Ronald McDonald is ditching Mickey Mouse

[BRERALEX]

http://movies.yahoo.com/mv/news/ap/20050727/112250316000.html

McDonald's to Promote DreamWorks Films
Wednesday July 27 3:26 PM ET


Ronald McDonald is ditching Mickey Mouse for Shrek. McDonald's Corp. said Wednesday it has signed a two-year, non-exclusive deal to promote DreamWorks Animation SKG films beginning with the release of "Shrek 3" in 2007.

McDonald's previously said it wanted to try a new approach to marketing partnerships when its exclusive 10-year deal with The Walt Disney Co. expires next year.

"Ten years is a very long time," said Larry Light, global chief marketing officer at McDonald's. "The world changes more than once in 10 years. I don't anticipate that we'll be making 10-year deals in the future with anybody."




Disney wasn't immediately available to comment.

Financial terms of the new agreement were not released. It also ends DreamWorks' promotional arrangement with Burger King.

The relationship between McDonald's and Disney has been marked by several notable successes, including "101 Dalmatians" and "Finding Nemo." But there were also disappointments tied to Disney flops such as "Atlantis: The Lost Empire" and "Treasure Planet."

The results were inconsistent in part because promotions must be planned at least a year in advance long before it's known whether a film will succeed or fail.

The agreement will include promoting DreamWorks films with toys in Happy Meals. But it will go beyond typical marketing efforts to include pairing pitchman Ronald McDonald with Shrek and other DreamWorks characters in ads.

It will be the first time McDonald's iconic "chief happiness officer" has shared the spotlight with non-McDonald's characters.

McDonald's said it was talking to Disney and other firms about other possible marketing relationships but did not say if it expects to promote Disney films after next year.

DreamWorks chief executive Jeffrey Katzenberg said he was not worried about McDonald's possibly working with one of his competitors.

"We encourage them to," Katzenberg said. "The stronger the brand is, the stronger their relationship is with their consumer. It's good for both of us."

Analysts said the two-year deal makes better sense for both parties than a longer-term agreement.

"You never know what market forces may be at work on either the restaurant side or the film production side," said David Miller, an analyst with Sander Morris Harris.

Miller said promotional deals with fast food companies can help build advance awareness of movies, but no amount of promotion can save a flop.

"The best publicity for movies is word of mouth," he said. "It doesn't matter what kind of little figurines you get in a Happy Meal. Ultimately the film has to work."

 

[952LisaR]

I love my disney happy meal toys

 

[MandM-Mom]

Will they still have McDonalds in DTD and at the Fry stands in the parks? Any word on how this will work out regarding Disney and McDonalds?

 

[tjkraz]

Thanks for the article, but your title was totally misleading and incorrect. I don't see where this move has any bearing on McDonald's relationship with Disney. The article makes it pretty clear that the deal is non-exclusive and that McDonald's is still quite interested in working with other studios under the right terms--a move the Dreamworks apparently endorses.

On the other hand, it may work in Disney's favor in that Burger King is now looking for a new partner. Disney could leverage the possibility of McD's having deals with both Dreamworks AND Disney to get BK to pony-up some bucks.

 

[mitros]

The bloody heck with Burger King and McDonald's, bring Pepsi back into the parks! Yea, I know Coke has deeper pockets, and it's the "official" beverage of WDW, but we really dislike Coke, and we bring Pepsi from home every time.

 

[kimlooman]

I vote for Pepsi Products too! I bring my case of diet Mt. Dew since I can't have it at the parks on my vacation.

 

[peter11435]

The bloody heck with Burger King and McDonald's, bring Pepsi back into the parks! Yea, I know Coke has deeper pockets, and it's the "official" beverage of WDW, but we really dislike Coke, and we bring Pepsi from home every time.

No, they can't do that because I drink Sprite.

 

[belleandthebeast]

When BK lost the deal w/ Disney many years ago, I was very sad. I hope they bring it back. I still have all the Disney glasses (the plastic ones) in the boxes hoping that some day, they will be worth money.

 

[raidermatt]

I don't see where this move has any bearing on McDonald's relationship with Disney.

At the very least, it means there will no longer be an exclusive promotional relationship between the two, so it certainly has an impact.

Your point is well taken, however, that there could still be a promotional relationship in the future, and that it apparently has no direct impact on the on-property McDonald's.

To me, what's significant isn't which fast food chain Disney's toys will appear in.

What is significant is the way the animation industry has changed. At one time, McDonald's was willing to sign the 10 year deal with Disney because they felt they could trust Disney to consistently turn out product that would be beneficial to both of them.

That turned out not to be the case, and other players have since taken over the leadership role in the industry (the first time that has even been close to happening since Disney took command of the industry nearly 70 years ago.)

Regardless of the whys and hows, and where one believes things are going in the future, Disney's loss of its status as the industry leader is what's most significant about this.

That shouldn't be news to anybody, of course. Its just that this affirms that McDonald's certainly knows it.

There's no way to spin this as something that is a positive for Disney. Insignificant in and of itself? Sure.

 

[paulh]

i think chic-a-fill should tie up with disney
Paulh

 

[Peter Pirate]

Pepsi is swill invented by communists!

 

[tjkraz]

What is significant is the way the animation industry has changed. At one time, McDonald's was willing to sign the 10 year deal with Disney because they felt they could trust Disney to consistently turn out product that would be beneficial to both of them.

That turned out not to be the case...

Regardless of how they try to spin things now, McDonald's was foolish if they expected Disney to hit 10 years' worth of home runs from the animation division. Clearly there were a number of duds over that span, but they also reaped the rewards of many more successful Disney and Pixar films.

