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.
McDonald’s has released the third instalment in its ‘Raise Your Arches’ ad series for the festive season. The first iteration of the platform saw it achieve an ‘exceptional’ branding score, according to System1.
The fast-food brand continues to step up its digital presence, using promotions like McDonald’s Monopoly to increase uptake.
‘Next Stop, McDonald’s’, the follow-up to its high-performing ‘Fancy A McDonald’s’ ad, achieves a “good” branding score but falls short of its successor, according to data from System1.
McDonald’s has hailed the success of its long-term thinking in driving success and has stated its brand has never been stronger. However, new data shows it has taken a significant hit in brand health in the UK following allegations of bullying and sexual abuse from staff.
Over the past five years, McDonald’s has been on a mission to establish a “creative excellence and effectiveness culture”, which has allowed it to prove the value of marketing and show how brand building contributes to business success.
The company also announced digital now accounts for 40% of sales in McDonald’s top markets, the brand says it is only in the “early days” of its strategy and will seek to become much more personalised with its offer.
All the latest marketing podcasts from Marketing Week, featuring analysis of marketing trends and interviews with top marketers.
