By: Emily Bryson York Presented by: Aimee Suelzle Stephen Young

 Launched the start of breakfast in the 1970’s with the introduction of Egg McMuffin.  McDonald's reports that about 48% of Americans grab breakfast on the go at least once a week.  Breakfast is known as one of McDonald’s specialties  Offer a wide variety of choices on their breakfast menu.breakfast menu  Recently, McDonald’s has offered “Free Coffee Mondays”  This promotion greatly increased profits for their coffee line.

 “Mornings can be a busy time for many consumers and we're thrilled to be able to provide a great start to their mornings with a free McSkillet Burrito,” Neil Golden, chief marketing officer of McDonald's U.S., said in a statement. "We encourage customers everywhere to stop by their local McDonald's restaurant for a delicious way to kick-off the Leap Year.”McSkillet Burrito

 Add to the morning routine  Instead of going to Starbucks for just coffee, Customers can go the McDonald’s for coffee AND breakfast.coffee  Customers will purchase complimentary products  It is required to receive a free McSkillet, that a medium or large drink be purchased  Great way to get customers to try something new  Can create a loyal/repeat McSkillet customer purchases

 Concerns with consumers trading down  The McSkillet retails for about $2.49. A large coffee costs about $1.33, depending on the market.  Other breakfast menu items are more expensive  This can create a financial loss in the breakfast segment  Make consumers feel that the McSkillet is a low quality product  McDonald’s does not offer breakfast all day long McDonald’s

 The giveaways are beginning to be something of a habit for the Golden Arches.  It may seem that with this give away McDonald’s may lose money, but they figure that with the complimentary food purchases, they will actually make a profit due to low food costs.

 Burger King  Have an established breakfast menu  Wendy’s  Is currently testing a breakfast menu in select locations  Starbucks  Beginning to introduce hot breakfast products in certain markets, such as Charlotte, N.C.

 It will be interesting to see the effects of this marketing campaign:  Will customers begin to expect free give- aways?  Will the campaign cause trade downs and loss of profit? TOO EARLY TO TELL!

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