Comments on: McDonald’s Seattle Billboard: ‘Four bucks is dumb.’

By: icomenao

icomenao — Wed, 06 Jan 2010 17:29:06 +0000

Wazzup, I finally decided to make an account on here after months of lurking lol so please bear with me…
Since the community here is so awesome, I thought I’d share a few sites that I’ve been going to lately and share a secret.
The first site is leetboss.com, its an awesome place to get good deals on electronics and watches. shipping’s free too (not quite sure how it works out for them but hey, thats not my problem.) so that’s a plus.
I also like going to volume rate. Prices aren’t as good as Leetboss (no free shipping, unfortunately), and some of their goods come slightly damaged because of bad packaging, but their selection is nice.
I basically use these shopping sites to make some quick cash. I go onto them and pick an item like the r4i sdhc which is really cheap. Then I post them on forums and sell them online as a drop shipper. Last month I made over $1000 in profits, as a college student the money really comes in handy.
I hope your finals all well if you have any and good luck making some quick ca$$$h.
Happy Holidays,
Ben

By: ridwanzero

ridwanzero — Wed, 06 Jan 2010 09:18:32 +0000

If you really did find a working formula that made you, say $1,000 a week online on average and it kept producing income no matter what, would you want to sell that idea to a bunch of noobs for $47 a pop and expect to retire on the proceeds? No way, man! It does not compute. It does not add up. And it does not make any sense to do that. I certainly don’t go shouting from the rooftops how I make my money online. Hell, I don’t want the competition taking a slice of my pie and neither would anyone who really does make good cash online.
http://www.onlineuniversalwork.com

By: inediuddinfok

inediuddinfok — Thu, 19 Mar 2009 10:46:58 +0000

Last blog news about health and diet. http://teplovozik.biz

By: wowgold

wowgold — Wed, 18 Mar 2009 18:33:26 +0000

That recipe sounds delicious and budget friendly. Probably a good partner with coffee.

By: priepleLave

priepleLave — Thu, 12 Mar 2009 04:35:21 +0000

so i thought it would be nice to share one of my favorit Low Carb
recipes online with you guys…
Remember Mozart should be playing in the background!
Cornmeal Pancakes with a Cinnamon Banana Compote…
Serves one person (3 pancakes)
Cornmeal mix-
3/4c cornmeal
1/8c flour
1/2 tsp baking soda
1/2tsp sugar
1/2 tsp salt
1 cup milk (any kind will work; buttermilk for best results)
1 egg
Mix all the dry ingredents set aside
mix all the wet ingredents add to the dry stuff…
and done!
Cinnamon Banana Compote.
3 bananas ripen as hell
1/2c white wine
1/4c sugar
1tbs butter (vegan butter works as well)
1tsp cinnamon
pinch of nutmeg
fry the banana in a med heat with butter. add white wine, let it reduce half way. add sugar cinnoman and nutmeg. allow it
to reduce half more, till a thicked.

By: Ted Mininni

Ted Mininni — Mon, 02 Mar 2009 20:51:01 +0000

Thanks, Neil. You’re very kind. I appreciate it. I think I’ve mentioned, on more than one occasion, that blog posts about coffee seem to elicit some very strong opinions and passions. . .from everyone including me. Must be that we’re all just over-caffeinated, huh?

By: Neil Anuskiewicz

Neil Anuskiewicz — Mon, 02 Mar 2009 20:17:28 +0000

BTW, Ted, your two posts on coffee and competition there have been a couple of the most spirited discussions I have seen on this blog so far. Good work!
I had no idea people, including myself, had such strong feelings about coffee. I just drink it every morning and some afternoons and did not realize I had strong opinions on the topic until it came up.

By: Ted Mininni

Ted Mininni — Mon, 02 Mar 2009 16:39:04 +0000

Neil,
I’ve had the pleasure of visiting clients in the Pacific NW. . .and I also count some of the wonderful designers up there as friends. It’s a wonderful part of the country. You have every right to love living there.

By: Neil Anuskiewicz

Neil Anuskiewicz — Sun, 01 Mar 2009 15:50:43 +0000

Well Ted, in reference to Dave’s last line, I have heard that one a million times.
The honest truth is that we in the Pacific Northwest also love the fact that the weather here is not for everyone. If it were all sun and palm trees it would become absolutely over crowded and unliveable here in about a minute.
As it stands, there is a fairly brisk population growth and vibrancy here but not quite overwhelming. The growth here has created a vibrant culture and lots of energy here, while the weather has acted as a bit of a damper. It is a good balance.

