Say What You Want

March 22, 2009 · Comments

McDonalds

McDonalds is pretty darned smart. You might have your reasons for not liking them. You might feel they’re antithetical to all you hold pure and dear. It doesn’t make them any less smart.

They are master marketers. They are business efficiency professionals. They are experience managers. They are savvy business people.

Instead of worrying about instore sales growth, they acquired several other brands that you barely even think about. Instead of worrying about what we say is important to us, nutrition-wise, they provide the few nutritious things we pretend to order while serving up the food we really want when we seek rapid delivery.

Their McCafe line might not be crushing it yet, but they have a horse in the race. Parents who bring their children to McDonalds aren’t making two window stops as often now. It’s another way to sell us into something we could use, quickly, affordably, and handily.

There is a very low personalization requirement at McDonalds. When we choose to eat there, we forego the cafe-shaped world and enter into the rapid delivery world, the “known” world. We know what we’ll get when we come there.

For every time I tell you that social media and customized personalization and cafe-shaped conversations are the way to go, remember that McDonalds continues to thrive, and that McDonalds is mass marketing at its shiniest, and that they are making billions and billions without even caring a lick about what I say the future will be.

Hold the onions.

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  • I had a friend tell me that we're so used to convenience that it's not enough to have "fast food." We want them to cut a hole in the wall and shove it out the window to us. Why? So we can get home quickly and blog about cafe-shaped conversations.

    You're right. Social media is rarely a one-size-fits-all realm, if it fits at all. You bring excellent ideas and conversations to the table while acknowledging these realities. Great article.
  • Great article. Everything is about marketing, whether going for the mass market, or a specialized market.Thanks for the food for thought, and an idea for my next blog post.
  • A timely post because I was just thinking about this yesterday when I was there. Here's what McDonalds does right in my opinion. I have little-to-no experience entertaining young children for long periods of time. However, yesterday I was tasked with entertaining my 8 and 5 year old nephews for an afternoon.

    McDonalds for lunch was the obvious choice. Why? Well it's like they made the place for people like me who have limited skills at child wrangling. They get you up to the counter and fast, don't give you a million options to choose from, get you to the table quickly with toys in hand, then they give you a place for the kids to run around in and burn off the calories they just consumed. Plus, my nephews don't get to eat there very often so it's a big treat for them and I look like the superstar Aunt.

    Win win win.

    Although I'd argue that there is a community of sorts going on there - as evidenced by the small conversations I was able to strike up with other parents while the kids were off battling dragons in the Playland.
  • As much as I'd never eat there due to the fact that I'm a health-freak, you have a great point Chris, and I agree. Plus they are literally EVERYWHERE. I took a 4 hour drive somewhere yesterday and I must have seen 50 locations if not more. They literally blanket the landscape.
  • I think that it is their ability to serve the same product consistently regardless of location or time. It is relatively the same restaurant and taste since I was 5 years old. It is amazing that they have been able to keep dominating for so long. They are definitely doing something right and I expect will continue to do it right in the future.
  • Although they haven't much for me anymore (recently turned vego) - I do like that here in the UK the maccas outlets tend to have a seated space away from the floor that you walk into where the counter exists, an up/downstairs area that is a little less McDonalds and more cafe-esque... and, I guess in a bid to somewhat compete with what cafe's & coffee houses are offering, McDonalds here has free wifi. They give the people what they want.
  • Ever since I worked as a hostess at McD when I was 16 (my first job!), I've been fascinated by how the whole franchise is run. Ray Kroc (person who bought out the McDonalds brothers in the 1950s and turned McD into what it is today) wrote a book entitled 'Grinding It Out' - lots of great business ideas are hidden within it.
  • for a "rapid delivery" company, the latte I ordered at a McCafe once sure took forever. But I'll admit it was decent.

    I'll bet you all the McD horror stories come out in the comments here.
  • One of the keys to McDonalds success has been their ability to consistently deliver consistent food. You don't have to open your bag to check what a Big-Mac is going to be like, you know already, there's no doubt. A soggy fry, is not a McDonald's fry.

