2017
1

Principles and Practice of Marketing
McDonald’s Principles and Practice of Marketing
TASK 1
A recap of McDonald’s brand creation: The McDonald’s siblings opened a local restaurant in
San Bernardino in California without knowing that it would grow to become one of the most
successful food chains. The small restaurant in San Bernardino had all the characteristics of
a local restaurant. However, this changed when the owners, Richard and Maurice McDonald,
employed strategic management across all departments. For example, Ray Kroc made
significant changes in the appearance and marketing image of the local restaurant. Mieth
(2007) states that Ray Kroc made the first McDonald’s have a modern appearance,
improving the status of the physical environment as one of the major 3Ps of service
marketing. On the other hand, the siblings introduced an improvised service system that
improved the company’s operations and customer experience. As a result, the company’s
growth kicked off, and the present-day McDonald is existent because of the various
marketing and service strategies that the company has employed to build its brand.
Brand Recognition
According to Dahlén, Lange, and Smith (2010), brand recognition is the degree to which
customers can identify McDonald’s brand or products by just looking at the tagline, logo,
marketing campaign, or the packaging strategy. The elements mentioned above play critical
roles in marketing and advertising of an upcoming brand. Brand recognition significantly
relies on the attributes associated with McDonald's. Furthermore, this element of marketing
is most successful when the public can identify and state a brand without being exposed to
the name of the organization. In this case, McDonald’s has significantly utilized this element
through its logo, color, and a precise tagline (Mieth, 2007).
2

Principles and Practice of Marketing
Figure 1: McDonald's Logo
The company's logo is so unique and simple that customers can quickly identify it from a
distance. The combination of the golden arches and a red background creates contrasting
colors that have long been associated with the fries and burgers served at McDonald's. The
two golden arches have significantly improved brand recognition. The company uses the
logo and the tagline in everything that it does be it promotion, packaging, or advertising. The
famous slogan - I'm Lovin It - mostly accompanies this logo. Through its logo and slogan,
McDonald's has successfully created a high brand recognition using shape, color, graphics,
and illustrations.
Brand Identity
The company's logo is simple, attractive, and symbolic. These attributes of the company's
logo have created an increasing brand identity across the fast food industry. For example,
the color of the logo is bright and resembles those of McDonald's primary product. The
golden arches in the McDonald's logo "shine like beacons of hope, a signal of
cheeseburgers and McNuggets" that customers would associate them with the company's
chief products (Barrie, 2017). The company has used contrasting colors (red and yellow) to
increase visibility and first-sight recognition for customers and the public. On the other hand,
3

Principles and Practice of Marketing
these contrasting colors and curvature designs give suggestions of the nurturing thought of
McDonald's products and services (Wheeler, 2013). Indeed, many urban settlers, if not all,
know the golden arches as McDonald's trademark.
The company's tagline has been famous across the globe for its precision and exactness.
Currently, the organization uses the "I'm Lovin It" slogan. This motto has been significantly
famous in the sense that many people will instantly associate it with
McDonald's (Humphrey, 2014). The company has successfully aligned its products,
services, and promotions to fit their slogan. For example, people who have had experiences
with a McDonald's outlet can intimately relate to its motto because every service, product, or
B2C interaction is highly valued and made a memory. Therefore, McDonald has utilized the
tagline element to increase its brand recognition. Logos can be successful brand recognition
tools when applied appropriately. Like McDonald's tagline, many successful slogans are
clear, concise, relevant, branded, and consistent (Mieth, 2007).
Brand Positioning
According to Marconi (2000), brand positioning is the ability of the brand to create an
exclusive, sustainable, and credible position in the thoughts of its customers. In other words,
brand positioning should trigger the benefits that a company would want its customer to
associate with when they think of it. McDonald’s has positioned itself in different ways that
depict the types of services and products that it provides. McDonald’s uses brand-positioning
strategies that focus on kids, family, teenager, and healthy lifestyles. The company has
successfully used the Roland McDonald to get into the minds of kids with a sense of ‘happy
meal.’ The company’s tagline attracts families through its concept of having dinner outside
the house and having a good time. This is secretly hidden in the logo that a CNN reporter
4

