Fast Food Marketing in Argentina - School of Journalism and Mass ...
Fast Food Marketing in Argentina - School of Journalism and Mass ...
Fast Food Marketing in Argentina - School of Journalism and Mass ...
You also want an ePaper? Increase the reach of your titles
YUMPU automatically turns print PDFs into web optimized ePapers that Google loves.
<strong>Fast</strong> <strong>Food</strong> <strong>Market<strong>in</strong>g</strong> <strong>in</strong><br />
Argent<strong>in</strong>a<br />
An American student’s perspective<br />
on McDonald’s <strong>in</strong> Lat<strong>in</strong> America<br />
Tr<strong>in</strong>idy Martz<br />
July 10, 2010
McDonald’s Did Its Research<br />
“To market a product or service successfully to consumers <strong>in</strong><br />
any s<strong>in</strong>gle market, a manufacturer must <strong>in</strong>vest the time,<br />
money, <strong>and</strong> sensitivity to discover, underst<strong>and</strong>, <strong>and</strong> relate to<br />
those consumers’ needs, attitudes, values, emotions, <strong>and</strong><br />
behavior.”<br />
- John Philip Jones, The Realities <strong>of</strong> International Advertis<strong>in</strong>g
The Concept <strong>of</strong> <strong>Fast</strong> <strong>Food</strong><br />
Contradicts Argent<strong>in</strong>e Culture<br />
<br />
<br />
We learned that d<strong>in</strong><strong>in</strong>g <strong>in</strong> Argent<strong>in</strong>a is<br />
traditionally an experience<br />
<br />
<br />
Families tend to d<strong>in</strong>e together, <strong>in</strong> part because <strong>of</strong><br />
the low <strong>in</strong>dividualism rank<strong>in</strong>g <strong>in</strong> Argent<strong>in</strong>a<br />
Meals typically last up to a few hours <strong>and</strong> <strong>in</strong>clude<br />
three or more courses<br />
A Google search for “fast food <strong>in</strong> Argent<strong>in</strong>a”<br />
produces far fewer results than a similar search<br />
for the United States<br />
<br />
<br />
Traditional foods like empanadas are considered<br />
“fast food” for a quick snack between meals<br />
McDonald’s entered Argent<strong>in</strong>a <strong>in</strong> 1986 <strong>and</strong> today<br />
has approximately 187 locations <strong>in</strong> the country<br />
Source: www.McDonalds.com
Compared to the United<br />
States, Locations are Sparse<br />
<br />
Buenos Aires – population <strong>of</strong> nearly 14MM<br />
<br />
Approximately ten McDonald’s locations<br />
<br />
In New York city alone, with a population <strong>of</strong> less than 9mm, there are more than<br />
600 McDonald’s locations<br />
Mendoza – population <strong>of</strong> almost 1.6M<br />
<br />
Less than five McDonald’s locations<br />
Buenos Aires<br />
New York City<br />
A snapshot from<br />
Google maps<br />
<strong>in</strong>dicates the heavy<br />
penetration <strong>of</strong><br />
McDonald’s <strong>in</strong> New<br />
York City, with<br />
each p<strong>in</strong>k dot <strong>and</strong><br />
lettered bubble<br />
represent<strong>in</strong>g a<br />
location<br />
Source: www.citypopulation.de/Argent<strong>in</strong>a.html
McDonald’s Underst<strong>and</strong>s the<br />
Demographic Differences<br />
<br />
Buenos Aires has the largest number <strong>of</strong> Jews <strong>in</strong> Lat<strong>in</strong><br />
America <strong>and</strong> is home to the only kosher McDonald's<br />
outside <strong>of</strong> Israel <strong>in</strong> the world<br />
<br />
The McDonald’s <strong>in</strong> Abasto Mall is<br />
supervised by a Rabbi, does not serve<br />
dairy <strong>and</strong> buys its medialunas from a<br />
Kosher bakery<br />
<br />
Store front greet<strong>in</strong>gs recognize<br />
customer language diversity,<br />
particularly <strong>in</strong> tourist areas<br />
Source: Frommer’s, www.cyborl<strong>in</strong>k.com, www.jewlicious.com
Even the Websites Reflect<br />
Cultural Cues<br />
<br />
McDonald’s website for Argent<strong>in</strong>a was redesigned dur<strong>in</strong>g the<br />
World Cup, but rema<strong>in</strong>s promotionally-driven<br />
June July <br />
<br />
