MCDONALDS' REBRANDING

Impact of Rebranding on Consumers' Brand Perception

Impact of Rebranding on Consumers' Brand Perception

Task 1: Research Proposal

Executive Summary

The concepts of branding and rebranding are not new to many organizations as the importance of investing in such asset has become part of the daily activities of most businesses. At the same time, the influence of brand image, perception, and associations are increasingly recognized as powerful ways of gaining competitive advantage. Alongside this discussion, the notion of rebranding is particularly relevant as it offers a platform to reposition a brand which has lost its competitive differential and need to renew its image in order to survive in the industry. However, many experts defend that undertaking a rebranding approach is a highly risky investment due to its financial costs and also due to the required amount of time and combined effort from the whole organization (Woolcock & Elliot, 2008, pp. 34).

The company was founded in the US in 1948 by the brothers Dick and Mac McDonald but it was with Ray Kroc in 1954 that the company really started its journey after the businessman opened the first franchisee in Illinois. After that, McDonald's opened many other restaurants, introduced the famous Big Mac and started expanding to many other countries (Sugandhi, 2003, pp. 67). The main objective of this research is to identify the relationships between a rebranding approach and the consumers' brand perception in the fast-food industry. Using McDonald's as the case study, this study will be carried out from a qualitative perspective and utilize in-depth interviews to gather most of the data. At the same time, the report will analyze the rebranding strategy carried out by McDonald's, this research will consider the theoretical framework of rebranding as well as other theories related to the topic, such as consumer perception, buying behavior and loyalty. Results from the semi-structured interviews and structured questionnaires will be analyzed through a thematic approach since the researcher believes this to be the best way to organizing qualitative information.

Background

McDonald's is the worldwide leader in the fast food industry and, according to the company's 2009 annual report, the restaurant chain served 60 million customers every day last year, a figure which represents an increase of 14 million a day compared to 2002, and generated an income of $6.8 billion. According to BrandZ's 2010 report on the most valuable global brands, McDonald's comes in 6th place with a brand value of over $66m. McDonald's brand and logo are probably one of the most recognizable in the world and such asset certainly represents a strong source of competitive advantage for the organization (Schultz et al, 2009, pp. 67).

McDonald's has one of the most recognizable brands in the world but the company faces constantly criticism about many aspects of its operations. As health concern increases across the population, many people blame McDonald's for providing unhealthy food and contributing to the growth of an obese society. At the same time, McDonald's has normally been criticised by the nature of the job it offers and ...