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In-Country Study, SPAIN MAJOR
This form should be filled in, saved and attached at the front of each electronically submitted ICS
assessment task. An Electronic Copy is available on the ICS Spain Major UTSOnline site under
‘Assignments’.
UTS: INTERNATIONAL STUDIES
ASSIGNMENT COVER SHEET
Student Name: Tolgay Ilbay Student Number: 11036199
Student Contact Email: Tolgay.Ilbay@student.uts.edu.au
Student Contact Number: +34633868628
Lecturer/Tutor’s Name: Aleksandra Hadzelek
Due Date: 11/03/13 Word Count: 6494
Date Submitted: 10/03/13
Assessment Type: Assignment 3: Research Project
e.g. Cultural Report: First Impressions
Assignment Title: McDonalds? Does it accommodate the financial need of Spanish
Consumers during the economic crisis?
I confirm that:
This assignment is my own work, I have a copy of this assignment; and, I am aware of the
penalties for lateness and plagiarism.
Ethics of research: Checklist
In my research I have appropriately:
Identified myself as a researcher from UTS
Considered the issue of privacy for participants
Considered any potential risks for participants
Considered any potential risks for myself as the researcher
Considered issues of confidentiality of information
Provided information to participants so they are informed of the purpose of the research.
Signed:
Tolgay Ilbay
1
Table of Contents
1. Table of Figures
……………………………………………………………………………………………….……..2
2. Introduction
………………………………………………………………………………………………...........3
2. Literature Review
……………………………………………………………………………………………………...3
3. Methodology
……………………………………………………………………………………………………...6
4. Method
……………………………………………………………………………………………………...8
5. Results & Discussion
……………………………………………………………………………………………………...8
A) Visual Analysis
……………………………………………………………………………………………………...8
B) Survey
……………………………………………………………………………………………….........14
7. Conclusion
………………………………………………………………………………………………….…20
8. Reference List
………………………………………………………………………………………………….…22
8. Appendix
……………………………………………………………………………………………….……23
2
Table of Figures
1.0 Percentage of participants believing McDonalds is expensive or not ........................13
2.0 Frequency of participants using discount coupons .....................................................14
3.0 Most important factor in purchasing McDonald’s products .......................................15
4.0 Percentage of participants believing McDonald’s advertisements use elements of
Spanish life to sell products ..............................................................................................16
5.0 Percentage of participants believing McDonald’s advertisements portray themes in
relation to the economic crisis to attract customers ..........................................................17
6.0 Percentage of participants believing McDonalds has produced more products since
the economic crisis ............................................................................................................19
3
McDonalds? Does it Accommodate the Financial Need of Spanish Consumers
During the Economic Crisis?
Introduction
Time is money! We have heard this cliché many times. However who would have
thought that such a short statement could predicate irony for McDonalds when one takes
into consideration it selling its products and contrasting this operation with Spain’s
economic crisis affecting its consumer behaviour. On the one side we have a
multinational corporation, McDonalds who would not was time in making money and on
the other, the Spanish population which becoming more reluctant to spend as they face
serious problems with unemployment, debt and the fall of the industry. One would expect
that the last thing any Spaniard would want to do is to consume food outside the
household and opt to save money by purchasing cheaper alternatives from the local
grocery store. Despite this, McDonalds still continues to operate its restaurants
throughout Spain, but does this mean that McDonalds is losing profits from one sector of
its global expansion, or is the corporation taking initiatives to sustain or boost its
operations. Therefore I devote all this attention to whether McDonalds accommodates the
financial need of Spanish consumers during the economic crisis? If yes how? If no what
are the effects of a Spanish economic crisis on McDonalds?
Literature Review
Spain’s long haul to economic recovery threatens the way its consumers are spending
money. This appears to be the argument for Agriculture & Agri-Food Canada (2011)
whose foodservice profile focuses Spain’s negative growth rate in 2011. The agricultural
department argues that the economic crisis has limited the performance of consumer
foodservices, with sales declining lower than the previous year. The profile induces that
those who were once worried about the possibility of losing their jobs are reducing the
number of visits to consumer foodservice outlets by shifting their consumption from on-
trade channels to off-trad channels. In other words, Agriculture & Agri-Food Canada
(2011) believes that there is a consensus of Spaniards changing their behaviour along
with the economic crisis. Rosales & Perez (2011), in their respect view this change in
consumer behaviour as to be normal and demonstrate this point by claiming that since the
recent global recession, Spanish people have looked for alternative to spend less money
on food. In other words, when an economic situation changes a consumer’s self-
confidence level is no longer the same. Bearden et al. (2001) define this concept as the
extent to which a consumer feels capable and assured with respect to his or her
marketplace decision and behaviours. If an economic environment exacerbates then a
consumer’s self-confidence will also be affected. Hence, the effect of an economic crisis
4
on consumer behaviour is not just economical but also psychological. Nistorescu & Puiu
(2009) justify this psychological effect by elaborating that people become more money
minded during a financial crisis. For example consumers try not to spend money on
premium products anymore by focusing on necessities, switching to cheaper brands and
having a more rational view on promotion. Therefore, consumers start to compare
different products taking into consideration price rather than quality. Other authors such
as Mansoor & Jalal (2011) refer to this type of consumer behaviour as being tuned into a
process of extensive decision-making. Why do consumers all of a sudden switch into a
process of extensive decision-making in which Mansoor & Jalal (2011) describe?
According to Amalia & Jonut (2009) the media is a key instigator in decreasing the
purchase power of the consumer. In their view, these authors blame the media as being
responsible for downsizing consumer expenditure by publishing articles that detail the
effects of an economic crisis. In other words, the authors suggest an extreme
psychological pressure is exerted on consumers to cause hesitation when it comes to
making decisions. This psychological pressure by itself is why Agriculture & Agri-Food
(2011) believes that many Spaniards are cutting back on spending outside the household,
with a significant impact on impulse consumption; leaving behind a popular pastime of
dining out and socialising to only when there are special offers, promotions, sales and
discounts. Hence, with the media in the picture there is no doubt why Agriculture &
Agri-Food (2013) also argues that now major foodservice players are incorporating new
strategies in order to support sales. Despite not going into detail about what types of
strategies exist, Agriculture & Agri-Food Canada (2013) makes it clear to the reader that
there is an endless possibility of strategies by giving examples such as the rotation of
menus, the launching of promotion and sales.
Furthermore, Agriculture & Agri-Food Canada (2011) does not only portray the
economic crisis as a significant challenge for consumers to spend, but simultaneously
pays a dividend for major foodservice managers realizing their importance is degrading.
One of these major foodservice outlets is McDonalds, who according to Agriculture &
Agri-Food Canada (2011) along with TelePizza, Burger King & Heineken concentrate
thirty percent of the total number of chained outlets in Spain. However these major
foodservice outlets and other in the competitive running expect sales to decline as during
the first years of the forecast period Spaniards continue to be reluctant in regards to
spending significant amounts of money consuming outside the household. Additionally, a
justification for why these major foodservice outlets are affected by the economic crisis
does not fall short for the attention by Agriculture & Agri-Food Canada (2013) as they
bridge on from the failure of houses sold during the construction boom as to be the key
5
factor for major foodservice outlets not being required. During the construction boom, a
number of new houses were built with many foodservice outlets believing that these new
areas would attract business. However, the construction boom failed and these new
foodservice outlets fell short of consumer demand. There was no choice but for these
major foodservice outlets to head back to city centres with new cheaper locations
becoming available. Therefore, consumer foodservice sales are expected to decline and
the loser in this new shift to these cheaper options will be full-service restaurants, which
demand higher prices. What is McDonalds doing to keep itself out of hot water during the
Spanish economic crisis? Considering that McDonalds has proven to be an overpowering
model with its fast food becoming a sign that, among other things, ‘one is in tune with the
contemporary lifestyle’ (Ritzer 2011, p. 14). The answer must lie overall within
McDonald’s four fascinating dimensions that contribute to its global success. These
dimensions are described by Ritzer (2011) as to be efficiency, calculability,
predictability, and control which McDonalds offers to its customers. How is McDonalds
applying these four principles in Spain during a time of economic crisis?
First it would be wise to understand what each principle means in order to evaluate
whether McDonalds in Spain accommodates the financial need of Spanish consumers.
The first principle of McDonald’s success is efficiency, or as Ritzer (2011, p. 14)
describes ‘the optimum method for getting from one point to another’. For consumers,
McDonalds offers the quickest way to get from being hungry to being full (Ritzer, 2011).
How does McDonalds convince Spanish consumers that its products are efficient when
they are reluctant to spend? The second is calculability in which Ritzer (2011, p. 14)
refers to as the quantitative characteristic of a product sold such as the ‘portion, size and
cost offered’. Here Ritzer (2011) exemplifies the second principle by the prioritising
society’s appeal of bigger and better for a small price and a small amount of time in
which the product is made. In other words, time is money for McDonalds but how does it
cope with the pressure of Spaniards rationalizing food expenditure outside their homes?
Next, McDonalds offers predictability, the promise that products and services will remain
constant over time and in all locales (Ritzer 2011). For example the Egg McMuffin in
New York will be, ‘for all intents and purposes, identical to those in Chicago and Los
Angeles’ (Ritzer 2011). Customers take great comfort in knowing that McDonalds offers
no surprises. Therefore, the success of McDonald’s model suggests that many people
come to prefer a world in which there are few surprises. Does McDonalds offer more
surprises to a lower spending Spanish consumer population? Last but not least,
McDonalds exerts control over people who enter the world of McDonalds. Lines, limited
menus, few options, uncomfortable seats and drive-throughs all direct consumers to do
what exactly what management wishes them to do; eat quickly and leave. In a country
6
like Spain where people have become use to not rushing when eating what does
McDonalds do?
The answers to these questions do not lie within the current available literature as
Agriculture & Agri-Food Canada (2011, 2013), Rosales & Perez (2011), Bearden et al.
(2001), and etc only provides the reader with the effects of an economic crisis on
consumer behaviour and Ritzer (2011) informs the dimensions that McDonalds has used
to achieve its global success. The answers to these questions lie within the purpose of this
research how does McDonalds adjust its four principles, in particular its calculability of
its prices to accommodate the financial need of Spanish consumers?
