Advertising
Mc Donalds uses adverts to help boost sales and to aware their customers on new or existing products. The restaurant uses catch phrases such as “things that make you go mhhhhhhh”. This was a jingle used in February 2003; currently the company uses the phrase “I am loving it” This slogan was promoted by an R&B artist (Justin Timberlake). I believe that this was a successful method of promotion because the sales increased and children all over the country were singing along.
Other methods include using collectable toys, coupons, promotional schemes in schools and figures such as Ronald McDonald.
Burger King also uses the same tactics they have collectable toys for the kids meals. The restaurant slogan is “Have it your way”. Burger King has used movies such as the Incredible Hulk to promote meals in 2004.This was a very successful action for the business it increased sales.
Television
McDonald's says it spends around £5 million on TV commercials with children in mind out of a total advertising budget of £40.8 million in the UK last year.
The new adverts feature the chain's Ronald McDonald mascot, plus the Yums, characters "who live in everyone's tummy".
They use song and dance to promote four key messages to children and their parents: keep fit, eat five portions of fruit and vegetables a day, and drink plenty of fluids and "not to have too many treats". Below are the advantages and disadvantages of using television to advertise.
Burger King does not spend as much on adverts as Mc Donalds does. When BK advertise on TV, they targeted audience are adults.
Advertising spend in the UK 2004-2005
McDonald's was the clear favourite with pupils of all ages. Most children knew everything about the promotions, menu, prices and location of all outlets in the area. McDonald's was seen to be the cheapest, most convenient and most fun chain - and one of the healthiest.
KFC scored slightly lower on cost, fun and convenience, while Burger King provoked a mixed response. Pizza Hut was viewed less as a fast-food outlet and more of a family restaurant because it is more expensive and a meal takes longer to eat.
Magazines & newspapers
Mc Donalds uses newspapers and magazines to advertise their product; this is less expensive but can be used to target specific groups of people. The cost of advertising in news and magazines depends mainly on the size of the advertising. Mc Donalds advertises in magazines and sometime distributes coupons booklet to attract more customers. Below are advantages and disadvantages of Mc Donalds using magazines and newspapers to advertise their products.
Cinema
Mc Donald’s works in collaboration with certain cinema companies by giving half price meals to those customers who purchase a cinema ticket. This method benefits them in a sense that they do attract customers but they are also losing out on sales. Burger King in 2004 used The Incredible Hulk movie to increase sales. Burger King adverts where introduced before the movie started; this was to alert the audience to perhaps go to Burger King afterwards.
Radio
Mc Donald reaches their audience by radio adverts. Research shows that radio advertising has grown tremendously since 1992.Mc Donald has taking this into consideration by advertising on the radio, they have advertised breakfast meals and other meal offers. A great deal of the population listen to the radio especially people 15-24 Mc Donalds can target that age group to increase sales.
Merchandising /point of sale
In 2003 McDonald's share price was as low as it had been for almost a decade. In the same year the company posted its first quarterly loss and - to add salt to the wound. McDonald's was in trouble and had to come up with new ways to bring their product forward. McDonald's launches toasted sandwich range
(22 September 2005 00:00)
McDonald's has launched a new deli sandwich range as it changes its menu to increase choice and fight off high-street competition. The Toasted Deli Sandwiches were officially launched in all 1,252 of its UK outlets. Price: from £2.79-£3.19 Sub-flavours: Roast Beef and Mature Cheddar; Cheese, Ham and Pepperoni Mc Donald's menus have undergone a series of adjustments lately, including the introduction of "healthier options" such as salads, fruit and yogurt. The restaurant had previously faced some bad publicity in regards to weight gain. Fast food chain Mc Donalds reacted to criticism of advertising aimed at children by today announcing a new campaign designed to promote a “healthy lifestyle”.
Burger King also launched a new range of fresh Baked Baguettes four tasty new fillings set to expand their restaurant menu offer. The national launch, on the 1st April, comes hard on the heels of a highly successful trial in Scotland at the end of 2004. The launch was supported by a comprehensive PR and marketing campaign including national TV and radio support. In restaurant support includes marketing materials, the installation of new ovens and a staff-training programme, ensuring the baguettes can be fresh baked on the premises, throughout the day The new baguettes come with a range of four tasty fillings; Cajun Chicken Grill, Chicken BLT, Monterey Melt and Piri Piri.
Mc Donalds’ and Burger King have more or less the same merchandising techniques. Both stores have windows displays, stickers directing the customers to the product being promoted. Both stores have posters, cutouts and show cards. The display will normally have the products i.e. Burgers and chips along with the price.
