How to fix a Broken Brand (McDonalds Case Study 2015)

GRAHAMDBROWN.COM McDonalds: How to Fix a Broken Brand Case Study  Inside

Build a Brand Worth Talking About GRAHAMDBROWN

GRAHAMDBROWN.COM In this presentation, we’ll look at what McDonald’s needs to do to revitalize its brand based on where it is right now and where it needs to be

GRAHAMDBROWN.COM4 McDonald’s Brand Now McDonald’s Goal

GRAHAMDBROWN.COM5 Globally recognized brand with unparalleled awareness History of innovation and industry leadership Extensive portfolio of prime real estate and touchpoints with customers What’s Good About McD’s?

GRAHAMDBROWN.COM If you want to get access to my FREE marketing strategy guide for McDonald’s click the link on the next slide

GRAHAMDBROWN.COM CLICK HERE to ACCESS this FREE case study giving you background insights and analysis for this presentation

GRAHAMDBROWN.COM “And what customers love the world over…is how they can buy into aspirational quality products” - Steve Easterbrook CEO

GRAHAMDBROWN.COM But, forget the official line for a minute, we want to know… what do people really talk about when they talk about McDonald’s?

GRAHAMDBROWN.COM Try this Buzz Sumo challenge BuzzSumo is a cool tool to track what people share the most www.BuzzSumo.com

GRAHAMDBROWN.COM ﬁrst, the results (according to CEO)

GRAHAMDBROWN.COM12 What people really think? “Aspiration” “Quality” “Love”

GRAHAMDBROWN.COM Is the CEO right?

GRAHAMDBROWN.COM nope…

GRAHAMDBROWN.COM Here’s what they   really talk about…

GRAHAMDBROWN.COM Buzzsumo results…

GRAHAMDBROWN.COM Share the love don’t forget to   hit the LIKE button so other Slideshare users can discover this too

GRAHAMDBROWN.COM18 “Aspiration” “Quality” “Love” “Semen” “Never eat” etc…

GRAHAMDBROWN.COM19 McDonald’s Customer Perception McDonald’s Management Perception disconnect

GRAHAMDBROWN.COM There is a BIG DISCONNECT between what McDonald’s and what customers see in the brand

GRAHAMDBROWN.COM problem, bro?

GRAHAMDBROWN.COM which leads to…

GRAHAMDBROWN.COM

GRAHAMDBROWN.COM Sales are flatlining, or falling

GRAHAMDBROWN.COM McDonald’s is losing its next generation of consumers…

GRAHAMDBROWN.COM McD’s is losing the critical battle for young customers

GRAHAMDBROWN.COM Competitors are eating McDonalds for lunch…

GRAHAMDBROWN.COM Chipotle, Starbucks, Shake Shack etc. etc

GRAHAMDBROWN.COM32 “Aspiration” “Quality” “Love”

GRAHAMDBROWN.COM Q: So, how do you fix it?

GRAHAMDBROWN.COM A: Not with a brand makeover

GRAHAMDBROWN.COM36 Where Branding is taking McDonald’s Where McDonald’s needs to go

GRAHAMDBROWN.COM You see the problem with McDonald’s Branding is…

GRAHAMDBROWN.COM BRANDING

GRAHAMDBROWN.COM Yes, Branding is the root of the McDonald’s problem

GRAHAMDBROWN.COM Here’s why…

GRAHAMDBROWN.COM You see, McD’s is a “branding success”

GRAHAMDBROWN.COM McDonald’s business   = stalling  McDonald’s agencies = success

GRAHAMDBROWN.COM44 McDonald’s Branding Strategy Ad agency wins awards “Creative marketer of year” Sales slump Major image issue with younger consumers disconnect

GRAHAMDBROWN.COM Despite seeing one of the worst declines in recent history McDonald’s ad agencies continue to win awards…

GRAHAMDBROWN.COM McDonalds…Creative Marketer of the Year Increasingly, the fortunes of the ad industry fail to reflect the fortunes of its clients

GRAHAMDBROWN.COM These are the LEAST Engaging Brands “Creative Marketer of the Year”

GRAHAMDBROWN.COM49

GRAHAMDBROWN.COM a 20th century model of marketing built on ad agencies, advertising and awareness that doesn’t work like it used to…

The days of ARE OVERwinning awards and Tony the Tiger www.GrahamDBrown.com Sorry guys!

People don’t wake up thinking about BRANDS anymore... www.GrahamDBrown.com flickr © commonbond

GRAHAMDBROWN.COM “Authentic brands don't emerge from marketing cubicles or advertising agencies”   - Howard Schultz, CEO Starbucks

GRAHAMDBROWN.COM This is not the McDonald’s brand

GRAHAMDBROWN.COM or this…

GRAHAMDBROWN.COM THIS is the McDonald’s brand The inconvenient truth of the Connection Economy

www.GrahamDBrown.com Your brand is what people say about you when you’re not in the room - Jeff Bezos, CEO Amazon

GRAHAMDBROWN.COM58 What ad agencies think is brand What actually is brand

GRAHAMDBROWN.COM Brand = what customers say it is

GRAHAMDBROWN.COM Brand ≠ what your agency says it is

GRAHAMDBROWN.COM The Experience is the Brand

GRAHAMDBROWN.COM So, how does McDonald’s build a better BRAND EXPERIENCE?

