December 9, 2017
Advertising McDelivery - Already?
Unless you were out of the country or in solitary confinement you saw a flood of McRib
commercials in November. While the commercial itself is fine, especially if you're trying
to introduce a younger generation to the McRib, isn't it too early be advertising delivery?
McDonald's USA is a long way from having a predominance of customers able to access
McDelivery. As I understand it, some stores and some Operators will never be on
Yet the concept of delivery is already on OPNAD?
We've been here before. Oak Brook forced OPNAD to launch McCafe espresso drinks
in the spring of 2009, a silly season to introduce cold weather drinks. Worse than that -
about one third of McDonald's USA stores didn't have the product. Management had so
over-hyped the new product line to Wall Street that there was no way they could wait
until fall to launch McCafe.
So OPNAD went full steam into McCafe espresso, wasting millions in Operator ad $$$.
Same store sales went flat because A) OPNAD was advertising something that wasn't in
all restaurants, B) Americans weren't interested in hot drinks in the summertime.
But this illustrates that OPNAD has two jobs, driving customers to McDonald's and also making an impression on McDonald's investors. It works like this - management jumps
the gun and tells Wall Street about the next few initiatives or promotions. Sometimes
this happens a year out, more often about six months. Along the way management will
tell media and analysts that 90 percent of McDonald's Operators support the program.
Then, after analysts and investors have seen hundreds of commercials on the subject management can conduct a quarterly conference call and tell them the campaign was
a huge success. Of course their audience believes it after seeing all those commercials!
Can McDonald's Operators stop OPNAD from prematurely advertising McDelivery?
Posted by Richard Adams at 12/09/2017