...and other players have since taken over the leadership role in the industry (the first time that has even been close to happening since Disney took command of the industry nearly 70 years ago.)

Regardless of the whys and hows, and where one believes things are going in the future, Disney's loss of its status as the industry leader is what's most significant about this.

I agree that the industry has changed, and belive THAT is the most relevant point in this move. This deal between McDonald's and Dreamworks is a TWO YEAR deal. That's hardly a sign of long term faith in the company that's produced such mediocrity as The Road to El Dorado and Shark Tale. This deal has one purpose and one purpose only: Shrek 3.

I'll give Dreamworks credit for creating and fostering that franchise, and for using it to leverage 2 years from McD's. But it's far from a harbinger of long-term success, particularly in a product (computer animation) that may be losing its luster with the public.

I'm also left to wonder about the timing of this deal. Dreamworks Animation has been under SERIOUS fire from investors as of late. They were desperate for positive PR. It's entirely possible that Dreamworks approached McD's with a deal that was just too good to be true.

Meanwhile the Disney/Pixar situation is clearly delaying any future deal for the Mouse. IMO, it's impossible to truly evaluate the greater significance of this move until Disney has its own new agreement under arm.

 

[wildviper]

Pepsi? Are you nuts? Coke is by far the superior product. They sell Pepsi products at Camp Snoopy in the Mall of America and the McDonald's there has to serve Pepsi as well. Almost 2 to 1 people ask for Coke products.

Have a Coke and Smile.

 

[mitros]

McDonald's said that they do not want to get into any more long term deals like the 10 year deal with Disney. That's why they only did a 2 year deal with Dreamworks. Things change so quickly in the industry that they no longer want to be stuck in a long term deal with any company. Smart move if you ask me. Also, maybe they want to see what a few years without Ei$ner and with Iger at the helm will do to Disney's successes or failures.


PS: Pepsi, for those who think young.

 

[raidermatt]

A significant reason they did not want to consider a long term deal was they way the last one with Disney worked out. Had they signed a 10 year deal with Pixar, I'm guessing they wouldn't necessarily be holding out for a 2 year deal now.

Certainly if Disney had remained in top form, they wouldn't have been much more agreeable to a longer term arrangement. But they got burned, and the only thing in the industry right now that looks like sure bet is Pixar and Shrek 3. So they ink a non-exculsive deal essentially for Shrek 3, with any other Dreamworks contribution being a bonus.

And they are still free to negotiate with Pixar, and the unknown that has become Disney.

They are doing the right thing under the circumstances. I'm just saying that Disney's lack of success is the main reason any kind of long term deal with Disney doesn't make sense. That, along with Pixar's emergence as top dog are the significant industry changes.

 

[freakylick]

Pepsi? They sell Pepsi products at Camp Snoopy in the Mall of America and the McDonald's there has to serve Pepsi as well. Almost 2 to 1 people ask for Coke products.

I always thought that the vast majority of people were stupid. That just affirms it.

loves PEPSI

 

[Stacy's a freak]

The Pepsi vs. Coke debate aside, I frankly HATE the fact that there is a McDonald's on WDW property. I go to WDW to escape commonality and McDonald's or Burger King or ... Pizza Hut, for that matter, belongs in a strip mall in Anytown, USA. It does not belong in the Happiest Place on Earth.

IMHO ... (love this new smilie!!!)

 

[F-L-A]

You must also despise Planet Hollywood and House of Blues then. And there's nothing uncommon about park food. In fact, there are quite a few parks that sell better food than Disney's.

 

[peter11435]

You must also despise Planet Hollywood and House of Blues then. And there's nothing uncommon about park food. In fact, there are quite a few parks that sell better food than Disney's.

IMO the restaurants in DTD are fine, including the Mcdonalds. However I don't like the stand alone Mcdonalds on Buena Vista Drive.

As for park food I would have to disagree. While that could be said for the standard hot dogs, hamburgers, and pizza. WDW has some great food, even at the counter service level. AK is a great example of this. Furthermore WDW is full of world class dining throughout its parks and resorts. You would find it impossible to find a another park that has as large a collection of great dining as the WDW resort. As an orlando resident you must also be aware of the fact that Disney is the owner and operator of the only 5 diamond restaurant in central florida, and one of only 6 in the entire state. I challenge you to name one other theme park destination that is home to a 5 diamond restaurant.

 

[freakylick]

As for park food I would have to disagree. While that could be said for the standard hot dogs, hamburgers, and pizza. WDW has some great food, even at the counter service level. AK is a great example of this. Furthermore WDW is full of world class dining throughout its parks and resorts. You would find it impossible to find a another park that has as large a collection of great dining as the WDW resort. As an orlando resident you must also be aware of the fact that Disney is the owner and operator of the only 5 diamond restaurant in central florida, and one of only 6 in the entire state. I challenge you to name one other theme park destination that is home to a 5 diamond restaurant.

Furthermore...WDW is a very large "destination" with deeper pockets than some local parks. I sure hope that they can come up with some nice restaraunts, CS or TS. Quite frankly, I could care less about some 5 diamond rating....it could be 12 diamonds, I don't care. In fact, the more diamonds, the less likely that I am to eat there because it's probably just a bunch of overpriced food served by pretentious staff.

But to address F-L-A's point, I think he was speaking more on the whole. If you take the whole range of Disney offerings for their quality, I would say that F-L-A is indeed correct...but that is 100% opinion (as is some organizations diamond rating). I have been to parks whose food selection on the whole is better than WDW. WDW certainly has more variety (in large part because they have the ability due to economies of scale). I won't name what parks that I find better b/c it really is irrelevant as it is just opinion...and honestly, the majority of people reading this has probably never even heard of one of them.