Contemporary Brand Management: McDonalds Essay Example

their minds and instead the brand name is of major importance (Kapferer, J, 2004, p.10).

(American Marketing Association quoted in Schinduette, M, 2009, p.169). States “that a brand is a name, terms, sign symbol or design, or a combination of them intended to identify the goods and services of one seller or group of sellers and differentiate them from those of competition.”

Is it just the symbol or sign that differentiates a brand from the competition, rather than the products that is produced as well as the packaging and marketing communications carried out by the brand?

Schinduette (2009) also focuses on the intangible attributes of the brand rather than the tangible ones for example, emotion, conscience; personality of the brand and what the brand stands for. He states that despite how simple or complex the product is; it still offers the consumer a complex mix of “functional, symbolic and emotional values” and rewards.

There is a crucial difference between a product and a brand “A product is a physical good, service, idea, person or place that is capable of offering tangible and intangible attributes that individuals or organisations regard as so necessary, worthwhile or satisfying that they are prepared to exchange money, patronage or some other unit of value in order to acquire it” Brassington and Pettit (2007 p. ). This definition states that a product is tangible, meaning it is something that you can actually touch such as a can of coke, a packet of crisps or a sandwich. Products can also be intangible for instance a train journey, hairdressing or consultancy these you can’t actually touch or keep but

you pay for the experience and these are generally known as services.

Doyle and Stern (2006, p.33) also back this argument up by saying that a product is anything that a firm offers to satisfy the needs or wants of customers. They also state that this can be a “physical object” for instance a “soft drink, car or a computer”, but this could also be an “intangible service such as a haircut, consultancy advice or a holiday”. Where as a brand described by Brassington and Pettit; “consists of any name, design, style, words, or symbols, singly or in any combination that distinguish one product from another in the eyes of the consumer” (2007, p.187).

Brand Positioning

Brand positioning can play a pivotal role in the overall success of a brand and is described in the following ways. Kapferer (2008 p. ) argues that “brand positioning is about emphasising the distinctive characteristics that make it (brand) different from its competitors and appealing to the public.” Kotler (2003, quoted in Elliot and Percy, p. 228) defines it in terms of “enabling a brand to occupy a distinct and valued place” in the targeted consumers “mind.”

These theories recognise that there is a part within brand positioning that highlights the importance of differentiating a brand from the competition, making it appeal and occupying an emotional place in the heart and mind of the consumer. However they fail to emphasize that the procedure of brand positioning also needs to recognise that there are also major functional benefits that appeal to consumers. If a brand offers no functional benefits to a consumer they are not going

to buy the product on the basis that it appeals to their emotions and because it is different to any other brand or branded product.

Chranatony (2006 p. 44) highlights that there are “several characteristics of a powerful and strong positioning strategy”. It should be focussed around “one functional” attribute. The reason is people are bombarded with messages constantly and “their perceptual processes take over” to stop information overload Chernatony (2006 p. 37).

Ries and Trout (1986, quoted in Chernatony 2010) “emphasise that it should be recognised and highlight that positioning isn’t not done to a brand, but rather what the customer thinks of the brand in their minds.” Basically what the author is saying is that the “company shouldn’t focus on just brand development,” but rather there should be a “balanced perspective, evaluating what the consumer thinks of a brand and fine tuning the brand until there is alignment between the relative position and the intended position of where the brand wishes to be seen” or perceived to be seen by the consumer (p. 44).“The brand positioning must focus on the functional benefits that are valued by the consumer”, rather than those prized “by the managers” (p. 44). The positioning statement states the entire reason for the brand existing and what it means to the consumer in their minds what tangible and intangible benefits it offers them.

Kapferer (2004) suggests that “Positioning a brand means focussing on the distinctive characteristics which differentiates it from the competition” (p. 99). See appendix 1 for kapferer’s positioning prism.

“Positioning is a crucial concept” it helps remind us that “consumer” choices are made through

“comparison” and the “product will only be considered if it is clearly part of a selection process” Kapferer (2004, p. 100). I bid. (2004) has also developed a formula so that companies can produce positioning statements for their brands see appendix 2.

