Wednesday 27 August 2008

McDonalds Truck


This is a toy truck made by Matchbox with McDonalds advertising on the sides. It is a good example of joint partnership, the two companies work together to increase their sales; this is known as external/horizontal integration or external synergy. McDonalds allowed the company Matchbox to use the McDonalds brand on its toy trucks (McDonalds is licensing their brand). It benefits both companies, because children will want to have the truck since it has Ronald McDonald on it, who is popular among young children, and children playing with the truck will get hungry for a happy and drag their parents along to a McDonalds. This also allows McDonalds to create brand loyalty among its young buyers. The contrast of this is internal/vertical integration or internal synergy, a good example of this is Disney, who owns the Disney store in which they sell products of their films. The two are working together, but within the same company. McDonalds and Matchbox, on the other hand, are two different companies working together.

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