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The Integrated Marketing Communication Campaign of McDonald’s Restaurants (Hong Kong) Limited LAU Wing-yan A Project Submitted in Partial Fulfillment of the Requirements for the Degree of Master of Arts in Communication Supervisor: Dr. Chen Ni School of Communication Hong Kong Baptist University Hong Kong July 2006
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  • The Integrated Marketing Communication Campaign

    of McDonalds Restaurants (Hong Kong) Limited

    LAU Wing-yan

    A Project Submitted

    in Partial Fulfillment of the Requirements for the Degree of

    Master of Arts in Communication

    Supervisor: Dr. Chen Ni

    School of Communication Hong Kong Baptist University

    Hong Kong July 2006

  • McDonalds Restaurants (Hong Kong) Limited

    1

    Acknowledgement

    I would like to take this opportunity to thank Dr. Chen Ni for her advice and support throughout the process of doing this project. It is really my honor and pleasure to have Dr. Chen to be my supervisor. During the preparation of this project, Dr. Chen has given me so many constructive ideas on how to develop the whole campaign and improvements to be made making my project a better one. I enjoy every single moment with her during consultation in the past few precious months. On the other hand, I am also very grateful to my family and friends for their continuous support, encouragement and sharing. I would like to thank them for supporting me to be tough in facing all big challenges of this project. All research described in this project was my own original work and was carried out by myself under the supervision of Dr. Chen Ni.

    ______________________ (LAU Wing-yan)

    M.A. in Communication

    School of Communication Hong Kong Baptist University

    Date: 3 July 2006

  • McDonalds Restaurants (Hong Kong) Limited

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    The Integrated Marketing Communication Campaign

    of McDonalds Restaurants (Hong Kong) Limited

    I. Executive summary

    Fresh Choices Menu of McDonalds Restaurants (Hong Kong) Limited was firstly

    launched in 2004, however, the campaign failed to build up a healthy fast food

    provider image to McDonalds, and of publics perception McDonalds is still a junk

    food restaurant. In an attempt to change the public perceptions, and to build up a

    healthier public image to McDonalds, an IMC campaign is designed.

    It is a one-year campaign, before the start of the activities was the authors research

    conducted in May, and will be followed by the campaign planning until December

    2006. The campaign activities will take place in 2007 through the year until its

    evaluation in January 2008. With the theme To Refresh your New Healthy Life at

    McDonalds, the campaign activities will focus on a PR event (a 5-day tour to

    Australia farmlands), of which the promotional works will be supported by tactics of

    public relations (an after-the-tour TV program), sales promotion (the lucky draw and

    the writing competition), advertising (TVC, outdoor and print ads), direct marketing

    (promotions at POPs), internet marketing (www.mcdonalds.com.hk) and personal

    selling (McDonalds Ambassadors).

  • McDonalds Restaurants (Hong Kong) Limited

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    The author has designed a research which has taken place from May to June 2006. It

    analyzed the situations of the company, the consumers, the product and the market,

    and so to design sets of appropriate campaign strategies. In regard to the research

    results, the households with a monthly income of HK$15,000 - $25,000 and with at

    least one child aged below 18 have been identified as the target audience in our

    campaign.

    A posttest evaluation will carry out in August through December 2007 to measure the

    effectiveness of the campaign. It will measure the campaign effects, the public

    perceptions and recognitions to McDonalds. The information will provide

    benchmarks for future campaigns to develop.

  • McDonalds Restaurants (Hong Kong) Limited

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    Table of Contents

    Acknowledgement page 1 I. Executive summary 2 - 3 II. Situation analysis 5 - 33

    Company analysis 5 - 7

    Consumer analysis 8 - 13

    Market analysis 14 - 17

    Product analysis 18 - 21

    Competitive analysis 22 - 28

    SWOT analysis 29 33

    III. Problem and opportunity statements 34 IV. Campaign theme, goal and objective 35 V. Target audience profiles 36 - 37 VI. Overview of the IMC strategies 38 - 42 VII. Implementations of the IMC strategies 43 - 68

    Public relations strategy 43 - 45

    Sales promotion strategy 46 - 47

    Advertising strategy 48 - 65

    Direct marketing strategy 66

    Internet marketing strategy 67

    Personal selling strategy 68

    VIII. Media plan 69 - 70 IX. Timeline 71 - 72 X. Budget 73 XI. Evaluation 74 - 75 XII. Conclusion 76 XIII. References 77 - 78 XIV. Appendices 79 - 97

    Authorization form 98 Plagiarism declaration form 99

  • McDonalds Restaurants (Hong Kong) Limited

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    II. Situation analysis

    Company analysis

    McDonalds Corporation

    McDonalds Corporation was founded in 1955 when Raymond Albert Kroc, (1902

    1984), acquired franchising rights from the McDonalds brothers. The corporation

    now has more than 30,000 restaurants in more than 119 countries worldwide, and

    becomes the largest fast food service restaurant organization in the world.1

    McDonalds Restaurants (Hong Kong) Limited

    McDonalds Restaurants (Hong Kong) Limited, hereafter called McDonalds, was

    established in 1975, when her first restaurant at Paterson Street in Causeway Bay

    offered the very first Big Mac Meal to customers. She has been religiously following

    worldwide motto of QSC&V (Quality, Service, Cleanliness and Value)2 till today.

    However, McDonalds have never stopped of being challenged by nutritionists as a

    junk food provider. The criticisms are getting worse since the year of 2000 when the

    global world is talking more about a healthy eating habit.3 People blame McDonalds

    foods are high in fat, salt and carbohydrate. Some activists even asked for health

    1 www.mcspotlights.org 2 McDonalds Restaurants (Hong Kong) Ltd. Report Summary (2006) 3 Apple Daily (A30) (May 22, 2006)

  • McDonalds Restaurants (Hong Kong) Limited

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    warning labels on her foods. In 2003, McDonalds firstly introduced her healthy

    menus, with fresh salad and fruits, of which are the Fresh Choices Menu we see at

    her Hong Kong restaurants. However, the market feedback is no good as McDonalds

    has expected, for consumers can hardly associate the new menus to McDonalds old

    fashioned image of a fast food restaurant provider. (Research Q. 14.3)

    Anyhow, McDonalds is now the leading Quick Service Restaurant (QSR) in Hong

    Kong.4 More than 10,000 staff serves more than 150 million customers a year at

    more than 140 restaurants in the local market.5 In a bid to meet the needs of different

    customers, McCafe was also opened in addition to the restaurants.

    4 McDonalds Restaurants (Hong Kong) Ltd. Report Summary 5 www.mcdonalds.com.hk

  • McDonalds Restaurants (Hong Kong) Limited

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    Table 1 Company history and milestones

    Year History and development 1940 McDonalds brothers opened a small restaurant in US 1952 McDonalds brothers operated a quick service food chain store and

    designed the golden arch 1955 McDonalds brothers sold the franchise right to Kroc 1959 Released the first McDonalds TVC on media 1965 McDonalds listed in the stock market 1975 Set up McDonalds Restaurants (Hong Kong) Limited 1993 Ranked No. 3 of the Worlds Top 10th Brands 1996 Ranked No. 1 of the Worlds Top 10th brands

    Reported a 110 billion (US$) hamburger sales 2000 Received severe criticisms of offering unhealthy junk food 2003 Firstly introduced her new healthy menus of fresh salad and fruits 2004 Ranked No. 2 of the Worlds 100th Influential Brands

    (2005)

    Mission

    McDonalds constantly looks at improving the work environment. She opened the

    World's seventh McDonald's Hamburger University in Hong Kong which serves her

    employees to learn and grow throughout their careers. Her success was proved by her

    winning of The Employer of the Year Award in 2004 in the industry of food and

    catering / hospitality.6

    A good corporate citizenship has become an element in the business philosophy of

    McDonalds. She was the first restaurant group in Hong Kong to adopt a smoke-free

    policy, and opened the first Ronald McDonald House in Asia serving ill children.

    6 www.jobsdb.com.hk Employer of the Year Award 2005

  • McDonalds Restaurants (Hong Kong) Limited

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    Consumer analysis

    Fast food consumption has become a trend for Hong Kong people, mainly of which to

    meet the fast-paced living style in many well-developed countries. Low-calorie fast

    food, on the other hand, serves as a bonus to the people when Hong Kong has been so

    prevailed with an extreme of dieting. In the past, fast food is a solution to a busy

    working life. Nowadays, people are getting aware to their health and put focus on

    what they eat in order to fulfill a healthy eating habit for good health.

