McDonald’s CEO: ‘We need to have better marketing in the UK’
Niamh CarrollThe fast-food chain saw its sales decline in the UK in the last quarter of the year, as it faced tough competition and a cost-conscious consumer.
The fast-food chain saw its sales decline in the UK in the last quarter of the year, as it faced tough competition and a cost-conscious consumer.
The ‘McRib’ campaign from McDonald’s last year was a sterling example of how to take a smaller bit of messaging and maximise its effectiveness.
The fast food chain says it needed to “do something different” to cut through while remaining true to its ‘Fancy a McDonald’s’ brand platform.
Despite sales falling for a second consecutive quarter, the CFO claims “great” marketing execution means McDonald’s can persuade customers to spend more.
This year, McDonald’s is celebrating both its 50-year anniversary and 40-year partnership with advertising agency Leo Burnett, highlighting the brand’s approach to innovation and memorability.
Despite being in different categories, at different stages of growth, there are a number of brand building lessons all can learn from.
Smaller format stores and ‘Drive to’ outlets are part of the fast food giant’s plan to extend its UK footprint, as the business attempts to bounce back from its first sales drop since 2020.
McDonald’s CEO Chris Kempczinski admitted a “comprehensive rethink” was needed in some markets to lure customers back to the fast food chain.
With inflation falling, brands that have used clever pricing to drive profits will need more restraint to avoid new entrants undercutting them at lower margins.
Thanks to the education done by McDonald’s global CMO Morgan Flatley, marketing is no longer seen as a “nebulous” part of the organisation, but a key driver of growth, according to McDonald’s CFO Ian Borden.
Despite featuring no McDonald’s restaurants or products and only referring to the brand by nicknames such as “Maccers” and “Maccie D’s”, the fast food chain’s latest ad scores “exceptionally” for brand recognition, according to System1.
Investing in digital capabilities to “personalise the experience” will drive profitability for the company, McDonald’s CEO says.
While its tactics will evolve, the fast food giant believes the consistency of its overarching marketing strategy is what grounds the brand.
Campaigns designed to drive trust in the brand had traditionally centred around rational fact but with its most recent effort, McDonald’s decided humour could enable it to more effectively drive food quality perceptions.
Maintaining a balance between price and footfall growth is a “North Star” for the McDonald’s business, which hopes its growing loyalty scheme will help it further step up its pricing strategy.
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