Methodology
One of the methodologies employed by this study is a survey. According to Ross (1974) a
survey can be distributed widely without considerable expense, thereby reaching a larger
number of respondents than would be possible through an interview. In this survey study
the intended target of 50 participants will be reached by an online data distribution and
collection, making the survey easily available for its intended participants. Although a
survey study can result in a participant not providing honest answers, providing bias, or
the fact that a customized survey can run the risk of containing certain errors. The
researcher will avoid these shortcomings by constructive questioning that will make the
participants interested in what is being exposed. Not only will this allow the participants
to do the survey with all attention given but will also allow the researcher to obtain
specific information in order to answer the research questions. Additionally the
quantitative data obtained from the survey study, will allow statistical data to be
displayed in tables and graphs to ease the researcher’s ability to evaluate, discuss and
make conclusions about the results (Thomas, 1999). The survey study will be delegated
to participants who will be selected randomly and not discriminated by age, sex or
economic status in order to gather insights from different categories of the Spanish
population. For example the results of those who consume or not consume will become
useful in determining whether McDonalds accommodates the financial need of Spanish
consumers during the economic crisis. The survey itself will be constructed in Spanish
considering the lack of English speakers in Spain and thus, poses a challenge for the
researcher if the participants of the study do not understand the researcher’s level of
Spanish. Also the researcher faces a challenge against time, as the number of surveys
completed will determine how broad or narrow the discussion and conclusion will be. In
order to avoid mishaps during the survey participation, the researcher will propose a draft
survey with the question written in Spanish to be checked by an individual who has a
high qualification of Spanish language. Additionally the survey will be piloted to a few
7
participants in order to ensure the responses are up to the standard of the researcher’s
expectations.
The other methodology employed by this study is a visual analysis of McDonald’s media
advertisements whether it maybe television, internet, newspaper or magazines
advertisements. Ross (2001) ascertains that a visual analysis is the primary element of art
writing, the sources that can be analysed vary such as art magazines, scholarly books, and
undergraduate research papers. The visual analysis of McDonald’s media advertisements
will take in the careful considerations that Ross (2001) explains such as the first approach
at the object of visual analysis. Therefore, the researcher in this study will take plenty of
time to note down all the visual details of its form that can be seen. Followed by these
careful notations, the researchers will grasp a sense of the object or work’s organization
to crystallize the visual analysis into a thesis in order to avoid subjectivity which can be a
limitation for this chosen methodology. The purpose of a visual analysis in this study is to
recognize and understand the visual choices that McDonalds utilizes in its advertisements
to discuss how, why and what is McDonalds trying to attract Spanish customers into their
restaurants considering that the population has become reluctant in spending money
outside home. In order to construct a good visual analysis Lister & Wells (2001)
prioritizes the choice of language used to convey the reader that the researcher has
analysed the object of analysis rather than just a description. Therefore the visual analysis
in this study will formulate an explanation of how the descriptions relate to other parts of
the work, and link it with the research questions. Writing a visual analysis is to some
extent a technical activity, but it is also a reflective and subjective piece of work where
personal retorts are essential (Lister & Wells, 2001). Therefore, the visual analysis in this
study will integrate descriptive language of formal observation with phrases which are
speculative.
For the structure of this study, the researcher will firstly conduct the visual analysis study
as it will assist in the construction of better survey questions as he may discover elements
of McDonald’s strategies to attract customers via its media advertisements. Thus, the
researcher will be able to apply these analysed elements to question the participants of the
survey whether they feel susceptible to these types of marketing strategies or not.
8
Method
1. Construct a visual analysis on Spanish McDonalds advertisements.
2. Use findings from visual analysis to construct survey questions for participants.
3. Pilot the survey.
4. Adjust changes if required.
5. Delegate the survey to 50 Spanish participants.
6. Obtain survey results; organize data into table, graphs and charts.
7. Form discussion and conclusion.
Results & Discussion
A) Visual Analysis of Spanish McDonalds Advertisements
1x1 Plus Television Advertisement (http://www.youtube.com/watch?v=hS4axhSHIZ0)
Thirst comes first! McDonald’s new 1x1 plus television advertisement conforms to the
Spanish pastime of drinking in order to attract customers to consume its other products.
McDonalds cunningly intends to sell a variety of products starting from one euro by
persuading the Spanish population that McDonalds adapts to the Spanish culture of
drinking.
In a country where drinking is almost a daily routine McDonalds focuses on promoting
its drinks for one euro to make the viewer believe that its other products in this promotion
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9
are also for one euro. However, in a similar fashion to an exclusion clause the
promotional advertisement warns the Spanish population that the small drinks are for one
euro and at the end of the advertisement McDonalds only guarantees that the new Swiss
cheeseburger is also for one euro. Despite this, McDonalds is able to camouflage all of
this through it choice of camera technique, screenplay and narration.
Firstly McDonald’s camera technique of directing from an overhead shot prevents the
viewer from seeing the size of the drinks and leads to the assumption that all drinks are
for one euro when the reality of the promotion depends on the size and type of beverage
(beer, water or soft-drink). At the same time through McDonald’s screenplay and
narration it is able to associate itself with Spanish scenarios to convince the audience that
McDonalds knows what the viewer wants. For example in the first and second fragments
of the advertisement McDonalds associates its products with the ritual of Spanish party
goers. A well dressed male holds a cup of coffee while his head rests on the table with a
donut on his tray. Here McDonalds narrates “here is one of those who dreams during the
day” to imply that after a night out McDonalds is the place to be where Spaniards can
find the right coffee accompanied by a complimentary breakfast pastry. In less than a
fraction of a second, this well dressed male then is portrayed with a group of friends
holding beers and having a meal before heading out to party. Here McDonalds narrates
“and here are those who live during the night” to imply that McDonalds is convenient for
the Spanish pre-ritual of going out. McDonalds furthermore associates itself with Spanish
scenarios throughout the remainder of the advertisement with concepts such as drinking
to socialize, snacking during siesta breaks and taking loved ones out.
McDonalds skilfully employs real life Spanish scenarios to market its products in a time
of economic difficulty in order to sustain its operations. The use of one euro drinks which
barely costs McDonalds any money to produce are the underlying attraction of this
promotion along with the new Swiss cheeseburger which McDonalds claims to be Swiss,
but is actually made from 100% Spanish beef. However McDonalds chooses to associate
the cheeseburger with Swiss origins by portraying a Swiss flag next to the burger in the
advertisement to create excitement for the Spanish population.
Nuevo Menù4u (http://www.youtube.com/watch?v=KpemCXJoNOw)
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“The economic crisis hits us hard” is the message under which McDonalds promotes its
Nuevo Menù4u. McDonalds portrays the reality of the economic crisis in Spain when its
actors create a scenario that results in a disappointed face when a young male receives a
gift from his grandmother on his birthday.
In the scenario a young male expects to receive a descent gift from his grandmother as his
mother says “grandmother wants to give you your present”. Before he receives his gift
from his grandmother she says “take it grandson, so you can meet with your girlfriend
and invite her to dinner”. The grandmother presents him with an envelope which leaves
him with a disappointed face as he realizes there is only small change. It is here where
McDonalds introduces itself with a funky tune to change around the disappointing
scenario by promoting an offer of 4 products for only 3.90 euro. The deal consists of two
burgers, one French fries and a glass of Coca-Cola with no indication of size and type of
burgers included. However this information can later be found on the McDonalds website
showing a selection from 4 burgers, small French fries and medium size drink.
McDonalds then follows up by giving a reason for its deal saying “so you can meet up
with whoever you like” and ends with the young male and his girlfriend excited in front
of McDonalds ready to take advantage of this offer.
McDonalds intelligently plays around with the emotions of a Spanish population by
choosing to portray a disappointing scenario that many Spaniards know is due to the
economic crisis. McDonalds makes no indication of this but choose to portray the
scenario as it realizes the economic situation can be an opportunity to take advantage of
when selling its products at a price that seems to be less than one euro for each product.
Whether this offer accommodates the financial need of a Spanish population is beyond
doubt.
El Nuevo McMenù Del Día (http://www.youtube.com/watch?v=nQ6c_s5-msE)
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11
“Siesta is an important daily routine for the Spanish population” is the concept under
which McDonalds promotes its McMenù Del Dia. McDonalds once again portrays itself
acknowledging the Spanish lifestyle by promoting an offer that is similar to what many
typical Spanish restaurants offer as the Menu of the day.
In this promotional advertisement McDonalds chooses to set its introduction in a busy
office environment along with a catchy joyful tune for its Menu of the day deals.
McDonalds creates anticlimax in its advertisement by wondering around the office
through a self-energized scrunched-up piece of paper which one employee throws. This
scrunched-up piece of paper travels around the office catching the attention of
employees, directors and bosses, and not long after terminates at the table of an intended
working colleague. As the intended colleague opens the paper realizing it says “let’s go?”
McDonalds begins its narration to say “enjoy McDonald’s classic menus at a very special
price of 4.90 euro”. Here McDonalds creates an offer which portrays the working
colleague seduced and left with a smile on her face when the entire office jumps out of
their seats for lunch break or what is commonly referred to as siesta. Furthermore,
McDonalds indicates later through a sliding panel of different menus that there is a
different menu for each day of the week and only makes reference to Wednesday’s
McMenu BigMac for 4.90 euro. Here McDonalds creates days for selling certain types of
menus for a purpose that one could believe as an attempt to distinguish which variation
attracts customers the most.
McDonalds invites tactically the Spanish population not only those who just work in an
office environment but also others with lunch breaks to take advantage of these different
menu variations each day of the week. Instead of spending more than the standard price
for a menu of the day at a typical Spanish restaurant, McDonalds offers a price of 4.90
euro for a medium size meal during a time of economic difficulty to attract customers
into their restaurants. In addition, at the end of the advertisement where McDonalds
focuses its attention to remind the Spanish population of its products that start from one
euro confronts the economic situation and the challenge it poses on McDonald’s
operation of sustaining profits.
12
Cupones de Descuento
(http://cdn.mcdonalds.es/sites/default/files/cupones/2014/web/nuevo-W.pdf)
McDonald’s coupon discounts have a tendency to use a greater portion of food for a price
it believes is fair for its consumers. In 7 of its coupon discounts McDonalds offers more
than one product for a price that supposedly is categorised as a discount.
At first McDonald’s coupon discounts appear just like any other coupons thanks to its
choice of colour, assemblage of images and visual information. However, a closer look at
McDonald’s coupon pricings reveals confusion through mathematical assumption.
Firstly, McDonalds values its Happy Meal from the following equation:
 2 McMenù Medianos + Happy Meal = 11.90 euro
 2 McMenù Medianos = 9.90 euro
 Therefore Happy Meal = 11.90 – 9.90 = 2.00 euro
Secondly, McDonalds values its McMenù Mediano from the following equation:
 McMenù Mediano + Happy Meal = 8.50 euro
 McMenù Mediano + 2.00 euro = 8.50 euro
 Therefore McMenù Mediano = 8.50 – 2.00 = 6.50 euro
However, McDonalds values its McMenù Mediano for another price from the following
equation:
 2 McMenù Medianos + Happy Meal = 11.90 euro
13
 McMenù Mediano + Happy Meal = 8.50 euro
 Therefore McMenù Mediano = 11.90 – 8.50 = 3.40 euro
McDonalds causes confusion from the valuation of its McMenù Mediano (6.50 vs. 3.40)
and uses the difference in price of these two values assessed in the McMenù + Happy
Meal offer in order to add to its lower valuation of a McMenù Mediano in its other others
packages. For example:
McMenù+ Happy Meal
 (6.50) + 2.00 euro = 8.50 euro
 (3.40) + 2.00 euro = 5.40 euro
2 McMenùMedianos
 2(3.40) = 6.80 euro
 6.80 + 3.10 = 9.90 euro (price on coupon)
2 McMenùMedianos + Happy Meal
 2(3.40) + 2.00 = 8.80 euro
 8.80 + 3.10 = 11.90 euro (price on coupon)
McDonalds causes confusion for the Spanish consumer when deciding which discount is
more economical. During a period of economic difficulty McDonalds seduces the
consumer with a greater portion of food for prices that consumers will believer are fair.