Using this formula the following positioning statements can be made for McDonald’s and Burger King who happen to be their main Competitor in the UK fast food market. However Burger King maybe the main competitor in the fast food market but it is my argument that McDonald’s also face fierce competition from brands such as Greggs who still operate a similar take away service. See appendix 1 for the market shares of the fast food industry in the UK.

McDonald’s We at McDonalds care because you do. We aim to provide a happy space in a pleasant atmosphere for families, businessmen, children, youth and café goers who are looking for somewhere to relax; where you can enjoy a wide variety of fresh meals or drink a nice cup of tea/coffee whilst reading the paper or browsing the internet. Let’s think about you for once, let us take care of your needs. McDonalds provides a calm and pleasant environment where you can put your mind to rest and enjoy a relaxing moment whilst the fast paced world keeps on moving.

Burger King For the consumer who loves their burgers fresh with that flame grilled taste and is looking for something to hit the spot. Only a Burger King Whopper is able to do this, go on be unique, why settle for second best when you can enjoy the real deal, come

to Burger King.

To the people who love consistency; are in a rush and don’t want the same plain unappealing sandwiches. Greggs provides a wide range of freshly prepared value for money sandwiches and pastries which; are made in store on the day; every day.

From analysing the three positioning statements it is my argument that all three of the brands compete for consumers that care about value and freshly prepared meals. However McDonald’s has a larger product portfolio than both Greggs and Burger King and is able is able to differentiate itself from the main competitor by using emotional advertising through campaigns such as “I’m Loving It” (Fernandez (A) 2010) and “On The Road Again” (Telly ads, (D) 2010). McDonald’s also place specific emphasis on the fact that there is free Wi-Fi in all of their restaurants where customers can eat in, send an email and keep in contact with the friends, family and the business world whilst enjoying their meals.

Neither Burger King nor Greggs have this trait and it adds to the value of their service. As well as in store Jones et al (2002 p.44) stresses that “Takeaway sales have become an increasingly important element of the McDonald’s business strategy and over 500 outlets have drive-through facilities.” Therefore it is my argument that McDonald’s are also able to differentiate their brand from the competition by emphasising that they also operate drive-thru restaurants in the UK where the customer can purchase the food that they enjoy whilst on the move (Telly Ads (C) 2006).

Brand Analysis

Brand Identity Topalian (2003) identifies that at the corporate level both

image and identity are intertwined and continue to be used as the same meaning. Hatch and Schultz (2000 cited in Chernatony (2010, p. 53) emphasises that “brand identity is the central idea of a brand” and “how the brand communicates this idea to its stakeholders” and places significant importance on when the “organisation brands its offerings with its own corporate name.” This definitely applies to McDonalds, because all of the products fall under the corporate brand name and whenever McDonalds advertise you don’t just see an advert for a burger and the product is mentioned but the message is that it’s a McDonald’s Big Mac (Telly Ads, (C) 2006).

Fundamentally identity states who we are, what our name is and what our differentiating features are Kapferer (2004 p. 96). While Harris and Chernatony (2001) argue that identity is more concentrated on how “Managers” and “employees” can make a brand that is distinctive.

The above theoretical concepts are right in a way but do not focus on the core values of a brand and the processes that a brand goes through when it is formed. The necessary components of a brand are its: “personality, vision/culture, positioning; relationships to staff/customers/ from staff to other stakeholders and finally the presentation design, logo, colour and packaging” Chernatony (2010 p. 27, 47) see appendix 4 for the model.

The above tangible/intangible attributes have been considered or later adopted by the McDonalds in order to create a unique brand. The significant features of the corporation are the brand name, logo and store/staff image, which I will discuss in more detail in the following pages.

Brand Logo According

to Pittard, Ewans and Jevons (2007) a logo happens to be key component of brand identity, is easily recognised and consumers instantly know what company the logo represents. Kohli et al. (quoted in Pittard, Ewans and Jevons 2007) argues that a logo helps break “language barriers” and global “boundaries” as it corresponds “visually.”

