The hamburger giant's global marketing leader describes his strategy for maintaining local relevance while connecting consumers across the globe.
Johan Jervoe serves as corporate vice president of global marketing for McDonald's. Global marketing. The magnitude of that charge seems rightfully daunting when you consider that the hamburger giant markets in nearly 120 countries nationwide, each with unique communication cultures and technology requirements. You'd be correct to assume that such a position keeps Jervoe rolling in the frequent flier miles. In fact, Jervoe says the last time he managed to stay in one place for more than a few weeks was during this year's Olympic games, when he spent four weeks in Beijing.
Johan Jervoe is corporate vice president of global marketing for McDonald's
McDonald's markets through almost every imaginable medium, and Jervoe's authority extends across all of them. And while the company may be best known for some of its iconic offline marketing campaigns, McDonald's has become increasingly active in the interactive realm in recent years.
According to Advertising Age, in 2007, about $27.2 million of McDonald's U.S. ad spending was dedicated to internet channels. That may seem a paltry sum in the context of the company's $1.2 billion U.S. ad spend that year. But it's still hardly chump change, especially when you consider how far the company is stretching those online dollars.
Jervoe also points out that interactive marketing, as practiced by McDonald's, doesn't necessarily means it is web-based. In fact, the company's technology-driven campaigns vary significantly from country to country, depending on consumers' media consumption habits and technology use preferences. For example, Jervoe says, in Japan and Korea, cellphone ordering and payment is huge -- a trend that, to date, hasn't swept the U.S.
Allocation and relevance
Globally, Jervoe says McDonald's interactive marketing spend -- encompassing internet and other emerging platforms such as mobile -- has doubled over the past few years. Going forward, he says the company's marketing budget -- which is based on a percentage of sales -- will continue to grow. And the question won't be where existing ad dollars will be cut; the question will be where new funds should be allocated. And although he's not at liberty to discuss the proportion of ad spend that interactive channels will represent going forward, Jervoe does note, "It's safe to say that we want to be where our consumers are. If this [interactive] trend is going to continue, we will go that direction."
But it's also safe to say that there are strategic differences when it comes to marketing to consumers in India versus consumers in Ireland. And thus, local relevance is embedded in the DNA of McDonald's, Jervoe says. And that local relevance plays a large role in determining where the company dedicates its advertising efforts. "It's clear to say that if you're not part of the media habits of the current consumer, then you won't be there tomorrow," he says.
"I think one of the biggest mistakes you can make as a marketer is to go for innovation for innovation's sake," Jervoe adds. "It needs to feel right for your brand. It needs to have a fit for your consumer. And once those two are connected, then you have found your tactic. Tactics make your strategy come alive. If you choose a tactic that doesn't fit your strategy, then it doesn't come alive."