Thesis - Effective Brand Building A Case Study of McDonald’s Corporation

Abstract

The changing world has encouraged big companies to create more personal connection with customers. In addition, the constant sustaining of this relationship is required. The concept which is used by the companies and prove to be successful is brand building. Even though companies establish the brand, not all of them are using it properly and make a good use of it. Maximum utility and using all aspects of the brand is the key to success. In order to do that, the knowledge about the brand is necessary. Thesis will present how to effectively build a strong brand by taking theoretical and practical perspective. At the beginning reader will be provided with various concepts in the field of branding. After that, the case of McDonald’s Corporation will be studied. Analysis of McDonald’s brand building process will help in understanding how this extraordinary brand was created.

In the theoretical part there will be five main issues brought up. First various concepts of what a brand is and what are the function of the brand will be described . After gaining knowledge what a brand is, different approaches how to build a brand are presented. After that the idea of brand equity and valuable functions it perform of the brand is explained. The process of creation of brand equity is possible thanks to brand equity drivers. Different kind of drivers and function they carry out for brand equity are described. At the end of this chapter, after knowing the basic element of the brand, all is summarized by showing various models useful in assessing brand and its equity. All theories are useful in assessing and describing effective brand building process.

The second part of the thesis focuses on McDonald’s. Analysis starts with brief presentation of some essential to the case facts. After that brand equity drivers of McDonald’s are described one by one, together with the function they perform for brand equity. Then the overview of McDonald’s struggle with the brand is presented in chronological order. Both of this sections show, that McDonald’s is a successful company thanks to proper brand management and constant control over its image. By implementing various elements company can be safe that even if one of them fail, there are others to compensate for it. Last section of practical use of branding knowledge present McDonald’s on Brand Asset Valuator Model and the financial value of the brand. Even though McDonald’s has a minor loss of brand equity values it stand for towards competition, the financial result are many times better then the ones of competitors. After this summary the future of McDonald’s is speculated.

Thesis shows it is important for companies to have a well thought our branding strategy and knowledge of brand building processes. Knowing role the brand performs and the process of brand building allow the company to control how it is assessed in consumers’ minds. Careful studying McDonald’s brand building process shows that the company knows how to deal with its brand and proper brand management is their competitive advantage.