Published on September 15, 2010
Advertising project on McDonalds : Advertising project on McDonalds Created by – Dev Saighal S.Y.Bcom Note : : Note : The Presentation contains actual presentation slides as well as what may be spoken on each slide. (some points may need to be expanded/altered a little more) Introduction : Introduction 1st outlet in 1937 in San Bernardino, California In 1962, McDonald's introduced world-famous Golden Arches logo In 1963, the company sold its billionth hamburger and introduced Ronald McDonald 1st outlet in India in South Bombay in 1996 Operates in 123 countries Has 170 outlets in India and counting Brand Image : Brand Image Initial Image: Foreign brand Dint know what to expect Discomforting Expensive Current Image: Friendly atmosphere Inexpensive Quick Service Value for Money Familiarity with Brand Brand Image Speech : Brand Image Speech At first people were rather sceptical about this brand. It was a foreign brand and people dint know what to expect. But clearly now this doesn’t seem to be that way. Now when we think about McDonalds, we think about a place to go and ‘hang out’ with our friends because it has a comfortable environment. At the same time it not very expensive and gives quick service and value for money. And most of us have grown up having a meal in McDonalds with a cardboard crown on our head, a balloon in our hands, sitting in Ronald McDonalds lap and walking out with a toy in the end and also a big smile. And as we left the restaurant we just could not wait to go back and enjoy the whole experience all over again. It is things like these that create a certain kind of an impression, a perception, an image in our heads that lingers on for most of our lives. Brand Personality : Brand Personality Quick Service Quality Products Comfortable Atmosphere Value for Money Innovative Good Hospitality Brand Position : Brand Position Quality service Promoter of Indian values Value for money Friendly and comfortable environment Brand Position Speech : Brand Position Speech McDonald’s wanted to position itself as ‘Indian’ and a promoter of ‘family values and culture’ as well as being ‘comfortable and easy’. Simultaneously the brand wanted to communicate that it was committed to maintaining a quality service, cleanliness and offering value for money. But at the end of it McDonald's means different things to different people and doesn't have one brand position. Branding Strategies : Branding Strategies Aggressive advertising Various promotional schemes Sponsorships Creating an overall McDonalds experience Branding Strategy points : Branding Strategy points Collaboration with Coke, MTV, Hungama.com, Sony Music & GM Co-Sponsor of Inter-School Science Quiz Competition. Scratch cards on Large combo meals Prizes- caps, tshirts, CDs, internet cards, free tickets to a Lucky Ali contest Sponsering the IPL Brand Fatigue : Brand Fatigue Failure to introduce ‘Popular Items’ on Menu Inappropriate Pricing Strategies Lack of understanding local tastes Infrastructural inadequacies Over estimation of demand Recorded losses of $343.8 million in 2002 People opted for healthier options Brand Fatigue speech : Brand Fatigue speech McDonalds faced many challenges while entering the Indian market: Failure to introduce popular items - The brand McDonalds could not promote or even introduce its two most popular items on the menu, “The Big Mac” and the “hamburger” because they contained beef and pork respectively and as we all know beef comes from ‘Cow’ which is a sacred animal to the Hindu’s and pork is from ‘Pig’ which has been prohibited to be eaten by the Muslims. The brand did not want to hurt the religious sentiments of the people and so they removed these from the menu. Inappropriate Pricing Strategies -Most people considered McDonalds to be a very expensive place to eat and they did not want to dispose off their income in a place that was new to the country. Lack of understanding local tastes - The brand failed to understand the tastes of the people in India. Most of us Indians would consider American food to be rather bland but it is how the Americans like it. Similarly, Indians like their food to be spicy and this is what they failed to understand. Infrastructural inadequacies – when McDonalds started off in india it had problems regarding buying land to start its chain of restaurants. As and when they built their name in the market this problem was resolved. Over Estimation of Demand – McDonalds had overestimated its demand and assumed that its demand would be in proportion with tis demand overseas and had not considered the various limitations it would face In India Recorded losses of $343.8 million in 2002 – For the first time in 48 years of its business McDonalds had recorded losses of $343.8 million dollars because of shutting down of 719 underperforming outlets in 2002 People opted for healthier options – people had become conscience about their health and wanted to opt for healthier options instead of the junk food Brand Re-Position : Brand Re-Position Introduction of ‘Value Meals’ Introduction of healthier options Analysis of Indian taste Better planning strategies Targeted younger as well as family crowd Started Home Delivery Service Renovated its existing outlets and added more Introduced the world wide ‘im lovin it’ campaign Brand Re-Positioning Speech : Brand Re-Positioning Speech The brand repositioned itself by reducing its costs and introducing the ’happy price menu’. They introduced healthier options like salads into the menu. They analysed what kind of tastes Indians prefer and added the chatpata aloo tikki burger and the veg pizza mcpuff. Mcdonalds associated itself with the best suppliers in India which adhered to all the quality requirements. Mcdonalds started the home delivery service which was very convenient for many customers although this service was not free. The brand opened many more outlets in India and plans to reach the goal of 200 this year. A few months after they incurred losses, McDonald’s responded with a new global marketing strategy that claims to rejuvenate its image and maintain its leadership in the fast-food market. Various Ad Campaigns in India : Various Ad Campaigns in India “ McDonalds mein hai kuch baat” “Aaj McDonalds ho jaaye ” “What your bahaana is?” “Purane zamaane ka daam” “Bees mein full dhamaal”. I’m Lovin’ It (worldwide campaign in 2003) The ‘I'm lovin it’ Ad campaign : The ‘I'm lovin it’ Ad campaign It has been one of the most successful ad campaigns across the globe and has boosted profits for this brand worldwide it is part of a new and broader marketing approach that McDonald’s calls Rolling Energy. The company says this approach will revitalize the brand in the entire world, unify its messages and integrate all its marketing moves. This campaign provided the brand a consistency of their image globally, cost saving on advertising and more discipline and focus. Juan Villanueva said “the values shared by the youths in different countries makes it possible today more than ever to create global campaigns with a same message”. The campaign is simultaneously international and local. According to company sources, the advertisements have been adapted to each market in which the company has a presence. In each, they are going to reflect the culture, the lifestyles and the attitudes of McDonald’s customers throughout the world. To deal with this global objective, the central motto, ‘I’m lovin’ it,” has not been translated. Slide 19: Thank you!!