McDonald’s website for the U.S. does not reflect pop-culture<br />
cues, <strong>in</strong>stead focuses on food <strong>and</strong> treats<br />
June July
Physical Structure is Unique<br />
Too<br />
<br />
<br />
<br />
Every McDonald’s I saw <strong>in</strong> Argent<strong>in</strong>a had two levels <strong>and</strong><br />
many had outdoor patios, allow<strong>in</strong>g for larger parties <strong>and</strong><br />
longer meal times<br />
No location was st<strong>and</strong>-alone<br />
<br />
Drive-thru is not an option<br />
One location <strong>in</strong>cluded “Ronald’s Gym Club”<br />
<br />
With high uncerta<strong>in</strong>ty avoidance <strong>in</strong> Argent<strong>in</strong>a, a good<br />
approach for McDonald’s is to appeal to the appearancedriven<br />
<strong>and</strong> health-conscious society with the <strong>in</strong>clusion <strong>of</strong> a<br />
gym<br />
A br<strong>and</strong>ed gym <strong>in</strong>side<br />
McDonald’s – not someth<strong>in</strong>g you<br />
see <strong>in</strong> the United States
McCafé is More Prom<strong>in</strong>ent<br />
<br />
<br />
Most locations had separate McCafé order<strong>in</strong>g stations <strong>and</strong><br />
seat<strong>in</strong>g areas, a nod to the British <strong>in</strong>fluence <strong>of</strong> c<strong>of</strong>fee <strong>and</strong><br />
tea times <strong>in</strong> Argent<strong>in</strong>a<br />
McDonald’s <strong>in</strong> the United States has an opportunity to<br />
steal share from Starbuck’s with this type <strong>of</strong> <strong>in</strong>-store<br />
approach
The <strong>Food</strong> is Almost the Same<br />
While the food tastes very similar (<strong>in</strong> my op<strong>in</strong>ion), the menu <strong>in</strong> each country reflects<br />
cultural differences. One consistency was the use <strong>of</strong> value menu bundl<strong>in</strong>g.<br />
In Argent<strong>in</strong>a, you can f<strong>in</strong>d different options <strong>in</strong>clud<strong>in</strong>g medialunas for breakfast, dulce de<br />
leche ice cream flavors <strong>and</strong> even empanadas at some locations.
McDonald’s Localizes Flavors<br />
<strong>in</strong> Argent<strong>in</strong>a<br />
<br />
<br />
<br />
One promotional burger honors the bicentennial celebration<br />
The breakfast menu is limited <strong>in</strong> Argent<strong>in</strong>a, with primary promotional<br />
support placed on medialunas for the morn<strong>in</strong>g daypart<br />
In addition to traditional cheeseburgers <strong>and</strong> the Big Mac, McDonald’s<br />
also localizes burger choices with options like the Crocante Mexicano<br />
Sorprendete
McDonald’s Sponsorship <strong>of</strong> the<br />
World Cup was Evident<br />
In-Store Watch Parties<br />
Event market<strong>in</strong>g <strong>in</strong>cludes watch<br />
party sponsorship <strong>and</strong> street teams<br />
promot<strong>in</strong>g sweepstakes entry<br />
Employee<br />
Game Day Uniforms<br />
In-Store Promotional<br />
Materials <strong>and</strong><br />
Sweepstakes
In the End, <strong>Market<strong>in</strong>g</strong> is Still<br />
<strong>Market<strong>in</strong>g</strong><br />
<br />
A classic market<strong>in</strong>g technique for fast food<br />
restaurants is to communicate value<br />
messag<strong>in</strong>g to consumers us<strong>in</strong>g mass<br />
media <strong>and</strong> store-front promotional<br />
materials. Once <strong>in</strong>side the restaurant,<br />
<strong>of</strong>ten no promotional support can be<br />
found for discount <strong>of</strong>fers <strong>in</strong> the hope that<br />
consumers will trade up.<br />
This deal promoted on outdoor billboards was not<br />
supported with promotional materials <strong>in</strong>side McDonald’s<br />
<br />
Strategically placed promotional<br />
materials are used to lure<br />
consumers at the right po<strong>in</strong>t <strong>in</strong><br />
the purchase cycle. This <strong>in</strong>store<br />
ad rem<strong>in</strong>ds consumers <strong>of</strong><br />
dessert upon leav<strong>in</strong>g the<br />
second level <strong>of</strong> the restaurant.