However through mathematical theory the only discount coupons that seem to be fair are
those portrayed without a menu package.
Difference of 3.10 euro
14
B) Survey
Figure 1.0 Percentage of participants believing McDonalds is expensive or not
When the survey participants were asked how often they consumed McDonalds and
whether they thought McDonalds was expensive, 60% agreed that McDonalds is
expensive. The underlying purpose was to assess whether the consumption of McDonalds
was dependent exclusively on price. In this category, 83% indicate monthly consumption
and the remaining 17% show no consumption of McDonalds. This group’s 83% monthly
consumption rate suggests that consumption of McDonald for these consumers is
dependent on price. The other 40% of survey participants who find McDonalds not to be
expensive indicate 25% respectively for weekly, monthly, yearly and no consumption
rates. This group’s 25% weekly, monthly, yearly and no consumption rates suggests that
the consumption of McDonalds is dependent on a factor that is later discussed.
Regardless of finding McDonalds expensive or not, the survey participants indicate a
very low week consumption of McDonalds. This low consumption of McDonalds draws
attention to Nistorescu & Puiu’s (2009) reason behind people becoming more money
minded during a financial crisis. These authors claim that consumers try not to spend
money on products that they believe are not necessary. In this case, for Spanish
consumers who find McDonalds not expensive and show infrequent consumption rates
bring up the articulation that McDonalds is not a necessity. Likewise, for Spanish
consumers who find McDonalds expensive and show frequent monthly consumption
rates bring up the articulation that McDonald’s prices convey the idea of it not being a
necessity for them. Necessity is the factor which Spanish consumers rely on when
making decisions about their consumption. Furthermore, necessity supports Agriculture
60
40
Percentageof participants believing
McDonalds is expensiveor not
Expensive
Not Expensive
15
& Agri-Food Canada’s (2011) belief of Spaniards cutting back on spending outside the
household, leaving the desire to eat products such as McDonalds when there are
promotions and discounts.
Figure 2.0 Frequency of participants using discount coupons
In response to the question how often they used discount coupons? It is surprising that
their consumption of McDonalds was favoured when there were only discounts.
According to the survey data, 50% use and 50% do not use discount coupons. Of those
who use discount coupons, 80% are monthly consumers who claim McDonalds is
expensive and the remaining 20% are monthly users who claim is not expensive.
Regardless of claiming McDonalds is expensive or not, this data shows that during a
financial crisis Spanish consumers tend to make their purchases as cheap as they can.
This finding suggests that the purchase of McDonald’s products is made when prices are
reduced. In other words, McDonald provides discount coupons to Spanish consumers to
maintain a consistency of customers. However, of the 50% who do not use discount
coupons, 40% indicate not to consume McDonalds yearly or never eat its products. On
the other hand, the remaining 60% consume McDonalds weekly or monthly and they do
not reduce their purchases. Perhaps, these consumers support the results of the visual
analysis that was executed on McDonald’s discount coupons and articulate that
McDonalds seduces its customers with a greater portion of food for prices, thus giving an
indication their prices are fair.
20
10
20
50
Frequency of participants using discount
coupons
Every time they are
available
Sometimes
From time to time
Never
16
Figure 3.0 Most important factor in purchasing McDonald’s products
When survey participants were asked which factor was the most important in making
them purchase McDonald’s products, 40% responded with portion & size for price. The
reason why McDonald’s choose to portray a greater portion of food for a price that seems
low is to create a consistency of impulse purchase made. Discount coupons are not the
only way McDonalds uses this scheme; thanks to the visual analysis of McDonald’s
advertisements camera techniques are also employed for portraying products larger than
they are to create an illusion. Evidence for this effective scheme is brought to light by the
survey results when 40% of those who marked portion & size for price came from 75%
of those who use discount coupons monthly.
Figure 4.0 Percentage of participants believing McDonald’s advertisements use elements of Spanish
life to sell products
When survey participants were asked if they thought McDonald’s advertisements used
elements of Spanish life to sell products the survey came to an even verdict of 50% said
0
40
30
30
Most important factor in purchasing
McDonald's products (%)
Portion & Size
Portion & Size for Price
Price
Other
50%50%
Does McDonald's advertisements use elements of
Spanishlife tosell its products?
Yes
No
17
yes and no. The purpose of this question was to assess whether participants were aware of
what the visual analysis of McDonald’s advertisements had brought up. The visual
analysis indicated in some advertisements McDonalds employed real life Spanish
scenarios to market its products. For example the promotion of one euro drinks in a
country where drinking is almost a daily routine was used to conform to the Spanish
pastime of drinking in order to make viewers believe that its other products were also for
one euro. In its other advertisements McDonalds employed elements of Spanish lifestyle
that appear to camouflage under what some participants believe to be an international
level of promoting. The following are two responses from participants who a little more
than just a yes or no response to when they were asked if they thought McDonald’s
advertisements use elements of Spanish life to sell its products:
“Mm yo creo que no, parece que todo lo que promociona es todo más o menos igual a
nivel internacional”
“I believe no, it seems that everything that it promotes is more or less equal to the
international level”
“Si, creo que a fin de atraer a los consumidores espanoles McDonalds usa
caracertisticas de la vida Espanola aunque intenta esconderlo por incluir apsectos
contemporaneous que pueden ser econtrados en otros anuncios de paises diferentes”
Translation: “Yes, I believe to attract Spanish consumers McDonalds uses characteristics
of Spanish life although it tries to hide it by including contemporary aspects that can be
found in other advertisements from different countries”
Despite the fact that these two responses contradict each other by yes and no, both do
contain crucial information that helps to discuss the findings of the visual analysis. For
example, McDonald’s new menu of the day advertisement justifies the opinions of both
participants. In this advertisement McDonalds targets mainly the work environment by
offering deals for when workers are off to lunch. This advertisement can be understood as
something that happens normally everywhere around the world and at the same time can
be understood as something that is targeted towards Spaniards. The use of the words
menu of the day in the advertisement indicates that McDonalds is associating itself with
the Spanish customs of siesta. Therefore, it is not surprising that the participants of this
survey displayed similar percentages when they were asked if McDonald’s used elements
of Spanish life in its advertisements.
18
Figure 5.0 Percentage of participants believing McDonald’s advertisements portray themes in
relation to the economic crisis to attract consumers.
When survey participants were asked if they thought McDonald’s advertisements used
themes related to the economic crisis in order to attract consumers, an equal number of
responses was noted. The survey data indicates 40% do believe and do not believe that
McDonalds uses themes associated with the economic crisis. On the other hand, 20% of
the survey participants are unsure whether McDonalds uses themes related to the
economic crisis. Despite sharing similar results from the participants, some did present
really good responses that will allow discussion whether McDonalds does use themes
related to the economic crisis to attract consumers:
“Si, ofrecen ofertas tentadoras dirigidas especialmente hacia el sector de la población
socioeconómico más desfavorecidas”
Translation: “Yes, they offer tempting offers directed especially towards the sector of socio-
economically disadvantaged”
“No, su política publicitaria son precios bajos tanto antes como durante la crisis”
Translation: “No, its advertising policy is both low during and before the crisis”
40%
40%
20%
Does McDonald's advertisements portray themes in
relationtothe economic crisis toattractSpanish
consumers?
Yes
No
Unsure
19
“Pues, si por ejemplo las ofertas que comenté con anterioridad, intentar hacernos creer que
por pagar menos y estar en crisis eso va a ser más saludable y de mejor calidad y no es así
en absoluto”
Translation: “Well, yes for example the offers that I commented with before, try to make us
believe that by paying less and being in a crisis that it is going to be healthier, better quality
but it’s not like this at all”
“Sí, pero al mismo tiempo esos anuncios pueden retratar asuntos de que pasan en otros
países y por eso tiene más influencia en algunos sitios que los demás”
Translation: “Yes, but at the same time these advertisement can portray issue that occur in
other countries and for that it has more influence in some countries than the rest”
From these responses, it is evident that McDonald’s products are generally priced low but
during an economic crisis does McDonalds further lower its prices? According to the
visual analysis of McDonald’s advertisements its discount coupons indicate confusion for
the consumer when deciding which discount is more economical. The promotion of
discount coupons are used by McDonalds to seduce the consumer with more food for a
price that really is not fair, given that the visual analysis has found that McDonalds uses
several valuations for its menu package. If McDonalds does this for its menu packages,
then why not for its other items displayed on its coupons. Another finding from the visual
analysis is that McDonalds intelligently plays around with the emotions of Spanish
consumers by choosing to portray disappoint scenarios that many Spaniards will believe
it is because of the economic crisis. However, just like one of the participants of the
survey said this representation can be a common theme internationally but could contain
more influence in one country than the other. This is exactly what McDonald is doing in
Spain by using themes such as that seen in McDonald’s new McMenu4u where a
disappointed Spaniards was portrayed from obtaining little money for his birthday.
Furthermore, McDonalds chooses to promote low priced products such as those from the
one euro menu in order to target just like one of the participants said the socio-
economically disadvantaged population. It seems like McDonalds with promotions such
as these intends to accommodate the financial need of Spanish consumers. These are the
types of things that McDonalds can control whether they are operating in or out of a
crisis. However one thing that McDonalds cannot control in Spain is the Spanish custom
of not rushing and taking your time to eat. Given that the average time a person spends in
McDonalds is 11 minutes, the survey results reveal that Spaniards generally 20 to 30
minutes enjoying their food. The control of McDonalds wanting customers to eat quickly
20
and leave does not really apply in Spanish terms. McDonald’s predictability success was
also tested in this survey when survey participants were asked if McDonalds introduced
more products since the economic crisis.
Figure 6.0 Percentage of participants believing McDonalds has produced more products since the
economic crisis
With a staggering 50% indicating no, it seems like McDonalds cannot afford
psychologically or economically to produce more products during an economic crisis.
First of all, if more products were produced McDonalds could not take the risk if these
products would flourish. This is supported by one of the participants who claimed that
there were more products produced before the economic crisis, and during the crisis
McDonalds does not want to produce any unnecessary products. Therefore products,
advertisement, discounts or promotions that McDonalds produce are aimed at being
necessary, as the survey participants have shown that consumption is not exclusively
based on price but necessity.
Conclusion
McDonalds is an overpowering model of fast food franchising becoming a sign that,
among other things, one is in tune with contemporary lifestyle. Its four principles of
being efficient, calculable, predictable and controllable contribute to its global success.
These four principles are changeable in any economic environment in order to continue
its operations and succeed in making profits. This has been the case for the multinational
corporation during the Spanish financial crisis. Even though the size of the corpus is
limited and findings cannot be generalised, the results contribute to knowledge in the
response to the research question of this study. Results suggest that during the Spanish
financial crisis, McDonalds has not changed much from offering the typical priced
10%
50%
40%
Has McDonalds producedmore products since the
economic crisis?
