Despite a down economy or perhaps because of it McDonald's has been beating competitors badly in recent years. In fact, the fast food giant pretty much owns the value menu. But, surprisingly, McDonald's current financial good fortunes are not being driven by its low price items but rather by its higher price, higher margin items. Throughout tough economic times, McDonald's advertising strategy focused on its traditional, full-priced specialties. One month it pushed Big Macs, the next month Chicken Nuggets, and then Quarter Pounders. But McDonald's hasn't forsaken its dollar menu. Instead, it has increased promotional support for its flagship specialties. It's all part of an effort to grab business from diners who are trading down from higher priced eateries. McDonald's has gambled that people would view the old favorites as comfort food. Add to this promotional strategy the burger king's migration into a full beverage menu that includes lattes and all fruit smoothies and you has a real one-two punch. The company's overall revenues and profits continue to rise, even as the percentage of revenues generated from lower-price items falls. It's promotional, pricing, and product strategies are attracting new customers while also encouraging existing value menu customers to trade up. All this has both executives and franchisees singing "i'm lovin' it."

1.What was McDonald's advertising objective with this promotion campaign?

2.In communicating value during hard times, what elements of McDonald's advertising strategy contributed to its success?

3.How can advertiser overcome the problem of low literacy in an international market?