Rewind 2023: The transformative shifts shaping marketing narratives: Arvind RP

It’s that time of the year when we review the most significant industry developments as the year draws to a close. Adgully is reviewing the year 2023 for the M&E, advertising, digital, marketing, PR, and communications, along with leading names in the industry as part of our annual Rewind series.

Recapping the year 2023, Arvind RP, CMO, McDonald’s India (South & West), reflects on the major developments in the QSR sector in 2023; he also shares insights into McDonald’s India’s performance during the year, the pivotal role of AI in reshaping advertising and marketing approaches for brands, as well as outlines the strategies for future growth and expansion in 2024.

Key trends dominating the QSR sector in 2023

In the fast-evolving landscape of the marketing industry, keeping up with the trends is of key importance to meet the ever-changing needs of consumers, remarked Arvind RP. According to him, the year gone by witnessed transformative shifts and redefined strategies besides emphasising the importance of a holistic approach to brand building.

Several key trends prominently shaped the marketing narrative:

• Return of brand-building: Businesses fell back on classic brand-building advertising in a welcome change from the cacophony of performance marketing-styled campaigns. The latter have become alarmingly common in the past few years. But in recent months, we have seen brands realizing the importance of brand building to build salience and mental availability. Occupying consumer mind space can only come from endearing brand equity and not from short-term discounts.
• Legacy brands make sporting comeback: The recent World Cup saw a few legacy brands share the stage with new-age brands, something that was missing in the last few years’ sporting events. And we saw some of them investing in brand building and doing some memorable campaigns. This is a trend that augurs well for the marketing and advertising industry.
• Tangible Return on Investments: In the current landscape, CFOs and CEOs are intensifying their scrutiny of marketing budgets, placing a heightened emphasis on delivering ROIs. The decision of whether to trim marketing expenditures becomes prominent amid the persistent drive for enhanced profitability.

Marketers are increasingly adopting advanced analytic techniques such as market mix modelling (MMM) that help showcase both attribution and incrementality to help them deliver better ROIs. In essence, marketing leaders are increasingly adapting to a paradigm shift that places storytelling and brand-building at the forefront. As the industry continues to evolve, a balanced approach that combines the strengths of performance marketing to deliver immediate sales from in-market consumers with the enduring impact of brand building that engages with light users and non-users is and should become the cornerstone of successful marketing strategies.

McDonald’s India’s performance in 2023

“The year 2023 has been a year of menu innovations, brand campaigns, and a commitment to making our consumers feel welcome. We launched campaigns that struck a chord with our audiences, creating memorable moments and fostering strong emotional connections. We started the year with the launch of the highly anticipated Chicken Big Mac, an iconic burger globally, that joined our burger line-up,” recapped Arvind RP.

He called the partnership with cricketing legend Virender Sehwag “a masterstroke”. He further added, “We further spiced things up with the Piri-Piri McSpicy range, and Rashmika Mandanna’s infectious energy kept the campaign sizzling. It was about bold flavours and bold choices, a message that resonated with our young audience. Jr. NTR, our brand ambassador, was pure magic! His charisma and our #DontExplainJustShare campaign for McSpicy Chicken Sharers was about sharing joy and creating memories, the essence of McDonald’s. But we didn’t forget value. McSaver Meals hit the sweet spot, offering deliciousness without breaking the bank. It was about bringing to the fore that McDonald’s is always easy on the pocket, for everyone, on every occasion. Our #ForYourOtherDiwali campaign warmed hearts during the festive season.”

McDonald’s was positioned as the perfect companion for all kinds of celebrations, big and small. It was about creating moments of joy and togetherness, the true magic of McDonald’s. “Inclusivity has always been our cornerstone and our EatQual platform’s McDelivery Colour Blind Friendly feature, brought to life that everyone has an equal experience at McDonald’s. Sustainability isn’t just a buzzword for us. It’s about making responsible choices for the future, one delicious bite at a time. We set an ambitious goal of becoming carbon neutral by 2050,” he added.

Outlook and expectations for 2024

Arvind RP informed that McDonald’s has a strong expansion plan and is looking to open 40-45 stores every year. “While we fortify our market leadership in the West and metro cities, we will continue to penetrate smaller towns of West and South India,” he added.

AI and Advertising & Marketing

AI and its latest avatar in the form of Gen AI is on the path of revolutionising and disrupting the field of advertising and marketing. Be it advanced machine learning algorithms and data analytics capabilities, AI has the power to enable brands to target and engage with their audience more effectively. This is achieved by analysing criteria such as predicted lifetime value, enabling the customisation of content through dynamic product recommendations.

AI plays a crucial role in providing valuable insights on optimal campaign timing, target audience selection, and content customisation. It is not just hype; AI’s algorithms are dissecting mountains of data and revealing newer customer segments. This is translating into laser-focused campaigns, personalised messaging that hits the bullseye, and real-time optimisation that keeps budgets lean.

Chatbots and virtual assistants are handling customer service freeing individual time to strategise. AI, when utilised well, can lead to deep customer connections, data-driven decisions, and an advertising edge sharper than ever.