Principles and Practice of Marketing
once stated that an early advertising slogan for McDonald was “Give mom a night off.” On
the other hand, through the introduction of McCafe, the company has successfully positioned
itself in the mind of teenagers. The brand has also positioned itself as a health-conscious
and wellness food seller. One thing that customers can associate the company with is its
nutritious facts about its products. On the other hand, Pomposo (2014) states that
McDonald's uses other positioning motions that aim at its customers' perception. Recently,
the company has been patronized by the sports industry. McDonald’s has sponsored
numerous sports campaigns that are associated with Olympics, the UEFA Champions
League, and the World Cup (De Chernatony, McDonald, and Wallace, 2011).
Brand Personality
Brand personality should be different from the brand image, and McDonald’s has
successfully distinguished these two. According to Floor (2006), brand personality is the
process by which a company like McDonald's speaks and conducts itself. In other words, the
brand personality of an organization should be one that compares the famous human
personalities to a brand. Brand personality seeks to identify how McDonald's behaves and
speaks to grow its brand. In this case, one can locate McDonald's brand personality through
the analysis of all customers' experiences with its products or services. In this way, a brand
personality provides insights of customers feeling about the brand. McDonald's has used
brand personality to communicate with its customers in marketing and advertisement,
attracting more people by providing persuasive messages through their personality. For
example, according to Floor (2006), the brand personality can be identified by jotting down
the adjectives associated with the brand's operations and marketing strategies. Through this
approach, one can use some adjectives such as mature, innovative, elegant, healthy, caring,
liberal, spiritual, friendly, adventurous, and helpful.
5

Principles and Practice of Marketing
McDonald's has used some notable personalities that have helped in expanding or growing
its brand. McDonald's has used numerous "adjectives" to communicate its character. The
brand personality of McDonald's manifests itself from the positioning and image. It is the
personification of the brand. Firstly, the company uses a friendly campaign that is strongly
associated with kids to show compassion and care. Through this personality, the company
has continuously built its brand among kids, families, and teenagers. Secondly, the extensive
diet menu in McDonald's consists of organic ingredients that ensures clients are eating
healthy. In this case, McDonald's has significantly used diets (healthy) to build its brand
among athletes, health-conscious customers, and so on. On the other hand, Mieth (2007)
states that the McDonald’s outlets are elegant and modern, bringing about the sense of
elegance and class. In this way, the company has continued to build its brand by attracting
and reaching out to customers who prefer comfort and style.
Brand Affinity
According to Van Gelder (2012), brand affinity is the reason why customers are always
attracted to the company, product or service. It is the reason why customers feel a kinship
with the brand. As a result, customer affinity can be attained through various channels. This
could be the excellent customer services or any other aspect of the business that provides a
great bond. Based on McDonald’s (2008) analysis, the company has significantly used its
services, products, and image. For example, McDonald’s has used various concepts of the
brand affinity to create a strong bond with its customers. McDonald’s has continued to
connect with its customers through social media, advertisements, and the customer service
platform. Besides, the company utilizes the extensive media industry by communicating and
keeping in touch with customers. For example, the company uses newsletters and the
intranet for staff to stay connected with what is trending. Besides, McDonald's has utilized its
6

Principles and Practice of Marketing
customer service abilities to ensure that at least most of the customers' needs are met. In
other words, the company has significantly used its service system to connect and develop a
warm relationship with its customers. For example, Mieth (2007) states that McDonald's has
utilized its "Spee-dee Service System" to attain efficiency in its operations. As a result, the
company has significantly made a strong bond with customers who want quick services. This
process not only saves time but also makes buying easy. While incorporating all these
elements of the company, McDonald’s maintains a successful run for brand development by
bonding with the customers.
Workplace Conditions
Given that brand affinity is strongly related to services, McDonald’s should start to grow its
brand from within. Brand affinity is significantly determined by employees' comfort and ease
to work. In this way, the inherent traits of the company will ensure that brand affinity is
successfully achieved. According to McDonald's official website (2017), the company boldly
states, "We take care of our people." Also, the company claims that it prepares hundreds of
thousands of people through Golden Arches by offering them first job experience. The work
environment is also positioned for success, creating the sense that it has a social path that
makes it a reputable place to work. Employees can meet new people, work in teams, explore
global opportunities, work under flexible schedule, and, at the same time, maintain safety
and health. The brand feeling from an employee’s point of view is that McDonald’s is caring,
supportive, loving, warm, and helpful. Indeed, the brand’s feeling and positioning seek to
fulfill the customers’ needs (self-fulfillment needs, psychological needs, and basic needs) as
discussed by Maslow.
7

Principles and Practice of Marketing
Keller’s Brand Equity Model
Given the analysis of the four critical points highlighted by Kevin Lane Kelly in his CBBE
model, one can create a CBBE pyramid that reflects the nature and principles of the
McDonald’s brand. The CBBE pyramid will show six of a brand, namely salience,
performance, imagery, feelings, resonance, and judgment (Kotler and Armstrong, 2016).
Figure 2: McDonald's CBBE Pyramid
8
Quality products and services,
loved, popular Friendly, warm, caring, fun, exciting
Regular and repeat purchase,
happy meal, family setting
exciting memories, business values,
fun advertisiments, popular
Product reliability, service
effectiveness, empathy, affordable
prices
ease of recognition and recall, deep brand awareness,

