The Warc Blog

The Warc Blog

McDonald's Fish McBites flounders. New product line doesn't hook consumers
 
Robert Passikoff, President, Brand Keys, Inc
 
Robert Passikoff

Real fishermen have a saying: "a bad day of fishing is better than a good day at the office," but perhaps not at McDonald's. Not this month, anyway. It turns out that Fish McBites – offered in three different sizes and a new Happy Meal – didn't lure enough customers into the chain to help U.S. sales last month.

The paltry catch cast a pall over the brand's headquarters because the company hadn't netted a monthly decline in global sales for nearly 10 years. Until last October. And this January. And again in February. So whatever strategic bait they think they're using, it isn't working as well as the corporation hoped. Their profits have floundered, a situation that must have more than one shareholder carping at McD's CEO, Don Thompson.

It's no fluke that McDonald's did well during the recession, luring customers with their Dollar Menu. But you can't count on consumers' counting pennies to guarantee profits in perpetuity. First, from an accounting POV, you keep fishing in that pool and you end up hurting your profit margins. Second, and far more importantly, according to 39,000 consumers who participated in our 2013 Customer Loyalty Engagement Index, consumers are looking for something more from their quick-serve brands than just inexpensive food. No, not tartar sauce. Emotional engagement.

McDonald's has apparently reached their limit there. They had been the perennial whale in Quick-Serve, but alas, have failed to find that emotional engagement hook that has served competitors like Burger King and Subway, and newer competitors like Panera, Chick-fil-A, Chipotle, and Einstein Bros. If our newest survey has taught us anything, soul works a lot better than sole, no matter how fresh. And the category, via changing customer expectations and a re-cast competitive set is different now than it was even five years ago, so the oppor-tuna-ties are different.

From a promotion and advertising perspective, all the brands are, as the saying goes, "fishing where the fish are." There are so many platforms and methods of outreach, it can make a planner walleyed. But to net as many as possible, you can't be koi about it. You need have measures in place that are something more than satisfaction surveys or legacy measures.

So mullet over – then switch over to 21st century engagement metrics. Especially if you're angling for real success.



Subjects: Brands

12 March 2013 10:11
 

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