It’s beautiful, when you hear it you can’t stop thinking about it, and when you see it on signs and in windows your heart skips a beat. Yes, you know what I’m talking about….”FREE”. That one word can appeal to just about anybody, but speaking from a university standpoint, a students’ day can be brightened just by getting a free pen.

That’s why when McDonald’s has their highly-anticipated “Free Small Hot Brewed Coffee” promotion, well it basically parts the grey clouds of Vancouver for the hypothetical beams of sunshine as a beckon of light. Now besides being happy about free coffee customers might think, “Those people in the head office have lost their minds,” or “This is no different than McDonald’s burning bills.” But it’s not.

In response to classmate Mandy Xu’s post about this exact promotion, we both agree that it is money well lost in mean of the long-term strategy of the business. Mandy states “By cutting down price drastically, the restaurant boosts up its market share in a blink of an eye. This cost leadership strategy is subjected to attract a wide range of customers regardless of the contribution margin each one of them brings in.”

In that sense, McDonald’s is doing something right in terms of marketing. By giving out free coffee they are both “thanking” their loyal customers, while welcoming new ones – who previously might not have ever gone to McDonald’s.

Well, seems like McDonald’s has two thumbs up on this end; on behalf of university students, we’re loving it.