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McDonald launches new advertising campaign in the Mainland
By AMY CHEUNG
Published: September 22, 2006 12:00 AM
McDonald’s Corp. is sending Chinese consumers as it tries to seduce them into eating more hamburgers with seductive and sexy campaigns, as parts of the efforts to differentiate itself from its competitors, The Wall Street Journal reported. At present, more than half of McDonald's sales in China are of chicken products, while beef products make up only 35 percent. "The prevailing opinion has been that in China, everything is about chicken," says Jeffrey Schwartz, chief executive of McDonald's China operations, over a recent meal of a Quarter Pounder at a Shanghai McDonald's located in a foreign trade zone. But consumer research and the success of promotions for the iconic Big Mac have brought about a change of heart, the paper quoted Mr. Schwartz as saying. "We need to own beef," he says. "It's who we are. It's how we started." Analysts say McDonald's new strategy looks promising but that the company hasn't disclosed enough financial details for them to evaluate its success. John Glass, an analyst for CIBC World Markets, says China is a profitable market for McDonald's but hasn't offered returns as rich as some other places, in large part because average sales per restaurant are about half of what they are in the U.S. McDonald's hopes the beef and the edgy ads will help set it apart from rivals and bolster its image as an "aspirational" brand in China, executives say. The effort takes McDonald's in a direction opposite that of its biggest competitor, Yum Brands Inc., whose KFC fried-chicken chain, with more than twice as many outlets here as McDonald's, serves up more meals designed especially for the Chinese market.
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