Yes
No
Unsure
21
products. The only thing that McDonalds has changed is making the economic crisis
more salient using advertisement, promotions and discount coupons in order to attract
consumers to its restaurants. In short, the answer to whether McDonalds accommodates
the financial need of Spanish consumers during the economic crisis, is no, rather the
financial need of Spanish consumers during the economic crisis accommodates
McDonalds’ marketing principles to create the illusion that it does.
22
Reference List
Agriculture & Agri-Food Canada 2011, Foodservice Profile Spain, Market Analysis Report,
International Market Bureau,viewed 26th
October 2013,
<http://www.gov.mb.ca/agriculture/statistics/agri-food/spain_foodservice_en.pdf>.
Agriculture & Agri-Food Canada 2013, Foodservice Profile Spain, Market Analysis Report,
International Market Bureau,viewed 27th
October 2013,
<http://www.euromonitor.com/consumer-foodservice-in-spain/report>.
Amalia, P. & Jonut, P. 2009, ‘Consumers’ Reaction and Organizational Response in
Crisis Context’, The Journal of the Faculty of Economics,1 (5), pp. 779-782.
Bearden et al. 2001, ‘Consumer Self-Confidence’, Journal of Consumer Research,28, pp.
121-134.
Lister, M. and Wells, L. 2001, 'Seeing beyond belief: Cultural Studies as an approach to
analyzing the visual', in van Leeuwen T. and Jewitt C. (eds) Handbook of Visual
Analysis, Sage, London, pp. 61-91. Rose, G. 2001, 'Researching Visual Material', in
Visual Methodologies: An Introduction to the Interpretation of Visual Materials, Sage,
London, pp. 5-32.
Mansoor, A. & Jalal, P. 2011, ‘How Consumers Evaluate Store Brands’, The Journal of
Product and Brand Management,5 (2),pp. 19.
Nistorescu, T. & Puiu, S. 2009, ‘ Marketing Strategies Used in Crisis – Case Study’,
University Library of Munich,Munich.
Ritzer, G. 2011, The McDonaldization of Society: 6th
edition, Sage Publications Inc.,University
of Maryland.
Rosales, J. & Perez,D. 2011, ‘The 2007 Crisis and Countercyclical Policy, Studies in
Economics and Finance,27 (2), pp. 148-160.
Ross, R. 1974, 'Obtaining Original Evidence', in Research:An Introduction, Barnes & Noble,
New York, pp. 57-82. Thomas, S.J. 1999, 'Planning the Survey Project',in Designing
Surveys that Work!, Corwin Press,Thousand Oaks, CA, pp. 1-12.
23
Appendix
Soy Tolga Ilbay estudiante de intercambio procedente de la Universidad de Tecnología-
Sídney. Estudio Gestión del deporte y Ejercicio y Estudios Internacionales. Una de mis
trabajos de investigación es determinar: Si McDonalds tiene cabida para la necesidad
financiera de consumidores españoles durante la crisis económica. Vuestra colaboración
será altamente valorada.
Muchas gracias
1. Nombre/Anónimo: Marta Cuevas
2. Marca con una cruz al lado de tu grupo de edad.
 16-20:
 21-25: x
 26-30:
 30+:
3. Ciudad: Santander
4. ¿Estás empleado/a? ¿Sí o No?: No
5. Ocupación: Estudiante
6. Marca con una cruz al lado de con qué frecuencia comes en McDonalds.
 Diariamente:
 Semanalmente:
 Mensual: x
 Anualmente:
 Nunca:
7. Marca con una cruz al lado del factor más importante por hacerte comprar de
productos de McDonalds.
 Porción y Tamaño:
 Porción y Tamaño por precio:
 Precio:
 Otro, por favor declara: rapidez y horarios
24
8. ¿Crees que McDonalds es caro? ¿Sí o no?: No si lo comparamos con otros
establecimientos, pero sí lo es si comparamos la calidez-precio de los productos
que ofrecen.
9. Marca con una cruz al lado de con qué frecuencia usas los cupones de descuento
en McDonalds.
 Cada vez cuando son disponible:
 A veces:
 De vez en cuando: x
 Nunca:
10. Marca con una cruz al lado de cuánto tiempo por más o menos pasarías en los
restaurantes de McDonalds desde el momento de entrar y salir.
 10-20 minutos: x (generalmente solo voy a mcauto)
 20-30 minutos:
 30 + minutos:
11. ¿Crees que McDonalds usa de elementos de vida española en sus anuncios a fin de
vender sus productos? ¿Sí o No?: Si
12. ¿Crees que los anuncios de McDonalds retratan de temas con respecto a la crisis
económica a fin de atraer a los consumidores? ¿Sí o No?: Si, ofrecen ofertas
tentadoras dirigidas especialmente hacia el sector de la población socioeconómico
más desfavorecidas.
13. ¿Crees que McDonalds ha producido más productos en su menú desde la crisis
económica? ¿Sí o No?: No
Soy Tolga Ilbay estudiante de intercambio procedente de la Universidad de Tecnología-
Sídney. Estudio Gestión del deporte y Ejercicio y Estudios Internacionales. Una de mis
trabajos de investigación es determinar: Si McDonalds tiene cabida para la necesidad
financiera de consumidores españoles durante la crisis económica. Vuestra colaboración
será altamente valorada.
Muchas gracias
25
1. Nombre/Anónimo:
2. Marca con una cruz al lado de tu grupo de edad.
 16-20:
 21-25:
 26-30:
 30+:
3. Ciudad: Madrid
4. ¿Estás empleado/a? ¿Sí o No?: SÍ
5. Ocupación: INGENIERO INFORMÁTICO
6. Marca con una cruz al lado de con qué frecuencia comes en McDonalds.
 Diariamente:
 Semanalmente:
 Mensual: (MÁS BIEN TRIMESTRAL)
 Anualmente:
 Nunca:
7. Marca con una cruz al lado del factor más importante por hacerte comprar de
productos de McDonalds.
 Porción y Tamaño:
 Porción y Tamaño por precio:
 Precio:
 Otro, por favor declara: SABOR
8. ¿Crees que McDonalds es caro? ¿Sí o no?: SÍ
9. Marca con una cruz al lado de con qué frecuencia usas los cupones de
descuento en McDonalds.
 Cada vez cuando son disponible:
 A veces:
26
 De vez en cuando:
 Nunca:
10. Marca con una cruz al lado de cuánto tiempo por más o menos pasarías en los
restaurantes de McDonalds desde el momento de entrar y salir.
 10-20 minutos:
 20-30 minutos:
 30 + minutos:
11. ¿Crees que McDonalds usa de elementos de vida española en sus anuncios a
fin de vender sus productos? ¿Sí o No?: NO
12. ¿Crees que los anuncios de McDonalds retratan de temas con respecto a la
crisis económica a fin de atraer a los consumidores? ¿Sí o No?: NO
13. ¿Crees que McDonalds ha producido más productos en su menú desde la crisis
económica? ¿Sí o No?: NO
Soy Tolga Ilbay estudiante de intercambio procedente de la Universidad de Tecnología-
Sídney. Estudio Gestión del deporte y Ejercicio y Estudios Internacionales. Una de mis
trabajos de investigación es determinar: Si McDonalds tiene cabida para la necesidad
financiera de consumidores españoles durante la crisis económica. Vuestra colaboración
será altamente valorada.
Muchas gracias
1. Nombre/Anónimo: Alejandro
2. Marca con una cruz al lado de tu grupo de edad.
 16-20:
X 21-25:
 26-30:
 30+:
3. Ciudad: santander
27
4. ¿Estás empleado/a? ¿Sí o No?:
no
5. Ocupación: estudiante
6. Marca con una cruz al lado de con qué frecuencia comes en McDonalds.
 Diariamente:
 Semanalmente:
 Mensual:
 Anualmente:
X Nunca:
7. Marca con una cruz al lado del factor más importante por hacerte comprar de
productos de McDonalds.
 Porción y Tamaño:
 Porción y Tamaño por precio:
 Precio:
X Otro, por favor declara: su sabor y rapidez
8. ¿Crees que McDonalds es caro? ¿Sí o no?: no
9. Marca con una cruz al lado de con qué frecuencia usas los cupones de descuento
en McDonalds.
 Cada vez cuando son disponible:
 A veces:
X De vez en cuando:
 Nunca:
10. Marca con una cruz al lado de cuánto tiempo por más o menos pasarías en los
restaurantes de McDonalds desde el momento de entrar y salir.
X 10-20 minutos:
 20-30 minutos:
 30 + minutos:
11. ¿Crees que McDonalds usa de elementos de vida española en sus anuncios a fin de
vender sus productos? ¿Sí o No?: si
28
12. ¿Crees que los anuncios de McDonalds retratan de temas con respecto a la crisis
económica a fin de atraer a los consumidores? ¿Sí o No?: no
13. ¿Crees que McDonalds ha producido más productos en su menú desde la crisis
económica? ¿Sí o No?: no me he fijado
Soy Tolga Ilbay estudiante de intercambio procedente de la Universidad de Tecnología-
Sídney. Estudio Gestión del deporte y Ejercicio y Estudios Internacionales. Una de mis
trabajos de investigación es determinar: Si McDonalds tiene cabida para la necesidad
financiera de consumidores españoles durante la crisis económica. Vuestra colaboración
será altamente valorada.
Muchas gracias
1. Nombre/Anónimo: María Mantecón Del Hoyo
2. Marca con una cruz al lado de tu grupo de edad.
 16-20:
 21-25: X
 26-30:
 30+:
3. Ciudad: Barcelona
4. ¿Estás empleado/a? ¿Sí o No?: No
5. Ocupación: Estudiante
6. Marca con una cruz al lado de con qué frecuencia comes en McDonalds.
 Diariamente:
 Semanalmente:
 Mensual: X
 Anualmente:
 Nunca:
29
7. Marca con una cruz al lado del factor más importante por hacerte comprar de
productos de McDonalds.
 Porción y Tamaño:
 Porción y Tamaño por precio: X
 Precio:
 Otro, por favor declara:
8. ¿Crees que McDonalds es caro? ¿Sí o no?: Si
9. Marca con una cruz al lado de con qué frecuencia usas los cupones de descuento
en McDonalds.
 Cada vez cuando son disponible: X
 A veces:
 De vez en cuando:
 Nunca:
10. Marca con una cruz al lado de cuánto tiempo por más o menos pasarías en los
restaurantes de McDonalds desde el momento de entrar y salir.
 10-20 minutos:
 20-30 minutos: X
 30 + minutos:
11. ¿Crees que McDonalds usa de elementos de vida española en sus anuncios a fin de
vender sus productos? ¿Sí o No?: Pues no, los anuncios intentan retratar a los
españoles de un mundo contemporáneo para que puedan conectarse
internacionalmente.