    Research methodology

    The author has conducted a research in May through June 2006. And the methodology

    consisted of two parts, the quantitative and the qualitative.

    The quantitative part was the interviews along with an author-designed questionnaire,

    which were delivered to a randomized sample of 80 respondents at four selected MTR

    stations (Causeway Bay, Mong Kok, Tsim Sha Tsui and Tsuen Wan). This part was to

    identify the respondents purchasing habit of American-styled fast foods, their

    attitudes and considerations in their consumptions, and their perceptions towards

    McDonalds Fresh Choices Menu. Lastly, the demographic, psychographic and info

    graphic information of the respondents were also collected.

  • McDonalds Restaurants (Hong Kong) Limited

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    The qualitative part was a phone-interview with a PR representative from McDonalds

    (Hong Kong) Limited. The author was attempting to have a face-to-face interview

    with the representative and to collect as much internal information from McDonalds.

    However, due to some difficulties as revealed by the representative, a 10 minute

    phone-interview was done. The interview only came across the target audiences of

    McDonalds in her few previous campaigns.

    Research and discussion7

    Among the 80 respondents, 97% of them were female. Most of the respondents (56%)

    fell into the age group of 35 to 44 while 38% of them were between the age from 25

    to 34. About 85% of the respondents were F.7 graduated or above, with 39% of them

    were working in service industry and 46% were in executive or professional positions.

    All the respondents were married, with 79% of them raised at least one child aged

    below 18. Most of the respondents had a monthly household income of HK$15,000 to

    $19,000, and another 36% had HK$20,000 to $24,999.

    Instead of filling in the questionnaire, the 80 respondents were asked about the 32

    questions when they were intercepted at the MTR stations. The questionnaire

    consisted of three parts: the first part was intended to collect information about

    7 See Appendix B

  • McDonalds Restaurants (Hong Kong) Limited

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    respondents purchasing habit of low-calorie American-styled fast foods, and their

    considerations when buying the product. In the second part of the questionnaire,

    respondents were identified with their recognitions on the fast food restaurants market,

    and their perceptions and attitudes on McDonalds Fresh Choices Menu. The last

    part of the questionnaire collected psychographic information of respondents,

    including their lifestyles, and also the demographic information.

    Purchasing behavior of the target audience

    According to McDonalds representative, the household with at least one child aged

    below 18 were mostly identified as target audiences in their past campaigns.

    Therefore, to have a better understanding on this target group, the respondents

    selected to take part in our research were specified.

    From the research conducted, it was found that 100% of the respondents have

    consumed American-styled fast foods in the past three months. Out of these, 90% of

    them reported their experiences of buying low-calorie American-styled fast foods.

    During the same period of time, 60% of them reported a 6 to 10 times of purchasing

    the product, and had 38% reported at least 1 to 5 times. They went to the fast food

    restaurants mostly with their family members (100%), and also with colleagues (92%)

  • McDonalds Restaurants (Hong Kong) Limited

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    and peers (89%).

    When the respondents considered purchasing the product, 96% of them ranked

    nutrition values of the product as one of very important criteria. Other important

    criteria include variety of the product (88%) and taste of the product (79%). To

    view from a communication perspective, it was found that 60% of the respondents

    agreed goodwill of the product brand were essential element when consider

    purchasing the product, and also 87% of them reported they would be affected by

    media when making the purchase decision.

    Perceptions on low-calorie American-styled fast food

    There are 96% of the respondents perceived the product a solution to slimming, and

    therefore to recommend it to others as seeing the product a choice of healthy

    convenient fast food. 95% of them associated their reasons of purchase to media

    effect and the convenience nature of fast food (92%).

    Still, there are 88% of the respondents did not differentiate the product from other fast

    food. They did not recommend the product to others because of their low involvement

    (69%) to the product and had no concrete information about the products nutrition

    values (76%).

  • McDonalds Restaurants (Hong Kong) Limited

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    Perceived image of McDonalds Fresh Choices Menu

    Questions to the respondents on recognizing Hong Kong fast food restaurants in

    providing low-calorie American-styled fast foods were also included in our research.

    McDonalds was the highest recognizable product provider (68%) in the market;

    while 26% for Kentucky Fried Chicken (KFC) and 4% for Hardees.

    McDonalds was also ranked as the most worthy brand among 91% of the respondents

    when they considered purchasing the product. More than 56% of the respondents

    agreed McDonalds Fresh Choice Menu is the best and credible choice for

    low-calorie American-styled fast foods.

    However, there are a number of respondents did not associate McDonalds to a

    healthy fast food restaurants as 82% of them reported Fresh Choices Menu did not

    change their perceptions on McDonalds in offering fast foods.

    Attitudes and lifestyle of the target audience

    It is very consistent among the respondents that 99% of them perceived health was

    very important to them. There is a slight number of respondents (10%) agreed that

    fast foods could also be their choices of healthy menu while 59% of them showed

    disagreement to the same statement.

  • McDonalds Restaurants (Hong Kong) Limited

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    Most of the respondents (83%) tended to collect information from media (eg. TVC

    and print advertisements) when making their purchase decisions. Appledaily (54%)

    and TVB Jade (92) became the most frequently used media among the respondents.

    They usually purchased fast foods when free gifts were given along with (44%) and

    during high publicity period (34%)

    The respondents spent most on household expenditure (76%) followed by dining

    (16%). Nearly half of the respondents (46%) have traveled in the past one year, with

    99% of them traveled only once. They usually traveled with their family members

    (58%), and China became their most frequent destinations (96%), with only 18%

    traveled to Europe, North America and Australia & New Zealand in the same period

    of time. Most of the respondents (92%) reported only 1 to 3 days in a week to spend

    with their families. 6% even reported less than 1 day.

  • McDonalds Restaurants (Hong Kong) Limited

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    Market analysis

    In many well-developed countries, the culture of fast food has been so prevailing as it

    fits well to the fast-paced living style of the people. In the year of 2005, it has been

    reported a 5.6% of growth in the fast food industry, and it is believed that the business

    is growing with potentials in the coming years.8

    An overview of the market situation

    Fast food industry is one of the most popular cultures in Hong Kong, and there is a

    huge market growth potential in the out-of-home, fast food sector. According to a

    survey conducted by ACNielsen studying consumers habits on buying fast foods,

    Hong Kong people made an average of 20 times of impulse purchases on fast foods

    per month. Among their respondents aged 12 to 54, the age group from 12 to 19 made

    the most impulse purchases with 26 times per month.9

    Hong Kong fast food purchases also show a remarkable number in the global fast

    food market. As per the same survey conducted by ACNielsen, the results showed that

    30% of Asia Pacific consumers (China and Hong Kong) claimed to eat fast foods at

    least once a week, which was closely behind the US (33%).

    8 www.yahoo.com 9 www.hk.acnielsen.com Press Release - A 360 View of Fast Food and Impulse Habits

  • McDonalds Restaurants (Hong Kong) Limited

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    In the Asia Pacific region, despite 12% of the respondents claimed never to eat fast

    foods, the region was reported having the most fast food takeaway addicts, with 35%

    reportedly purchasing fast foods at least three times a week to as often as once a day

    or more. Hong Kong, on a market-by-market basis, ranked the worlds No. 1 in terms

    of frequency of fast food restaurant visits (61%), followed by Malaysia (59%) and the

    Philippines (54%). These findings showed that, in the out-of-home market, fast food

    restaurants are the key channel for mature adults, while young adults and teenagers

    make the most frequent purchases from fast food restaurants.

    In the 3rd quarter of 2005 in Hong Kong, the average spending on fast food per head

    was HK$510, almost a 7% increase over the previous quarter.10 According the

    ACNielsens findings, though breakfast was the least popular occasion for fast food

    meals across major world regions, it is the most popular in Hong Kong with 21% and

    made Hong Kong into the worlds No. 1 again.11

    Recent development of the industry

    It was observed that the fast food culture has shaped the lifestyles of us all. Busy

    lifestyles and an ease of access to a wide variety of fast food restaurants have proven

    10 The HKSAR Census and Statistics Department (2006) 11 www.hkacnielsen.com Press Release - A 360 View of Fast Food and Impulse Habits

  • McDonalds Restaurants (Hong Kong) Limited

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    to be a powerful combination. Meanwhile, the fast food business has become

    increasingly competitive with various multinational fast food chain operators

    expanding into new geographies daily, along with the emergence of new players, new

    types of cuisines and new menu choices. Smart consumer packaged fast foods

    retailers are tapping into consumers needs for convenience by offering a wider

    assortment of prepared meals than ever. And with fast food restaurants introducing

    healthier options in the form of salads and low calorie meals, consumers today have

    greater choice than ever before, and become the path of the fast food industry in

    future years.