GRAHAMDBROWN.COM Let’s look at the difference in these approaches…

GRAHAMDBROWN.COM64 BRANDING BRAND EXPERIENCE

GRAHAMDBROWN.COM BRANDING BRAND EXPERIENCE Model Top down “Loudspeaker” Bottom up “Telephone” Method Control Curation Focus External Internal Media Paid Earned Brand Story Official agency narrative Everyday conversation Marke5ng Advertising, logos, celebrities People, Culture, Metrics Metrics Brand Likes: awareness Brand Love: recommendation Influencers Celebrities, experts, professionals Fans, influencers, customers Brand owners Ad agencies, celebrities Employees, Fans, customers Old vs New: 2 Marke0ng Strategies Branding vs Brand Experience

GRAHAMDBROWN.COM vs Old vs New: 2 Marke0ng Strategies Branding vs Brand Experience $ 1.5 bn $ 0.2 bnAD SPEND $ -‐0.8bn $ +1.9bnGROWTH Net Proﬁt 2013 -‐ 2015 $3bn $6bn 2013 2014 2015E

GRAHAMDBROWN.COM Brand Experience isn’t what happens outside your company (e.g. branding, agencies etc)

GRAHAMDBROWN.COM But inside…

GRAHAMDBROWN.COM People Culture Metrics These are the 3 elements of BRAND DNA in the 21st Century

GRAHAMDBROWN.COM PEOPLE METRICS 85 of brand happens in daily interac5on (tweets, status updates, content shares, conversations between customers, between customers and employees) PEOPLE CULTUREMETRICS Brand Experience CULTURE % Brand= People + Culture + Metrics

GRAHAMDBROWN.COM Here’s how McDonald’s can fix its broken brand…

GRAHAMDBROWN.COM 1) PEOPLE Start here…

GRAHAMDBROWN.COM build your brand around your people not your ad agency

GRAHAMDBROWN.COM75 McDonald’s Brand Now McDonald’s Goal Roadblock #1 old fashioned ad-agency model

GRAHAMDBROWN.COM invest in your Frontline Frontline is the point where your brand touches the customer

GRAHAMDBROWN.COM Obviously this isn’t conducive to a positive Brand Experience

GRAHAMDBROWN.COM McDonald’s said it was going to raise pay of Frontline workers…

GRAHAMDBROWN.COM When McDonald’s announced last month that it planned to raise wages for some of its workers in the United States, the increases —to $1 higher than the local minimum wage—would apply only to the restaurants it owned

GRAHAMDBROWN.COM some = only 17% of stores GOTCHA: Less that 1/5 of all stores qualify for the pay raise

GRAHAMDBROWN.COM McDonald’s calls them “Crew” Not a week passes without this kind of news

GRAHAMDBROWN.COM Starbucks calls them “Baristas” Yet we don’t hear the same about Starbucks…

GRAHAMDBROWN.COM Your brand starts with your people

GRAHAMDBROWN.COM Invest less here…

GRAHAMDBROWN.COM The BRANDING approach to building the McD brand

GRAHAMDBROWN.COM Invest more here…

GRAHAMDBROWN.COM The Brand Experience approach: People are the Brand

GRAHAMDBROWN.COM These people will win you awards These people will win you customers

GRAHAMDBROWN.COM You can’t create positive Brand Experience when your Frontline staff are disengaged

GRAHAMDBROWN.COM McDonald’s annual ad spend per employee = $3,500

GRAHAMDBROWN.COM you don’t build a brand worth talking about by spending billions on your ad agency and cents on your employees…

GRAHAMDBROWN.COM McDonald’s has a large population of young workers open to ideas, innovation and change - engage them

GRAHAMDBROWN.COM 2) CULTURE

GRAHAMDBROWN.COM99 McDonald’s Brand Now McDonald’s Goal Roadblock #2 marketing strategy build around short term awareness

GRAHAMDBROWN.COM build your culture around conversations not campaigns

In this ever-changing society, the most powerful and enduring brands are built from the heart. They are real and sustainable. Their foundations are stronger because they are built with the strength of the human spirit, not an ad campaign. – Howard Schultz, CEO Starbucks GRAHAMDBROWN.COM

GRAHAMDBROWN.COM102 Campaigns Conversations

GRAHAMDBROWN.COM You don’t need Big Ideas in 2015 this is a chart of annual ad spend

GRAHAMDBROWN.COM Stop the gimmicks…

GRAHAMDBROWN.COM A “giant coffee cup ball pit”… GIMMICK ALERT

GRAHAMDBROWN.COM GIMMICK ALERT McD doesn’t need this ad agency BS. A complete waste of money.

