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Fast Food Marketing in Argentina - School of Journalism and Mass ...

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<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.

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