    Anyhow, to put into the new element of a healthy menu to the fast food market will

    face challenges. People say the market position of McDonalds turns becoming

    blurred when an old-fashioned fast food restaurant is selling a healthy menu to her

    customers. (, 2005) McDonalds headquarter in

    the US reported a drop of the corporation total sales when their shops over the global

    markets are selling the new healthy menu as their product highlights.12

    12 Apple Daily (A30) (May 22, 2006)

  • McDonalds Restaurants (Hong Kong) Limited

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    Some findings for the marketers

    Building a good brand image is close to the heart of most marketers, as it was worth

    nothing that brand image appeared to have certain influences on consumers choices

    of fast food restaurants. Resulting from the ACNieslens survey, brand Image ranked

    one of the important elements among the respondents with 18% in the Asia Pacific

    region.13 Among the international fast food restaurants, McDonalds was the worlds

    most popular with 68% of respondents in 28 major world countries picking it as the

    first choice for dine-in or take-away fast foods. KFC ranked the second with 32% and

    Pizza Hut ranked the third with 29%.

    13 www.hk.acnielsen.com

  • McDonalds Restaurants (Hong Kong) Limited

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    Product analysis

    When we look into the market of fast foods in Hong Kong, we can see a variety of

    foods as offered by the few dominant fast food restaurants. With their most original

    hamburgers and French fries, and recently their latest menus of a mix & match

    burger. The burger itself is more or less the same using the similar ingredients among

    the few providers. These providers, however, put focus on the food packaging and

    invest money on advertising their own products, making it a trend in the industry and

    also to provide a way for consumers to differentiate a product.

    The product Fresh Choices Menu

    McDonalds firstly launched her Fresh Choices Menu () by the end of

    2004. The menu includes a variety of food ranges: grilled chicken flatbread, Korean

    beef flatbread, green salad, grilled chicken salad, corn cup, fresh pineapple, peach &

    blueberry yogurt and lemon/honey pear tea.14

    Fresh Choices Menu, among a great variety of McDonalds ranges, is chosen for

    promotion in this campaign. It is believed that Fresh Choices Menu can differentiate

    itself of its low-calorie ingredients from other fast foods as most called junk food.

    This is also how McDonalds has differentiated Fresh Choices Menu from her other

    14 www.mcdonalds.com.hk

  • McDonalds Restaurants (Hong Kong) Limited

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    ranges, by promoting the product with the use of a slogan Bringing a fresher tune to

    your life. The most crucial attribute of the product goes to the ingredients that have

    been used in all ranges of Fresh Choices Menu, which are high in nutrition values

    but with low fat and low cholesterol. They offer a balanced diet to people and do not

    lose its nature as a convenient food.

    According to the research conducted, all respondents consistently agreed low-calorie

    fast foods are a more healthy choice of convenient fast food if they are to recommend

    the product to others. (Research Q. 10) It was found that they would consider the

    nutrition values of the product as the most essential element when purchasing

    low-calorie fast food. (Research Q. 12.5) As shown on McDonalds corporate

    website (www.mcdonalds.com.hk), there is clear and detailed analysis showing the

    nutrition information of each of the Fresh Choices Menu range. Consumers can refer

    to credible source of scientific information when considering the product as one of

    their many choices among those in the low product-differentiated market.

    It is therefore convincible to say that the product could well fulfill when consumers

    are looking for, be that more than half of the respondents as revealed in research

    agreed that the product is the best and credible choice for low-calorie fast foods.

    (Research Q. 14.1)

  • McDonalds Restaurants (Hong Kong) Limited

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    Other factors adding the product value

    It is interesting to note you that media effect, according to the research results, is also

    one of few most elements when respondents are to consider when purchasing the

    product from a similar range in the market. (Research Q. 12.7) It is not about the

    product itself, nevertheless, media effect tends to increase the value and attractiveness

    of the product in view of 87% of the respondents. Particularly in the fast food market

    which does not have a significant product differentiation, the more favorable

    attributes of a brand has, the more positive values add to a product.

    As shown in the research results, McDonalds ranked at the first in terms of her

    recognition in the fast food market (Research Q. 7) and her product worthiness for

    respondents to purchase (Research Q. 13). Respondents also showed from the

    research that they purchased the product not mainly when it was needed but more

    because of high product publicity during a launch period. (Research Q. 17) These are

    giving marks to campaign works and serve a lighthouse to a campaigner.

    Notes to future campaigners

    Fresh Choices Menu does not bring a big success to McDonalds, however, a

  • McDonalds Restaurants (Hong Kong) Limited

    21

    significant drop of her total sales during the product-highlights period.15 As a matter

    of fact, there are still a large proportion of respondents who did not change their old

    perceptions of McDonalds as a junk food restaurant. (Research Q. 14.3) This could

    be partly explained by the weak image of Fresh Choices Manu as projected in its last

    campaign. The finding is therefore serving a benchmark for future campaign works.

    15 Apple Daily (A30) (May 22, 2006)

  • McDonalds Restaurants (Hong Kong) Limited

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    Competitive analysis

    In the industry of American-styled fast food restaurants in Hong Kong, McDonalds

    and her other two direct competitors, KFC and Hardees, are identified as the three

    dominant providers in the market. According to the research conducted, they are also

    the major three names that could be identified by the respondents when they were

    asked to list the restaurants that they know in selling low-calorie American-styled

    fast foods. Other names, like Wendys and Pizza Hut, which are in relatively small

    scale of business or being perceived as less popular in the market, were hardly

    recognized by many respondents. (Research Q. 7)

    It is convincible to say that, McDonalds, in which confidence on her foods is well

    built in most customers mind, is a remarkable market leader in the American-styled

    fast food restaurant industry. She has the longest history of business in the market, and

    is now leading the market in terms of her business scale which is not difficult to be

    identified by her shop establishments and scale of advertisements.

    In the market of American-styled fast food, most of the providers are selling more or

    less the similar ranges of foods: hamburgers as their most original one, and they also

    have fish burgers, beef burgers, chicken burgers, French fries, chicken pieces,

    beverages and desserts. Their menus ranged from breakfast menu to dinner-kind

  • McDonalds Restaurants (Hong Kong) Limited

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    menu with rice and spaghetti as provided by some American-styled fast food

    restaurants in the market.

    Table 2 shall give us the information about McDonalds and the two major

    competitors (KFC and Hardees) in the American-styled fast food restaurants market,

    in terms of their food ranges and prices.

  • McDonalds Restaurants (Hong Kong) Limited

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    Table 2 Comparisons of food range and price of McDonalds and two competitors

    Hardees McDonalds KFC Variety of menu / listed price (HKD)

    Breakfast Set 6 / $16 $19.50 14 / $13 - $21.5 Sausage & Egg Muffin Set

    6 / $14 3 / $17 - $17.5

    3 / $13 - $14.5

    Hotcake Set / $17 / Pasta Set $16 $19.50 $14 Fish Burger Set $22.50 $20.80 $14.5 (w/o French

    fries) Chicken Burger Set $24 2 / $23.3 -

    $24.5 $14.5 (w/o French fries)

    Beef/Pork Burger Set 2 / $22.5 - $24 $22.30 2 / $13 (w/o French fries)

    Hot Dog Set 2 / $21.5 / / Rice/Spaghetti Set 7 / $28 - $30 / $33.50 Sides Potato 2 / $6.5 $5.30 $5.50 Croissant/Danish/Scone 2 / 9.5 - $11

    (w/drink) $5 $5.50

    French Fries $10 $5.5 - $9 $7.5 - $15 Soup $9 $9 $12 Chicken $18 (2 pcs) $5 (2 pcs) $17 (2 pcs) Corn $6.50 $9 $5.50 Salad $6.50 $18 - $22 $30 - $34 Coffee/Tea $8.5 - $11 $7.5 - $8.2 $8.5 - $10 Drink Specialty $10 - $11 $8 - $11.5 $8 - $11 Dessert / 10 / $2.5 - $8 /

    Source: www.openrice.com

  • McDonalds Restaurants (Hong Kong) Limited

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    Food range

    As shown from the above, we find that the three restaurants actually provide a very

    similar food range with each other. Breakfast sets, Muffins, burgers and chickens are

    the basic food provided by all the three. More than that, other sides, such as salad,

    soups, French fries and drinks, are also included in everyday menu of McDoanlds,

    KFC and Hardees.

