McDonalds UK

 McDonald’s approach and brand originally traded on its American heritage and novelty
factor before gradually evolving into a part of family life tailored for a UK market. When it
opened its first British restaurant it had to educate consumers about this new concept of
counter-service, fast eating. But the public took to the product and the number of
restaurants grew from ten in 1977 to almost 200 in 1985. By 1996, there were 738 and this
year the company will open its 1000th UK restaurant.

 This standardisation of food, training and restaurant design - even down to how much ice
goes into a cup of cola - was particularly important in helping franchisees stick to the
’McDonald’s Way’. Globally, 70% of McDonald’s restaurants are franchise operations, but in
the UK thisfigure is just 26%.

The franchise system was instituted early in McDonald’s US development as a way to increase the
size of the business with minimal capital outlay. Franchisees sign up for 20-year contracts and hand
over 4.8% of their sales to fund marketing. The unique nature of the UK market reflects the
management of the company and is a perfect illustration of the ’thinkglobal, act local’ maxim

 Flexibility for managers

 Although standards of food, service and processes are tightly adhered to, UK
managers have more flexibility in marketing and advertising than in other countries
such as the US, where the high franchisee level inevitably leads to product and price-
focused promotion and advertising.

 Country managers are also given flexibility in sourcing ingredients, and are
encouraged to buy locally if possible. The first UK advertising used theslogan,
’There’s a difference at McDonald’s you’ll enjoy’, and reflected the novelty and
’come join the party’ feel that McDonald’s wanted consumers to tap into.
Early ads concentrated on images emphasising McDonald’s products andservices to
educate a population familiar only with chip shops and Wimpy bars for their fast
food.

Advertisements

 The TV branding campaigns are responsible for maintaining the sense that
McDonald’s is at the centre of British family life. These ads took on particular
importance after market research undertaken in 2015 showed that consumers were
beginning to perceive the chain as arrogant and inflexible. This was the first sign that
 its American roots, although understood to be behind efficient service and value food,
were alienating the UK public. After this, TV ads became more reflective of British
life, andattempted to show the softer, more humorous side of the burger giant.

 The second element of McDonald’s advertising fits in with one of the company’s
most consistent propositions - appealing to children. It understood early on that if you
get the kids on side, the adults will follow. Those children rushing down to the first
restaurants in themid-70s are probably parents now.

Happy Meals - the major pull for children - have always been well supported by
advertising. These ads, like the current one showing a young boy buying a Happy
Meal for his sulky older sister, are also designed to pick up on the ’fabric of British
life’ theme by using everyday family situations.

promotional tie-ins

McDonald’s has always been eager to link activity with major film launches, such as the current A
Bug’s Life promotion. Past link-ups have seen Hunchback of Notre Dame, Hercules and Pocahontas
goodies given to children buying burgers. Since 1996, when McDonald’s negotiated ten years’
exclusive rights with Disney, all the studio’s children’s blockbusters have been accompanied by a
flurry of themed merchandise in the restaurants.

Using football popularity to its advantage

Putting Alan Shearer into Eric Cantona’s role in a parody of the Eurostar ad proved a master stroke.
Shearer’s version of Cantona’s philosophical ramblings - complete with Big Mac cravings - was a neat
link to McDonald’s World Cup sponsorship.