Friday, May 24, 2019

I do agree however with the coment about cautioningomparison toffeshopsI would imagineatffsps havmuch morof lger fact

Yesterday McDonalds announced that it would be introducing free internet access.  This is a good move and a long overdue one.

There are two important concepts when it comes to positioning: points of parity and points of difference.  When a brand establishes a frame of reference, or competitive set, there are obvious points of parity.  These are features and benefits offered by basically everyone.  They do not differentiate, but a brand that falls short on these dimensions will surely be hurt.  For example, all small cars have four wheels, a steering wheel, lights and pretty good gas mileage.  These are all points of parity.

Points of difference are the things that help a brand stand out.  These are the factors that drive purchase.  Small cars are all pretty similar but the Mini Cooper is uniquely sporty and fun to drive.

For McDonalds, internet access is fast becoming a point of parity.  In the world of coffee establishments, in particular, internet access is almost universal.  Starbucks, Caribou, Argo and my favorite local Chicago coffee shop, Intelligentsia, all offer it.  McDonalds has to offer free internet simply to be a viable competitor in the space.

This move will result in some lost revenue in the short run, as people no longer have to pay for internet access, but it will protect share.

Marketing isnt always about growth.  Sometimes companies have to focus on improving the product simply to keep up.  This is one of those times for McDonalds.

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[]McDonalds Internet: Points of Parity,杭州桑拿 Points of Difference Building Strong Brands[]

[]McDonalds Internet: Points of Parity, Points of Difference Building Strong Brands[]

[]McDonalds Internet: Points of Parity, Points of Difference Building Strong Brands[]

Miami Local Internet Marketing Services

[]McDonalds Internet: Points of Parity, Points of Difference Building Strong Brands[]

of course when you dont have time to cook, fastfoods would always be the best option :,

I am just wondering what CMS your site uses? This seems to be fabulous and I like all the visitor features which are available. Im sorry if this really is the incorrect place to ask this but I was not sure the right way to contact you thanks.

MollieIm not up on the technical details, so I cant really help. Im still sorting this all out myself.

Chirag and RobGood points on question of defining competition.

My sense is that McDonalds is thinking of the competitive set very broadly, so Starbucks and Panera are key competitors.

I agree with this broader frame of reference; it illustrates growth opportunities for McDonalds and it highilights emerging threats.

In the traditional fast food market internet access isnt a point of parity. But in the broader marketing it is clearly essential.

Offering free internet does not affect those who already come there. Free internet is important only to the Panera Bread/Starbucks customers whom it seems to be trying to attract. For this new customer set which maybe McDonalds thinks it can get, it is trying to offer a point of parity.

For its existing customer base, maybe it is also trying to change the frame of reference. Something like, it is not just a cheap place, so dont be surprised if you find different, expensive, healthy things here too. If it does not redefine itself, it may not be able to compete in the long run. It must have either determined that doing this will not change the behavior of the current customer base or maybe its current customer base is migrating to this new frame of reference.

Overall great point about internet access and parityFunny you mention Starbucks..I actually started hanging out in Panera b/c the Starbucks near me dont offer free access..

I do agree however with the coment about cautioning the comparison to coffee shopsI would imagine that coffee shops have much more of a lingering factorIm not sure that people are looking to spend as much time on their lap tops in a place like McDs vs. Starbuck and even if they do I wonder how much incremental business it drives(i.e. you can sit and drink coffee all day, buy small snacks vs. buying quarter pounders all day)

Regarding the lingering factor, if I remember correctly from my business school days, historically McDs had uncomfortable chairs designed to discourage lingering. Perhaps with the proliferation of smartphones and tablets, McDs found that fast eaters are also web-using multi-taskers, and this is not targeted for people who want a place to work on their laptop or browse the web for hours.

I agree that McDonalds has made a wise decision by removing the fee for internet access in most of its locations. However, I would be cautious about placing fast food chains on par with coffee shops. Do you picture McDonalds as a company that provides an uniquely different service from Burger King, Taco Bell, etc.?

[] Read the full post here: McDonalds Internet: Points of Parity, Points of Difference « Building Strong Brands []

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