    Specifically saying, McDonalds is the only provider among these three that offers

    hotcakes in its menu. Hardees, on the other hand, is the only one who offers hot dog

    combo and it even provides up to 7 choices of rice and spaghetti, whilst KFC only

    offers limited one choice and there is none in McDonalds. For desserts and beverages,

    McDonalds possesses the greatest variety which includes more than 10 specialties.

    McDonalds, KFC and Hardees are providing combo menus which offer their

    customers a mix & match of food ranges under special promotional prices.

    Examples include Breakfast Set and Sausage & Egg Muffin Set in their morning

    menu; and Chicken Burger Set and Beef/Pork Burger Set in their after 11am

    menu. The combo set offered by these three fast food restaurants are very similar, of

    which include a burger, a drink and a side with additional dollars paid.

  • McDonalds Restaurants (Hong Kong) Limited

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    Food price

    To compare the food prices16 among these three fast food restaurants, it is to say none

    of them are consistently staying on a relatively higher price than the other two.

    McDonalds is offering its Pasta Set at $19.5 (which is more expensive

    than Hardees at $16 and KFCs at $14) and Corn at $9 (with a higher

    price than Hardees which is at $6.5 and KFCs at $5.5).

    KFC is offering its Salad at $34 (which is charged at a higher price than

    McDonalds at $22 and Hardees at $6.5) and Soup at $12 (with a

    relatively higher price than McDonalds and Hardees with both selling at

    $9)

    Hardees is charging her Potato at $6.5 while KFC is selling the similar at

    $5.5 and McDonalds at $5.3.

    Shop establishments

    To specify our analysis on McDonalds major competitors, we will have a closer look

    on the three: McDonalds, KFC and Hardees, in terms of their shop establishments in

    the local market.

    16 www.mcdonalds.com.hk and www.hkkfc.com

  • McDonalds Restaurants (Hong Kong) Limited

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    According to a local survey, 17 McDonalds has the largest spread of shop

    establishments in Hong Kong, with 168 units of shops. KFC and Hardees on the

    other hand, have the units of 48 and 6 shops respectively, which are much fewer than

    McDonalds in terms of the total market share. It is to say, the shop establishment will

    have some effects on the intention of purchase of customers. The more the shop

    establishments tend to enhance a higher purchase intention, providing that the product

    differentiation in the market is low.

    Service performances

    The same survey also studied consumers perceptions on American-styled fast food

    restaurants, of which the criteria were based on taste of food, environment,

    service, restaurant hygiene, and food price. In the survey, the fast food

    restaurants were rated with points from 0 to 5, whereas 5 is the highest

    representing the best performance.

    According to the survey results, of the overall 5 mentioned criteria, McDonalds were

    rated between from 1.50 to 4.38 with her 168 shops. For the other two: KFC were

    rated 2.19 4.25; while Hardees were rated 3.08 3.97, with 48 and 6 shops

    respectively. As shown, McDonalds shops are perceived as both the worst and the

    17 www.openrice.com

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    best fast food restaurants by the surveyed respondents. Nevertheless, with the results

    found from the authors research, McDonalds was identified by more than 90% of the

    respondents as the most worthy for their consumptions, specifically for her

    low-calorie American-styled fast foods.

    Other indirect competitors

    McDonalds faces with indirect competitions from local fast food chains, like Cafe de

    Coral, Maxims and Fairwood. They have a strong foothold, as told by the AC

    Nieslens survey that 62% of the respondents chose local operators as their choices of

    fast food restaurants.18 These local restaurants offer a wide variety of localized fast

    foods combined with both Western and Oriental styled of menus. Their shop

    establishments are good enough to enable an easy access of consumers, and their

    more flexible localized operations put challenges to the dominations of the market.

    18 www.hkacnielsen.com Press Release - A 360 View of Fast Food and Impulse Habits

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    SWOT analysis

    Strengths

    A brand is the perception that a consumer has about a product or service, by it visual,

    written or experience based. A brand-maker attempts to develop an image for a

    corporate brand and if successful by associating it with symbols. McDonalds is a

    successful brand both in local and global markets, that people will associate her with

    good quality food.

    McDonalds is a well-built and matured brand which consumers can easily associate

    her name with quality food. This becomes one of her significant strengths that people

    can distinguish McDonalds from her competitors in the fast food restaurant industry.

    She has successfully built up a favorable perception in minds of her customers, which

    are encouraged to have had a sustainable brand loyalty on McDonalds.

    McDonalds favorable image is being well supported along the years. The founder of

    McDonalds, explaining McDonalds success, said, We take the hamburger business

    more seriously than anyone else. He stated on McDonalds website his dedication to

    strict standards, his diligence to providing consumers with consistent quality service,

    cleanliness and value and his innovative use of cooking techniques promoted a

    Harvard Business School professor to describe him as the service sectors equivalent

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    of Henry Ford. This is not only said by words, but McDonalds works to make her a

    credible and sustainable brand in the market.19

    Not long ago it was reported that McDonalds restaurants have been using a French

    fries cooking way that could possibly lead to a serious food allergy.20 McDonalds

    responded immediately on the next day quickly solved the crisis before it became

    threatening to her corporation image. Her crisis management works further

    consolidated herself as a credible corporation with honorable social responsibility.

    McDonalds performs herself as a responsible corporation in many ways. Giving

    back to society has become one of her important cultures along the years. World

    Childrens Day at McDonalds is a global charity event organized to help children in

    need all over the world. In Hong Kong, Charitable Kids Marathon, Charity Sales,

    The Concert, and The Gala-Dinner all serve to raise money and arouse public

    awareness on welfare care for children in need. The McDonalds Cancer Fund,

    regular open-days to public, a training school for her own employees and community

    activity parades are only some but not all of McDonalds practices to strengthen her

    good corporate citizenship.

    A well-managed brand is a determined factor to a success in a campaign. McDonalds

    19 www.mcdonalds.com.hk 20 www.yahoo.com.hk

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    works have positioned her distinguished brand in the market context and in a great

    extent explains a very high level of customer loyalty. The big business scale of

    McDonalds and her widespread branches established in the market also do a

    supporting part to enable an easy access by her customers. These cultivate an

    advantaged market position for McDonalds and favor the effectiveness of her

    campaigns.

    Weaknesses

    McDonalds (Hong Kong) made her first Big Mac Meal in 1975 and has been offering

    the similar fast food ranges, like McMuffins, for over 25 years. Her name in the fast

    food industry has become well-labeled and deep-rooted to many consumers.21 To

    change it, or to put into new elements, may become a very difficult task for

    McDonalds. Her Fresh Choices Menu, in a certain extent, runs on an opposite

    direction to her long fashion of fast food offerings. It could possibly confuse her

    consumers as they have perceptional difficulties to purchase healthy green food

    selling under a junk food restaurant. The campaign was actually launched under a

    difficult market context, of which it was not originated from McDonalds old fashion.

    The campaign could have ended in a rare success or might have even put McDonalds

    21 www.mcdonalds.com.hk

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    brand at a risk.

    Opportunities

    McDonalds Fresh Choices Menu could become a new direction to her increased

    scale of business. The similar case goes to McCafe which in a bid to meet the needs of

    different customers. It is decorated to provide a relaxing and pleasurable environment

    for customers, and offers a wide variety of cakes, pastries, sandwiches and muffins, as

    well as specialty coffee and tea.

    McCafe is the best example representing a diversified business of McDonalds. It

    gives a good reference to McDonalds Fresh Choices Menu by signaling a high level

    of market acceptance to new products and a new style of living. Hong Kong lays on a

    market context with matured consumers. The Fresh Choices Menu could bring along

    opportunities to her increased scale of business and a bigger corporation sales. In

    Hong Kong when everyone is talking about to have a healthy eating habit in recent

    years, the Fresh Choices Menu is another opportunity for McDonalds to meet up

    with the market trend by nurturing a healthier image for the corporation. It also

    distinguishes McDonalds food offerings from other product category entries in the

    same industry.