Principles and Practice of Marketing
TASK 2:
Standardization and Adaptation
Advantages
Standardization is the process in which organizations make their processes/products uniform
throughout its organization. According to Dahlén, Lange, and Smith (2010), standardization
is cost-effective because McDonald’s applies similar strategies. Standardization ensures that
McDonald’s can protect its products adequately because changes might expose the product
to copyright risks.
Adaptation helps to boost the company’s competitive advantage, which, in the end, improves
the performance in foreign markets. Also, adaptation is beneficial in the sense that the
company can create a personal connection with the target market by considering their
preferences.
Disadvantages
Standardization means a lack of adaptation and can cause losses in markets that are
significantly sensitive to the type of products. Global markets are dynamic and different, and
therefore, standardization doesn’t guarantee success. Also, standardization represents a
lack of uniqueness, which may be a problem for the company’s profitability.
9

Principles and Practice of Marketing
Adaptation means modifying the product to fit the culture and preferences of the people
within the country. It is expensive to implement. Besides, adaptation is complex, and can
therefore, affect the focus of a business (Van Gelder, 2012).
South Africa as a New Market
South Africa v. USA
According to Hofstede (2017), the cultures in the USA and South Africa (SA) are very
different. Firstly, SA has a power difference of 49 compared to USA’s 40. The concept of
inequality in the USA is quite low as compared to SA. With the combination of a high
individualism and low power distance, the culture in the USA advocates for liberty and justice
for all. Competition and rivalry is the same in both cultures. In both countries, deviance from
the normal is easily accepted (low UAI). Both countries are normative societies. Both the SA
and USA follow customs and traditions. Besides, both countries have high scores in
indulgence, and therefore, put more emphasis on leisure time.
As we can see, both countries have almost similar cultural characteristics. As a result,
McDonald’s should use standardization in South Africa as its new target market. That is,
10

Principles and Practice of Marketing
McDonald’s should use the same product, promotion, and place strategies in the new
market. For example, product packaging and labelling should be the same in both the USA
and SA. Promotion and marketing strategies should also be the same because both cultures
fancy value and discounts. Also, the place of business in SA and the USA play a key role.
McDonald’s should focus on crowded and easily accessed places for their outlets in SA.
However, based on the economy of the two countries, McDonald’s should lower prices in SA
because it is poorer than the USA.
Standardization Applied to:
a) Product
McDonald's product packaging and the brand name are consistent in different markets. In all
countries where their products are offered, their physical appearance is the same (color,
design, and slogan). This demonstrates their product's standardized approach. It is also
noted that, for the five countries, the webpage layout is presented in English as similar to the
USA menu page. However, quality physical taste cannot be observed across all cultures. To
test the consistency, actual tasting needed to be done in all the five countries. The result
shows that the company might adopt menu across the globe but with slight changes based
on the food culture of a location. Ray Kroc’s philosophy (testing program) ensured that
customer's experience would be of standardized quality and service of McDonald's products
in any restaurant that they would visit regardless of the country location or state within the
USA. Packaging is the same for McDonald's products as observed. This ranges from the
packaging of burgers using boxes and the sandwiches in wrapping papers. The logo in all
five countries is the same bearing the brand name of McDonald's. This demonstrates a
standardized approach.
11

Principles and Practice of Marketing
McDonald's have adopted an international product strategy to suit the local cultures where
products are offered. For example, in India, the recipes of the hamburgers with beef have
been changed and replaced with fish, chicken, and vegetables and also their local cuisine
names (for instance, the Mc Aloo Tikki that is relative to their culture).
The adaptation approach ensures that all needs and preferences of the customers are met
and satisfied (Kotler and Armstrong, 2016). Therefore, McDonald's in India offers burgers
with fish, chicken, and vegetables respectively. The webpage layout is also an adaptation
seen in McDonald's. The webpage in England has a British theme in which their flag is
highlighted. The logo and packaging of products are also observed to be the same.
b) Price
McDonald's uses price bundling strategies. This offers other products for customers and
products with meals. McDonald’s majorly uses physiological pricing strategies to ensure that
customers are buying more products because they appear affordable to them (Kotler and
Armstrong, 2016). In India, prices were reduced by close to 25% so that customers could
prefer McDonald's products. This made McDonald's stay at the forefront of its primary
competitors such as Pizza Hut, Dominos, KFC, and Subway.
The affordable menu has positioned McDonald's as a fast-food outlet that offers low-cost
drinks and food. The menu has been adopted worldwide while still maintaining their primary
goal of quality food assurance. The current ongoing innovation has led to new strategies in
pricing such as the ‘Saver menu' or its equivalent the ‘Dollar Menu' in the United Kingdom.
Due to increasing food costs, McDonald's responded by increasing the prices by 1% to
adapt to the gradual change of rates to retain customers who are sensitive to prices
(Economy, 2017).
12

