Executing innovation 58 million times a day
For obvious cultural reasons, I did not see a McDonald’s while traveling in India. But, the “Golden Arches” have literally popped up everywhere worldwide. Say what you will about fast food, but there are 58 million customers a day that are “Loving it”. While their mascot might be a clown, McDonald’s has become the “king” of fast food retail by innovating so that local customers can “have it their way”.
Beyond the brand glitz of slogans and icons
I need to give an upfront apology to my international friends for all the branding and English slogans. But, I couldn’t resist the irony of mixing the branding and slogans to describe the paradox of what has transpired in the international competition of the two US based fast food retailing giants – Burger King and McDonald’s.
I guess if your company name is Burger King, you need a “King” as an icon (or at least a crown?). I’m certainly not a branding expert, but that king character is one strange looking dude that can sure scare the grandkids!
I’m also not sure that “King” translates real well internationally. On the plus side, Burger King’s slogan implies personalized service: “Have it your way”.
“Loving It” translates into Real Results that Count
Fast food restaurants are one of the toughest forms of retail. It has all the attributes and even greater challenges than any traditional retail store: employee staffing for long hours, 365 days a year, perishable inventory with daily life cycles, challenges of market basket and comp store growth, and the challenges of serving masses of customers with different tastes!
While Walmart and Carrefour might be dazzling in terms of sheer size and revenue, McDonalds’ numbers are simply amazing. Clearly, McDonalds’ customers are “loving it”:
· McDonald’s serves an incredible 58 million customers a day!
· 26 consecutive quarters of positive comp store sales
· McDonald’s Quarterly Earnings Growth +5.90% vs. Burger King -6.8%
How McDonald’s localizes for local markets and culture
McDonald’s is 10 times the size of Burger King in revenue. That didn’t just happen … it comes through constant innovation and attention to details. McDonald’s is the “king” of localizing execution to consumer preferences and culture. In the words of Jim Skinner, McDonald’s CEO, “The downturn we’re in cannot be an excuse for sitting still”.
Some pretty amazing McDonalds Innovations:
· Specialty coffee programs to grab share from Starbucks
· Touch screen kiosks in Europe
· Home delivery tests in Asia!
Localized McDonald’s menus you may not have seen:
· Shrimp on the menu in Japan
· Beer on the German menu!
· Wine on the menu for France
· SPAM on the menu in Hawaii!
Yes, that’s right! Who knew that Hawaii has the highest per capita consumption of SPAM – the homogenized meat from a can. McDonald’s took the time to find out how to serve it their way. In the words of Jim Skinner: “They love it, and we serve it!”
While McDonald’s is known for their “Golden Arches”, they have are one of the best at executing The Platinum Rule - serving customers the food they want and enabling them to “have it their way”.
And that my friends is how a “clown” beats a “king” … an invaluable case study in how to innovate and localize for international retail success.
