McDonald’s Japan and Pokémon GO: IoT Gamification

Abstract

In July 2016, McDonald’s Japan launched a gamification campaign using the new smartphone version of the popular game Pokémon GO. The results for the company were immediate and significant, driven by the community of 3.4 million game subscribers in Japan: it received 1.5–2 million daily visits across its 3000 locations, enjoyed an estimated sales increase of 22%, and earned an increase in market capitalization of 9.8%. Even though the immediate results exceeded all expectations, one of the new Chief Marketing Officers’ major concerns was the project’s sustainability.[Formula: see text] Given the dynamic nature of gaming, Pokémon GO may or may not be relevant in the next few years. As such, it was key to assess the short-term versus long-term benefits and the major risks involved in the Pokémon GO gamification project and the potential negative outcomes for the business. This evaluation would allow McDonald’s Japan’s CMO to also determine the future actions of the strategic alliance between McDonald’s and Niantic, the game developers, and hence change the course of McDonald’s marketing strategy in Japan.