Brand Management - Mcdonald
McDonalds Brand Identity Model:
In advance of recommending a brand extension for McDonald’s Restaurant, an intimate understanding of the Brand’s identity is essential. The application of the brand identity model to McDonald’s, has been adapted from the interpretation in the David A. Aaker text, ‘Building Strong Brands?.
Core Identity:
?Food Quality: The food is consistent. A Big Mac in Bangkok is engineered to taste like a Big Mac in Winnipeg. A certain degree of customization is possible. It is also of the highest quality.
?Service: Quick, accurate, friendly. Delivered by a mix of young staff and experienced adults.
?Cleanliness: The dining area and kitchen are exceptionally clean. A largely visible kitchen is a common feature of McDonald’s which raises the stakes and ensures a degree of cleanliness.
?User: Traditionally a child-centric environment geared towards the family. Will also appeal to a wider segment, including the individual in need of a quick and tasty meal.
Extended Identity:
?Convenience: Quick service equates to convenience. The restaurants are numerous, conveniently located, and often offer drive through service.
?Product Scope: Hamburgers, French Fries and children’s toys. New ‘lighter choice?menu items include veggie burgers, salads and other items aimed at healthier living.
?Sub brands: Big Mac, Happy Meal etc.
?Corporate Citizenship: Ronald McDonald House is a massive children’s charity, Social Responsibility Report available online , Sponsor of Olympic athletes, use of local suppliers.
?Brand Personality: Iconic. Bright, fun and family oriented.
?Relationship: Ties to the community via corporate citizenship initiatives make McDonald’s ‘part of the neighbourhood?
?Logo: The ubiquitous golden arches. Generally visible from a distance.
?Characters: Ronald McDonald, the clown.
Value Proposition:
?Functional Benefits: Quality food, friendly service and good value translate into a positive experience.
?Emotional Benefits: Kids can use McDonald’s as a place to congregate and share good times (i.e. for a birthday or after a little-league game). Adults can relax knowing that the food delivered is consistent and adored by children.
Disparity between the brand identity model and the brand’s image
McDonald’s has been experiencing its fair share of difficulties as of late. Since 1997 it has lost 3% of ifs share of the fast food market . In the fourth quarter of 2002, McDonald’s lost money for the first time ever, with losses totalling $343.8 million USD . Franchisees are disheartened by their lack of input, slimmer margins and increasing costs. Older customers are noticing a decline in the service and cleanliness of the restaurants, teens no longer feel McDonald’s is ‘cool?and children have been unimpressed with the latest string of toys in their happy meals. The food has developed a reputation as being unhealthy which is damaging in an age when the importance of fitness is being emphasized. The pace of innovation at McDonald’s has long been regarded as too slow. The last product that met with success was the chicken McNugget and that was introduced nearly 20 years ago (it took several years to get the McNugget launched ). Former [next page]