12. ¿Crees que los anuncios de McDonalds retratan de temas con respecto a la crisis
económica a fin de atraer a los consumidores? ¿Sí o No?: Si, pero al mismo tiempo
esos anuncios pueden retratar asuntos de que pasan en otros países y por eso tiene
más influenciaen algunos sitios que los demás.
13. ¿Crees que McDonalds ha introducido más productos en su menú desde la crisis
económica? ¿Sí o No?: No

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McDonalds! Does it accommodate the financial need of Spanish consumers during the economic crisis

  • 1. 0 In-Country Study, SPAIN MAJOR This form should be filled in, saved and attached at the front of each electronically submitted ICS assessment task. An Electronic Copy is available on the ICS Spain Major UTSOnline site under ‘Assignments’. UTS: INTERNATIONAL STUDIES ASSIGNMENT COVER SHEET Student Name: Tolgay Ilbay Student Number: 11036199 Student Contact Email: Tolgay.Ilbay@student.uts.edu.au Student Contact Number: +34633868628 Lecturer/Tutor’s Name: Aleksandra Hadzelek Due Date: 11/03/13 Word Count: 6494 Date Submitted: 10/03/13 Assessment Type: Assignment 3: Research Project e.g. Cultural Report: First Impressions Assignment Title: McDonalds? Does it accommodate the financial need of Spanish Consumers during the economic crisis? I confirm that: This assignment is my own work, I have a copy of this assignment; and, I am aware of the penalties for lateness and plagiarism. Ethics of research: Checklist In my research I have appropriately: Identified myself as a researcher from UTS Considered the issue of privacy for participants Considered any potential risks for participants Considered any potential risks for myself as the researcher Considered issues of confidentiality of information Provided information to participants so they are informed of the purpose of the research. Signed: Tolgay Ilbay
  • 2. 1 Table of Contents 1. Table of Figures ……………………………………………………………………………………………….……..2 2. Introduction ………………………………………………………………………………………………...........3 2. Literature Review ……………………………………………………………………………………………………...3 3. Methodology ……………………………………………………………………………………………………...6 4. Method ……………………………………………………………………………………………………...8 5. Results & Discussion ……………………………………………………………………………………………………...8 A) Visual Analysis ……………………………………………………………………………………………………...8 B) Survey ……………………………………………………………………………………………….........14 7. Conclusion ………………………………………………………………………………………………….…20 8. Reference List ………………………………………………………………………………………………….…22 8. Appendix ……………………………………………………………………………………………….……23
  • 3. 2 Table of Figures 1.0 Percentage of participants believing McDonalds is expensive or not ........................13 2.0 Frequency of participants using discount coupons .....................................................14 3.0 Most important factor in purchasing McDonald’s products .......................................15 4.0 Percentage of participants believing McDonald’s advertisements use elements of Spanish life to sell products ..............................................................................................16 5.0 Percentage of participants believing McDonald’s advertisements portray themes in relation to the economic crisis to attract customers ..........................................................17 6.0 Percentage of participants believing McDonalds has produced more products since the economic crisis ............................................................................................................19
  • 4. 3 McDonalds? Does it Accommodate the Financial Need of Spanish Consumers During the Economic Crisis? Introduction Time is money! We have heard this cliché many times. However who would have thought that such a short statement could predicate irony for McDonalds when one takes into consideration it selling its products and contrasting this operation with Spain’s economic crisis affecting its consumer behaviour. On the one side we have a multinational corporation, McDonalds who would not was time in making money and on the other, the Spanish population which becoming more reluctant to spend as they face serious problems with unemployment, debt and the fall of the industry. One would expect that the last thing any Spaniard would want to do is to consume food outside the household and opt to save money by purchasing cheaper alternatives from the local grocery store. Despite this, McDonalds still continues to operate its restaurants throughout Spain, but does this mean that McDonalds is losing profits from one sector of its global expansion, or is the corporation taking initiatives to sustain or boost its operations. Therefore I devote all this attention to whether McDonalds accommodates the financial need of Spanish consumers during the economic crisis? If yes how? If no what are the effects of a Spanish economic crisis on McDonalds? Literature Review Spain’s long haul to economic recovery threatens the way its consumers are spending money. This appears to be the argument for Agriculture & Agri-Food Canada (2011) whose foodservice profile focuses Spain’s negative growth rate in 2011. The agricultural department argues that the economic crisis has limited the performance of consumer foodservices, with sales declining lower than the previous year. The profile induces that those who were once worried about the possibility of losing their jobs are reducing the number of visits to consumer foodservice outlets by shifting their consumption from on- trade channels to off-trad channels. In other words, Agriculture & Agri-Food Canada (2011) believes that there is a consensus of Spaniards changing their behaviour along with the economic crisis. Rosales & Perez (2011), in their respect view this change in consumer behaviour as to be normal and demonstrate this point by claiming that since the recent global recession, Spanish people have looked for alternative to spend less money on food. In other words, when an economic situation changes a consumer’s self- confidence level is no longer the same. Bearden et al. (2001) define this concept as the extent to which a consumer feels capable and assured with respect to his or her marketplace decision and behaviours. If an economic environment exacerbates then a consumer’s self-confidence will also be affected. Hence, the effect of an economic crisis
  • 5. 4 on consumer behaviour is not just economical but also psychological. Nistorescu & Puiu (2009) justify this psychological effect by elaborating that people become more money minded during a financial crisis. For example consumers try not to spend money on premium products anymore by focusing on necessities, switching to cheaper brands and having a more rational view on promotion. Therefore, consumers start to compare different products taking into consideration price rather than quality. Other authors such as Mansoor & Jalal (2011) refer to this type of consumer behaviour as being tuned into a process of extensive decision-making. Why do consumers all of a sudden switch into a process of extensive decision-making in which Mansoor & Jalal (2011) describe? According to Amalia & Jonut (2009) the media is a key instigator in decreasing the purchase power of the consumer. In their view, these authors blame the media as being responsible for downsizing consumer expenditure by publishing articles that detail the effects of an economic crisis. In other words, the authors suggest an extreme psychological pressure is exerted on consumers to cause hesitation when it comes to making decisions. This psychological pressure by itself is why Agriculture & Agri-Food (2011) believes that many Spaniards are cutting back on spending outside the household, with a significant impact on impulse consumption; leaving behind a popular pastime of dining out and socialising to only when there are special offers, promotions, sales and discounts. Hence, with the media in the picture there is no doubt why Agriculture & Agri-Food (2013) also argues that now major foodservice players are incorporating new strategies in order to support sales. Despite not going into detail about what types of strategies exist, Agriculture & Agri-Food Canada (2013) makes it clear to the reader that there is an endless possibility of strategies by giving examples such as the rotation of menus, the launching of promotion and sales. Furthermore, Agriculture & Agri-Food Canada (2011) does not only portray the economic crisis as a significant challenge for consumers to spend, but simultaneously pays a dividend for major foodservice managers realizing their importance is degrading. One of these major foodservice outlets is McDonalds, who according to Agriculture & Agri-Food Canada (2011) along with TelePizza, Burger King & Heineken concentrate thirty percent of the total number of chained outlets in Spain. However these major foodservice outlets and other in the competitive running expect sales to decline as during the first years of the forecast period Spaniards continue to be reluctant in regards to spending significant amounts of money consuming outside the household. Additionally, a justification for why these major foodservice outlets are affected by the economic crisis does not fall short for the attention by Agriculture & Agri-Food Canada (2013) as they bridge on from the failure of houses sold during the construction boom as to be the key
  • 6. 5 factor for major foodservice outlets not being required. During the construction boom, a number of new houses were built with many foodservice outlets believing that these new areas would attract business. However, the construction boom failed and these new foodservice outlets fell short of consumer demand. There was no choice but for these major foodservice outlets to head back to city centres with new cheaper locations becoming available. Therefore, consumer foodservice sales are expected to decline and the loser in this new shift to these cheaper options will be full-service restaurants, which demand higher prices. What is McDonalds doing to keep itself out of hot water during the Spanish economic crisis? Considering that McDonalds has proven to be an overpowering model with its fast food becoming a sign that, among other things, ‘one is in tune with the contemporary lifestyle’ (Ritzer 2011, p. 14). The answer must lie overall within McDonald’s four fascinating dimensions that contribute to its global success. These dimensions are described by Ritzer (2011) as to be efficiency, calculability, predictability, and control which McDonalds offers to its customers. How is McDonalds applying these four principles in Spain during a time of economic crisis? First it would be wise to understand what each principle means in order to evaluate whether McDonalds in Spain accommodates the financial need of Spanish consumers. The first principle of McDonald’s success is efficiency, or as Ritzer (2011, p. 14) describes ‘the optimum method for getting from one point to another’. For consumers, McDonalds offers the quickest way to get from being hungry to being full (Ritzer, 2011). How does McDonalds convince Spanish consumers that its products are efficient when they are reluctant to spend? The second is calculability in which Ritzer (2011, p. 14) refers to as the quantitative characteristic of a product sold such as the ‘portion, size and cost offered’. Here Ritzer (2011) exemplifies the second principle by the prioritising society’s appeal of bigger and better for a small price and a small amount of time in which the product is made. In other words, time is money for McDonalds but how does it cope with the pressure of Spaniards rationalizing food expenditure outside their homes? Next, McDonalds offers predictability, the promise that products and services will remain constant over time and in all locales (Ritzer 2011). For example the Egg McMuffin in New York will be, ‘for all intents and purposes, identical to those in Chicago and Los Angeles’ (Ritzer 2011). Customers take great comfort in knowing that McDonalds offers no surprises. Therefore, the success of McDonald’s model suggests that many people come to prefer a world in which there are few surprises. Does McDonalds offer more surprises to a lower spending Spanish consumer population? Last but not least, McDonalds exerts control over people who enter the world of McDonalds. Lines, limited menus, few options, uncomfortable seats and drive-throughs all direct consumers to do what exactly what management wishes them to do; eat quickly and leave. In a country
  • 7. 6 like Spain where people have become use to not rushing when eating what does McDonalds do? The answers to these questions do not lie within the current available literature as Agriculture & Agri-Food Canada (2011, 2013), Rosales & Perez (2011), Bearden et al. (2001), and etc only provides the reader with the effects of an economic crisis on consumer behaviour and Ritzer (2011) informs the dimensions that McDonalds has used to achieve its global success. The answers to these questions lie within the purpose of this research how does McDonalds adjust its four principles, in particular its calculability of its prices to accommodate the financial need of Spanish consumers? Methodology One of the methodologies employed by this study is a survey. According to Ross (1974) a survey can be distributed widely without considerable expense, thereby reaching a larger number of respondents than would be possible through an interview. In this survey study the intended target of 50 participants will be reached by an online data distribution and collection, making the survey easily available for its intended participants. Although a survey study can result in a participant not providing honest answers, providing bias, or the fact that a customized survey can run the risk of containing certain errors. The researcher will avoid these shortcomings by constructive questioning that will make the participants interested in what is being exposed. Not only will this allow the participants to do the survey with all attention given but will also allow the researcher to obtain specific information in order to answer the research questions. Additionally the quantitative data obtained from the survey study, will allow statistical data to be displayed in tables and graphs to ease the researcher’s ability to evaluate, discuss and make conclusions about the results (Thomas, 1999). The survey study will be delegated to participants who will be selected randomly and not discriminated by age, sex or economic status in order to gather insights from different categories of the Spanish population. For example the results of those who consume or not consume will become useful in determining whether McDonalds accommodates the financial need of Spanish consumers during the economic crisis. The survey itself will be constructed in Spanish considering the lack of English speakers in Spain and thus, poses a challenge for the researcher if the participants of the study do not understand the researcher’s level of Spanish. Also the researcher faces a challenge against time, as the number of surveys completed will determine how broad or narrow the discussion and conclusion will be. In order to avoid mishaps during the survey participation, the researcher will propose a draft survey with the question written in Spanish to be checked by an individual who has a high qualification of Spanish language. Additionally the survey will be piloted to a few
  • 8. 7 participants in order to ensure the responses are up to the standard of the researcher’s expectations. The other methodology employed by this study is a visual analysis of McDonald’s media advertisements whether it maybe television, internet, newspaper or magazines advertisements. Ross (2001) ascertains that a visual analysis is the primary element of art writing, the sources that can be analysed vary such as art magazines, scholarly books, and undergraduate research papers. The visual analysis of McDonald’s media advertisements will take in the careful considerations that Ross (2001) explains such as the first approach at the object of visual analysis. Therefore, the researcher in this study will take plenty of time to note down all the visual details of its form that can be seen. Followed by these careful notations, the researchers will grasp a sense of the object or work’s organization to crystallize the visual analysis into a thesis in order to avoid subjectivity which can be a limitation for this chosen methodology. The purpose of a visual analysis in this study is to recognize and understand the visual choices that McDonalds utilizes in its advertisements to discuss how, why and what is McDonalds trying to attract Spanish customers into their restaurants considering that the population has become reluctant in spending money outside home. In order to construct a good visual analysis Lister & Wells (2001) prioritizes the choice of language used to convey the reader that the researcher has analysed the object of analysis rather than just a description. Therefore the visual analysis in this study will formulate an explanation of how the descriptions relate to other parts of the work, and link it with the research questions. Writing a visual analysis is to some extent a technical activity, but it is also a reflective and subjective piece of work where personal retorts are essential (Lister & Wells, 2001). Therefore, the visual analysis in this study will integrate descriptive language of formal observation with phrases which are speculative. For the structure of this study, the researcher will firstly conduct the visual analysis study as it will assist in the construction of better survey questions as he may discover elements of McDonald’s strategies to attract customers via its media advertisements. Thus, the researcher will be able to apply these analysed elements to question the participants of the survey whether they feel susceptible to these types of marketing strategies or not.