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    Threats

    McDonalds is a distinctive brand in the Hong Kong fast food restaurant industry. Still,

    she has some major competitors such as Kentucky Fried Chicken (KFC) and Hardees

    selling the similar food ranges in the market. McDonalds is facing very keen price

    competition and for so she is frequently doing special meal promotion in order to keep

    her old customers and to capture the new ones. Not long after McDonalds has

    launched her Fresh Choices Menu, KFC is doing the similar by offering her healthy

    green food menus. These were putting threats to McDonalds when she must position

    herself with a unique corporations designation for running a successful campaign and

    so to survive in the industry.

    In short, McDonalds has a well-managed brand which favors her positioning in the

    market. Still, the market context contains potential competitors that put challenges to

    McDonalds when she must stand out from the keen competition. McDonalds brand

    has been too well labeled in the fast food restaurant industry. It is either a useful tool

    for a campaigner or a problem to it. The Fresh Choices Menu is an opportunity of a

    new scale of business particularly when a healthy eating style has become so

    prevailed in the market. It is well about customer loyalty and public acceptances in

    which the campaign has been carried out.

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    III. Problem and opportunity statement

    Problem

    As drawn from the situation analysis, the promotional works of McDonalds in 2004

    when she firstly launched Fresh Choices Menu was fair to arouse public awareness

    to this new menu. McDonalds is also well named as a good corporate, with her

    distinctive community works.

    However, McDonalds is still too well-labeled as a junk food restaurant due to her

    long-fashioned fast food business. It is about a perception problem, that the public can

    hardly perceive McDonalds a healthy food menu provider.

    Opportunity

    In view of people are getting more concerned to their healthy and a healthy fast food

    menu meeting both the criteria of eat healthy and convenience, Fresh Choices

    Menu has the potential to capture more customers and to project a stronger

    perception of McDonalds as a healthy fast food restaurant among the public.

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    IV. Campaign theme, goal and objectives

    Campaign theme

    With the establishment of the campaign theme To Refresh your New Healthy Life at

    McDonalds, people will become aware of the importance of adopting a healthy

    eating habit by which McDonalds, though used to be a fast food provider in her old

    days, could now provide with her Fresh Choices Menu.

    Campaign goals

    To give a stronger perception to the public that McDonalds is a healthy fast food

    provider that offers healthy food menus to her customers.

    To build up a healthy image to McDonalds among the public, through the

    re-launch of Fresh Choices Menu in this campaign.

    Campaign objectives

    To arouse perception likeliness to McDonalds as a healthy fast food restaurant

    provider from 18% (Research Q. 14.3) to 60% by the end of January 2008.

    To arouse brand awareness, as a fast food restaurant offering healthy food menus,

    from 68% (Research Q. 7) to 80% by the end of January 2008.

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    V. Target audience profiles

    According to the data of Hong Kong Census and Statistics Department dated February

    of 2006, there are around 2,292,000 units of households, with an average of 3.1

    persons in each household.

    Demographic characteristics

    According to our situation analysis, it shows that low-calorie American-styled fast

    foods are very popular in the market, be its convenience, price, variety,

    nutrition or taste. It is therefore convincible to say the Fresh Choices Menu is

    welcomed by most people in the market. Our campaign therefore does not limit to a

    specific group of target audiences. Instead, the campaign message will target to the

    mass public in a way by identifying a specific group of audiences that is easier to be

    motivated and be the most responsive to our campaign strategies.

    With consideration of the research conducted, the households with a monthly income

    of HK$15,000 to HK$25,000, and have at least one children aged below 18 were

    identified as the audience group. They have around 3 to 6 members, with the parents

    mostly are secondary or tertiary educated, of either the father or both the father and

    the mother are full time employed in a service industry or executive position.

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    Psychographic characteristics

    This group of audiences, according to the research conducted, reported their frequent

    purchases at American-styled fast food restaurants and places their main concerns on

    convenience, followed by price, variety of food and the food taste when consuming

    the fast foods. They tend to look for both affordable and convenient restaurants, and

    are getting more concerned on the health issues and therefore the nutrition values of

    the food for their own health as well as their childrens become their emphasis. The

    parents are mostly occupied with their full-time jobs, therefore they tend to treasure

    family time and are willing to spend for the goodwill of their children. The

    households usually travel once in a year mostly to China or South East Asia.

    Info-graphic characteristics

    A large proportion of this audience group relies on media information when making

    their purchase decisions. More than 83% of them tend to get information from TVC

    and print advertisements. Among various local TV channels and news publications,

    TVB Jade and Appledaily are the two most welcomed, followed by ATV Home and

    The Oriental Daily. Some will draw their attentions to promotional materials at points

    of purchases. And recommendations and internet promotions also put effects on them.

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    VI. Overview of the integrated marketing communication strategies

    After an analysis of the situation and setting up the campaign objectives, a series of

    integrated marketing communication strategy will be carried out. We are proposing

    not only to inform but to involve our audiences in this campaign. We believe the

    more the participation and the involvement of the audiences, the greater the campaign

    effect it will be.

    Some academic research about IMC

    During the 1980s, companies came to see the need for more of a strategic integration

    of their promotional tools. As also noted by Kurl (2002) in his research on IMC, IMC

    is one of the most important communications trends adopted by advertising and public

    relations companies in the last decade, by its mean of an increase in global

    competition, technological advances, and more informed customers. They began

    moving toward the process of integrated marketing communications (IMC), which

    involves coordinating the various promotional elements and other marketing activities

    that communicate with customers. (Belch and Belch, 2004) Instead of relying

    primarily on media advertising, companies recognize the added value of a

    comprehensive plan that evaluates the strategic roles of a variety of communication

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    disciplines advertising, direct response, sales promotion, and public relations. (Pfau

    and Parrott, 1993)

    As added by Kurl (2002), an IMC combines the disciplines to provide clarity,

    consistency and maximum communication impact. It focuses on achieving a

    maximum communication impact, in its way to project a consistent, unified and

    centralized message to the marketplace. (Belch and Belch, 2004) More than that, the

    management of an IMC identifies the most appropriate and effective method for

    communicating a message to customers. As also pointed out by Belch and Belch

    (2004), .can avoid duplication,.reflects an adaptation to a changing marketplace,

    with respect to demographics, lifestyles, media use and shopping patterns.

    An IMC is rooted by its nature of a persuasion, which is to persuade consumers to

    respond favorable to a persuasive message. (McGrath, 2001) Pfau and Parrott (1993)

    added elements to this definition as shaping, changing, or reinforcing of receivers

    responses, including attitudes, emotions, intentions, and behaviors. According to

    Kenneth and Baack (2004), what composed of a persuasive message is the strategic

    management of how using the IMC tools. And the tools as summarized by Duncan,

    (2002) are advertising22, direct marketing23, internet marketing24, sales promotion,25

    22 Any paid form of non-personal communication about an organization, product, service, or idea by an identified sponsor. 23 To communicate directly with target customers to generate a response and a transaction.

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    public relations26 and personal selling27.

    Schultz and Schultz (2004) concluded the five steps in planning an IMC. They are:

    1. An internal analysis (marketing audit and review) and an external analysis (market

    competition and environmental factors) in a detailed situation analysis.

    2. Specify objectives that provide direction, a time frame for marketing activities,

    and a mechanism for measuring effectiveness.

    3. A selection of target markets and a strategic plan for price, product, promotion and

    place, in the set up of marketing strategies and programs.

    4. An implementation of the marketing strategies with highly-specified tasks to be

    performed.

    5. An on-going process of monitoring and performance evaluation, and provide

    feedback for any necessary program changes.

    As argued by some theorists, IMC is not yet a theory (Schultz and Schultz, 2004).

    Instead, it was just a way to look at the communication process that consumers

    receive messages. McGrath (2001) questioned the IMC if it added value to a

    24 A flow of information whereby users can participate in and modify the form and content of the information they receive in real time. 25 Marketing activities that provide extra value or incentives to customers and can stimulate immediate sales. 26 The management function which evaluates public attitudes, identifies the policies and procedures of an individual or organization with the public interest, and executes a program of action to earn public understanding and acceptance. 27 A form of person-to-person communication in which a seller attempts to persuade prospective buyers to purchase the companys product or service or to act on an idea.

