Value proposition example for McDonald’s

A good way to think about the firm’s value proposition is consider what is different and beneficial about the firm’s (or brand’s) offering/s in the marketplace.

Over time, firms/brands will develop and enhance multiple offerings for their target markets. If consumers perceive that the firm/brand offers good value then they are more likely to become and remain customers.

As a simple definition, the brand’s value proposition is:

The overall package of perceived value (that is, key benefits less costs) offered by the brand.

Value proposition example for McDonald’s

Let’s use McDonald’s as an example to describe a value proposition. In particular we are looking at how McDonald’s is differentiated from its competitors – what overall package of benefits and unique offerings to they provide their customers?

McDonald’s value proposition would include:

  • convenient locations
  • comfortable seating and in-store facilities
  • fast and efficient service
  • consistent quality menu items
  • distinct products, such as the Big Mac
  • good value offering and pricing
  • a broad range of food choices – suitable for a variety of ages

You should note, that this overall value proposition for McDonald’s would appeal to a number of different target markets.

For example, a broad range of food choices would appeal to a family. Comfortable seating and in-store facilities would appeal to somebody who is looking to have a bite to eat and relax or perhaps socialize.

McDonald’s, in their overall value proposition, have a number of distinctive benefits over their key competitors – such as, locations, facilities, speed of service and distinctive products.

The essence of the value proposition is to give consumers a reason to become a customer of your brand – because the offering has aspects of value that are attractive to a particular consumer within a target market – as is the case with McDonald’s value proposition.

Related topics

What is a value proposition?

How to identify a value proposition

How consumers see value


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