Principles and Practice of Marketing
c) Place.
McDonald's operates more than 35000 restaurants globally located in 118+ countries. The
different restaurant format types include the Mc Café , Mc Drive, Mc Express, and McDonalds
Next. Most McDonald's restaurants give customers drive-through services with indoor and
outdoor seating services and counter services. Mc Drive does not offer seating services
because they are located near highways. The new Mc Café includes seasonal beverages
and special deals situated in Australia. Sales in coffee cafes jumped with almost 10%
compared to burger chains' sales, which rose by only 3.3% last year (McDonald's, 2017).
McDonald's has customized its strategies to the local needs to be successful in host
counties. McDonald's used regional approach as they started to expand in Asian countries
because their culture differs from the western world. They adopted product innovations and
localizations based on local need and tastes.
McDonald's has adopted the use of Nurnberger sausages with burgers in German because
most Germans love meat. German people also love beer while eating hamburgers, and
therefore, McDonald’s adopted this culture. In Indonesia, a country in Asia, more significant
percentage of the people are Muslims. Thus, all McDonald's restaurants follow the Halal
laws. For religious reasons, food consumption differs from that in Europe and USA. Rice is
the staple food in Indonesia, and therefore, McDonald's has consequently adapted its menu
by rice products.
13

Principles and Practice of Marketing
d) Promotion
McDonald's has invested a great deal in advertising campaigns. It uses billboards,
newspaper ads, online platforms, sponsorships, and many others to communicate and reach
out to its consumers. McDonald's uses TV advertisements as its prime form of
advertisement. Its TV ads show people indulging in admired activities. They do not use
campaigns that are negative against their competitors. Its kitchen in India is divided into a
vegetarian and non-vegetarian zone, creating the sense of cultural responsibility.
McDonald's burgers do not contain beef due to their religious culture that regards cows
spiritual and holy. Heye and Partner created campaign brand called "I'm Lovin It" which is
currently used by McDonald's. It was also an official sponsor of FIFA world cup in 1994 and
NBA's food partner, sponsored Indy Car series and other events like NASCAR and Rolex
Sports Car series.
McDonald's adopted some promotional activities, which enhances communication to the
target customers. The company's campaigns and marketing strategies are customized to fit
the culture and needs of local customers. McDonald's also uses sales promotion activities
which includes organizing various programs, contests, functions, and distribution of discount
coupons to promote the business unit. This attracts the customer's attention.
14

Principles and Practice of Marketing
References
Barrie, J. (2017). There's a secret meaning behind McDonald's Golden Arches - and it's all
to do with your mum. [online] Available at:
http://www.mirror.co.uk/news/weird-news/naughty-meaning-behind-mcdonalds-
golden-9690139 [Accessed 29 Nov. 2017].
Hofstede. (2017). Country Comparison – South Africa and United States. [online] Available
at: https://www.hofstede-insights.com/country-comparison/south-africa,the-usa/
[Accessed December 9, 2017]
Dahlén, M., Lange, F., and Smith, T. (2010). Marketing communications. Chichester, U.K.:
Wiley, p.90.
De Chernatony, L., McDonald, M., and Wallace, E. (2011). Creating powerful brands in
consumer, service and industrial markets. Oxford: Elsevier/Butterworth-Heinemann.
Economy, P. (2017). In a Shocking Announcement, McDonald's Reveals a Replacement for
Its Beloved Dollar Menu. [online] Inc.com. Available at: https://www.inc.com/peter-
economy/in-a-shocking-announcement-mcdonalds-reveals-new-replacement-for-its-
beloved-dollar-menu.html [Accessed 29 Nov. 2017].
Floor, K. (2006). Branding a store. London: Kogan Page.
Humphrey, R. (2014). Effective leadership. Los Angeles: SAGE Publishers, p.299.
Kotler, P. and Armstrong, G. (2016). Principles of marketing. Boston: Pearson.
Marconi, J. (2000). The brand marketing book. Lincolnwood, IL: NTC Business Books.
McDonald, M. (2008). Malcolm McDonald on marketing planning. London: Kogan Page.
15

Principles and Practice of Marketing
McDonald's (2017). Our History and Timeline | McDonald's. [online] Mcdonalds.com.
Available at: https://www.mcdonalds.com/us/en-us/about-us/our-history.html
[Accessed 29 Nov. 2017].
Mieth, H. (2007). The history of McDonald's. München: GRIN Verlag.
Pomposo, A. (2014). What is the Secret to McDonald’s Global Branding Success?. [online]
blurGroup. Available at: https://www.blurgroup.com/blogs/marketing/what-is-the-
secret-to-mcdonalds-global-branding-success/ [Accessed 29 Nov. 2017].
Van Gelder, S. (2012). Global brand strategy. London: Kogan Page.
Wheeler, A. (2013). Designing brand identity. New Jersey: John Wiley & Sons.
16