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    traditional marketing communication practice. He employed an empirical research,

    by studying the different effects IMC might have on attitudinal measures, behavior

    intentions and recall of a communication message, when compared to a traditional

    marketing communication approach. His research focused on how IMC played its role

    in developing a more consistent brand image, and if IMC produced any distinctive

    effects at a deeper cognitive level when consumers are to make purchase decisions.

    The results showed that, IMC did not lead to a deeper image trace or a significant

    message reactivation when compared to efforts using a traditional marketing

    communication approach. McGrath explained the results by a possibility that

    consumers were variety-seeking being and tended to look for alternative stimuli

    rather than one-voice, one-look as designed in an IMC.

    Nevertheless, the research showed signs of a higher behavior intention that IMC was

    capable to produce such directional effects. The findings give implications for future

    studies and an integration of marketing techniques due to a change in worldwide

    communication practices is inevitable. (Sevier and Johnson, 1999)

    Our IMC campaign strategies

    The focus of the campaign goes to a public relations event, which will be supported

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    by tactics of public relations, sales promotion, advertising, direct marketing, internet

    marketing and personal selling. It is believed that the whole campaign will efficiently

    reach the mass public in a way by motivating the specified audience group. And to

    deliver our campaign message to the mass public resulting to an arousal of a healthy

    corporation perception, and further to build up a healthy fast food restaurant image to

    McDonalds.

    The campaign activities will start in February 2007, after its research data analysis

    and planning finished by the end of year 2006. It is a one year campaign lasts until the

    end of December 2007, followed by an evaluation which will take place through

    August 2007 to January 2008.

    The PR event is the focal point of this campaign, which is the Go Go Go for Health

    with McDonalds a tour visit to farmlands in Australia. An after-the-tour program

    recording the slices of the Australia tour will also be released after the event. Besides,

    the promotions of this event will be supported by sales promotion (the lucky draw and

    the writing competition about My ideal healthy life), advertising (TVC and print

    advertisements), direct marketing (promotional materials at POPs), internet marketing

    (new pages on corporate website) and personal selling (McDonalds Ambassadors at

    POPs).

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    VII. Implementation of the integrated marketing communication strategies

    Public relations strategy

    In order to arouse product awareness and to establish McDonalds with a healthy fast

    food restaurant image in minds of the mass public, a public relations event named

    Go Go Go for Health with McDonalds () will be held

    from the 3rd to 7th of August 2007.

    Besides, a 50-minute after-the-tour TV program recording the making of the event

    and the slices of the Australia tour will be released on a selected TV channel.

    Execution

    The public relations event is a 5-day tour to Perth in

    Australia where the participants could visit the farmlands, to experience the primitive

    life of an Australian farmer and to enjoy a natural life style at Australia.

    The campaign will recruit 10 participants from the mass public through tactics of

    sales promotion.28

    Each five of them will be selected from a lucky draw and a writing competition,

    which will take place through June to July 2007. The total ten participants will be

    allowed to bring along one accompany from their families joining together in this

    28 Details of sales promotion tactics will be discussed in the next section

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    Australia trip.

    McDonalds will also invite a crew of local reporters joining the trip to Australia.

    They will participate and witness the whole event of that could induce the event

    publicity during and after the campaign period, by its means on newspapers,

    magazines and other media channels.

    After the tour, by working with TVB Jade, McDonalds will produce a TV program

    showing the before-and-after of the tour. The program, including the slices of the

    lucky draw and the writing competition, the making of the Australia tour and the

    5-day scenes in Australia, will be publicized on the 1st of Oct 2007.

    Rationale

    Public relations is the management function which evaluates public attitudes,

    identifies the public interests, and to execute a program of action to earn public

    understanding and acceptance. It is more about managing a corporate reputation,

    through community activity participation or public affairs activities, to provide

    information to the audiences in order to gain their awareness and understanding

    through a controlled media. Public relations also contribute to a persuasive effect, to

    change publics attitudes and behaviors in a planned way. (Belch and Belch, 2004)

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    , the public relations event as the main strategy in our

    campaign, is to build up a favorable healthy image to McDonalds, by arousing

    awareness and to create interests among the mass public. The lucky draw and the

    writing competition are the supporting activities in the campaign, in a way to involve

    the whole community, by involving their participations and through the way

    McDonalds is intentionally to provide health information about the product and to

    project her image as a healthy fast food provider, in order to gain understanding of the

    audiences in a way to structure their behaviors through a series of planned public

    relations event.

    Key message

    The , as a public relations event, is to create a public

    perception that, McDonalds also cares about consumers health and encourages a

    healthy eating habit. The Australia tour is an attempt to build up an association

    between McDonalds and a healthy eating style, and on the other hand to educate the

    public by involving the participants to have real experiences of a natural and healthy

    life style, which McDonalds could also offer by her Fresh Choices Menu.

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    Sales promotion strategy

    The lucky draw and the writing competition are both means of creative strategies.

    They support the by all means to create awareness and

    interests among the mass public. It is to say the lucky draw is appealing to the mass

    public while the writing competition will specify the participants aged below 18 as the

    most responsive age group to the activity. It is believed that, through community

    participation and an interface with the favorable information as projected by

    McDonalds, the attitudes and behaviors of the audiences can be persuaded.

    The lucky draw

    It runs on a basis that, within the period from 10th to 28th of July, to get a chance in the

    lucky draw with every purchase of any food from Fresh Choices Menu of HK$30,

    the one out of the total 5 winners will win a free trip to Australia joining with

    McDonalds at the Go Go Go for Health with McDonalds. Each winner will be

    allowed to bring along one accompany to the trip.

    This activity is to arouse product awareness and the product sales could also be

    induced.

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    The writing competition My ideal healthy life

    Within the period from 1st to 20th of June, each applicant aged below 18 will be

    required to submit his own 500-word writing work about My ideal healthy life (

    ). The 5 winners will each win a free trip to Australia joining with

    McDonalds at the Go Go Go for Health with McDonalds. Each winner will be

    allowed to bring along one accompany to the trip.

    This activity is to increases awareness among the mass public on the importance of

    adopting a healthy eating habit and a good living style. The public could more easily

    to associate McDonalds with a healthy eating style, and so to build up a healthy

    image to the corporation.

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    Advertising strategy

    In order to establish awareness of the product, a series of TVC and print

    advertisements carried by numerous media channels (newspapers, entertainment

    magazines and outdoor carriers including bus bodies and MTR trackside panels) will

    be used. They will be used for promotion from February to July, as assisting tools for

    creating awareness and to arouse interests, as well as to provide information to the

    public for the forthcoming public relations event - .

    Execution

    The advertising series will contain three TVC and three print advertisements, which

    will be used on the four selected TV channels (TVB Jade, TVB Pearl, ATV Home and

    ATV World) and two newspapers (Appledaily and Oriental Daily)

    The first TVC is a teaser kind and will be used from February through the mid of

    March; the second and the third TVC, one is about the lucky draw and the other about

    the writing competition, will be used for promotion from the mid of March through

    the end of July. The three print advertisements will run parallel to our TVC, both in

    terms of time period and of advertisement theme.

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    Rationale

    According to The Models of the Response Process (Belch and Belch, 2004), an

    advertisement message tends to elicit a change of an audience through a process from

    cognitive, affective to behavioral. The message first appeared to an audience by

    arousing his awareness and interests. It followed by generating an emotional liking,

    by its means of a desire or a preference linking. The message is therefore retented in a

    mind cognitively and to be reinforced by a repeated exposure to the message. And

    when it is triggered with affective conviction, it results to a behavioral adoption.

    It is therefore in our campaign, the first stage will go to the teaser kind which tends to

    arouse awareness, curiosity and interests among the mass public. It will follow by the

    second stage with a series of TVC and print advertisements which, according to The

    Foote, Cone and Belding grid Planning Model (Belch and Belch, 2004) that food

    product is a habit formation product, serve as reminder advertisements, or a

    repetition strategy to reinforce an advertisement message, to sustain a routinized

    behavior pattern where the consumers are mostly appealed to sensory pleasures and

    act on impulse buying.

