It is axiomatic that a successful brand should command a premium price in the marketplace. Customers willingly pay such premiums because the brand offers higher quality, more innovation, greater trustworthiness (and associated reduction in risk), or more personal relevance, among other things. While this is true and justifies investment in brand building, it misses an important strategic advantage of successful brand building.
McDonald’s recently announced that the $5 Meal Deal will be extended past its initial 4-week period. According to Bloomberg, McDonald’s hopes the $5 Meal Deal will “lure” in customers. This seems to be happening. McDonald’s believes that this $5 Meal Deal is an opening to “bolster its (McDonald’s) affordability plans through the rest of the year… including the potential to extend the current meal deal for an even longer period of time.” Offering a McDouble...
Here’s a brain teaser. What are things that used to be free but now cost money?
Consumers are trading down to lower-priced items and those cans and boxes in the back of the pantry staples are now on the table,” The Wall Street Journal.
What do McDonald’s, Target, Walgreen’s, McCormack, Applebee’s, Campbell’s, Kellogg’s and other national brands have in common today? Each is having a comeuppance. This is long overdue.
