CASE STUDY ON PROMOTIONS-IN SERVICE INDUSTRY

McDonald’s marks another milestone in its leadership marketing efforts today with the
announcement of a new marketing relationship with Sony Connect to launch an
unprecedented multi-national restaurant promotion for customers. McDonald’s Big Mac
Meal Tracks offers every customer who purchases a Big Mac Extra Value Meal® at
participating McDonald’s restaurants an access code worth one free song download at
the Connect™ music store, which is accessible via www.connect.com.

McDonald’s Big Mac Meal Tracks promotion launches June 8 in the United States,
Puerto Rico and Canada. Sony Europe and McDonald’s will launch the promotion in
France, Germany and the United Kingdom in early July. It is expected to roll out to
additional McDonald’s countries throughout the year as plans are finalized. During the
initial launch, McDonald’s anticipates providing millions of customer downloads, making
this one of the largest music promotions of its kind.

“Our partnership with Sony Connect on this very exciting and relevant music event
continues our commitment to surprising and delighting customers with fun and unique
restaurant experiences,” said Larry Light, McDonald’s Executive Vice President and
Global Chief Marketing Officer. “Music continues to be at the forefront of our leadership
marketing strategy. As the first to take a program like this across borders to six
countries, we are achieving our goal of creating ideas that are ‘first, big, best’ in music,
fashion, entertainment and sports, areas of high interest to our customers.”

McDonald’s Big Mac Meal Tracks promotion will run between six and ten weeks in the
six participating countries. In the U.S., Puerto Rico, Canada and the UK, customers
purchasing a Big Mac Extra Value Meal® during this time period will receive a unique
access code printed on the Big Mac sandwich carton. Customers will redeem their free
access code for a song of their choice at the Connect music store, offered by Sony
Connect Inc. in North America and by Sony Europe in Germany, France and the UK.
The Connect music store is accessible via Connect.com, Connect.com /canada or
Connect-Europe.com. In Germany, customers will receive a card with the access code
with the purchase of a Big Mac Value Meal or Big Mac Maxi Value Meal. In compliance
with French law, McDonald’s France will run a sweepstakes for Big Mac customers with
music downloads as prizes.

The Big Mac Meal Tracks program is part of McDonald’s worldwide Big Mac celebration,
taking place in all McDonald’s countries in June and July.

“Big Mac Meal Tracks is not only McDonald’s first multi-national music promotion, it is
the first time that a music program of this scale is being offered to consumers in multiple
countries around the world,” said Dean Barrett, McDonald’s Senior Vice President,
Global Brand Business. “Only McDonald’s, with our unequaled restaurant presence in
119 countries, and Sony Connect, with its technical knowledge and expertise, could
make this happen.”
McDonald’s will aggressively support the Big Mac Meal Tracks program. This includes a
new global television commercial by Leo Burnett featuring high-tech special effects and
a cameo appearance by superstar Justin Timberlake. It will air in the U.S., Puerto Rico
and Canada beginning June 7, with other countries to follow. Radio advertising, in-store
merchandising and special Big Mac packaging will further promote the program.
“We are delighted to be partnering with McDonald’s on this innovative promotion, which
will introduce millions of McDonald’s consumers throughout North America and Europe
to Sony’s new Connect music store, which features their favorite artists and music,” said
Jay Samit, General Manager, Sony Connect Inc. “This campaign by McDonald’s will
promote legal downloads, which is beneficial both to the entertainment industry and
music fans around the world.”

“McDonald's and Sony are both strong consumer brands globally, and we look forward
to exploring more opportunities in other areas in the future,” added Light.

Sony Connect Inc., based in Santa Monica, California, is a subsidiary of Sony

Corporation of America. Sony Connect currently offers consumers hundreds of
thousands of music tracks from major label and independent artists, as well as the ability
to enjoy that content on a wide range of digital music devices that are priced to suit any
lifestyle.

Connect Europe is based in Berlin and operated by Sony Network Services Europe, a
division of Sony UK Ltd. The service will be launched later this month and will offer
consumers hundreds of thousands of music tracks from major label and independent
artists, as well as the ability to enjoy that content on a wide range of digital music
devices that are priced to suit any lifestyle.

McDonald’s is the world’s leading food service retailer with more than 30,000 local
McDonald’s restaurants serving 47 million customers each day in more than 100
countries. More than 70 percent of McDonald’s restaurants around the world are owned
and operated by independent, local businessmen and women.

With reference to the above, Explain the significance of Promotions in service

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