  • 9. 8 Method 1. Construct a visual analysis on Spanish McDonalds advertisements. 2. Use findings from visual analysis to construct survey questions for participants. 3. Pilot the survey. 4. Adjust changes if required. 5. Delegate the survey to 50 Spanish participants. 6. Obtain survey results; organize data into table, graphs and charts. 7. Form discussion and conclusion. Results & Discussion A) Visual Analysis of Spanish McDonalds Advertisements 1x1 Plus Television Advertisement (http://www.youtube.com/watch?v=hS4axhSHIZ0) Thirst comes first! McDonald’s new 1x1 plus television advertisement conforms to the Spanish pastime of drinking in order to attract customers to consume its other products. McDonalds cunningly intends to sell a variety of products starting from one euro by persuading the Spanish population that McDonalds adapts to the Spanish culture of drinking. In a country where drinking is almost a daily routine McDonalds focuses on promoting its drinks for one euro to make the viewer believe that its other products in this promotion Double click video, accept I recognize this content allow it to play and double click again to watch video. Press escape to return to Microsoft Word.
  • 10. 9 are also for one euro. However, in a similar fashion to an exclusion clause the promotional advertisement warns the Spanish population that the small drinks are for one euro and at the end of the advertisement McDonalds only guarantees that the new Swiss cheeseburger is also for one euro. Despite this, McDonalds is able to camouflage all of this through it choice of camera technique, screenplay and narration. Firstly McDonald’s camera technique of directing from an overhead shot prevents the viewer from seeing the size of the drinks and leads to the assumption that all drinks are for one euro when the reality of the promotion depends on the size and type of beverage (beer, water or soft-drink). At the same time through McDonald’s screenplay and narration it is able to associate itself with Spanish scenarios to convince the audience that McDonalds knows what the viewer wants. For example in the first and second fragments of the advertisement McDonalds associates its products with the ritual of Spanish party goers. A well dressed male holds a cup of coffee while his head rests on the table with a donut on his tray. Here McDonalds narrates “here is one of those who dreams during the day” to imply that after a night out McDonalds is the place to be where Spaniards can find the right coffee accompanied by a complimentary breakfast pastry. In less than a fraction of a second, this well dressed male then is portrayed with a group of friends holding beers and having a meal before heading out to party. Here McDonalds narrates “and here are those who live during the night” to imply that McDonalds is convenient for the Spanish pre-ritual of going out. McDonalds furthermore associates itself with Spanish scenarios throughout the remainder of the advertisement with concepts such as drinking to socialize, snacking during siesta breaks and taking loved ones out. McDonalds skilfully employs real life Spanish scenarios to market its products in a time of economic difficulty in order to sustain its operations. The use of one euro drinks which barely costs McDonalds any money to produce are the underlying attraction of this promotion along with the new Swiss cheeseburger which McDonalds claims to be Swiss, but is actually made from 100% Spanish beef. However McDonalds chooses to associate the cheeseburger with Swiss origins by portraying a Swiss flag next to the burger in the advertisement to create excitement for the Spanish population. Nuevo Menù4u (http://www.youtube.com/watch?v=KpemCXJoNOw) Double click video, accept I recognize this content allow it to play and double click again to watch video. Press escape to return to Microsoft Word.
  • 11. 10 “The economic crisis hits us hard” is the message under which McDonalds promotes its Nuevo Menù4u. McDonalds portrays the reality of the economic crisis in Spain when its actors create a scenario that results in a disappointed face when a young male receives a gift from his grandmother on his birthday. In the scenario a young male expects to receive a descent gift from his grandmother as his mother says “grandmother wants to give you your present”. Before he receives his gift from his grandmother she says “take it grandson, so you can meet with your girlfriend and invite her to dinner”. The grandmother presents him with an envelope which leaves him with a disappointed face as he realizes there is only small change. It is here where McDonalds introduces itself with a funky tune to change around the disappointing scenario by promoting an offer of 4 products for only 3.90 euro. The deal consists of two burgers, one French fries and a glass of Coca-Cola with no indication of size and type of burgers included. However this information can later be found on the McDonalds website showing a selection from 4 burgers, small French fries and medium size drink. McDonalds then follows up by giving a reason for its deal saying “so you can meet up with whoever you like” and ends with the young male and his girlfriend excited in front of McDonalds ready to take advantage of this offer. McDonalds intelligently plays around with the emotions of a Spanish population by choosing to portray a disappointing scenario that many Spaniards know is due to the economic crisis. McDonalds makes no indication of this but choose to portray the scenario as it realizes the economic situation can be an opportunity to take advantage of when selling its products at a price that seems to be less than one euro for each product. Whether this offer accommodates the financial need of a Spanish population is beyond doubt. El Nuevo McMenù Del Día (http://www.youtube.com/watch?v=nQ6c_s5-msE) Double click video, accept I recognize this content allow it to play and double click again to watch video. Press escape to return to Microsoft Word.
  • 12. 11 “Siesta is an important daily routine for the Spanish population” is the concept under which McDonalds promotes its McMenù Del Dia. McDonalds once again portrays itself acknowledging the Spanish lifestyle by promoting an offer that is similar to what many typical Spanish restaurants offer as the Menu of the day. In this promotional advertisement McDonalds chooses to set its introduction in a busy office environment along with a catchy joyful tune for its Menu of the day deals. McDonalds creates anticlimax in its advertisement by wondering around the office through a self-energized scrunched-up piece of paper which one employee throws. This scrunched-up piece of paper travels around the office catching the attention of employees, directors and bosses, and not long after terminates at the table of an intended working colleague. As the intended colleague opens the paper realizing it says “let’s go?” McDonalds begins its narration to say “enjoy McDonald’s classic menus at a very special price of 4.90 euro”. Here McDonalds creates an offer which portrays the working colleague seduced and left with a smile on her face when the entire office jumps out of their seats for lunch break or what is commonly referred to as siesta. Furthermore, McDonalds indicates later through a sliding panel of different menus that there is a different menu for each day of the week and only makes reference to Wednesday’s McMenu BigMac for 4.90 euro. Here McDonalds creates days for selling certain types of menus for a purpose that one could believe as an attempt to distinguish which variation attracts customers the most. McDonalds invites tactically the Spanish population not only those who just work in an office environment but also others with lunch breaks to take advantage of these different menu variations each day of the week. Instead of spending more than the standard price for a menu of the day at a typical Spanish restaurant, McDonalds offers a price of 4.90 euro for a medium size meal during a time of economic difficulty to attract customers into their restaurants. In addition, at the end of the advertisement where McDonalds focuses its attention to remind the Spanish population of its products that start from one euro confronts the economic situation and the challenge it poses on McDonald’s operation of sustaining profits.
