A hot start for McDonald’s cool new strategy …
It used to be one of the best selling items in a typical McDonald’s wasn’t a burger, but rather a soda … more specifically, some small, medium or large sized Coke.
The franchise is looking at the beverage category again … in a big way …
The new concepts are tracking well … and adding positively to same stores sales.
Is it a good strategy?
I think it’s certainly an interesting one … as McDonald’s is looking to take advantage of shifting demographics … as well as a return to a value-oriented mindset for many consumers as a result of the current economy.
Can the company and its franchisees can maintain volume (as well as the quality of the new drinks) over time?
It is part of a strategy of differentiation for the company … one that started with the McCafe concept (which was originally tested in Australia).
Instead of reverting to discounting, McDonald’s has done a good job over the years of finding “value adds” to their menu.
Not everything has worked … but the fact that McDonald’s can hold price points while its competition reverts to discounting (see for example, Burger King … a strategy we will look at in our next post), makes the differentiation strategy a winner over time.
In the meantime, it will be interesting to see how the “Beverage Wars” will be fought within the context of the “Burger Wars” … and what the results will ultimately be from this “cool” new initiative.
Jodie Shaw
Tags: Action coaching, Jodie Shaw, McDonald's
ActionCoaching | Jodie Shaw | 
August 3, 2010 7:10 pm
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By Nigel Morgan, August 3, 2010 @ 7:31 pm
Great post Jodie,
Whatever McDonald’s do they are not using social media effectively!
The franchised nature has crippled their ability to effectively use social media and they are missing so many opportunities to engage with their local communities.
I took my daughter into a branch in Newbury, UK earlier today and logged in with Foursquare and there was no engagement. Mentioned it on Twitter and there was no engagement.
No matter what McDonald’s do they will lose out, especially on the beverage wars, when Starbucks are happy to respond to social media contacts wherever they are in the world!
Keep up the good work!