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    Execution of TVC (1)

    It is a 5-second teaser TVC showing no character. The TVC will start with an

    energetic male voice saying:

    ? The TVC will use the background of grassland, with a blue sky and the sunshine.

    The TVC will end by showing with a light green color background, with the voice

    saying: im lovinit, which is the slogan of McDonalds that will also be used in the

    TVC.

    Rationale of TVC (1)

    < Advertising appeal >

    This TVC does not limit itself to a specific group of target audience. Instead, it

    intends to reach the mass public and this is also the main reason of using TVC.

    Emotional appeal rather than rational appeal is being used in this TVC, in order to

    raise both physical and psychological needs of the public to experience and to involve

    themselves in a natural and comfortable environment.

    The voice using in the TVC is also a symbol of fulfilling ones good condition in life.

    The color (light green), background (grassland), and also the voice (energetic with

    affection) all intend to arouse personal actualization, pleasure and happiness.

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    < Execution styles >

    Dramatization is used as an execution style. It provides the public with a real situation,

    to build up the consonance and to induce the purchase intention. The TVC also creates

    interests and curiosity among the public. By clearly stating out the brand of

    McDonalds with a mention of im lovin it, the TVC could establish awareness on

    the corporation and to induce public interests on the issue.

    Key message of TVC (1)

    The TVC is to arouse public awareness on the issue, by projecting a comfortable and

    pleasurable visual on the TVC so that public curiosity could also be established. It is

    expected the TVC could induce the public to ask: what is the beautiful scenery all

    about? What is it related to McDonalds? This also directs the public to the

    forthcoming TVC.

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    Execution of TVC (2)

    This TVC is for promoting the lucky draw about winning a free trip to Australia by

    purchasing Fresh Choice Menu. It is a 15-second TVC, in which show four

    characters, a pair of young couples with their children of a boy and a girl, aged around

    10 to 15.

    < Storyline >

    The TVC will start by showing the visual as of TVC (1): that is the blue sky, and with

    a land of grass. Besides, it will also show the sun shaped like the golden arch of

    McDonalds logo.

    The next of the TVC will then go to the four characters gathering around at grassland.

    The father and the mother are smiling at their two children, and the four smiled

    happily and enjoyed the fun at the grassland.

    The TVC will follow by showing a closer look of the four characters, with the voice

    saying: , ? Then the next

    part of the TVC will show the different ranges of Fresh Choices Menu, and the

    voice says: 7 28 , 30 ,

    , ,

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    The last part of the TVC will show with a light green color background. In the middle

    of the screen will show the McDonalds logo and im lovinit, where at the bottom

    of the screen will show www.mcdonalds.com.hk. The TVC will be ended by the voice

    singing im lovinit, which is the slogan of McDonalds and will also be used in the

    TVC.29

    Rationale of TVC (2)

    This TVC is an extension to TVC (1), which gives out more information about the

    lucky draw activity. It does not limit to a specific group of target audience but to

    establish awareness and create interests among the mass public. A combination of

    various elements like main character, advertising appeals and execution styles are

    used in the creative strategy. They interact with each other and is believed to be able

    in enhancing a greater persuasive power and become cohesive selling message. The

    TVC is to project a pleasurable environment with an adoption of a healthy living

    style.

    < Character >

    The four characters in the family posse the ideal characteristics of a happy family.

    29 See Appendix C

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    They are all in good health condition, both intrinsic and extrinsic, of that creating a

    linkage between a healthy eating habit and a good quality of life.

    The four characters in a family are also selected for addressing a perception of an

    ideal family, which is to induce the persuasive power of the TVC. It is believed that

    the characters used will be easier to involve the public to our TVC and further

    consolidate their purchase intentions.

    < Advertising appeal >

    Both emotional appeal and rational appeal are being used in the TVC, in order to

    induce both physical and psychological needs of the mass public to purchase the

    product and to participate in the lucky draw.

    For emotional appeal, the TVC projects a visual of a happy family spending their

    pleasurable time together at beautiful and comfortable grassland. It is an ideal living

    to most Hong Kong people who can hardly get away from workloads and spend free

    time with families. It is expected that the TVC will induce a self-actualizing needs

    among the public.

    For rational appeal, the TVC provides more detailed information about the lucky draw

    and the Australia trip. The tagline shown at the end of the TVC will direct interested

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    audiences to reach the corporate website for further details.

    < Execution styles >

    Again, dramatization is used as an execution style. It focuses to tell a short story, by

    integrating more excitement and pleasure characteristics, to provide the public with a

    real situation, to build up the consonance and induce the purchase intention. If it is

    successful, the audience becomes lost in the story and experiences the concerns and

    feelings of the TVC characters.

    The TVC also creates fantasy among the public, that the pleasurable time with family

    at beautiful grassland is ideal to most people. It is popular for emotional appeals and

    is particularly well suited for using on television, as the TVC can become a 15-second

    escape for an audience into another ideal life style.

    Key message of TVC (2)

    The TVC is to arouse public awareness and interests on Fresh Choices Menu,

    through purchasing the product, therefore to join the lucky draw and to win the free

    trip to Australia. It is hoped that the TVC could induce a sales increase of the product,

    which direct to our marketing objective of the campaign.

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    Execution of TVC (3)

    This is a 15-second TVC for promoting the writing competition about

    . The visual background of the TVC is a student classroom, and the main

    character is the student, a boy aged around 12 in school uniform, and the teacher, a

    female aged below 30. The TVC will also show other students, both male and female

    with the similar age as the boys, having a lesson in the classroom.

    < Storyline >

    The TVC runs parallel to TVC (2) in terms of the advertisement theme. It starts by

    showing the same visual as TVC (2): showing the beautiful grassland and a clear blue

    sky with the sun shaped like McDonalds golden arch. The boy, the same one as used

    in TVC (2), is playing happily with his family at the grassland. The voice will back up

    this visual and say: .

    The next part of the TVC will show that, it is actually the day-dream of the boy. And

    it is suddenly stopped by the teacher in the classroom, and the boy is awaked and

    immediately starts writing his composition work. The voice in the TVC will say:

    , .

    Then next part of the TVC will show the different ranges of Fresh Choices Menu.

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    Then comes the voice saying: , ?

    7 28 , , 500

    , ,

    The last part of the TVC will show with a light green color background. In the middle

    of the screen will show the McDonalds logo and im lovinit, where at the bottom

    of the screen will show www.mcdonalds.com.hk. The TVC will be ended by the voice

    singing im lovinit, which is the slogan of McDonalds and will also be used in the

    TVC. 30

    Rationale of TVC (3)

    This TVC is also an extension to TVC (1), and runs parallel to TVC (2) by projecting

    the similar kind of visual. The theme and the visual background of this TVC are very

    similar to TVC (2), which is to project a pleasurable environment with an adoption of

    a healthy living style.

    This TVC attempts to address the age group below 18, of which they are believed to

    be the most responsive audiences acting regard to the activity of the writing

    competition. The TVC attempts to arouse the interests among the group with their

    participations in the writing competition, and to win the chance of a trip to Australia.

    30 See Appendix C

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    Once again, a combination of various execution styles will be used in this TVC,

    including dramatization and fantasy.

    < Character >

    The main character of this TVC is the boy and his classmates aged below 18, which

    are identified as our group of audiences in the writing competition activity. This TVC

    is mainly to address the desire of the specified age group, by the mean they are

    school-kids who are not restricted to work and will be able to spend a holiday during

    their long vacations in summer. Using the characters with similar characteristics of

    our audiences is an attempt to increase the persuasive power of the TVC.

    < Advertising appeal >

    Once again, both emotional appeal and rational appeal are being used in the TVC, in

    order to induce both physical and psychological needs of the audiences to purchase

    the product.

    For emotional appeal, the TVC projects the visual of a fun and comfortable outdoor

    activity at greenish grassland, which is a very ideal living and welcomed by people.

    Writing class in school is so normal among all adolescents. But if making use of a

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    boring writing work to gain the chance winning a free trip to Australia, it could

    highly induce the persuasive power of the TVC.

    For rational appeal, the TVC provide enough information about the writing

    competition by submitting their works about to win the free

    trip. Again, the tagline shown by the end of the TVC will direct our audiences to reach

    the corporate website for details.

    < Execution styles >

    A combination of execution styles including dramatization and fantasy are used for

    this TVC. Similar execution styles are used as in TVC (2) so as to maintain

    consistency of the campaign.