GRAHAMDBROWN.COM “The collection is based on the fast food brand's latest French advertising campaign by TBWA Paris, which features a set of elegant illustrations of McDonald's products, including fries, Big Mac and an ice cream sundae.”

GRAHAMDBROWN.COM WTF? Think how they could have invested that money in creating a better in-‐ store experience or staff development

We can no longer control and manage the brand conversation like we used to... CONTROL MANAGE www.GrahamDBrown.com flickr © posterboynyc

GRAHAMDBROWN.COM Stop bankrolling agency awards

GRAHAMDBROWN.COM and create a Social Space Millennials need and love…

GRAHAMDBROWN.COM Starbucks creates a social space that customers LOVE

GRAHAMDBROWN.COM Yes, McDonald’s Millennials like waiting

GRAHAMDBROWN.COM Inefficiency is good. Waiting = meeting people.

GRAHAMDBROWN.COM McDonald’s young customer base and workforce are open to sharing the experience

GRAHAMDBROWN.COM McDonalds =   Already 5 million shares on Instagram

GRAHAMDBROWN.COM Start curating the customer stories. This is the McD brand in 2015

GRAHAMDBROWN.COM Imagine if McDonald’s empowered employees and customers to tell their own stories

GRAHAMDBROWN.COM124 Brand Heroes c. 1985 Brand Heroes c.2015

GRAHAMDBROWN.COM How can McD remove the walls that prevent these people from being their biggest Fans?

GRAHAMDBROWN.COM These are the new heroes of the McDonald’s brand story

GRAHAMDBROWN.COM127 Not this guy…

GRAHAMDBROWN.COM or this guy…

GRAHAMDBROWN.COM Give customers the tools and the space to make it happen

GRAHAMDBROWN.COM 3) METRICS

GRAHAMDBROWN.COM131 McDonald’s Brand Now McDonald’s Goal Roadblock #3 short term metrics controlled by ad agencies

GRAHAMDBROWN.COM what’s measured gets done

GRAHAMDBROWN.COM focus on recommendation not awareness

GRAHAMDBROWN.COM Starbucks Dominates Instagram Shares Number of photos tagged on Instagram by brand name SOURCE: TOTALYOUTHRESEARCH BASED ON EMARKETER DATA STARBUCKS IS ONE OF THE MOST POPULAR BRANDS ON INSTAGRAM Nearest big brand Apple not even half of Starbucks Earned Media Pepsi Coke Apple Starbucks 19.1m 9.1m 5.2m 3.4m That’s a lot of people sharing Starbucks experiences

GRAHAMDBROWN.COM Starbucks concentrates its marketing on customer recommendation not awareness

GRAHAMDBROWN.COM McD is losing big time in the recommendation game

GRAHAMDBROWN.COM focus on earning BRAND LOVE not buying BRAND LIKES

GRAHAMDBROWN.COM141 Brand Likes, Awareness, Brand Equity, Top of Mind, Brand Recall Recommendation, word of mouth, NPS

Branding in 1985 www.GrahamDBrown.com

Brand Experience in 2015 www.GrahamDBrown.com

GRAHAMDBROWN.COM you can’t buy LOVE in a campaign

GRAHAMDBROWN.COM GIMMICK ALERT This is how agencies win “creative marketer” awards

GRAHAMDBROWN.COM But it only wins awards, not Brand Love or customer loyalty

GRAHAMDBROWN.COM implement Frontline metrics like NPS to create a constant customer-employee feedback loop

GRAHAMDBROWN.COM Apple’s success stems from a rigorous implementation of NPS at the Frontline

GRAHAMDBROWN.COM Starbucks is passionate about customer feedback -‐ data which impacts employee reward and promotion

GRAHAMDBROWN.COM McDonald’s has legendary systems and efficiency

GRAHAMDBROWN.COM Apply that knowledge to building customer feedback loops and recommendation

GRAHAMDBROWN.COM “I often describe McDonald’s as possibly the most democratic brand in the world” - CEO Steve Easterbrook

GRAHAMDBROWN.COM Let’s see that happen by putting customers and employees, not ad agencies and clowns, in control of the Brand Experience

GRAHAMDBROWN.COM Learn more about Brand Experience and Brand Leadership…

www.GrahamDBrown.com Learn how they do it

GRAHAMDBROWN.COM162 Learn how to market like Apple, Starbucks and LEGO http://www.GrahamDBrown.com/Manual

GRAHAMDBROWN.COM If you want to get access to my FREE marketing strategy guide for McDonald’s click the link on the next slide

GRAHAMDBROWN.COM CLICK HERE to ACCESS this FREE case study giving you background insights and analysis for this presentation

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