McDonald's 'McSpicy' Marketing Campaign in India
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ICMR HOME | Case Studies Collection
Case Details:
Case Code : MKTG288
Case Length :15 Pages
Period : 2010-2011
Pub Date : 2012
Teaching Note : Not Available
Organization :McDonald's
Industry : Fast Food: Quick Service Restaurants
Countries : India
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This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.
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Background Note
The story of McDonald's dates back to 1940 when brothers Dick McDonald (Dick) and Mac McDonald (Mac) opened McDonald's Bar-B-Que restaurant in San Barnardino, California. It was a drive-in restaurant that offered customers a large menu. But, later in 1948, the number of items on the menu was reduced and more emphasis was put on quality. The company also focused on speedy delivery of the items ordered by the customers and introduced the 'Speede Service System' which later established the principles of the modern fast-food restaurant. The original mascot of McDonald’s was 'Speede', a man with a chef's hat on top of a hamburger shaped head. The fortune of McDonald’s changed when Ray Kroc (Kroc), a multi-mixer salesman, saw the small restaurant operated by Dick and Mac.
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He was amazed by the emphasis on quality and the effectiveness of operation at every step though the menu was limited to burgers, fries, and beverages. Kroc convinced Dick and Mac to expand the McDonald's restaurants all over the US. Kroc established McDonald’s Corporation in 1955 and opened a franchise of McDonald's, which was the ninth McDonald's restaurant overall. The business expanded rapidly and McDonald's sold its 100 millionth hamburger in 1958. Five years later, Kroc purchased exclusive rights to the McDonald's name and spearheaded its global expansion till his death in 1984. Kroc continued with the emphasis on quality and established a restaurant system which was famous for food of consistently high quality and uniform methods of preparation. The emphasis on quality meant that every single ingredient was tested, tasted, and perfected to fit the operating system. In 1961, Kroc launched a training program which was later called Hamburger University, at a new restaurant in Elk Grove Village, Illinois. The franchises and operators were trained in the scientific methods of running a successful McDonald's store at the Hamburger University.
McDonald's filed its first US trademark on May 4, 1961, with the description 'Drive-In Restaurant Services'. It was listed on public stock markets in 1965. In 1967, the mascot of McDonald's was changed to 'Ronald McDonald', a clown shaped man with puffed out costume legs. The McDonald's business model involved both running its own restaurants and acting as a franchisor of restaurants. It directly operated nearly 15 percent of the restaurants while the remaining were operated as either franchises or joint ventures...
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