Rod Taylor, a Brandweek columnist, called McDonald’s 1997 Teenie Beanie Baby giveaway one of the most successful promotions in the history of American advertising. At the time McDonald’s sold about 10 million Happy Meals in a typical week. Over the course often days in April of 1997, by including a Teenie Beanie Baby with each purchase, McDonald’s sold about 100 million Happy Meals. Rarely has a marketing effort achieved such an extraordinary rate of sales among its intended consumers. Happy Meals are marketed to children between the ages of three and nine; within ten days about four Teenie Beanie Baby Happy Meals were sold for every American child in that age group. Not all of those Happy Meals were purchased for children. Many adult collectors bought Teenie Beanie Baby Happy Meals, kept the dolls, and threw away the food.
The competition for young customers has led the fast food chains to form marketing alliances not just with toy companies, but with sports leagues and Hollywood studios. McDonald’s has staged promotions with the National Basketball Association and the Olympics. Pizza Hut, Taco Bell, and KFC signed a three-year deal with the NCAA. Wendy’s has linked with the National Hockey League. Burger King and Nickelodeon, Denny’s and Major League Baseball, McDonald’s and the Fox Kids Network have all formed partnerships that mix advertisements for fast food with children’s entertainment. Burger King has sold chicken nuggets shaped like Teletubbies. McDonald’s now has its own line of children’s videos starring Ronald McDonald. The Wacky Adventures of Ronald McDonald is being produced by Klasky-Csupo, the company that makes Rugrats and The Simpsons. The videos feature the McDonaldland characters and sell for $3.49. “We see this as a great opportunity,” a McDonald’s executive said in a press release, “to create a more meaningful relationship between Ronald and kids.”
All of these cross-promotions have strengthened the ties between Hollywood and the fast food industry. In the past few years, the major studios have started to recruit fast food executives. Susan Frank, a former director of national marketing for McDonald’s, later became a marketing executive at the Fox Kids Network. She now runs a new family-oriented cable network jointly owned by Hallmark Entertainment and the Jim Henson Company, creator of the Muppets. Ken Snelgrove, who for many years worked as a marketer for Burger King and McDonald’s, now works at MGM. Brad Ball, a former senior vice president of marketing at McDonald’s, is now the head of marketing for Warner Brothers. Not long after being hired, Ball told the Hollywood Reporter that there was little difference between selling films and selling hamburgers. John Cywinski, the former head of marketing at Burger King, became the head of marketing for Walt Disney’s film division in 1996, then left the job to work for McDonald’s. Forty years after Bozo’s first promotional appearance at a McDonald’s, amid all the marketing deals, giveaways, and executive swaps, America’s fast food culture has become indistinguishable from the popular culture of its children.
In May of 1996, the Walt Disney Company signed a ten-year global marketing agreement with the McDonald’s Corporation. By linking with a fast food company, a Hollywood studio typically gains anywhere from $25 million to $45 million in additional advertising for a film, often doubling its ad budget. These licensing deals are usually negotiated on a per-film basis; the 1996 agreement with Disney gave McDonald’s exclusive rights to that studio’s output of films and videos. Some industry observers thought Disney benefited more from the deal, gaining a steady source of marketing funds. According to the terms of the agreement, Disney characters could never be depicted sitting in a McDonald’s restaurant or eating any of the chain’s food. In the early 1980s, the McDonald’s Corporation had turned away offers to buy Disney; a decade later, McDonald’s executives sounded a bit defensive about having given Disney greater control over how their joint promotions would be run. “A lot of people can’t get used to the fact that two big global brands with this kind of credibility can forge this kind of working relationship,” a McDonald’s executive told a reporter. “It’s about their theme parks, their next movie, their characters, their videos… It’s bigger than a hamburger. It’s about the integration of our two brands, long-term.”
The life’s work of Walt Disney and Ray Kroc had come full-circle, uniting in perfect synergy. McDonald’s began to sell its hamburgers and french fries at Disney’s theme parks. The ethos of McDonaldland and of Disneyland, never far apart, have finally become one. Now you can buy a Happy Meal at the Happiest Place on Earth.
the brand essence
THE BEST INSIGHT INTO the thinking of fast food marketers comes from their own words. Confidential documents from a recent McDonald’s advertising campaign give a clear sense of how the restaurant chain views its customers. The McDonald’s Corporation was facing a long list of problems. “Sales are decreasing,” one memo noted. “People are telling us Burger King and Wendy’s are doing a better job of giving… better food at the best price,” another warned. Consumer research indicated that future sales in some key areas were at risk. “More customers are telling us,” an executive wrote, “that McDonald’s is a big company that just wants to sell… sell as much as it can.” An emotional connection to McDonald’s that customers had formed “as toddlers” was now eroding. The new radio and television advertising had to make people feel that McDonald’s still cared about them. It had to link the McDonald’s of today to the one people loved in the past. “The challenge of the campaign,” wrote Ray Bergold, the chain’s top marketing executive, “is to make customers believe that McDonald’s is their ‘Trusted Friend.’”
According to these documents, the marketing alliances with other brands were intended to create positive feelings about McDonald’s, making consumers associate one thing they liked with another. Ads would link the company’s french fries “to the excitement and fanaticism people feel about the NBA.” The feelings of pride inspired by the Olympics would be used in ads to help launch a new hamburger with more meat than the Big Mac. The link with the Walt Disney Company was considered by far the most important, designed to “enhance perceptions of Brand McDonald’s.” A memo sought to explain the underlying psychology behind many visits to McDonald’s: parents took their children to McDonald’s because they “want the kids to love them… it makes them feel like a good parent.” Purchasing something from Disney was the “ultimate” way to make kids happy, but it was too expensive to do every day. The advertising needed to capitalize on these feelings, letting parents know that “ONLY McDonald’s MAKES IT EASY TO GET A BIT OF DISNEY MAGIC.” The ads aimed at “minivan parents” would carry an unspoken message about taking your children to McDonald’s: “It’s an easy way to feel like a good parent.”
The fundamental goal of the “My McDonald’s” campaign that stemmed from these proposals was to make a customer feel that McDonald’s “cares about me” and “knows about me.” A corporate memo introducing the campaign explained: “The essence McDonald’s is embracing is ‘Trusted Friend’… ‘Trusted Friend’ captures all the goodwill and the unique emotional connection customers have with the McDonald’s experience… [Our goal is to make] customers believe McDonald’s is their ‘Trusted Friend’ Note: this should be done without using the words ‘Trusted Friend’… Every commercial [should be] honest… Every message will be in good taste and feel like it comes from a trusted friend.” The words “trusted friend” were never to be mentioned in the ads because doing so might prematurely “wear out a brand essence” that could prove valuable in the future for use among different national, ethnic, and age groups. Despite McDonald’s faith in its trusted friends, the opening page of this memo said in bold red letters: “ANY UNAUTHORIZED USE OR COPYING OF THIS MATERIAL MAY LEAD TO CIVIL OR CRIMINAL PROSECUTION.”