These theories suggest that brand logos are there just to be recognised by consumers without needing to say any words. It is my argument that a brand logo should be recognised but also it should say something positive to the consumer about the values and ideals that the company/brand that it represents. For instance “Rainforest Alliance Certified farms” where coffee beans come from have “achieved demanding standards for social and environmental improvement” (McDonalds 2010). The logo should inspire people and help them to associate positive characteristics with the brand in question.

Henderson and Cole (cited in Chernatony 2010) realise that practical logos should:

• Improve recognition of brands as it stimulates the memory.
• Boost “recognition” and create a “familiar” set of values linked to the right brand.
• Positively “Influence brand selection decision.”

From the primary research gathered (refer to appendix 5) McDonalds has created a highly effective brand logo. The big yellow M arches were recognised the majority of the participants in the survey and so this can help keep the brand in the minds of the consumer. However some of the words associated with the brand were negative and these damaging traits need tackling by the brand in order for it to be sustainable.

Brand Name Brand names are used to distinguish

one product from a competitor. Brand names are perceived by consumers as “important information clues” and reduce the need for them to “engage in a detailed search for information” (Chernatony and McDonald 2003). Kay (2004 p. 753) signifies that “all company names to some degree, are corporate brands” and can be managed effectively in the same manner as product brands.

The above theories fail to highlight the importance of associating positive meanings to a brand name and this is where McDonalds hasn’t achieved their objectives. From the primary research gathered into the McDonalds brand they have not got a good image or personality and the name McDonald’s is associated with words such as, unhealthy, greasy, cheap and deceiving by the target market. These are not positive traits and the company must work on their brand image, the corporation needs to re-position itself in the minds of the consumer.

Brand Image Kotler (1998 p. 197 quoted in Meenaghan 2005 p. 24) states that brand image is defined as “the set of beliefs held about a particular brand” or as Aaker (1992 pp. 109-110 cited in Meenaghan 2005 p. 24) argues it’s a “set of associations, usually organised in a particular way.”

It can be claimed that a product is a physical thing where as a brand is invisible, “intangible and has no functional properties” but it is just as real as the physical product itself. The brand is “abstract” “disembodied” and “empherical” and “exists in the mind of the consumer” Kim (1990 p. 64 cited in Meenaghan 2005 p. 24). What the author is saying is that the brand image is the opposite

of brand identity; it is the perception of a company by its publics.

These descriptions are clearly precise apart from they do not address the reason why there is this built up image of brands in the minds of consumers in the first place? Or how it got there? Or why consumers hold brands so high in their minds and why consumers see the ideals that the brands stand for in them self? There is also the issue of how much control the brand manager has over the consumer’s thoughts and perceptions regarding the brand.

Kotler et al 2005 states that brand image is built up by the consumer through past experience. Whereas Brassington and Petit (2007) suggest that the role of advertising is to both “create” and “reinforce” the brand image. This implies that marketing communications tools such as advertising and poster campaigns as well as past experience have a major impact on the emotional associations that a consumer has with a brand, whether negative or positive.

Chernatony and McDonald (2003 p. 444) states that “Brand image reflects consumer’s perceptions of a brand’s characteristics and can be measured by the associations they hold in their memory” this is also reinforced by Christensen and Askegaard (2001 cited in Comb, Growther and Greenland 2003, p. 5) who claim that “image is typically only linked to memory or visual phenomenon rather than imagination” Tikkanen & Vaarikoski (2010 p. 1034) back this claim up by emphasizing that “the product or brand image is an individual’s impression of what the product or brand is all about” and finally Zikmund and d’Amico (1996, p. 504 cited in

Tikkanen & Vaarikoski 2010 p. 1034) suggests that “it is the symbolic value associated with the brand.”

After analysing the results from my primary research that I conducted (see appendices 3 -3.9) it is evident that the McDonalds brand is able to provide emotional benefits to consumers, such as comforting, happy, fulfilment, enjoyment, cheap and convenience. However there were seriously negative words associated with the McDonalds brand such as unhealthy, fat, exploiting children, junk food, salty and greasy. This primary research suggests that the brand needs to do some serious re-positioning in order to get consumers thinking positive about the name McDonalds. This will help the company in due course as the brand will be at the top of their minds (consumers) when it comes to eating healthy food rather than just some junk food to fill their stomach when in a rush.