Documente Academic
Documente Profesional
Documente Cultură
Study
BrandScience Conference
16 Novembro 2007
McDonald’s Today
Trends
Growing demand for time
saving solutions
Emergence of the
“Smart consumer”
Operational
Store remodelling
Excellence
4
McDonald’s
Challenges
5
McDonald’s
Challenges
Marketeer Franchisee
6
McDonald’s
7
McDonald’s and BrandScience
Econometric modelling
8
McDonald’s
BrandScience Results
Identifying key sales Drivers
Seasonality Price
Promotions Advertising
Product
Stores Brand
Variants
&
Timetables Performance
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9
McDonald’s
BrandScience Results
Quantifying Effects
sales
Base + Seasonality
weeks
Base Price Stores+Timetable Brand Performance Product Promotions Advertising
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10
McDonald’s
BrandScience Results
Quantifying Effects
New product launches
Increasing brand consideration
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11
McDonald’s
Seasonality Learnings
End of Month Effect: results suggest that most people are paid close to the
end of the month, as such are more willing to “eat out” in the 2 following
weeks. As the end of month approaches, a negative impact is visible
Extremely important for promotional activity scheduling
Children's Day
Xmas
8th December
1st December
Incremental sales
1st November
5th October
Corpo Deus
2nd week
4th week
5th week
1st week
3rd week
25 Apr
Carnival
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12
McDonald’s
Product Insights
Eurosaver offering
weeks
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McDonald’s
Product Insights
The introduction of new products produces a novelty effect that
lasts for at least 4 weeks an in a recent period this effect has risen
and lasts longer
New Product
Launch New Product
Launch
Incremental sales
2nd week
4th week
5th week
6th week
7th week
2nd week
4th week
5th week
6th week
7th week
8th week
9th week
1st week
3rd week
1st week
3rd week
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McDonald’s
Product Insights
Happy Meal - different offers have different levels of appeal, hence
the effect over sales is also quite different
Summer
Xmas
Incremental sales
Incremental Sales HM
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McDonald’s
Promotion Insights
Two different types of promotion: the 1st offering a price discount,
the 2nd implying a special offer when buying a particular product.
Both have a significant effect over sales, even though the discount
on average has a higher impact
Free Gift B
Non food item
plurchase
Free Gift A
Incremental sales
Incremental sales
17
McDonald’s
ROI
Promotions and advertising have very different levels of return on
investment.
Price discounts produce a high level of return, however it isn’t taken
into account the forgone revenue due to a price decrease.
“
Sales uplift
ROI =
“ Investment
ROI
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Econometric Modelling
Media planning implications
Media – ROI
2005
95%
ROI
OUTDOOR
PRESS
95% RADIO
TV Radio Press Outdoor
TV
20
Media – ROI per campaign Type
Different campaign types have different sales impact which affects the
level of return by medium
HM
Promotion
Promotion
Product
Brand
New
B powered by
21
Media – Carryover Effect
An advertising campaign effect extends beyond its own life period, and how long
this effect last is a function of creative, campaign type and media used.
Promotional campaigns have a half life period of three weeks, however for new
product campaigns this figure is closer to two week
Promotions
Brand
New Product
1
2
3
4
5
6
7
8
9
10
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22
Media – Advertising Effect
Saturation point
A B C D
Incremental Sales
Camp A
Camp B
Investment
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Media – S shape curves
BRAND
NEW PRODUCT
PROMOTION B
PROMOTION A
Incremental Sales
GRP’s
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Media Synergies
Incremental Sales
Incremental Sales
TV only
TV+Radio
TV+Radio
TV+Outdoor
Radio
TV+Radio
TV only
Outdoor
TV+Outdoor
only
TV+Outdoor
only
Time
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Media scheduling
Consumer income doesn’t affect solely the sales pattern but also media
performance. Starting an advertising campaign in different weeks of the month
affects media return
Time
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Scenario Evaluation
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