Brands & Branding and Private Labels Case Study

Mcdonald’s in Japan: Rebuilding the Brand

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Abstract:
In 1971, McDonald’s opened its first store in Japan. Since then, McDonald’s Japan has grown to become the largest food service provider in the country. With around 3,800 restaurants operating and a 20% market share, the company controls a major chunk of the fast food industry. But trouble came knocking at its door in 2002, when McDonald’s Japan plunged into losses for the first time in 29 years. The company drove a nail in its coffin by instigating a price war in the fast food industry, with the result that the entire industry suffered huge losses. At this juncture, Eikoh Harada was appointed as the CEO of McDonald’s Japan. Under his leadership, the company took up various initiatives to rebuild its brand image that primarily revolved around revamping the menu and remodelling the company stores. These initiatives helped in enhancing the brand’s value to the customers, resulting in a turnaround of fortunes for the company.

Pedagogical Objectives:

• To analyse and discuss the critical success factors for the fast food industry in general and the Japanese fast food industry in particular
• To identify and analyse the underlying reasons for the problems faced by McDonald’s Japan in the early 21st century
• To discuss the various strategies implemented by McDonald’s Japan to enhance its brand value
• To debate whether Harada’s strategy will be successful in achieving sustained growth at McDonald’s Japan.

Keywords : Fast Food Industry in Japan, Consumer behaviour, Japanese Economy, Pricing Strategy, Price Wars, Eikoh Harada, Brand, Branding, Brand Equity, Brands & Branding Case Study, Rebuilding Brand Image, Creating Brand Value, Brand Charter, Marketing Strategy, Globalisation versus Localisation issues, New Product Development, Growth Strategies