Group discussion Week 8_Group 2

The PESO model of McDonald’s

McDonald’s have effectively employed the PESO model to engage their fans and target audience, promote their products and maintain a strong brand involvement in the competitive market. 

Paid Media 

In terms of paid media, McDonald’s strategically deploys its efforts through advertising (integrating online and offline) and media partnerships.

McDonald’s conducts large-scale advertising campaigns globally through television, radio, and online platforms (such as Google Ads and social media ads) to enhance brand awareness and attract customers. For instance, in 2018, McDonald’s launched the “Hands Full” campaign, investing heavily in TV and YouTube ads to promote its new ordering innovations, which extended beyond traditional counter service.

During the pandemic, to strengthen the emotional connection between online and offline experiences, McDonald’s launched the “Fan Truths” campaign. This series featured real stories and experiences from customers at McDonald’s, broadcasted through TV ads and social media platforms. The campaign aimed to walk alongside customers during challenging times, reinforcing emotional bonds.

Beyond advertising, McDonald’s is committed to deep collaborations with media from diverse cultural backgrounds, covering various global cultural groups. For example, McDonald’s has increased its advertising spend with Black, Latinx, AAPI, women, and LGBTQ-owned media companies.

One notable example is the “House of Pride” event, in collaboration with the LGBTQ television network Revry. This event celebrated LGBTQ culture with celebrity appearances, musical performances, dance tutorials, and more. It was broadcasted on Revry and widely promoted on social media.

Earned Media

McDonald’s in Hong Kong and China have effectively utlised earned media to gain public attention by influencers collaboration, strategic partnerships and community engagement. 

For instance, McDonald’s often collaborates with idols, local influencers and food bloggers. In 2021, McDonlad’s Hong Kong collaborated with the local male group “Mirror” to promote their new product “Garlic herb Crispy Thigh”, while celebrating Mirror’s Three Years Anniversary. Limited edition campaign was established by launching Mirror Meal and McDonald’s x Mirror Flashcards. According to Marketing Interactive, the Mcdonald’s x Mirror short promotion video had 1.5 million views after premiere and set off a wave of flashcard exchanges on social media platforms. McDonlad’s utlised the influence of “Fan Economy” and successfully gained back the lost younger audiences in Hong Kong after this campaign. McDonald’s also collaborated with local influencers by creating reels and food reviews of new products. These partnerships lend credibility to their new campaigns and the sharing of influencers can generate organic interest and discussions of the new products online.

Moreover, McDonlad’s has strategic partnerships with artistes or brands to initiate cross industries collaboration. In 2023, Japanese streetwear designer VERDY’s expanded their social circle to McDonald’s China by dishing up a special menu “Shake & Dip” and created Collaborative merchandise. An offline event “McDonald’s x Verdy: Shake & Dip Playground Exhibition”  took place at Hong Kong West Kowloon Cultural District to showcase a delightful fusion of culinary and cultural art.

McDonal’s has engaged in corporate social responsibility initiatives, such as establishing Ronald McDonald House Charity (RMHC) to build strong partnerships with Hong Kong Children’s Hospital and the local medical community. RMHC has extended supporting service and provided resources for families with illness children. This positions McDonald’s as a socially responsible brand and creates positive earned media that enhances the company’s reputation. 

Shared Media

In terms of shared media, McDonald's promotes UGC generation mainly by launching campaigns and triggering discussions on social media. In mainland China, this is mainly focused on two social media software, RED and Weibo.

For example, on October 26th, McDonald's in mainland China launched a free burger campaign: just bring a lightweight, arbitrary form of “shovel” to the store and you can get a free burger. This greatly stimulated the creativity of netizens, many of whom brought paper or DIY spatulas and took photos of them to post on social media, generating a wider discussion and spreading the word about McDonald's.

 

Beyond the officially guided social media discussions, there are also memes that are spontaneously generated and proliferated on social media due to the high visibility of the McDonald's brand itself. for example, a netizen who consistently ate McDonald's and photodocumented his burgers over about three years quickly became a legend in the online community.

Owned Media

McDonald's marketing strategy using owned media is multi-dimensional and innovative, covering physical assets, digital assets, and created assets.

 

Firstly, McDonald's eye-catching "M" logo packaging not only facilitates recognition but also serves as a form of social currency for the brand. The uniform decoration style in McDonald's stores is part of McDonald's brand building, enhancing the brand's recognizability.

 

McDonald's expands its brand influence by selling related merchandise, such as Happy Meal toys in collaboration with various IPs, like Minions and Doraemon. These not only attract children but also successfully arouse the collection desire of adult consumers, playing a promotional role.

 

In terms of digital assets, McDonald's has its own official website and official Apps, and actively operates its brand's official accounts on multiple mainstream social media platforms, including WeChat, Weibo, Xiaohongshu, Douyin, Bilibili, etc., with different content strategies for different platforms. Through these platforms, McDonald's releases the latest promotional activities, product information, and interacts with fans. McDonald's social media strategy is "Fan Truth," an approach that interacts with fans on an equal footing around McDonald's products, experiences, and brand. For example, the popular "McDonald's Literature" in mainland China is a clever use of UGC production characteristics for promotion, which not only drives McDonald's social topics but also subtly associates product information.

 

In addition, McDonald's enhances its brand influence by sponsoring and creating various activities. For instance, officially announcing collaborations with NBA star Derrick Rose and cross-industry cooperation with brands like Xiaomi and Cross helps expand the brand's influence and appeal.