Exercise 7A: Compare and Contrast McDonald’s Marketing Expenses Versus Rival Firms
Marketing is expensive. For example, a 30-second ad spot during the annual NFL Super Bowl costs about $6 million. Yet, firms must do marketing otherwise, even the best products in the world can go unnoticed. But firms can go broke doing marketing. These are reasons why marketing is a key business function and an important issue in strategy implementation. This exercise can give you experience comparing and contrasting McDonald’s marketing expenditures versus two major rivals: Restaurant Brands (owns Burger King) and Yum Brands (owns Taco Bell and Pizza Hut). Analysis in this regard can provide guidance on whether to increase or decrease McDonald’s marketing expenditures.
- Step 1: Go online to the McDonald’s (https://www.mcdonalds.com), Restaurant Brands International (https://www.rbi.com), and Yum Brands (https://www.yum.com) websites at the respective Investor Relations page and download the three Form 10Ks for the respective firms.
- Step 2: Look in the Table of Contents of each Form 10K to find the pages that reveal the three firms’ marketing or advertising expenditures.
- Step 3: Prepare a comparative data table to consolidate this information.
- Step 4: Prepare a report to suggest implications for McDonald’s in terms of marketing or advertising expenditures going forward as needed to implement strategies.