McDonalds We have walked the walk, but haven’t talked the talk…

Aim  Market an existing product (McChicken Premier) in a green/environmental friendly way Sensitive McDonalds image

Group  Ahmet Dager  Deepak Bansal  Tom A Trosterud  Tore Hovemoen

Why the McChicken Premier  Low market share Opportunity to increase  Redundant Packaging Increase the level of recycled paper used  Emphasise the low fat content Compared to others in our product range  Filling customer needs Customers informed

Why the relaunch  Reach new customers Education  Educate customers about the green and environmental issues in the company Talk the talk  Branding Green issues – social awareness  Increasing the market share Quality on the burger (tangible and intangible) The market is out there!

How to relaunch the product  New promotion strategy Image buliding  A slight change of ingredients Tomato, onion or others  Modify packaging Paper vs box  Emphasise intangible assets White meat Green

Segmentation  Behavioural Knowledge and attitudes Substitute to the regular McChicken  Undifferentiated Targeting Stimulate as many as possible  Positioning Quality and price

The Marketing Mix  Product  Place  Price  Promotion

Product  Ingredients Keep the ingredients, but give it a little facelift  Research result Onion 50% Tomato 22% Others 28%  Keep on the good work with production  Packaging Convince the customer that it’s a green/environmental product

Packaging cont.

 Different facts We use no genetically modified food All meat has come from a clean, safe environment We use humane slaughter methods  Health issues Change the menu Small size and alternative drinks

Place  “In addition to our food and paper suppliers, we work closely with our distributor company to minimize environmental impacts”, (“Our environment”, June 2003 p.18)  Local distributors and different environment programs

Price  The price has to reflect the good quality  New prices: McChicken premiere: 2.39 to 2.50 Small menu: 3.20 Medium menu: 3.59 to 3.70 Large menu: 3.89 to 4.00

Promotion  AIDA  Advertising TV Billboard Magazine

TV-advertisement

Promotion  AIDA  Advertising TV Billboard Magazine  Branding  Public relations

Conclusion  McChicken Premier has the ”Spotlight”, which will increase the awareness of it.  To meet present social requirements, we need to emphasise branding and the intangible assets in our portfolio  By changing our promotion strategy, we are now trying to Walk the walk and talk the talk simultaneously

References  Brassington & Pettitt (2003), `Principles of Marketing, 3rd Edition´, PH  McDonald’s Education Services (2003), `McDonald’s Fact File´, The Corporate Affairs Department  McDonalds. (2004) McDonalds Online. Retrived on Nov , from:  Burger King. (2004) Burger King Online. Retrieved on Nov , from:  KFC. (2004) KFC Online. Retrieved on Nov , from:  Our environment, June 2003  Corporate responsibility report, 2004