    So, they key, in your product or service is to consistently produce good quality. You market will let you know whether your good, is good enough.
  • Coffee is the best in the business and they work at giving customer benefits-and teaching kids how to develop a work ethic-Their Latte's rival any European Coffee shop-and you don't have to hock a kidney to buy one HEH
    heh 221 up, 79 down
    Coversational putty, used mainly on IRC to smoothen the flow of chat. Can be used to acknowledge another person's speech, while not actually responding to it. Can also be used as an equivalent of throat-clearing, indicating that you have something to say which will follow afterward.
  • I have yet to see a disparaging word about McD's in this comment section. Even the folks who said they're vegetarians were complimentary.
    That goes to show you that they've been successful in doing what they do best, marketing -- creating an everlasting image of their brand in every household.
    I would love to see a truthful comment here where someone from any country says that they've never seen a McDonald's ad or building.
  • Don't forget: McDonald's wasn't always a massive corporation. When they first started out, they were doing something novel -- the fast food hamburger, which was rare 60 years ago -- and so it got people talking.

    The key here isn't "how McDonald's ignores the tenets of being remarkable," but "how McDonald's built being remarkable into a massive global empire."
  • Chris:

    McDonald's is more than smart. McDonald's knows what they are about as an organization. They don't need a "corporate mission statement" because everyone who works there is on the same page. The have a culture that supports their business and success.

    McDonald's is about operational excellence and value. And everything they do supports those two things. Long ago, I worked with McDonald's as a food ingredient supplier, and I can tell you that their standards for suppliers are the toughest in the business. You have to be very good to do business with them.

    Personally I am an un-apologetic McDonald's fan and think a well made Quarter Pounder with Cheese is about as close to perfection as it gets with quick food.

    (I don't work there or have any investment stake!)

    @tomob
  • I'm a health conscious enviro-loving vegan, so i'll try to keep this objective ;)

    Great post, and a question I've been thinking about a lot lately: are there some brands that simply won't benefit from social media, even if they do it perfectly? I don't think McD's is one of them though, and I think of them in the same line as I think of Wal-Mart.; ie, they'll do fine and make billions of dollars no matter what they do (and maybe even benefit from a down economy), but there are definitely ways they can improve their situation with a well thought out interactive campaign. There are so many things McD's could do that I really can't imagine something happening in the near future!
  • One more thing - did you know that McD has an internal socnet for their employees? And a few crew members have been "picked" out of their jobs to be full time bloggers.

    @tomob
  • Here's a slightly different point of view. I don't eat fast food so places like McDonalds just aren't on my radar. I couldn't tell you where one is, or how many there are in our town. I have no idea what they're menu is like these days. I do know they serve coffee and are competing with Starbucks because there were news articles about it several months ago. So while they are master marketers I guess once you opt out you just don't notice.
  • McDonalds's sponsoring of the Beijing Olympics was basically saying the company approves of human rights being tossed out the window. Not a lot being said about that kind of marketing.
  • I don't disagree with your post.

    For myself, I go for breakfast to McD's 4-5 times a week, and it has everything to do with the basics; nothing to do with any branding actions or adjustments in the last 10 years.
  • I had a great experience at McDonalds in Homer Alaska when I went in for just for a cup of coffee and left knowing many locals who love to hang-out there.
  • I took my wife to McDonald's this morning. Was surprised to find that I wasn't greeted with, "Welcome to McDonald's." That seems so scripted, I listen for it and find it surprising when it's not part of the experience.
  • Take a look, if you haven't already, at Gilmore and Pine's terrific book on this subject, "Authenticity: What Consumers Really Want" -- Amazon link:

    http://www.amazon.com/Authenticity-What-Consume...

    Also Pine does a great job of explaining this in his TED talk:

    http://www.ted.com/index.php/talks/joseph_pine_...

    Today being a company is all about the complete experience you provide to the customer.
  • Echoing what I said on Twitter. Was just there yesterday. We had a tweetup called a Shamrock Shakeup. Was great. Half Shamrock Half chocolate domination.
  • Great post. You call it "the rapid delivery world, the “known” world." McDonald's invented this. Their brand IS this "consistency" value proposition. Have you ever heard an entrepreneur say "We want to be the McDonald's of our industry ..."? That's what she means.
  • They don't have the best customer service, but it's obvious that they have a "system" and it works. New and different products periodically to compete with their competitors, packaged food items that add value (i.e. their breakfast menus) and a food menu that has remained consistent.

