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Brand Source > Advertising Analysis: McDonald’s in China
08.26.2010
Advertising Analysis: McDonald’s in China

To many, McDonald’s is the universal symbol of cultural assimilation. Marketers, as often, view things differently. Beyond the name and the symbol, McDonald’s embodies the concept of “Glocalization”: think global, act local. Indeed, its China strategy and latest communication campaign are testimony to the company’s capacity to tweak its model and successfully adapt it to local market conditions without diluting its brand equity. The two following ads, one promoting its McMorning 麦当劳超值早餐 menus and the other one advertising its new pricing policy also demonstrate its unique mastery of communication techniques and knowledge of the local market.

It is no secret that Chinese people often purchase their breakfast outside their house. Chinese streets in the early morning often look like open-air food courts with dozens of street stalls offering cheap breakfast food to go. Hence the huge market potential of McDonald’s McMorning offer. But to penetrate an already saturated market (in which KFC is particularly aggressive), McDonald’s had to position itself originally and offer a distinctive customer benefit.
At first glance the ad itself may appear unimpressive. The first 15 seconds are simply close ups on the breakfast products. While the images do convey a sense of quality and sophistication, the real message comes after.
Then enters the target customer: a young male executive in an office building elevator. He is young, elegant, beaming with confidence in his perfectly cut western style suit. He tells a story of quiet ambition. In his hands, he holds the signature McDonald’s brown paper bag. The elevator then rises, symbolizing the ascension of this young man.
The message could not be any clearer: McMorning is not just a breakfast; it is a tool. The McMorning breakfast does not just satisfy; it empowers. The McMorning breakfast gives this young executive the energy and confidence to rise professionally and socially.

Once again, McDonald’s shows how well they know and understand their customers. In China, providing internal benefits are not enough; products must help the customer achieve. For example, shampoos allow the young dynamic woman to impress her boss, culinary products allow the stay-at-home mom to impress her mother in law (the harshest of judges in Chinese culture), luxury products get you noticed by the right people and McMorning Breakfasts give you the strength and confidence to rise in a hyper-competitive work environment.
The message also shows how well McDonald’s understands the way it is perceived by local customers. The same message in the US would have been laughable (no Wall Street executive would ever believe that a $2 breakfast will empower him!). But in China, it is perfectly in line with the way the McDonald’s brand is seen. Some brands struggle to be perceived uniformly by all of their customers, but for multinational brands, this often proves impossible regardless of how hard they try. Is it reasonable for a brand to mean the same thing to everybody all across the world? Instead of finding ways to fight discrepancies, brands should maintain a certain degree of consistency in their communication while at the same time exploit differences between markets in a way that strengthens brand equity without altering the core brand identity. McDonald’s realizes that in China its Western credentials still give the brand a trendy, upmarket image. Appealing to young ambitious executives who aspire to greatness by showing sophistication in their consumption habits is thus a credible message.
The other ad promotes McDonald’s new 11AM to 2PM pricing policy. The commercial shows a man walking to the counter and finding himself with only 15 RMB in his wallet. The McDonald’s employee then proceeds to make magically appear a burger, a cola and a large portion of fries in front of the baffled customer, who can’t believe that he can get all of it for only 15 RMB.
Changes in pricing policy are always tricky to communicate. Discounts, if badly managed, can cheapen the product perception and negatively impact the brand. In this ad, McDonald’s insists on the value delivered rather than the price. The consumer is baffled not by how cheap the products are, but by how much value McDonald’s squeezes into 15 RMB. In China, consumers like to think of themselves as smart and savvy. The biggest mistake would be to portray them as unsophisticated bargain hunters. Thus, companies should insist on the value delivered rather than the price itself.

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