Bord Bia Brand Forum Adrian Crean Managing Director McDonald’s Ireland Customers at the heart of plan Key customers trends Where the food comes from matters Source: McDonald’s Market Quest 2011 A new appetite for smart, canny shopping – Survival Ireland Trust deficit in Ireland Need for transparency, openness and engagement The Reality of Recession: Discretionary Income has plummeted, but rate of decline starting to ease Base: All adults 18+ Q. About how much would you say you spend each week on things you buy for yourself including money spent on clothes, eating out, going for a drink, going to the cinema, gambling, sporting activities and so on? €90 €83.97 €80 €70 €60 €61.29 €50.94 €66.70 €71.38 €77.30 €75.07 €62.32 €54.62 €55.17 €50.05 €50 €46.68 €40 €30 €20 €10 €0 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 Apr '11 Jul '12 Rate of fall is starting to ease but we have less money in our pockets than we did 10 years ago. FAMILY VALUE = BRAND + PRODUCT + SERVICE + PLACE PRICE What drives value? In addition to affordable prices, aspects such as taste and trust are also key in driving value. Top drivers of value (image) Affordable prices Taste of food Company I trust Good employer Food choices I can eat regularly Makes me feel special Conveniently located Improving nutritional content Environmentally friendly Brand changing for the better Top 10 drives of value identified by TABOO driver analysis 2011 Base: All 4 week IEO users FAMILY Top Drivers of Trust? Environmentally friendly company Taste of food Top quality ingredients Socially responsible company Brand changing for the better Good quality food Makes me feel special Top quality beef Enjoy spending time there Good employer Top 10 drives of trust identified by TABOO driver analysis 2011 Base: All 4 week IEO users Bray IS O’Connell Bridge IS CRISIS WAY OUT Long journey 2-3 years Bumpy Road , with tensions and emotions Low to negative GDP growth + high level of unemployment MORE FRAGILE CUSTOMERS, THE YOUNG ADULTS, ARE ABRUPTLY HIT 22,1% Youth (-25 yrs old) unemployment rate Eurostat 2011 Q4 Ireland u-25 unemployment rate 31% THE FAST GROWING POPULATION IN EUROPE 28 THEY CAN’T AFFORD BRANDS ANY MORE THEY ARE MARKETING EXPERTS THEY LOVE HAVING FUN… WITH A PURPOSE EVEN WITH LOW INCOME, STRONG VALUES REMAIN BEEF PRICE : + 14 % MID 2011 ATAWAD* CUSTOMERS *Any Time, AnyWhere, Any Device 30 BAD NEWS TRAVEL AT THE SPEED OF LIGHT… BEST-IN-CLASS PLAYERS HAVE STARTED TO WELCOME CONTRIBUTIONS THE LAST MILE BATTLE IS HAPPENING AROUND THE STORE DATA IS A COMPANY’S BEST ASSET FOR PERSONALIZED MARKETING TECHNOLOGY USED TO BRING THE BRAND TO LIFE IN STORE DIGITAL IS THE CHANNEL FOR NEW SERVICES TALK WITH CONSUMERS AGAIN & AGAIN THE CRISIS MINDSET WHAT FUTURE ? SEEK SECURITY NO TRUST IN BIG NAMES THE PULL OF COMMUNITY NEW VALUE INSTINCTS SEEK EMPOWERMENT THIRST FOR THE BETTER