    BTW: Just checked their numbers and their sales have gone up.
  • McDonald's food is crap, but they do have the best marketing. Their last ad for Fillet-O-Fish was pure genius. When that ad comes on tv my kid comes running to watch it. I watch it even though I've seen it way too many times. It's one of the reasons I hate them. I've decided to boycott all products that have insultingly stupid ads on tv and learned that I am a hypocrite. We had McDonald's last week.....You are so right about them being master marketers. Good Post.
  • I like McDonalds.
  • The last commercial I saw of McDonald's in Canada was hilarious. Some young woman reading, suddenly takes a big sip from a Big Gulp sized drink bottle like it was the ultimate refreshing drink. At first I thought it must have been some sort of parody, but no, McDonald's apparently now has iced tea. Hilarious.

    Guess what image of McDonald's brand I'm still carrying around with me since my childhood.
  • I remember the last time I was at Mc Donalds about 2 months ago. I remember because it was the time that I asked for coffee with cream and sugar and expected to get the three sugars and two creams in packets in the bag since that was my request. Wrong assumption on my part. Instead "someone" decided for me and added a ton of somethings to my coffee and it was awful! In the past, depending on how strong the coffee was dictated how much of the cream and sugar I would add. Oh well. Since that choice is now unavailable, they lost my business. Maybe they are making a killing with out personalization but I need a bit of personalization in my life and I am attracted to that in business. I'm sure Mc Donalds doesn't care but I do! Adios McDonalds!
  • As a father of 4, McD's is a crowd favorite - not necessarily of the parents. But when marketing is giving the customer a good solution to their problem, then's it's good marketing. McD's is not about the food quality. The kids like it. So it's high on the quality marks in their books. For me, not so much, but if I'm looking for quality food, I'm not taking the kids in toe. So for the parent, the solution I'm looking for is: simplicity, speed, and a playscape! Plus, I don't mind a salad, iced coffee or something that seems better than the McD's when I was the kid.

    The only thing I was they had were clearn, sound-proof cubicles (like they have on those gameshows where the contestants can't hear ANYTHING going on outside the booth). That way I could still act as a responsible parent and keep an eye on my kids but actually make work phone calls or catch up on my blog posts and Twittering - I like the WiFi McD's offers, but who can concentrate???)

    Give me those booths and I'd be a happy camper! It might serve as a secondary campus for my work!
  • oops, I meant "CLEAR, SOUND-PROOF CUBICLES".....
  • Ken
    An economy like today's only benefits McD. The low-priced and standardized meals make it an easy and affordable option.

    This BBC article from January says it'll open 1,000 new outlets: http://news.bbc.co.uk/2/hi/business/7851687.stm

    McD is a winner in a losing economy.
  • MBlayney
    Their marketing efforts are consistently strong. As a group of us sat at lunch last week, we all began singing the song in their new fish fillet commercial. Will it make us buy more fish fillets? I don't know... but it certainly got us talking about McDonalds.
  • There are two blog posts I look forward to reading every day --- You and Seth Godin. I have told many people that I like the way you and Seth can take a topic and add a unique perspective AND do it with such a small word count. The KEY to this is you can SAY so much with so few words. That is an art and a skill. Kudos to both of you.

    As for this post - i agree with you that there are a lot of nuances underneath the McDonald's marketing machine. McD's knows how to mass market and knows how to grow people. People may not agree with their sponsorship choices and imply it's a tacit approval of a countries politics, but this does not discount the fact that they know how to continue to grow their market. Who knows - it may be that the introduction of McD's to some of these markets will change the way they think.

    While I don't go to McD's very often what I know, appreciate and expect is that the food will be the same every time. Some may argue that this is the problem with McD's (and other mass brands - think SBUX), but I take it as a positive factor and can take comfort in the fact that I can get a Quarter Pounder (or Burger Royale) anywhere in the world.