  • 13. 12 Cupones de Descuento (http://cdn.mcdonalds.es/sites/default/files/cupones/2014/web/nuevo-W.pdf) McDonald’s coupon discounts have a tendency to use a greater portion of food for a price it believes is fair for its consumers. In 7 of its coupon discounts McDonalds offers more than one product for a price that supposedly is categorised as a discount. At first McDonald’s coupon discounts appear just like any other coupons thanks to its choice of colour, assemblage of images and visual information. However, a closer look at McDonald’s coupon pricings reveals confusion through mathematical assumption. Firstly, McDonalds values its Happy Meal from the following equation:  2 McMenù Medianos + Happy Meal = 11.90 euro  2 McMenù Medianos = 9.90 euro  Therefore Happy Meal = 11.90 – 9.90 = 2.00 euro Secondly, McDonalds values its McMenù Mediano from the following equation:  McMenù Mediano + Happy Meal = 8.50 euro  McMenù Mediano + 2.00 euro = 8.50 euro  Therefore McMenù Mediano = 8.50 – 2.00 = 6.50 euro However, McDonalds values its McMenù Mediano for another price from the following equation:  2 McMenù Medianos + Happy Meal = 11.90 euro
  • 14. 13  McMenù Mediano + Happy Meal = 8.50 euro  Therefore McMenù Mediano = 11.90 – 8.50 = 3.40 euro McDonalds causes confusion from the valuation of its McMenù Mediano (6.50 vs. 3.40) and uses the difference in price of these two values assessed in the McMenù + Happy Meal offer in order to add to its lower valuation of a McMenù Mediano in its other others packages. For example: McMenù+ Happy Meal  (6.50) + 2.00 euro = 8.50 euro  (3.40) + 2.00 euro = 5.40 euro 2 McMenùMedianos  2(3.40) = 6.80 euro  6.80 + 3.10 = 9.90 euro (price on coupon) 2 McMenùMedianos + Happy Meal  2(3.40) + 2.00 = 8.80 euro  8.80 + 3.10 = 11.90 euro (price on coupon) McDonalds causes confusion for the Spanish consumer when deciding which discount is more economical. During a period of economic difficulty McDonalds seduces the consumer with a greater portion of food for prices that consumers will believer are fair. However through mathematical theory the only discount coupons that seem to be fair are those portrayed without a menu package. Difference of 3.10 euro
  • 15. 14 B) Survey Figure 1.0 Percentage of participants believing McDonalds is expensive or not When the survey participants were asked how often they consumed McDonalds and whether they thought McDonalds was expensive, 60% agreed that McDonalds is expensive. The underlying purpose was to assess whether the consumption of McDonalds was dependent exclusively on price. In this category, 83% indicate monthly consumption and the remaining 17% show no consumption of McDonalds. This group’s 83% monthly consumption rate suggests that consumption of McDonald for these consumers is dependent on price. The other 40% of survey participants who find McDonalds not to be expensive indicate 25% respectively for weekly, monthly, yearly and no consumption rates. This group’s 25% weekly, monthly, yearly and no consumption rates suggests that the consumption of McDonalds is dependent on a factor that is later discussed. Regardless of finding McDonalds expensive or not, the survey participants indicate a very low week consumption of McDonalds. This low consumption of McDonalds draws attention to Nistorescu & Puiu’s (2009) reason behind people becoming more money minded during a financial crisis. These authors claim that consumers try not to spend money on products that they believe are not necessary. In this case, for Spanish consumers who find McDonalds not expensive and show infrequent consumption rates bring up the articulation that McDonalds is not a necessity. Likewise, for Spanish consumers who find McDonalds expensive and show frequent monthly consumption rates bring up the articulation that McDonald’s prices convey the idea of it not being a necessity for them. Necessity is the factor which Spanish consumers rely on when making decisions about their consumption. Furthermore, necessity supports Agriculture 60 40 Percentageof participants believing McDonalds is expensiveor not Expensive Not Expensive
  • 16. 15 & Agri-Food Canada’s (2011) belief of Spaniards cutting back on spending outside the household, leaving the desire to eat products such as McDonalds when there are promotions and discounts. Figure 2.0 Frequency of participants using discount coupons In response to the question how often they used discount coupons? It is surprising that their consumption of McDonalds was favoured when there were only discounts. According to the survey data, 50% use and 50% do not use discount coupons. Of those who use discount coupons, 80% are monthly consumers who claim McDonalds is expensive and the remaining 20% are monthly users who claim is not expensive. Regardless of claiming McDonalds is expensive or not, this data shows that during a financial crisis Spanish consumers tend to make their purchases as cheap as they can. This finding suggests that the purchase of McDonald’s products is made when prices are reduced. In other words, McDonald provides discount coupons to Spanish consumers to maintain a consistency of customers. However, of the 50% who do not use discount coupons, 40% indicate not to consume McDonalds yearly or never eat its products. On the other hand, the remaining 60% consume McDonalds weekly or monthly and they do not reduce their purchases. Perhaps, these consumers support the results of the visual analysis that was executed on McDonald’s discount coupons and articulate that McDonalds seduces its customers with a greater portion of food for prices, thus giving an indication their prices are fair. 20 10 20 50 Frequency of participants using discount coupons Every time they are available Sometimes From time to time Never
  • 17. 16 Figure 3.0 Most important factor in purchasing McDonald’s products When survey participants were asked which factor was the most important in making them purchase McDonald’s products, 40% responded with portion & size for price. The reason why McDonald’s choose to portray a greater portion of food for a price that seems low is to create a consistency of impulse purchase made. Discount coupons are not the only way McDonalds uses this scheme; thanks to the visual analysis of McDonald’s advertisements camera techniques are also employed for portraying products larger than they are to create an illusion. Evidence for this effective scheme is brought to light by the survey results when 40% of those who marked portion & size for price came from 75% of those who use discount coupons monthly. Figure 4.0 Percentage of participants believing McDonald’s advertisements use elements of Spanish life to sell products When survey participants were asked if they thought McDonald’s advertisements used elements of Spanish life to sell products the survey came to an even verdict of 50% said 0 40 30 30 Most important factor in purchasing McDonald's products (%) Portion & Size Portion & Size for Price Price Other 50%50% Does McDonald's advertisements use elements of Spanishlife tosell its products? Yes No
  • 18. 17 yes and no. The purpose of this question was to assess whether participants were aware of what the visual analysis of McDonald’s advertisements had brought up. The visual analysis indicated in some advertisements McDonalds employed real life Spanish scenarios to market its products. For example the promotion of one euro drinks in a country where drinking is almost a daily routine was used to conform to the Spanish pastime of drinking in order to make viewers believe that its other products were also for one euro. In its other advertisements McDonalds employed elements of Spanish lifestyle that appear to camouflage under what some participants believe to be an international level of promoting. The following are two responses from participants who a little more than just a yes or no response to when they were asked if they thought McDonald’s advertisements use elements of Spanish life to sell its products: “Mm yo creo que no, parece que todo lo que promociona es todo más o menos igual a nivel internacional” “I believe no, it seems that everything that it promotes is more or less equal to the international level” “Si, creo que a fin de atraer a los consumidores espanoles McDonalds usa caracertisticas de la vida Espanola aunque intenta esconderlo por incluir apsectos contemporaneous que pueden ser econtrados en otros anuncios de paises diferentes” Translation: “Yes, I believe to attract Spanish consumers McDonalds uses characteristics of Spanish life although it tries to hide it by including contemporary aspects that can be found in other advertisements from different countries” Despite the fact that these two responses contradict each other by yes and no, both do contain crucial information that helps to discuss the findings of the visual analysis. For example, McDonald’s new menu of the day advertisement justifies the opinions of both participants. In this advertisement McDonalds targets mainly the work environment by offering deals for when workers are off to lunch. This advertisement can be understood as something that happens normally everywhere around the world and at the same time can be understood as something that is targeted towards Spaniards. The use of the words menu of the day in the advertisement indicates that McDonalds is associating itself with the Spanish customs of siesta. Therefore, it is not surprising that the participants of this survey displayed similar percentages when they were asked if McDonald’s used elements of Spanish life in its advertisements.
  • 19. 18 Figure 5.0 Percentage of participants believing McDonald’s advertisements portray themes in relation to the economic crisis to attract consumers. When survey participants were asked if they thought McDonald’s advertisements used themes related to the economic crisis in order to attract consumers, an equal number of responses was noted. The survey data indicates 40% do believe and do not believe that McDonalds uses themes associated with the economic crisis. On the other hand, 20% of the survey participants are unsure whether McDonalds uses themes related to the economic crisis. Despite sharing similar results from the participants, some did present really good responses that will allow discussion whether McDonalds does use themes related to the economic crisis to attract consumers: “Si, ofrecen ofertas tentadoras dirigidas especialmente hacia el sector de la población socioeconómico más desfavorecidas” Translation: “Yes, they offer tempting offers directed especially towards the sector of socio- economically disadvantaged” “No, su política publicitaria son precios bajos tanto antes como durante la crisis” Translation: “No, its advertising policy is both low during and before the crisis” 40% 40% 20% Does McDonald's advertisements portray themes in relationtothe economic crisis toattractSpanish consumers? Yes No Unsure
  • 20. 19 “Pues, si por ejemplo las ofertas que comenté con anterioridad, intentar hacernos creer que por pagar menos y estar en crisis eso va a ser más saludable y de mejor calidad y no es así en absoluto” Translation: “Well, yes for example the offers that I commented with before, try to make us believe that by paying less and being in a crisis that it is going to be healthier, better quality but it’s not like this at all” “Sí, pero al mismo tiempo esos anuncios pueden retratar asuntos de que pasan en otros países y por eso tiene más influencia en algunos sitios que los demás” Translation: “Yes, but at the same time these advertisement can portray issue that occur in other countries and for that it has more influence in some countries than the rest” From these responses, it is evident that McDonald’s products are generally priced low but during an economic crisis does McDonalds further lower its prices? According to the visual analysis of McDonald’s advertisements its discount coupons indicate confusion for the consumer when deciding which discount is more economical. The promotion of discount coupons are used by McDonalds to seduce the consumer with more food for a price that really is not fair, given that the visual analysis has found that McDonalds uses several valuations for its menu package. If McDonalds does this for its menu packages, then why not for its other items displayed on its coupons. Another finding from the visual analysis is that McDonalds intelligently plays around with the emotions of Spanish consumers by choosing to portray disappoint scenarios that many Spaniards will believe it is because of the economic crisis. However, just like one of the participants of the survey said this representation can be a common theme internationally but could contain more influence in one country than the other. This is exactly what McDonald is doing in Spain by using themes such as that seen in McDonald’s new McMenu4u where a disappointed Spaniards was portrayed from obtaining little money for his birthday. Furthermore, McDonalds chooses to promote low priced products such as those from the one euro menu in order to target just like one of the participants said the socio- economically disadvantaged population. It seems like McDonalds with promotions such as these intends to accommodate the financial need of Spanish consumers. These are the types of things that McDonalds can control whether they are operating in or out of a crisis. However one thing that McDonalds cannot control in Spain is the Spanish custom of not rushing and taking your time to eat. Given that the average time a person spends in McDonalds is 11 minutes, the survey results reveal that Spaniards generally 20 to 30 minutes enjoying their food. The control of McDonalds wanting customers to eat quickly
  • 21. 20 and leave does not really apply in Spanish terms. McDonald’s predictability success was also tested in this survey when survey participants were asked if McDonalds introduced more products since the economic crisis. Figure 6.0 Percentage of participants believing McDonalds has produced more products since the economic crisis With a staggering 50% indicating no, it seems like McDonalds cannot afford psychologically or economically to produce more products during an economic crisis. First of all, if more products were produced McDonalds could not take the risk if these products would flourish. This is supported by one of the participants who claimed that there were more products produced before the economic crisis, and during the crisis McDonalds does not want to produce any unnecessary products. Therefore products, advertisement, discounts or promotions that McDonalds produce are aimed at being necessary, as the survey participants have shown that consumption is not exclusively based on price but necessity. Conclusion McDonalds is an overpowering model of fast food franchising becoming a sign that, among other things, one is in tune with contemporary lifestyle. Its four principles of being efficient, calculable, predictable and controllable contribute to its global success. These four principles are changeable in any economic environment in order to continue its operations and succeed in making profits. This has been the case for the multinational corporation during the Spanish financial crisis. Even though the size of the corpus is limited and findings cannot be generalised, the results contribute to knowledge in the response to the research question of this study. Results suggest that during the Spanish financial crisis, McDonalds has not changed much from offering the typical priced 10% 50% 40% Has McDonalds producedmore products since the economic crisis? Yes No Unsure
  • 22. 21 products. The only thing that McDonalds has changed is making the economic crisis more salient using advertisement, promotions and discount coupons in order to attract consumers to its restaurants. In short, the answer to whether McDonalds accommodates the financial need of Spanish consumers during the economic crisis, is no, rather the financial need of Spanish consumers during the economic crisis accommodates McDonalds’ marketing principles to create the illusion that it does.
