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Salmon Theory, by Rob Estreitinho

📊 Case Study: McDonald’s: How we got customers lovin' it (IPA Gold Winner, 2022)

Published 8 months ago • 2 min read

Hi friend – Rob here.

Today in Salmon Theory+: a summary of McDonald's IPA Effectiveness Award (Gold).

This is a summary of the first principles behind the work.

For the full data and story, check the IPA paper.

(Sadly i can't distribute the original!)

Let's get into it.

🚨 Problem:

McDonald’s was facing declining sales, visits, love and trust scores in the UK due to negative public sentiment and new competitors.

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💡 Solution:

  • They established a new brand-building model based on three timeless ingredients:
    • Greater focus on the pillars of Love and Trust, on top of promotional stuff. (Strong brands make promotions work harder.)
    • "Confidently humble" brand tone that allowed them to reconnect with the nation. (Brits love a good understatement.)
    • More emotionally resonant ads centred around everyday British life. ("Entertain for commercial gain" Orlando Wood)
  • They adapted this approach over 15 years as new challenges came about, by:
    • Revitalising Love and Trust to confront rumours and protect their position against food delivery, premium burgers, etc
    • Extending the emotional approach to Value comms and occasion pillars like coffee, breakfast and delivery (truly love this)
    • Embodying leadership traits of Confidence, Competence and Compassion during COVID
  • They kept investment despite the evolution in the approach, with a consistent 45% spend on long-term brand building.

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📊 Results:

  • 15 consecutive years of growth in key brand metrics, customer visits and sales revenue.
  • 3x sales revenue and nearly 2x market share growth from increased demand within existing restaurants (not new openings).
  • £4.7 billion in cumulative sales revenue attributable to advertising between 2007-2021, with improving ROI efficiency.
  • Became the UK’s most loved restaurant brand and embedded in British culture.

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📝 Lessons:

  1. The best models age gracefully. What's fixed and flexible in your brand model so you can keep adapting to new entrants?
  2. Tone contains multitudes. If you work with a global brand, what elements of the tone need to change to adapt to local market needs?
  3. Tactical ≠ not creative. How can you use levity and humour to talk about value without cheapening your brand?

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(Full credit: The IPA)

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