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Fast Food Marketing in

Argentina
An American students perspective
on McDonalds in Latin America

Trinidy Martz
July 10, 2010

McDonalds 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
McDonalds 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 McDonalds locations




In New York city alone, with a population of less than 9mm, there are more than
600 McDonalds locations

Mendoza population of almost 1.6M




Less than five McDonalds locations

Buenos Aires

New York City


A snapshot from
Google maps
indicates the heavy
penetration of
McDonalds in New
York City, with
each pink dot and
lettered bubble
representing a
location

Source: www.citypopulation.de/Argentina.html

McDonalds 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 McDonalds 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: Frommers, www.cyborlink.com, www.jewlicious.com

Even the Websites Reflect


Cultural Cues


McDonalds website for Argentina was redesigned during the


World Cup, but remains promotionally-driven

 June

July 

McDonalds website for the U.S. does not reflect pop-culture


cues, instead focuses on food and treats

 June

July 

Physical Structure is Unique


Too


Every McDonalds 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 Ronalds Gym Club




With high uncertainty avoidance in Argentina, a good


approach for McDonalds is to appeal to the appearancedriven and health-conscious society with the inclusion of a
gym

A branded gym inside


McDonalds not something you
see in the United States

McCaf is More Prominent




Most locations had separate McCaf ordering stations and


seating areas, a nod to the British influence of coffee and
tea times in Argentina
McDonalds in the United States has an opportunity to
steal share from Starbucks 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.

McDonalds 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, McDonalds
also localizes burger choices with options like the Crocante Mexicano
Sorprendete

McDonalds Sponsorship of the


World Cup was Evident
In-Store Watch Parties

Event marketing includes watch


party sponsorship and street teams
promoting sweepstakes entry

Employee
Game Day Uniforms

In-Store Promotional
Materials and
Sweepstakes

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 McDonalds

Strategically placed promotional


materials are used to lure
consumers at the right point in
the purchase cycle. This instore ad reminds consumers of
dessert upon leaving the
second level of the restaurant.

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