What do McDonalds, Coca Cola, Pepsi and Pizza Hut have in common? Well, the answer is, their products are irresistible.
Despite a recent research by the World Health Organisation (WHO) that showed 40 per cent of UAE residents are battling obesity problems, a visit to a local fast food outlet brings out the picture to the fore.
“Blame the high obesity numbers to powerful, attractive and aggressive branding of these companies,” a marketing expert says.
In his presentation during the just concluded Gulfood exhibition in Dubai, John Brash, the Founder and Chief Executive Officer of Brash FZ Company, addressed the current underlying trends in the global food and soft drinks industry, and their subsequent impact in the local markets.
His presentation titled: “Powerful Brands win Business”, covered topics such as obesity, health and convenience, the rise of fair trade and ethical food and how the digital landscape is changing the food marketing landscape.
“Businesses have to evolve and adapt, if only to keep up with the competition,” Brash says.
“There’s no room for complacency in business. Just when you think you’ve conquered the market, along comes a competitor with something better,” the executive warns, adding “companies should focus on what to do next - the strategy for survival and success.”
Keeping up with the competition
The seminar, which was largely a marketing pow-wow made up of advertising, marketing and creative managers focused on the various ideas for original marketing and advertising campaigns that would jump-start fervor in the brand and also appeal to the local markets.
Alexander Smertz, the Global Head of Product Management at Doehler firm feels brand changes can help to underpin change as much as undermine it.
Smertz said: “You can create an effective new brand strategy very fast but you can’t change the meaning of an established brand any faster.”
Take for instance McDonalds. The international food chain is basically a three components product, which is menu, distribution (franchise and stores), and brand. Smertz says the aggressive distribution, selective change of products, and rebranding has given McDonalds an edge over its competitors.
As part of the rebrand effort, McDonald’s appears to be appealing to its customers, by catering to all age groups. This can be seen through the sale of its ‘healthy’ low-carb snacks that are aimed for adults, especially women. The food chain also sells ‘kids meals’ and offer freebies like toys for the children. McDonalds marketing strength is its commonality around the globe – ‘A fun and youthful spirit’.
In order to win the hearts and minds of youth in the UAE, McDonalds has teamed up with movie theatres across the country where they rebrand and promote latest movies in their products as the films are released.
“Change is typically anything substantial that requires a business to significantly alter the way it operates,” says Brash, adding, “Yes… the customer is king.”
Low-carb trend taking root
The UAE market has lately seen a stream of new TV and print adverts featuring a slicker, edgier look that is still synonymous with products’ original brand identity. These include candies like Kit Kat, Cadburys and some soft drinks.
The brands have also gained access to the local market by sponsoring various events in schools, hospitals as well as offices.
“Product campaigns extend beyond advertising,” says Bejan Choudhry, an industry expert.
“Take for instance McDonald’s “I’m lovin’ it” slogan. This attitude will be indoctrinated in various age groups of customers around the world,” he says.
“McDonald’s is not only a retail food brand. It is a brand that represents the art of marketing,” Choudhry adds.
Even though the corporation faces major challenges, McDonald’s past brand campaigns have produced acclaimed sales profits in a variety of franchised stores and set the stage for other fast food retail brands.
On the topic of health and convenience, John Brash addressed the need for food and drink companies to adopt the ‘low-carb’ trend, as the ‘low-fat’ trend is now ‘tired’.
“One thing is clear: The low-carb market is picking up momentum daily,” he says.
According to research firm ProductScan, at least 800 low-carb products have been released over the last two years and more and more of them are wiggling onto supermarket shelves, sliding into vending machines and appearing at foodservice counters.
Low-carb diets approach calls for slashing carbohydrates out of the diet rather than focusing on eliminating fats, and consuming more metabolically complex products such as proteins.
As many local consumers warm to low-carb diets, food, beverage and restaurant brands have no choice but take up the challenge.
“Big brands including Heinz, PepsiCo and KFC, have already plunged into this marketplace. Sales for low-carb specialty-products companies such as Atkins Nutritionals Inc are spiraling skyward, and the rising low-carb tide has buffeted major food companies,” says Choudhry.
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