MCDONALDLAND OR DISNEYLAND? PROMOTIONAL TIE-INS MULTIPLY

EVEN MCNUGGETS WILL BE LINKED TO A NEW MOVIE

One year after the stinging failure of its Campaign 55 discounting program, McDonald's Corp. is poised to start the important summer promotional season with tighter links to Walt Disney Co.

The Oak Brook-based burger chain is in its second year of a 10-year pact with the California entertainment conglomerate and has been criticized by some franchisees for not getting more marketing power out of the exclusive relationship.

McDonald's officially kicks off its link to Disney's newest Florida theme park, Animal Kingdom, with the park's grand opening this month. McDonald's is the sponsor of Animal Kingdom's DinoLand USA area and is opening a McDonald's restaurant there called Restaurantosaurus.

In June, the fast-food chain launches what may be its first Disney theme product: Mulan McNuggets.

The company declined to comment on the product. Details on the new twist on Chicken McNuggets, a frequent summer promotional item, were included in an internal marketing memo obtained by Crain's sister publication Advertising Age.

The limited-time offer, to run for 17 days, ties into "Mulan," the Disney animated feature about a Chinese girl.

Separately, McDonald's has dropped its previously scheduled July link to Disney's "Mighty Joe Young" film and will replace it with tie-ins to the Bruce Willis movie "Armageddon," also from Disney.

In another sign of increasing links between the two global brand names, Mr. Willis will be involved in McDonald's promotions for the film, with customers being given a chance to meet him via a contest.

The marketing memo, from Mary Kay Eschbach, director of U.S. media, calls for the operators of McDonald's estimated 12,380 U.S. restaurants to increase local radio spending.

Frank Stimmler, a three-unit franchisee in New Jersey and a member of McDonald's national marketing advisory board, said the Disney relationship is improving.

McDonald's headquarters "is doing a better job in terms of how they market these Disney properties," Mr. Stimmler said. "You're going to see a really good summer with `Mulan' and `Armageddon.' "

The summer activity begins as McDonald's U.S. division conducts a search for a new senior vice-president of marketing to replace Brad Ball, who resigned late last month to join Warner Bros. as president of domestic theatrical marketing.

One executive close to the company said Mr. Ball's replacement likely will come from within, possibly from one of the global chain's foreign markets.

A spokesman said there is no timetable to name a replacement, and the company is looking both inside and outside its ranks.

"I think they need to go to the outside," said Kent Smith, a restaurant consultant and a former senior vice-president of marketing for Miami-based Burger King Corp. "I think they need someone who is going to be both sensitive to their system and its strength, but also bring some sort of a new thinking or new approach to their business.

"It would be very foolish if anybody went in there and attempted to make major, major changes."

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By LOUISE KRAMER

Crain News Service