Starbucks Credits McD's, Cost Savings for Sales Improvement†

CEO Says Golden Arches' McCafe Launch Drew More Customers to Coffee Category

Advertising Age, July 21, 2009 — Starbucks Coffee Co. appears to be coming out of freefall — thanks, in part, to marketing by McDonald's. In a third-quarter-earnings call this afternoon, Starbucks CEO Howard Schultz credited margin improvements, cost savings and attention brought to the category by its rival's big-budget McCafe launch with helping to improve Starbucks' same-store sales. The chain's same-store sales fell 6% during its fiscal third quarter in the U.S., but that still bests the prior quarter, when same-store sales were down 8%

Six Rules for Brand Revitalization†

McDonald's Did It, and You Can Too

Advertising Age, June 29, 2009 — Brands do not die natural deaths. However, brands can be murdered through mismanagement. Some brands are beyond hope — but others can be revitalized.

Of course, it's not easy. But it is well worth the effort.

McCEO

McCEO Named 2009 CEO of the Year, McDonald’s Jim Skinner transformed an icon with a simple and powerful recipe for leadership.

Chief Executive, June 24, 2009 — The recession has been the graveyard of many CEO reputations. So it may come as a welcome surprise that some leaders have not only survived but boosted their company’s performance the old-fashioned way-they earned it-through sticking to steady if unglamorous organic growth. Last February, a committee of his peers met at the NYSE and chose Jim Skinner, 64, CEO of McDonald’s, to be the 2009 Chief Executive of the Year for transforming an iconic brand by rebuilding its purpose, strengthening its internal talent and realigning that talent with a return to the company’s fundamental principles. In doing this, Skinner and his senior team had to rethink much of what had been proven successful since the days when founder Ray Kroc and his ideas suffused the... continue reading

How McDonald's Is Winning More Than the Value Wars†

By Building on Its Dollar Menu, Fast-Feeder Boosted Ad Spending on Full-Priced Items

Advertising Age, May 12, 2009 — It wasn't enough that McDonald's is beating competitors in same-store sales and winning the value-perception wars. Thanks to stepped-up burger marketing, it's now getting higher-margin customers, too.

While McDonald's pretty much owns the value menu and pricing proposition, since last summer it's quietly boosted advertising of full-priced items, which is paying off by bringing in higher-ticket customers. The product-specific pushes, for Big Mac in July, chicken nuggets in December and the Quarter Pounder with cheese in February, have resulted in double-digit sales increases for the products in question.

Warm and Fuzzy Makes a Comeback

New York Times, April 7, 2009 — IF music hath charm to soothe the savage breast, what can calm worried consumers during an economic crisis? Madison Avenue believes one answer is nostalgia.

Who Served Up the Better Coffee Media Strategy in 2008?†

Optimedia's Antony Young Compares Dunkin' Donuts and McDonald's

Advertising Age, January 26, 2009 — Antony Young

We know the recession is hurting purchases of big-ticket items such as cars and flat-screen TVs, but even life's seemingly small luxuries, such as that morning latte, are being hit hard. Indeed, an Advertising Age study found that 60% of Americans have scaled back from premium coffees in the past six months, with the mighty Starbucks experiencing a flattening of its froth. Enter Dunkin' Donuts and McDonald's, which both upped their coffee-marketing efforts in 2008, hoping to steal some of Starbucks' share.

At McDonald’s, the Happiest Meal Is Hot Profits

New York Times, January 11, 2009 — It wasn’t too long ago that McDonald’s, vilified as making people fat, was written off as irrelevant. Now, six years into a rebound spawned by more appealing food and a less aggressive expansion, McDonald’s seems to have won over some of its most hardened skeptics.

A New Look for McDonald's

McDonald's is rolling out new designs for its food packaging aimed at fortifying the brand and staying ahead of obesity concerns

BusinessWeek, December 3, 2008 — McDonald's (MCD) is busily remodeling its U.S. locations, accessorizing interiors with flat-panel televisions and plush chairs—even the exteriors are made of real brick these days (BusinessWeek, 5/15/06). Now the Oak Brook (Ill.) chain is turning to its packaging. In early November the king of cheap eats began rolling out new packaging across its 13,900 U.S. restaurants that aims to make the containers for its sandwiches, french fries, and soft drinks more relevant to today's consumers, and not look like a throwback to the 1990s.

How Subway Nabbed Michael Phelps†

Olympian Is McDonald's Biggest Fan, so Why Is Swimmer Shilling for the Competition?

Advertising Age, November 24, 2008 — If there was one thing Americans learned about Michael Phelps during his history-making eight-gold-medal run at the Beijing Olympics — other than that he can swim really, really fast — it was that he really, really likes McDonald's