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The Market Achievements History the Product menu item ever, the Big Mac sandwich. Nine years to national advertising and promotional campaigns, later, the same franchisee was the dtiving force McDonald's is stJ.·ongly committed to Ray Kroc's behind the development of McDonald's breakfast passionate belief that McDonald's should menu, a move that would change the breakfast conuibute to the communities that it serves. Local habits of millions of people. activity takes many different forms, ranging from In AustJ.·alia, the McOz burger originated from a social mornings for senior citizens to fundraising group of licensees from northern NSW Today the work with local schools, youth groups, and popular McOz burger is now a permanent menu hospitals. item. Innovation has played an important part in BRAND VALUES McDonald's growth. The company has invested Founder Ray Kroc developed his brand vision for heavily in technology to continually improve the McDonald's around a simple but effective conswner experience at McDonald's. One of the well as tastes of Italy and Thailand. conswner-dtiven premise biggest breakthroughs came in 1975 with the Customers will be instrumental in determining of quality, service, clean­ opening of the first drive-thm restaurant in Sierra what will be served at McDonald's restaurants in liness, and value. Vista, Arizona. Once again, the idea sprang fi·om the future. Kroc 's THE MARKET HISTORY injects $120 million in capital expenditure. the need to solve a local sales problem when wmnmg Dining out has always been a popular social The McDonald's story began 4 7 years ago in San The opening of a McDonald's restaurant creates servicemen from a nearby Army base were PROMOTION fmmula activity. These days, it's part of everyday life that Bernadino, California. Ray Kroc was a salesman up to 100 new jobs in a local area. It also creates forbidden to get out oftheir cars in military fatigues. From the earliest days, McDonald's recognised the w a s many of us take for granted. However, it's easy to supplying milkshake multi-mixers to a drive-in many opportunities for the local construction and The drive-thru concept was an immediate key role ofmarketing in the brand-building process. quickly forget that a meal in a restaurant was once an restaurant run by two brothers, Dick and Mac building industry, stimulating the growth of success. Today, drive-thm accounts for more than As Ray Kroc put it: "There's something just as occasional indulgence enjoyed by a privileged few. McDonald. numerous small businesses through sub- half of McDonald's business in Australia. basic to our success as the hamburger. That The popular food service revolution of the last 50 Kroc, calculating fi·om his own figures that the contracting relationships with McDonald's. McCafe was the first of its kind in the world something is marketing, McDonald's style. It's years changed all that. restaurant must be selling over 2,000 milkshakes a The impact of McDonald's can be seen in the when it was introduced into the Swanston Street bigger than any person or product bearing the Today, people of all ages and backgrounds month, was intrigued to know more .---------::..._------------~ McDonald's in Victoria in 1993. The McCafe McDonald's name." throughout the world dine out every day. In fact, 8 about the secret behind the success concept was designed and created by McDonald's Advertising is certainly not the only cause of per cent of all meals in Australia are eaten away of the brothers' thriving business. AustJ.·alian representatives. Today there are about McDonald's success. It is, however, inseparable shortened to from home, and McDonald's serves more than one He visited the restaurant, which 50 McCafes across Australia and they are operating from it. To this day, a fixed proportion of restaurant QSC&V - an million customers every day across the nation. promised its customers "Speedee in countlies like Japan, France, Austria and New sales is reinvested back into advertising and sales acronym ® Service" and watched in awe as Zealand. promotion in evety market in which McDonald's that would become and remain an enduring ACHIEVEMENTS restaurant staff filled orders for fifteen­ McDonald's serves its customers top-quality operates. cornerstone of the brand. McDonald's is the world's leading and fastest­ cent hamburgers with flies and shakes food. The best raw ingredients are pmchased fi·om McDonald's displays a rare ability to act like a IfQSC&Vis the cornerstone of the McDonald's growing food service organisation in 120 countJ.ies every fifteen seconds. long-time suppliers. Food is prepared to a retailer while thinking like a brand, delivering sales brand, then tl·ust is its bedrock. To its customers, on six continents. McDonald's operates more than Kroc saw the massive potential and consistently high standard in the restaurant. for the immediate