Media Planning For Declining Profits

We discussed the importance of media planning in class this week. Companies must be able to recognize what kind of advertisements and other media tools are needed to ensure the success of the organization. Two of America’s most popular and profitable companies have reportedly been losing money this year. McDonalds reported a 3.3 percent quarterly profit decline and Coca Cola reported a stunning 14 percent profit decline. These are two of the most well known companies in the world, but it’s no secret that both companies produce unhealthy food and drink products. Both companies will have to begin a careful media planning process in order to get profits to rise again.

This article discusses how McDonald’s can take a page out of Chipotle’s media planning playbook by offering organic menu options. This is a strategy that could definitely help get McDonald’s profits to pick up again. If they do choose to add organic menu items, it would be important to create creative advertisements informing the public about these healthy new options. McDonalds would also be wise to bring in third party support from outside health and food organizations. They would add credibility to the new food options by getting a stamp of approval from organizations that are known to endorse organic food. McDonald’s would probably be successful in raising profits if they carried out a media plan similar to these ideas.

Coca Cola is in a tougher situation than McDonald’s. The carbonated soft drink market has been declining for many years. They also have endured a heavy profit decline. The company plans to cut costs by downsizing a bit, but it will also need a new media plan. The best media plan for Coca Cola is to show consumers how they are creating new types of soft drinks; such as new flavors and healthier options. They can follow a similar pattern to the possible McDonald’s organic food plan. Both of these giants are faced adversity, and it will be interesting to see if they can recover.

Questions: Have you stopped drinking Coke or eating McDonalds recently? Why?

What kind of change would make you go back to these products if you have stopped consuming them?

Source: “McDonald’s and Coca-Cola’s Earnings Drop as American Taste Buds Change.” AdWeek. N.p., n.d. Web. 23 Oct. 2014. .

2 thoughts on “Media Planning For Declining Profits

  1. Yes, I have stopped drinking Coke in the past few years. For me though, it was purely because of health reasons. I just do not like it enough to chose it over something that is actually good for my body. I do not know that there is anything that could make me go back to drinking Coke, unless it somehow became a lot better for you and tasted better.


  2. There will always be a demand to a degree for products such as those that Coke and McDonald’s produce. But times change, and companies must be able to adapt to the needs of consumers. I do not consume either of these products, but would if they created healthy options. A brand must be able to change with society, while maintaining their integrity so as to not become obsolete. There are so many brands that were too narrowly focused in what they were doing, ignorantly assuming that there would always be loyalty to their products, but this is just not the case (i.e. think photography, xerox, fax machines etc.) Many consumers today are interested in being health conscious and brands like Coke and McDonald’s would do themselves a favor to bear this in mind as they look to the future.


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