Fast Food Marketing in Argentina

An American student’s perspective on McDonald’s in Latin America

Trinidy MartzJuly 10, 2010

McDonald’s Did Its Research

“To market a product or service successfully to consumers in any single market, a manufacturer must invest the time,

money, and sensitivity to discover, understand, and relate to those consumers’ needs, attitudes, values, emotions, and

behavior.”

- John Philip Jones, The Realities of International Advertising

The Concept of Fast Food Contradicts Argentine Culture

� We learned that dining in Argentina is traditionally an experience

� Families tend to dine together, in part because of the low individualism ranking in Argentina

� Meals typically last up to a few hours and include three or more courses

� A Google search for “fast food in Argentina”produces far fewer results than a similar search for the United States

� Traditional foods like empanadas are considered “fast food” for a quick snack between meals

� McDonald’s entered Argentina in 1986 and today has approximately 187 locations in the country

Source: www.McDonalds.com

Compared to the United States, Locations are Sparse

� Buenos Aires – population of nearly 14MM

� Approximately ten McDonald’s locations

� In New York city alone, with a population of less than 9mm, there are more than 600 McDonald’s locations

� Mendoza – population of almost 1.6M

� Less than five McDonald’s locations

Source: www.citypopulation.de/Argentina.html

A snapshot from Google maps

indicates the heavy penetration of

McDonald’s in New York City, with

each pink dot and lettered bubble representing a

location

Buenos Aires New York City

McDonald’s Understands the Demographic Differences

� Buenos Aires has the largest number of Jews in Latin America and is home to the only kosher McDonald's outside of Israel in the world

� The McDonald’s in Abasto Mall is

supervised by a Rabbi, does not serve

dairy and buys its medialunas from a

Kosher bakery

� Store front greetings recognize

customer language diversity,

particularly in tourist areas

Source: Frommer’s, www.cyborlink.com, www.jewlicious.com

Even the Websites Reflect Cultural Cues

� McDonald’s website for Argentina was redesigned during the World Cup, but remains promotionally-driven

� McDonald’s website for the U.S. does not reflect pop-culture cues, instead focuses on food and treats

� June July �

� June July �

Physical Structure is Unique Too

� Every McDonald’s I saw in Argentina had two levels and many had outdoor patios, allowing for larger parties and longer meal times

� No location was stand-alone

� Drive-thru is not an option

� One location included “Ronald’s Gym Club”

� With high uncertainty avoidance in Argentina, a good approach for McDonald’s is to appeal to the appearance-driven and health-conscious society with the inclusion of a gym

A branded gym inside McDonald’s – not something you

see in the United States

McCafé is More Prominent

� Most locations had separate McCafé ordering stations and seating areas, a nod to the British influence of coffee and tea times in Argentina

� McDonald’s in the United States has an opportunity to steal share from Starbuck’s with this type of in-store approach

The Food is Almost the Same

While the food tastes very similar (in my opinion), the menu in each country reflects cultural differences. One consistency was the use of value menu bundling.

In Argentina, you can find different options including medialunas for breakfast, dulce de leche ice cream flavors and even empanadas at some locations.

McDonald’s Localizes Flavors in Argentina

� One promotional burger honors the bicentennial celebration

� The breakfast menu is limited in Argentina, with primary promotional support placed on medialunas for the morning daypart

� In addition to traditional cheeseburgers and the Big Mac, McDonald’s also localizes burger choices with options like the Crocante MexicanoSorprendete

McDonald’s Sponsorship of the World Cup was Evident

In-Store Watch Parties

Employee Game Day Uniforms

In-Store Promotional Materials and Sweepstakes

Event marketing includes watch party sponsorship and street teams

promoting sweepstakes entry

In the End, Marketing is Still Marketing

� A classic marketing technique for fast food restaurants is to communicate value messaging to consumers using mass media and store-front promotional materials. Once inside the restaurant, often no promotional support can be found for discount offers in the hope that consumers will trade up.

This deal promoted on outdoor billboards was not supported with promotional materials inside McDonald’s

� Strategically placed promotional materials are used to lure consumers at the right point in the purchase cycle. This in-store ad reminds consumers of dessert upon leaving the second level of the restaurant.