present while building and McDonald's is a brand that can be trusted; placing 25 ,000 restaurants worldwide and generated over the McDonald brothers accepted his McDonald' s menu is continually reviewed and protecting its long-term brand reputation. the customer at the centre of its world; knowing $40 billion in system-wide sales for the first time offer to become their first franchisee. enhanced to ensure that it meets and, wherever Television advertising has been instmmental in the right thing to do. possible, exceeds customer expectations. transforming McDonald's brand image from that The key to McDonald's success has been its in the year 2000. On Aprill5, 1955, he opened his first L--"'~~=-~~Ej~~~~~~Ji1~~i Few other brands can match McDonald's for McDonald's restaurant in Des Plaines, In Australia, McDonald' s menu includes beef, of a multi-national corporation to part of the fabric capacity to touch universal consumer needs with the power and ubiquity embodied in the company's a suburb just north of Chicago. evolution of industries from agriculture to chicken and fish as well as a full range of desserts, of society. Through high profile brand advertising, such consistency that the essence of the brand familiar Golden Arches. McDonald's has been McDonald's served more than 100 million equipment. Businesses across Australia are shakes, and hot and cold drinks for every taste. McDonald's has developed a powerful emotional has always been relevant to the local cultme, no rated the world' s greatest brand, in a study hamburgers within its first three years of trading benefiting from McDonald's growth and success, relationship with its customers based on trust and matter how different that culture might be from published by leading international brand and the lOOth McDonald's restaurant opened in from the potato farmer in Tasmania to the RECENT DEVELOPMENTS a fundamental warmth and humanity unmatched McDonald's origins. With one of the most powerful consultancy Interbrand. The study reviewed the 1959. In 1961 Kroc paid $2.7 million to buy out companies that helped create a state-of-the-art beef McDonald's was the first quick-service restaurant by its competitors. brands in the business, McDonald's looks set to performance of the world's leading brands and the McDonald brothers' interest, and in 1963 the processing plant in Queensland. to make publicly available a complete ingredient McDonald's is also involved in sports enjoy healthy growth long into the future. assessed each one for its strength as a marketing billionth McDonald's hamburger was served live listing and detailed nutritional analysis of all its sponsorship, using its association with prestigious and financial asset. on prime-time TV THE PRODUCT products. In 2001, McDonald's Australia launched global sporting events such as the World Cup and THINGS YOU DIDN'T KNOW ABOUT Interbrand concluded: "Nothing compares with McDonald's Australia opened its first restaurant From its early roots as a small, family-run its New Tastes Menu, the biggest change in food Olympic Games to reinforce its international brand McDONALD'S McDonald's for the power of a branding idea, the in December 1971 at Yagoona, and served 3,000 hamburger restaurant, McDonald's has evolved direction for McDonald's in 30 years. It gives stature. Tailor-made sponsorship skill of its execution, and the longevity and width customers a month. Today there are well over 700 into a multi-billion dollar quick service restaurant customers greater choice by offering new, great programs are of its appeal. McDonald's has tJ.·avelled the world restaurants throughout Australia, serving more industly While hamburgers and fi·ies remain the tasting food on an ongoing basis. McDonald's is used to ad­ 0 On average, McDonald's opens a new on the stJ.·ength of two quite distinct phenomena - than one million customers a day. McDonald's mainstay of McDonald's business, an instinctive working on a group of products that dress local restaurant every four hours. one cultural, the other conm1ercial". employs more than 55,000 people in Australia and ability to anticipate and fulfil consumer needs has will make their way onto the New market needs. 0 The sun never sets on the Golden McDonald's has become a citizen of the world been central to McDonald's success. Tastes Menu on a rotational basis. In addition Arches. The most northerly and is committed to being a good corporate citizen. A prime example of this approach is the Filet- They could in- McDonald's is tight on the Arctic Ronald McDonald House Charities (RMHC) 0-Fish sandwich, which was conceived by clude Shaker Circle in Rovaniemi, Finland, while has awarded more than $250 million in grants Lou Groen, a Cincinnati-based fi·anchi­ Salads, Fruit the southemmost is in Invercargill, to children's programs worldwide since see in a predominantly Catholic area.
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