MARKETING RX

For McDonald’s, it is more than just the food it offers

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Dear Dr. Ned Roberto:

 

I am writing to you today in response to your column published in the Philippine Daily Inquirer last Nov. 16.

 

I would like to take this opportunity to share with you another perspective on the matter.

 

Despite having only half the number of restaurants (both company-owned and franchised) compared to our main competitor, McDonald’s has managed to significantly increase its market share over the recent years.

 

The ratio of store units of 1:2 is not the same when it comes to market share.

 

When it comes to the marketing mix, which you know well, distribution plays a key role in determining market share as well.

 

We recognize this and have opened many new stores in recent years and will continue to do so.

 

Perhaps the question we should ask is: “If we had the same number of store units, what would the market share look like?”

 

We agree, though, that with the empowered consumer, the strength of a brand nowadays can be measured in more ways than just by sales or market share.

 

At McDonald’s, we believe in this school of thought and have been working towards achieving this not just by focusing on how many burgers or fries that we sell but the impact of the brand in the consciousness of Filipino customers.

 

For this reason, we have made strides when it comes to:

 

Menu Innovations. McDonald’s is synonymous worldwide as a place where people can go for good quality food at value prices.

 

It proudly serves iconic products like Big Mac, Egg McMuffin and our world-famous French fries.

 

Though these products are available at any McDonald’s present in 119 countries, McDonald’s also offers menu options that cater to unique local tastes.

 

When McDonald’s Philippines chair and founder George Yang brought the franchise to the country in 1981, he saw the need to have local menu offers.

 

It started with the McSpaghetti in 1986, Chicken McDo in 1987, Burger McDo in 1993 and McFloat in early 2000.

 

Aside from these, local menu items like Longganisa with Rice, Chicken Fillet with Rice and Hamdesal were also introduced and enjoyed by our customers till today.

 

Other markets also offer unique local offerings like Bulgogi burger in Korea, McAIoo Tiki in India and even hotdog sandwich in Japan.

 

Our head office in Oakbrook has been supportive of these local menu innovations.

 

Service and restaurant experience. More than just the food we offer, we strive to be a place that Filipinos enjoy anywhere, any time of the day with our 24-hour restaurants.

 

From our superior service, whether in-store, at a Drive Thru, Dessert Center, McCafe or McDelivery to a modern yet warm environment, McDonald’s has set the bar in the industry by modernizing the look and feel of our restaurants.

 

From eye-catching exteriors to trendy and comfortable interiors, we believe that this has improved the dining experience of our customers.

 

Relevance. Being in the Philippines for over 30 years, McDonald’s as a brand has grown together with its customers.

 

This can be seen with marketing campaigns that have resounded in the hearts and minds of Filipinos both young and old. From iconic and well-loved TV spots like “Lob” and catchy jingles like “Kitakits sa McDo” to catch phrases used in everyday conversations like “Pa-burger ka naman!” it is undeniable that the brand has made its mark in the hearts and minds of customers.

 

Involvement in the community. Through McDonald’s charity arm, Ronald McDonald House Charities, and its banner programs—Bright Minds Read (a beginning reading program in partnership with the Department of Education, adopted in over 3,900 public elementary schools nationwide), Bahay Bulilit (a low-cost daycare center in partnership with the Department of Social Welfare and Development and local government units), and Bigay Tulong (disaster and relief program with McDonald’s restaurants serving as donation drop-off points), we have gone outside our restaurant walls to make a difference in the lives of close to 4 million children.

 

McDonald’s founder Ray Kroc believed in the philosophy that we are in the business of people—we only happen to sell hamburgers.

 

This philosophy has guided us on how we do our business, putting our customers and their needs at the forefront.

 

We are proud of our global heritage and its standards of excellence, but we are even prouder to be a 100-percent Filipino-owned and -managed company, grounded on Filipino values.

 

McDonald’s is here to stay and grow, and we are excited for the next 30, 60, 90 years of being part of the Filipinos’ way of life.

 

Thank you.

 

Margarita B. Torres

Vice President,

Marketing & Communications

McDonald’s Philippines

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