  • 23. 22 Reference List Agriculture & Agri-Food Canada 2011, Foodservice Profile Spain, Market Analysis Report, International Market Bureau,viewed 26th October 2013, <http://www.gov.mb.ca/agriculture/statistics/agri-food/spain_foodservice_en.pdf>. Agriculture & Agri-Food Canada 2013, Foodservice Profile Spain, Market Analysis Report, International Market Bureau,viewed 27th October 2013, <http://www.euromonitor.com/consumer-foodservice-in-spain/report>. Amalia, P. & Jonut, P. 2009, ‘Consumers’ Reaction and Organizational Response in Crisis Context’, The Journal of the Faculty of Economics,1 (5), pp. 779-782. Bearden et al. 2001, ‘Consumer Self-Confidence’, Journal of Consumer Research,28, pp. 121-134. Lister, M. and Wells, L. 2001, 'Seeing beyond belief: Cultural Studies as an approach to analyzing the visual', in van Leeuwen T. and Jewitt C. (eds) Handbook of Visual Analysis, Sage, London, pp. 61-91. Rose, G. 2001, 'Researching Visual Material', in Visual Methodologies: An Introduction to the Interpretation of Visual Materials, Sage, London, pp. 5-32. Mansoor, A. & Jalal, P. 2011, ‘How Consumers Evaluate Store Brands’, The Journal of Product and Brand Management,5 (2),pp. 19. Nistorescu, T. & Puiu, S. 2009, ‘ Marketing Strategies Used in Crisis – Case Study’, University Library of Munich,Munich. Ritzer, G. 2011, The McDonaldization of Society: 6th edition, Sage Publications Inc.,University of Maryland. Rosales, J. & Perez,D. 2011, ‘The 2007 Crisis and Countercyclical Policy, Studies in Economics and Finance,27 (2), pp. 148-160. Ross, R. 1974, 'Obtaining Original Evidence', in Research:An Introduction, Barnes & Noble, New York, pp. 57-82. Thomas, S.J. 1999, 'Planning the Survey Project',in Designing Surveys that Work!, Corwin Press,Thousand Oaks, CA, pp. 1-12.
  • 24. 23 Appendix Soy Tolga Ilbay estudiante de intercambio procedente de la Universidad de Tecnología- Sídney. Estudio Gestión del deporte y Ejercicio y Estudios Internacionales. Una de mis trabajos de investigación es determinar: Si McDonalds tiene cabida para la necesidad financiera de consumidores españoles durante la crisis económica. Vuestra colaboración será altamente valorada. Muchas gracias 1. Nombre/Anónimo: Marta Cuevas 2. Marca con una cruz al lado de tu grupo de edad.  16-20:  21-25: x  26-30:  30+: 3. Ciudad: Santander 4. ¿Estás empleado/a? ¿Sí o No?: No 5. Ocupación: Estudiante 6. Marca con una cruz al lado de con qué frecuencia comes en McDonalds.  Diariamente:  Semanalmente:  Mensual: x  Anualmente:  Nunca: 7. Marca con una cruz al lado del factor más importante por hacerte comprar de productos de McDonalds.  Porción y Tamaño:  Porción y Tamaño por precio:  Precio:  Otro, por favor declara: rapidez y horarios
  • 25. 24 8. ¿Crees que McDonalds es caro? ¿Sí o no?: No si lo comparamos con otros establecimientos, pero sí lo es si comparamos la calidez-precio de los productos que ofrecen. 9. Marca con una cruz al lado de con qué frecuencia usas los cupones de descuento en McDonalds.  Cada vez cuando son disponible:  A veces:  De vez en cuando: x  Nunca: 10. Marca con una cruz al lado de cuánto tiempo por más o menos pasarías en los restaurantes de McDonalds desde el momento de entrar y salir.  10-20 minutos: x (generalmente solo voy a mcauto)  20-30 minutos:  30 + minutos: 11. ¿Crees que McDonalds usa de elementos de vida española en sus anuncios a fin de vender sus productos? ¿Sí o No?: Si 12. ¿Crees que los anuncios de McDonalds retratan de temas con respecto a la crisis económica a fin de atraer a los consumidores? ¿Sí o No?: Si, ofrecen ofertas tentadoras dirigidas especialmente hacia el sector de la población socioeconómico más desfavorecidas. 13. ¿Crees que McDonalds ha producido más productos en su menú desde la crisis económica? ¿Sí o No?: No Soy Tolga Ilbay estudiante de intercambio procedente de la Universidad de Tecnología- Sídney. Estudio Gestión del deporte y Ejercicio y Estudios Internacionales. Una de mis trabajos de investigación es determinar: Si McDonalds tiene cabida para la necesidad financiera de consumidores españoles durante la crisis económica. Vuestra colaboración será altamente valorada. Muchas gracias
  • 26. 25 1. Nombre/Anónimo: 2. Marca con una cruz al lado de tu grupo de edad.  16-20:  21-25:  26-30:  30+: 3. Ciudad: Madrid 4. ¿Estás empleado/a? ¿Sí o No?: SÍ 5. Ocupación: INGENIERO INFORMÁTICO 6. Marca con una cruz al lado de con qué frecuencia comes en McDonalds.  Diariamente:  Semanalmente:  Mensual: (MÁS BIEN TRIMESTRAL)  Anualmente:  Nunca: 7. Marca con una cruz al lado del factor más importante por hacerte comprar de productos de McDonalds.  Porción y Tamaño:  Porción y Tamaño por precio:  Precio:  Otro, por favor declara: SABOR 8. ¿Crees que McDonalds es caro? ¿Sí o no?: SÍ 9. Marca con una cruz al lado de con qué frecuencia usas los cupones de descuento en McDonalds.  Cada vez cuando son disponible:  A veces:
  • 27. 26  De vez en cuando:  Nunca: 10. Marca con una cruz al lado de cuánto tiempo por más o menos pasarías en los restaurantes de McDonalds desde el momento de entrar y salir.  10-20 minutos:  20-30 minutos:  30 + minutos: 11. ¿Crees que McDonalds usa de elementos de vida española en sus anuncios a fin de vender sus productos? ¿Sí o No?: NO 12. ¿Crees que los anuncios de McDonalds retratan de temas con respecto a la crisis económica a fin de atraer a los consumidores? ¿Sí o No?: NO 13. ¿Crees que McDonalds ha producido más productos en su menú desde la crisis económica? ¿Sí o No?: NO Soy Tolga Ilbay estudiante de intercambio procedente de la Universidad de Tecnología- Sídney. Estudio Gestión del deporte y Ejercicio y Estudios Internacionales. Una de mis trabajos de investigación es determinar: Si McDonalds tiene cabida para la necesidad financiera de consumidores españoles durante la crisis económica. Vuestra colaboración será altamente valorada. Muchas gracias 1. Nombre/Anónimo: Alejandro 2. Marca con una cruz al lado de tu grupo de edad.  16-20: X 21-25:  26-30:  30+: 3. Ciudad: santander
  • 28. 27 4. ¿Estás empleado/a? ¿Sí o No?: no 5. Ocupación: estudiante 6. Marca con una cruz al lado de con qué frecuencia comes en McDonalds.  Diariamente:  Semanalmente:  Mensual:  Anualmente: X Nunca: 7. Marca con una cruz al lado del factor más importante por hacerte comprar de productos de McDonalds.  Porción y Tamaño:  Porción y Tamaño por precio:  Precio: X Otro, por favor declara: su sabor y rapidez 8. ¿Crees que McDonalds es caro? ¿Sí o no?: no 9. Marca con una cruz al lado de con qué frecuencia usas los cupones de descuento en McDonalds.  Cada vez cuando son disponible:  A veces: X De vez en cuando:  Nunca: 10. Marca con una cruz al lado de cuánto tiempo por más o menos pasarías en los restaurantes de McDonalds desde el momento de entrar y salir. X 10-20 minutos:  20-30 minutos:  30 + minutos: 11. ¿Crees que McDonalds usa de elementos de vida española en sus anuncios a fin de vender sus productos? ¿Sí o No?: si
  • 29. 28 12. ¿Crees que los anuncios de McDonalds retratan de temas con respecto a la crisis económica a fin de atraer a los consumidores? ¿Sí o No?: no 13. ¿Crees que McDonalds ha producido más productos en su menú desde la crisis económica? ¿Sí o No?: no me he fijado Soy Tolga Ilbay estudiante de intercambio procedente de la Universidad de Tecnología- Sídney. Estudio Gestión del deporte y Ejercicio y Estudios Internacionales. Una de mis trabajos de investigación es determinar: Si McDonalds tiene cabida para la necesidad financiera de consumidores españoles durante la crisis económica. Vuestra colaboración será altamente valorada. Muchas gracias 1. Nombre/Anónimo: María Mantecón Del Hoyo 2. Marca con una cruz al lado de tu grupo de edad.  16-20:  21-25: X  26-30:  30+: 3. Ciudad: Barcelona 4. ¿Estás empleado/a? ¿Sí o No?: No 5. Ocupación: Estudiante 6. Marca con una cruz al lado de con qué frecuencia comes en McDonalds.  Diariamente:  Semanalmente:  Mensual: X  Anualmente:  Nunca:
  • 30. 29 7. Marca con una cruz al lado del factor más importante por hacerte comprar de productos de McDonalds.  Porción y Tamaño:  Porción y Tamaño por precio: X  Precio:  Otro, por favor declara: 8. ¿Crees que McDonalds es caro? ¿Sí o no?: Si 9. Marca con una cruz al lado de con qué frecuencia usas los cupones de descuento en McDonalds.  Cada vez cuando son disponible: X  A veces:  De vez en cuando:  Nunca: 10. Marca con una cruz al lado de cuánto tiempo por más o menos pasarías en los restaurantes de McDonalds desde el momento de entrar y salir.  10-20 minutos:  20-30 minutos: X  30 + minutos: 11. ¿Crees que McDonalds usa de elementos de vida española en sus anuncios a fin de vender sus productos? ¿Sí o No?: Pues no, los anuncios intentan retratar a los españoles de un mundo contemporáneo para que puedan conectarse internacionalmente. 12. ¿Crees que los anuncios de McDonalds retratan de temas con respecto a la crisis económica a fin de atraer a los consumidores? ¿Sí o No?: Si, pero al mismo tiempo esos anuncios pueden retratar asuntos de que pasan en otros países y por eso tiene más influenciaen algunos sitios que los demás. 13. ¿Crees que McDonalds ha introducido más productos en su menú desde la crisis económica? ¿Sí o No?: No