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Published byJustina Phillips Modified over 9 years ago
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By: Emily Bryson York Presented by: Aimee Suelzle Stephen Young
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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.
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“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
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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
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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
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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.
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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.
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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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http://adage.com/article?article_id=1253 69&search_phrase=Mcdonalds http://adage.com/article?article_id=1253 69&search_phrase=Mcdonalds http://www.mcdonalds.com/usa/eat/feat ures/mcskillet_burrito.html http://www.mcdonalds.com/usa/eat/feat ures/mcskillet_burrito.html www.youtube.com www.youtube.com
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