Sales promotion
I mentioned previously that Mc Donalds and Burger King use advertising to increase sales, however this incentive can be short lived. On the other hand, if the primary objective promotion is to encourage people to try a new product, the benefit might last longer. Mc Donald’s have a sales promotion offers such as buy two burgers and two fries for only £2; this will normally cost £3.69.
Burger King recently distributed coupons token booklet worth £30 in the post. The booklet was full of buy one get one free and buy a meal with free desert. This is a form of sales promotion and also develops customer loyalty and to penetrate new market segments. The fast-food restaurant chain, , has teamed up with to produce a series of short comedy videos formatted specifically for the new video capable iPod. These videos are a sign that advertisers are becoming more creative in searching out potential revenue streams.
Some of the shorts, which all feature Burger King, didn't even cost the restaurant chain anything to produce
Public relations
Mc Donalds have faced some bad public relations this was due after the restaurant had received some complaints. The company has faced legal action over obesity in the US, where one group of children claimed its food was responsible for health problems. Mc Donalds had to immediately change the food image and they did this by introducing healthier meals. Techniques such as advertising and sales promotions enabled them to have precise control of the content and presentation of their message. They manage to reach the public direct through paid-for media exposure. The message and image the restaurant is trying to put forward is that they listen and value their customer’s needs and requirements and are prepared to change the menu to gain customers loyalty.
Burger king on the other hand has yet received any major bad public exposure. Their image is creating great customers service. They always strive to have sufficient staff members so when lunchtime occurs they customers can avoid waiting in a long queue.
Branding & packaging
Mc Donald’s and Burger King use branding to create product differentiation by establishing an identity for the organisation’s product that distinguishes it from the rivals. Both restaurant uses their name on every packages i.e. Burger King uses its brand name on cups, tissues and paper bags and burger boxes when serving customers. Mc Donald does also have their brand name on every packages in which they serve food. Packaging can be seen as part of the product and also as a promotional tool. The point of this is to protect and contain the product.
The importances of branding are:
- To differentiate the product
- To build up customer loyalty
- To provide the product with an identity
Packaging is also an important promotional tool because it informs customers; it adds value to the product and enhances the brand image.
Corporate image
Mc Donalds campaign on "i'm lovin' it," first-ever global marketing campaign which debuted in September 2003. The new balanced active lifestyles platform is designed to inspire McDonald's customers to improve their overall well-being. The creative approach will be reflected in television commercials, print and outdoor advertising, packaging tips, trayliners, education brochures and a variety of other communications as it is rolled out around the world.
Advertising and public relations played a key role in creating awarness to Mc Donals products.Both restaurant have put in practice variuos promotional techniques in hope of outdoing one another.This included heavy advertising on Television, radio and posters. These promotional mixes have certainly helped both restaurants to be successful because despite their direct competition, both are Britain favourite fast food place.
Communications Process
AIDA - stands for Attention, Interest, Desiire, and Action is a way of analysing how advertising and other promotional techniques work.This proceess is to create to aware the potential buyer of the product to its eventual purchase. Each element of the communicaton mix can be employed to move the customer from A to I to D to A. Advertising (e.g. on TV) is a vital in getting people from unawareness of the product to full knowledge of the product. The next stage is followed up by print -based advertising such as Burger King& Mc Donalds posters next to tube station and shopping centres to create Interest. Sales promotion is aplied in the form of coupons and discount scheems to develop a Desire to purchase.
ATR- stands for Awareness, Trial, and Reinforcement. This is an alternative theory builds in trial and reinforcement.The main role of advertising is not to arouse interest but, to reinforce or reasure the customer.
Part 2 the promotional plan
My second task includes producing a promotional plan for one of my potential client. My client will be opening a restaurant in my local area. I will conduct primary and secondary research that will be presented as a situation analysis. I will be using the acorn profile website to choose my target customers.
My targeted market is Affluent urban professionals from the Acorn profile I found out that the people living in this area are big devotee to restaurants. I have decided to target these people because I believe that I great product to offer and can also achieve great sales.
PT/2 Promotional plan questionnaire
How many times do you eat out?
Do you usually eat in or take away?
How important do you think promotion is for a new business?
What type of promotional methods do you believe will be most affective?
Television, radio, Billboards, leaflets.
What kind of ads campaign do you believe to be most effective?
What kind of adverts do you think is least affective?
