970818 McDonald's, Kellogg Hook up on Promotion
August 6, 1997
McDonald's Corp., the world's No. 1 hamburger chain, is pairing with Kellogg Co., the leading cereal maker, in a cross-promotion that features coupons for McDonald's food items on 14 varieties of Kellogg's cereal.
The effort marks a dramatic expansion of the marketing partnership between the two companies that began in 1995.
"We are very excited to partner with Kellogg on a cross- promotion that brings together two well-known family brands to provide even better value to our customers," said Dean Barrett, vice president, USA Marketing for McDonald's, in a statement.
Beginning this month, packaging on millions of specially marked boxes of such Kellogg's staples as Frosted Flakes, Rice Krispies and Corn Flakes, as well as newer brands such as Cocoa Frosted Flakes and Honey Crunch Corn Flakes, feature the coupons. The offers range from a free Happy Meal with purchase of a Deluxe Extra Value Meal, to a buy-one-Big Mac-get-one-free offer.
Kellogg, based in Battle Creek, Mich., will plug its McDonald's tie-in with 10-second animated tags on Kellogg's TV spots as well as four, free-standing newspaper inserts during August. The ads were created by Leo Burnett Co. in Chicago, which helped coordinate the co-promotion with its long-time client McDonald's.
Earlier promotions featured McDonald's coupons on boxes of Raisin Bran promoting McDonald's NASCAR and NHRA racing sponsorships.
"Kellogg's is a great partner," said Rebecca Caruso, a McDonald's spokeswoman. "We've been pleased with our cross- promotions with them in the past. It's safe to say we're looking at other cross-promotions down the road."
The link-up with McDonald's has proven very popular with Kellogg's consumers, a Kellogg's spokeswoman said, adding that both companies target the same consumer base.
McDonald's stock fell 81 cents to close at $52.125, while Kellogg rose $1.31 to $7.125 on the New York Stock Exchange.
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