After reading Severin’s blog post about Molson Canadian’s strategy of giving away cases of free beer on the streets of Vancouver I realized that this is a strategy used by other large companies as a way to increase brand loyalty and recognition. In early September a small pub located close to my apartment took to the streets handing out free bite size samples of their signature dish, chicken pot pie. I agree with Severin’s point that in the long run the benefits of giving away free products will have an advantageous effect on sales. I believe that this strategy works not only with large corporations but also with small companies such as neighbourhood pubs because it increases exposure and creates a loyal clientele within the neighbourhood.

McDonald’s has also used this strategy to increase its market share of coffee sales against coffee giants Starbucks and Tim Horton’s. Once a year McDonalds gives away free coffee for a whole week, which allows consumers sceptical of the quality of McDonald’s coffee (as I was) to try it and come to the realization (as I did) that it is good quality coffee that is cheaper than both Starbucks and Tim Horton’s. The cost of giving away free coffee is in the long run out weighed by the benefits of increasing McDonald’s brand recognition as a place to buy not only Big Macs but your morning coffee as well. Not to mention the cost of giving away free coffee for a week is also decreased in the short run by the fact that many consumers who enter a McDonald’s during this particular week with the intention of getting a free coffee, end up leaving with not only a free coffee, but also a full priced egg McMuffin as well (as I did).