Coffee Craze

You may not have heard about it, but you may have seen it. Last week, I noticed a curious increase in the number of McDonald’s coffee cups on campus. It did not take me long to learn that the fast food chain is serving free coffee from November 15th to the 28th. Seeing as 9 out of 10 Canadians drink at least one cup of coffee a day, McDonald’s saw this window of opportunity and seized the chance to reintroduce their coffee sales promotion in an effort to encourage further interest in the product. While consumers storm their local McDonald’s, the company is sitting back and reaping the benefits of this clever promotional strategy.

I observed that McDonald’s has taken many steps to ensure a precisely planned sales promotion:

• Timing is crucial, and McDonald’s has hit the bullseye. The offer of free coffee runs for two weeks, which I feel is a happy medium–not too long as to decrease the value of the promotion (and to augment costs), and not too short as to leave consumers too unsatisfied. The two-week time frame provides ample time for consumers to learn of the promotion and to stop by their local McDonald’s. Furthermore, the choice to offer this promotion during the chilly month of November is even more effective than during a warm month. Who doesn’t love being warmed up by a piping hot cup of joe?
• It is an absolute fact that everyone loves free stuff. By giving out coffee with no strings attached, McDonald’s is lowering the risk of consumption: “You have nothing to lose.” The absence of financial risk is enough to possibly lure the coffee drinkers segment from other coffee establishments, as well as convince the non-coffee drinkers segment that it wouldn’t hurt to try. After all, if it’s free, why not? What follows is increased brand exposure and awareness through the ensuing ubiquity of McDonald’s distinct coffee cups, which I mentioned earlier.
• Coffee is generally considered a convenience product–minimal effort is exerted during the consumer decision process. (This is especially true for McDonald’s positioning for its coffees. Unlike Starbucks, McDonald’s targets consumers seeking a fast cup of coffee at a low price.) Caffeine is addictive, and by promoting free coffee, I am thinking that McDonald’s is hoping to foster and facilitate a habit of coffee consumption in the spirit of modern society’s coffee culture. Not everyone may find McDonald’s coffee good, but those who try it and develop a liking will probably return to McDonald’s after the promotion ends with a new willingness to pay the normal price.
• Where there is free stuff, there is also a long lineup. As people queue for their free coffee, McDonald’s restaurants’ noticeable signs and menus attempt to squeeze a last sale from each of them at the point of purchase. For instance, certain individuals may feel that all the time spent lining up for one measly cup of coffee simply isn’t worth it, and would ultimately be persuaded to buy something else to make the extended wait worthwhile.

Competitors of McDonald’s, take note! If they are indeed paying attention, I happily look forward to more free food.