Monday 28 January 2019

McDonald's Should Win the Canadian Coffee War

I have no brand loyalty. Well, that's not entirely true - I have a few "go to" items - Innis & Gunn Original, Asics Athletic Footwear, Sriracha Hot Sauce, Google Suite & Iphones - but, for the most part, I am more apt to choose a product because of convenience, price or novelty.


McDonald's coffee was, for much of my life, notoriously awful. It was a desperation option. A late quarter Hail Mary when I was bone-tired on a long drive with no other reasonable options in sight. But that has changed - the product isn't just okay - it is quite good. 

Meanwhile, Tim Horton's coffee - A Timmies - once part of the collective Canadian psyche and a product to which I would have sworn loyalty, has somehow gotten worse. There are many theories for the decline of this once great Canuck-Caffeine king - international ownership, a change in suppliers, chicory-removal and, my favourite tin-hat conspiracy, a mysterious embargo on Cuban coffee beans because of (fill in politician's name).  Whatever the reason, Tim Horton's is now my "Hail Mary" option on long drives and even "Roll up the Rim" season has lost its charm.


Here's the question I would pose students - because it incorporates the strategies that McDonald's is employing (and the reason that they should win the Coffee War in Canada). 

Even if all things were equal (size, taste, cost, service speed, convenience)...

  • McDonald's has a sticker reward program to guarantee your 8th coffee free.
  • McDonald's hosts at least three $1/any size coffee promotions a year that last two weeks.
  • McDonald's food choices, although not recommended, are subjectively superior.


Students:

"If I buy 5 coffees a week for an entire school year at $1.75 each. 
  • What would it cost me at McDonald's vs Tim Horton's? 
  • Does that make up for the possibility I win a prize at Tim's during the 4 week Roll up the Rim event. The odds of winning a coffee or doughnut is one in six & the odds of winning a car is one in 6.5 million? See full details here. 
  • How much could I potentially save if I made my coffee at home and took it in a travel cup?

If you had a daily coffee/tea/hot-chocolate habit - what would you do? 

As a side note - my neighbour "won" a car through Tim's Roll up the Rim. It isn't an outright win - it's a one year lease with an option to buy...so, fine print is important.

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