    The whole TVC takes place at a student classroom, by showing the scenario of a

    group of students having a class, can directly associate our attentions to the writing

    competition. Once again by using dramatization and fantasy, the target audiences will

    be provided with a real situation, by sharing the same feelings of the characters inside

    the TVC, and it will be a great attempt to induce a greater persuasive power.

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    Key message of TVC (3)

    The TVC is to arouse awareness among the mass public, to motivate the age group

    below 18 by establishing their interests on the writing competition, through joining

    the activity to learn and to involve themselves what is a healthy life, therefore to join

    the competition and to win the free trip to Australia. It is hoped that the TVC could

    induce an increase of awareness to the importance of adopting a healthy eating habit

    and to fulfill a good living style, by joining hands with McDonalds in

    , which direct to our advertising objective of the campaign, by further

    consolidating a healthy image of McDonalds.

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    Execution of print advertisement (1)

    This is a teaser advertisement which is used mainly for arousing awareness and

    creates curiosity among the mass public, of which it does not limited to a specific

    group of target audiences. This teaser advertisement will be designed for a banner size

    spread issued on the front page of our selected newspaper dailies.

    The design of this advertisement is very simple, using the same light green color as

    used in our TVC as the background color. At the corner will show the McDonalds

    logo, with the golden arch and im lovin it. In the center part of the advertisement,

    there will have a line of wordings of

    ?

    Rationale and key message of print advertisement (1)

    The teaser advertisement serves a supportive role to our teaser TVC, which both of

    them will be used during the same period of time and using the similar theme of the

    same background color. This print advertisement is to address the public that may

    have excluded from our TVC. In this advertisement, emotional appeal will be used as

    mainly to arouse awareness and create curiosity among the public. This also becomes

    the key message of this advertisement.

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    Execution of print advertisement (2)

    This is an extension to our teaser print advertisement, which is to provide more

    information about the lucky draw activity. The background will use the similar theme

    as TVC (2), that is greenish grassland and a blue sky and the family of four are

    gathering around happily. For message consistency and easier association to TVC (2),

    the advertisement will also have the sun in the shape of McDonalds golden-arch in

    the blue sky.

    The headline of the advertisement will show ?

    This is to draw the attention of the public, follow by the highlights of

    showing in the center part of the advertisement. At the bottom part of the

    advertisement, a line of smaller words will show 7 10 28 ,

    30 , , ,

    . The images of the foods in Fresh Choices Menu will show

    on the advertisement. And www.mcdonalds.com.hk

    will show as the last line of words in the advertisement. The lower left hand

    corner will show the McDonalds logo with im lovin it.31

    31 See Appendix C

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    Rationale and key message of print advertisement (2)

    This advertisement serves a cohort to TVC (2), and to provide more concrete

    information about the lucky draw activity. The public can learn more on the activity

    and to be directly led to corporate website for details. Given more information to the

    public is believed to consolidate their intentions to adopt.

    Besides, Fresh Choices Menu showing on the advertisement is also a message to

    associate the product with the campaign works, and for stimulating the product sales

    as well.

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    Execution of print advertisement (3)

    This is also an extension to our teaser print advertisement, which is to provide more

    information about the writing competition on . The background

    will use the similar theme as TVC (3) that is in a student classroom, with the main

    characters of a boy and a teacher and other students, where they are having a writing

    lesson. This is for consistency and an association to TVC (3).

    The headline of the advertisement shows ? This is to

    arouse the awareness of the audiences. The highlight of the advertisement goes to the

    main character (the boy) raising up his hand and speaks up: !

    At the bottom part of the advertisement, a line of smaller words

    will show 7 10 28 , 500 ,

    , .

    Again, the images of the foods in Fresh Choices Menu will show on the

    advertisement. And www.mcdonalds.com.hk

    will show as the last line of words in the advertisement. The lower left hand corner

    will show the McDonalds logo with im lovin it.32

    32 See Appendix C

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    Rationale and Key message of print advertisement (3)

    Again, this advertisement serves a cohort to TVC (3), and to provide more concrete

    information about the writing competition on . It is mainly to

    establish awareness among the group of audience (here say the potential participants

    aged below 18). Besides, it is expected that the advertisement can lead the audiences

    to corporate website (for online application) and to POPs (for further enquiries),

    where these channels are giving concrete details about the activity. It is believed to

    consolidate their intentions to adopt.

    Again, Fresh Choices Menu showing on the advertisement is a message to associate

    the product with the campaign works, and for stimulating the product sales as well.

    Other advertising strategies

    The advertisements of the lucky draw and the writing competition will also be used on

    three entertainment magazines (Sudden Weekly, East Touch and Eat and Travel

    Weekly), selected bus lines and four selected MTR stations (Causeway Bay, Tsim Sha

    Tsui, Mong Kok and Tsuen Wan). The popular magazines, and the buses and MTR

    with high mobility and bulk carriages in nature are both effective carriers to ensure

    enough coverage to draw the most possible audiences.

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    Direct marketing strategy

    In order to sustain awareness and to serve a reminder effect in regard to the purchase

    of Fresh Choices Menu, the promotional materials, including posters, brochures and

    stands showing the product will be widely distributed at points of purchases at many

    McDonalds restaurant branches through February until the end of November.

    To give more information about the Go Go Go for Health with McDonalds, leaflets

    with detailed information of the PR event, the lucky draw and the writing competition

    will also be available at the Point of purchases by which our target audiences could

    have an easy access to the necessary information.

    These will become an effective attempt to induce the persuasive power of

    along-the-time promotions.

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    Internet marketing strategy

    Corporate website is a form of interactive media which allows for a two-way flow of

    information whereby users can participate. Throughout the campaign period from

    February 2007 until January 2008, www.mcdonalds.com.hk will show detailed

    information about (1) the nutrition values of Fresh Choices Menu, (2) the Go Go

    Go for Health with McDonalds, (3) the lucky draw, and (4) the writing competition

    about My Ideal Healthy Life. To fully utilize the corporate website, the results of

    the lucky draw and the writing competition will also be publicized on the site. Those

    will appear on the site as pop-up which aims to draw the most attention from

    browsers.

    After the Australia tour in August, the slices of the tour including photos and short

    movies, and other information about after-the-tour will also be posted on the site.

    Promotion works for the October TV program will also be posted on site in order to

    capture public awareness.

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    Personal selling strategy

    At selected POPs throughout the campaign period, several McDonalds

    Ambassadors will be assigned to have a direct person-to-person communication

    whereby they attempt to persuade potential customers to purchase the product and to

    join the writing competition. They will invite customers to join a question-game,

    which composes of 5 simple questions about what is a healthy eating habit?

    Customers earn marks will be given McDonalds coupons for saving HK$2 each time

    when purchasing Fresh Choices Menu.

    The coupons are believed to stimulate an immediate feedback from customers.

    Besides, the direct contact between a seller and a buyer allows for more flexibility and

    can tailor sales messages to meet specific needs of the customers.

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    VIII. Media Plan

    Media carrier

    Application Remarks

    1 TVB Jade TVC (1) 20 units from Feb 16 to Mar 12; 5 sec each Within the time slot from 7pm to 10:30pm Mon Fri

    TVC (2) 25 units from Jun 21 to Jul 28; 15 sec each

    Within the time slot from 6:30pm to 11pm Mon Fri

    and from 5pm to 9pm Sat Sun

    TVC (3) 25 units from Mar 17 to Jun 20; 15 sec each

    Within the time slot from 6:30pm to 11pm Mon Fri

    and from 5pm to 9pm Sat Sun

    TV Program 50 min, Oct 1 8:30pm to 9:30pm

    2 TVB Pearl TVC (1) 10 units from Feb 16 to Mar 12; 5 sec each Within the time slot from 7pm to 10:30pm Mon Fri

    TVC (2) 15 units from Jun 21 to Jul 28; 15 sec each

    Within the time slot from 6:30pm to 11pm Mon Fri

    and from 5pm to 9pm Sat Sun

    TVC (3) 15 units from Mar 17 to Jun 20; 15 sec each

    Within the time slot from 6:30pm to 11pm Mon Fri

    and from 5pm to 9pm Sat Sun

    3 ATV Home TVC (1) 15 units from Feb 16 to Mar 12; 5 sec each Within the time slot from 7pm to 10:30pm Mon Fri

    TVC (2) 20 u


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