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.
McDonald’s has pressed forward with price hikes this week, having already demonstrated the ability to do so without affecting sales. Meanwhile, Kraft Heinz and Nestlé are struggling to find the right balance.
At the end of every week I look at the key stories, offering my view on what they mean for you and the industry. From the persistent pay discrepancies in marketing to McDonald’s crediting its “marketing machine” , it’s been a busy week. Here is my take.
CEO Chris Kempczinski has praised the role of marketing in boosting McDonald’s brand strength.
Having won over marketers with its subtle approach to branding, McDonald’s new campaign scores high on brand recognition and short-term sales potential, according to effectiveness firm System1.
Meanwhile, in the competitive grocery and fashion retail categories, Marks & Spencer’s festive ads successfully grabbed the most consumer attention.
Tapping into the brand’s place in culture and continuing to extend its digital footprint are key focus areas for McDonald’s, as its UK loyalty scheme hits over 3 million active members within its first three months.
McDonald’s is looking at digital, loyalty and creativity as key opportunities for growth amid a difficult economic environment.
The restaurants involved in a trial earlier this year saw a “massive impact” from introducing the scheme, McDonald’s director of digital has said.