Advertiser Segment: Moroch / McDonald’s

fiercely independent

created and builtto service McDonald’sCo-ops

2

McDonald’s Co-op Set-up

MSADMA

we’re built differently

MOROCH

4

WE CREATE BRAND EXPERIENCES THATHAVE AN IMMEDIATE, DEMONSTRABLEAND ENDURING IMPACT ON YOUR BUSINESS

MOROCH

5

WE ARE RULED BY CONSUMERSWE PARTNER WITH BRANDS

MOROCH

6

Consumers are…

• Driving without a spare• Not out of the recession• Ethnically diverse… So authenticity and

relevance are paramount in talking to “her” and young adults

• Consuming more media in more places/ways

2012 is about …

taste variety value

fresh/healthy shareable portions customer experience

MOROCH

McDonald’s meets the needs of their lifestyles

8

2012 Priorities

• McDonald’s Makes My Mornings

• Beverages Anytime

• Lunch Everyone

Multi-media approach

85%85%

71%

GRPs

Power Brand60%- 65% Weekly Reach

Dominate85%- 90%WeeklyReach

Power Breakfast60-65% Weekly Reach

Local Communication Goals

Media Platform Landscape in 2011

Daypart Usage of Emerging Media

VISUAL TBD

2012 Media Mix

• Evolvement of TV / Radio GRPs

• Video consists of TV, Cable, Online Video, Cinema

• Audio consists of Terrestrial Radio and Internet Radio

• Digital consists of display, rich media, mobile, gaming

2012 Local Media Priorities

Priority 1: Local Windows

Priority 2: Local 52-Week Breakfast Support

Priority 3: Local Support of National Windows (Radio)

Priority 4: Local Rest of Day (Secondary Messages)

Print’s Role: Houston Example

Varieties of Print Used in Our Co-Ops

• Trial (Coupons)

• Direct Mail• Inserts, coupon books, solo

• Local Newspaper• Inserts, coupon books

• Unique Newspaper Opportunities (i.e. Spadea)• Display and/or Trial

• College Newspapers

• Ethnic Newspapers / Magazines

• Parent Magazine

Houston Coop Coupon Book

Coupon book dropped in March of 2010 in conjunction with the Houston Frappe Launch

Objectives of the coupon book were

1. Drive Trial and awareness of Frappe

2. Rehit Dollar Menu at Breakfast Message

3. Sustain Angus Message

4. Support three Product Categories

• Beverages, Breakfast, and Core

1st Objective to Drive Trial and Awareness of Frappe

• Various offers that encouraged trial of product

Houston Offers saw Redemption on “FREE 12 oz Frappé” was approximately 6%

Offer

Frappe (redemptiond dates: 3/22-4/11)One FREE Small Frappé BOGO Medium Frappé

FREE Small Frappé with purchase of Regular Menu sandwich*

FREE Small Frappé with purchase of Regular Breakfast sandwich*

BOGO any Medium McCafé Beverage

FREE Dollar Menu Item with the purchase of any Frappe

0

100

200

300

400

500

600

700

URW Frappe - Houston

Sold HOUSTON, TX.

Promo HOUSTON, TX.

During coupon promo period, Frappe “Units Sold” increased

4 week totals:Sold: 1,785Promo: 875

2nd Objective: Rehit Dollar Menu at Breakfast and drive Value

Mornings (redemption dates: 4/12-5/9)

FREE Any $1 Menu at Breakfast item

BOGO any Breakfast Sandwich FREE Small Premium Roast Coffee or Small OJ with any Breakfast Platter purchase

BOGO any Medium McCafé Beverage FREE Small Hot Chocolate or Small McCafé Beverage with any Breakfast Sandwich purchase*

Coupons helped drive the business…

Redemption for “FREE $1 Menu Item”: 1.8%Increase in AWU (Pre vs Post): +2.5%

Redemption for “BOGO Breakfast Sandwich”: 1.4%Increase in AWU (Pre vs Post): +2.1%

3rd Objective: Sustain Angus Message and Drive the Business…

Core And (redemption dates: 5/10-5/30)FREE Small French Fries (no purchase required) BOGO any Snack Wrap

FREE medium fries and medium drink with the purchase of an Angus Burger FREE medium fries and medium drink with the purchase of Premium Chicken Sandwich FREE Happy Meal with purchase of a Salad

3rd Objective Results: Coupons helped drive the business

Redemption for “FREE Small Fry (“no purchase necessary”) 1.8%

Increase in AWU (Pre vs Post): +2.5%

Observations

• Not much focus on “how” the coupon was delivered

• Most important conversations were

• How it drove the business

• How it “sustained” key products that weren’t necessarily supported by broadcast/digital

Print Factors and Recommendation

Factors Influencing Print

• Historical Personality of Co-op, and specifically their philosophy on “discounting”

• Geography of Co-op• Timing • The ingrained beliefs of the media person• National “Trial”

• Approaches vary between FSI, Supplemental Magazines, Digital Couponing and Store Generated offers

• Competition

Factors in Building a Recommendation

• Understanding the market as it relates to our brand

• Equitability of coverage

• Understanding the local challenges and calendar

• What are the goals? How does it fit with Mornings, Lunch, Beverage?

• Opportunities beyond being a mass marketer

• Key demographics

• Less about what we are doing and more about does Trial fit the overall objective

Questions