    @jshuey
  • Because I travel a lot, I eat way more McDonalds than I would ever want to admit to. It's all about "known quantity" fast. No matter what country I am visiting a Big Mac is a Big Mac and for those of us with the vagabond disease the sight of the golden arches can provide much comfort.
  • I don't know much about hamburgers or finding McDonalds, but I always know where the closest Dairy Queen is. ;-)
  • Lethality
    Fact: 99% of the people that go to McDonald's don't analyze what they think about their "brand". i.e. sometimes marketing-types like here get a bit too full of themselves and make up stuff they think matters, when it really doesn't.
  • @Lethality: "Fact: 99% of the people that go to McDonald’s don’t analyze what they think about their “brand”." That's exactly the point of a brand. Consumers know what to expect before they get there. Indeed, that's why they go.
  • Lethality
    @Harry - Honestly, the science that has been created around branding is fuzzy at best. Marketing-types like to over-analyze the situation and develop strategy and tactics that really overtake the purpose at hand, creating a small "sphere of importance" that exists in their own mind and that of whatever client they've gotten to bite off on it.
  • Last time at McDonalds - a 5-yo birthday party. I admire the McDonalds brand, and even remarked to my wife last night after one of their spots came on (during Disney Channel show) that they're really making an effort to promote a healthier menu these days (via the aesthetic as well as the core message). Sure, their fries will always be king, but at least they're trying to compete with the healthier alternatives in fast food these days.
  • @Lethality - Point taken. In the words of Doc Searls, "Sales is real; marketing is bullshit." But my point about McDonald's, Starbucks, WalMart, and any other big, well established brand is that their is always great consistency between a world-class brand's promise and what they actually deliver. Therefore, the brand becomes a type of "shorthand" for a larger sales pitch. As info, this only happens when the entire company and its operating model are in total alignment behind the brand's promise (ie Unique Selling Proposition). Here's an example of what I'm talking about: http://tinyurl.com/cbyvuh
  • Is this article about McDonald's or marketing? It's not clear from the title.
  • Both McDonalds and KFC are really popular in Beijing, where I live. These brands are taking advantage of their shrinking popularity in the U.S. and adapting themselves to local cultures around the world in market savvy ways, such as customizing their menus to local tastes.
  • Lethality
    @Beth - that isn't branding... thats just sound business. My problem is that people use "branding" interchangeably for other things too much.
  • @lethality - the word "brand" appears once in the piece and is used appropriately to reference other product lines McD's purchased to bolster their earnings portfolio.

    Then again, you might not have been referring to me in your comment.
  • And yet, it's their not caring about what I think/want that has led me to boycott them for the past 32 years (mind you, I'm not yet 38). As a child, I asked for a plain cheeseburger and they refused to give me one, claiming they don't make them that way. Even when I cried. Even when I pointed out that they *were* plain until they put all the fixings on. Even when my mom got a manager. I'll never eat there again, nor will my children if I can help it. This is how Burger King got their foot in the door back in the late 70's/ early 80's. One size fits all is a myth.
  • @amie

    Actually, McDonald's has chosen to compete on the dimension of operational excellence (from book - Discipline of Market Leaders) and that discipline does not include customization.

    That is why BK has chosen customization - Operational Excellence is not available in the category (McD owns it) and Customer Intimacy (have it your way) is available.

    One size fits all isn't for everyone, but doing anything for anyone is a recipe for failure.

    @tomob
  • Good point. McDonalds is a great example of how shoving messages down customers throats through mass (extremely mass) marketing can still work. The catch of course is that the customers (we) are enabling their success and their behavior. Doesn't make it right or wrong necessarily.
  • @tomob: that's an excellent point. BK & McD fill two very different niches within their market. And I agree that one can go too far in the direction of anything for anyone, particularly in a business where a need for speed is part of the equation. People like me who want custom typically slow down an otherwise streamlined system.
  • McDonald's food is not good or healthy. I agree that in terms of marketing, McDonald's is well above anyone else. McDonald's comes out with salads and various items dubbed as healthy, but who knows how healthy the salads really are from McDonald's. This marketing makes people feel that McDonald's is not as unhealthy as everyone makes the food appear. Nonetheless, people go to McDonald's for cheap food and quick service and the marketing makes the decision easier with the idea that McDonald's is becoming healthier.

    In terms of fast food, Wendy's is not as unhealthy and the food is better. McDonald's has the edge in marketing worldwide, but I know where I would rather eat any day of the week.
  • At the moment it seems to be a working strategy to sell something for everyone like McDonads is doing.In the online world it is quite the opposite, you must focus on a small niche to make any money.
  • Chris--
    I completely agree with you. I have long loathed McDonalds' food, but with a four-year-old, I've inevitably found myself there far more often than I'd care to admit. And every time I find something positive to blog about.Their nutritious-ish kids' meals. The McCafe. The updated design.

    I met the Global CMO at AMA's conference in Orlando, and love how they're listening to bloggers. They're not yet embracing the social media realm, but maybe that's where New Marketing Labs can step in??
  • McDonalds comes under a lot of criticism for being so unhealthy, but the sheer success of the franchise should be enough to wipe out that criticism. The fact is that people often PRETEND they care more about their nutritional needs than they actually do. The fact is, McDonalds gives us the greasy cheeseburgers and salty french fries that we crave - so they are successful.
  • I couldn't agree with you more Chris! McDonald's are truly great business savy people and definetily VERY smart!

