McDonald’s Corp. will soon add Shrek and other popular movie characters to its menu as part of a two-year marketing partnership with DreamWorks Animation.
The non-exclusive agreement, announced last week, includes tie-ins with two movies a year beginning with Shrek 3 slated for release in May 2007, followed by Bee Movie in November 2007. As part of the deal, DreamWorks will only work with McDonald’s in the fast-food industry. DreamWorks previously held contracts with Burger King and Denny’s.
McDonald’s 10-year deal to promote Walt Disney films and home videos, which it held exclusively, ends in 2006. The company said in a conference call last week it would continue to work with Disney on its remaining properties as part of the contract.
McDonald’s CEO Jim Skinner hinted the QSR would loosen its ties with Disney at the annual shareholders meeting this spring, saying, “We’re looking forward to having flexibility in our promotional marketing, as we’re looking forward to working with Disney.”
McDonald’s has the option to renew the DreamWorks deal after the two-year stint.
Company officials said the new partnership would help the QSR better reach its customers and further extend its brand attitude of “forever young”— attitude that appeals to people of all ages.
“At McDonald’s, we’re continually looking for new ways to be more relevant to our customers and play an even more important role in their lives, and I believe DreamWorks will help us do this,” said McDonald’s COO Mike Roberts during the conference call.
In return for promoting its films, DreamWorks will design animation for the QSR’s TV spots and other marketing campaigns, which could feature Ronald McDonald and Shrek in a commercial, officials said. DreamWorks will also help support McDonald’s balanced, active lifestyle program, “it’s what i eat, it’s what i do…i’m lovin’ it.”
“We believe this partnership will give DreamWorks an amazing opportunity to introduce our movies and characters to the world in a bigger, better way than ever before,” said Anne Globe, who heads worldwide marketing and promotion for DreamWorks consumer products in a conference call last week. “I think it’s fair to say that one of the reasons we’re already so excited is that we’re all committed to developing the next generation of entertainment promotions.”
The McDonald’s/DreamWorks partnership reflects the QSR’s change to take a more diversified marketing approach, said Scott Hume, executive managing editor for the Oak Brook, IL-based Restaurants & Institutions.
“McDonald’s was changing a bit and no longer wanted to be locked into one partner,” Hume said. “They don’t want to just dance with one person. They are looking to play the field. They want to pick and choose what properties they want to promote.”
The change isn’t the result of a poor experience with Disney, he added. Instead, it shows a need for more flexibility in its marketing, Hume added. With McDonald’s focusing more of its marketing on music tie-ins geared to young adults, “Disney just didn’t have enough product to mirror that kind of relationship,” he said.
The McDonald’s/DreamWorks agreement, however, doesn’t rule out future projects between the QSR and Disney. McDonald’s executives said the company wants to keep its options open for now.
“We don’t plan to have an exclusive relationship with anybody,” Larry Light, a global marketing executive for McDonald’s, said in the conference call. “Instead, we will have an open-door policy looking ahead in the future.”
McDonald’s will likely continue to make deals with Disney, Hume said. The QSR still has a “niche” audience to feed— kids, tweens and teens. “There certainly is value for them there,” he said.
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