    A couple of months ago, after a visit to McDonald's I was also moved by some of the same thoughts and was motivated in finding out more about McDonald's history and business strategy. I was surprised to find out about the different brands that McDonalds owns and was particularly interested in their ability to be the leaders in their industry for such a long time despite the economy, wars, trends, and seasons.

    I do not know about the rest of the nation, but here in southern california, McDonald's has begun to renovate their restaurants and are begining to provide customer service that is unexpected of a fast food chain. I went through a McDonald's drive-through a couple of weeks ago during peak lunch hours and as I was waiting in my car , I was greeted by an employee with a tray of McNuggets and asked if I wanted to have some as I waited! wow! Also, on a different visit to the restaurant, when i finished placing my order the chasier asked me for my name to call my order, rather than just giving me a number. A simiple touch like this does make a difference in the way a customer feels & I am glad to see that McDonald's is continuing to inovate!
  • Great post.
    When we, marketers, suggest and propose strategies that do not involve mass marketing, we never mean to claim that mass marketing does not work. All that we mean to say is that we believe that most companies are more likely to succeed by utilizing these different approaches. Although McDonald's is still successful, I doubt that a company getting started nowadays could reach that same size with mass marketing.
  • ShellyKramer
    Great article, Chris. There's a lot to be said for familiarity. A box of Kleenex, a Starbucks in a strange city (over the local beanery) and, of course, McDonald's. To many of us, their food is crap .. but it's crap that we can depend on. Served the same way every time, and at a good price, quickly and reliably, whether we are in Topeka or Timbuktu. And there's a lot to be said for that. Familiarity makes us comfortable - oftentimes way more comfortable than one-on-one experiences in the "cafe-shaped world." And eating there takes all the risk out of that particular experience. What McDonald's has figured out is that there are lots and lots of us (well "billions served" would be more appropriate) who are totally a-ok without any risk in our lives.

    Thanks for sharing - the best part of my day is reading your blog posts :)
  • And only Mcdonald's can take an existing sandwich (the big mac) wrap it in a tortilla and then market the hell out of it as a new creation. I almost never eat there, and even I want to try that 're-'creation. Genius!
  • Sometimes, though, I think they're so good and/or routine that they surprise themselves. Case in point: The other day I was driving through and was planning on getting what I usually get -- a quarter pounder with cheese meal and a Coke. I'm not picky, I never ask for anything different. That's what I always get.

    So I get up to the speaker and I hear, "Welcome to McDonald's, would you like to try a quarter pounder with cheese meal today?"

    Surprised, I answered, "Actually, yes, that's exactly what I wanted. With a Coke."

    Silence on the other side for about 5 seconds.

    "Excuse me what was that?" the speaker barked back at me.

    I answered, "You asked if I would like a quarter pounder with cheese meal, and that's what I wanted. So I said yes. With a Coke."

    "Ok so you'd like a quarter pounder with cheese meal, with what to drink?"

    "A Coke!"

    I thought we finally had that all straightened out, I pulled up to Window #1, paid, pulled up to Window #2 and got my food, and drove off.

    They gave me a Diet Coke.
  • You're right. Serving up fast-fatty foods and paying minimum wages is so un-progressive. Yet when other seemingly-progressive companies balk at offering sabbaticals to their employees, guess who's been serving up sabbaticals since the 1960s?? That's right, McDonald's was one of the first to adopt the practice, backing up "You deserve a break today" with real action.
  • two questions:
    1. is it an "either/or" choice? could McDonalds deliver 'consistency' in a mass marketed way, and also overlay personal/social hooks as well? Would that help them or hurt them? Could Tide detergent do it? Gerber baby food? Buick? Hyatt Hotels? Miller Lite? Any brand with mass distribution and a broadcast media budget of over say $100M - - should they try to be more 'intimate'? Or is it a waste of time and money, and potentially somehow harmful to the brand? I dont see the danger, so why doesnt McDonalds try to be a little more user-friendly?
    2. are some brands (businesses, categories?) more responsive to one approach over the other - mass vs targeted (or broadcast vs narrowcast, or push vs pull) - I am not sure of the nomenclature. But is there a 'test' of some kind that would say, gee, for your business, you ought to broadcast out your USP... but for your business, you ought to go down the "cafe" path (to borrow Chris' term)?

    Just wondering.....
  • Joe
    I love everything about McDonald's McCafe... everything except for the silly name
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