By: Ted Mininni

Ted Mininni — Fri, 27 Feb 2009 20:27:02 +0000

Pepperfire: Good point. Thanks for the observation.
Dave: I believe you’re right. Louis Vuitton is a luxury line that has a totally different clientele than Coach. The very wealthy who purchase LV are relatively unaffected by economic downturns, whereas the people who purchase Coach products in this country, probably are. It is an aspirational brand. While I still think Coach might do well to promote its smaller wares, or preach the quality of the rest of its line to customers, it probably wasn’t the best comparison. I will add this, though: I do not see the Coach customer trading up to Vuitton. That represents a huge leap, not only in quality, but in price. That’s where we differ in our opinions.
Loved the observation at the end of your comments, Dave. Funny! Thanks for adding more great stuff to the conversation!

By: Neil Anuskiewicz

Neil Anuskiewicz — Fri, 27 Feb 2009 19:37:38 +0000

Dave,
I live in Portland, OR, and I will say it is cloudy 9-months of the year in the Pacific Northwest. Maybe that is why we like our coffee so much.
It is not actually raining every day during those 9-months.
Not everyone likes it who lives here and some flee the clouds and rain but I love the Pacific Northwest.

By: Dave MacDonald

Dave MacDonald — Fri, 27 Feb 2009 19:14:21 +0000

Ted,
Thanks for the kind words. We covered these types of companies, diversifying from their core to capitalize on success, in great detail a couple years back in b-school. So I am pretty familiar with their cases.
I wanted to touch on “small affordable luxury” from Gianandrea’s post and your response. I think the most important thing to remember is that this concept is dependant on the original consumer. This is the discrepancy between LVMH and Coach.
LVMH (Moët Hennessy * Louis Vuitton) purchases are fashion/style based and typically do not represent a large portion of the customers discretionary income even if purchases are made frequently. As the economy slows these buyers would feel bad if they showed up every couple of weeks with a new $1500 bag while their friends may have lost their jobs/life savings. A $300 wallet or key chain is a significant step down over the typical purchase and might be a “small affordable (and discrete) luxury”.
Coach customers, on the other hand, are buying aspirationally having saved up, or decided to go into debt, for the purchase. All of a sudden a $50 luxury really isn’t affordable and certainly not as necessary as other things …. food, rent, etc.
So the reason for the differences, I think, is more due to their original target markets and positioning than States vs. Europe. Coach might be able to bring back customers by pitching smaller wares but I think the real opportunity is for LVMH …. They should poach Coach customers with a “buy quality, buy it for life” style campaign.
I am currently looking for new marketing opportunities but I hear it rains 9 months out of the year in Seattle.
Dave

By: Pepperfire

Pepperfire — Fri, 27 Feb 2009 19:03:00 +0000

For what it’s worth, at $3.25 plus tax, plus a tip, it’s a $4 cup of coffee.
Who is Starbucks trying to kid?

By: Ted Mininni

Ted Mininni — Fri, 27 Feb 2009 18:25:47 +0000

There’s wisdom in this statement of yours, Walter:
“Don’t confuse bad business with bad economy.” I agree that businesses lose ground and totally fail, in some instances, if they pursue bad business practices. However, the current downturn in the economy is worse than the usual ones. Many people are quite scared right now, so I think this is having a larger impact than it might otherwise have. . .but that’s just one person’s opinion.
Thanks for making us think about this more, Walter. I appreciate it.

By: Ted Mininni

Ted Mininni — Fri, 27 Feb 2009 18:21:38 +0000

Hi Brett,
You’re definitely a brand advocate when it comes to Starbucks as many other ardent consumers are.
You’re quite right to state that you have many good reasons for feeling as you do. Eventually, you do share this insight as well: ” I’ve noticed a definite decline in magic the further you get from the Emerald City, in the Windy City for instance, my Starbucks experiences were decidedly different. (My inside contact at Starbucks says that this was because I was actually at a licensed store, instead of a company store, but still)” Therein lies one of Starbuck’s problems, right? So not everyone feels as you do. Every consumer decides for himself or herself what constitutes value for their money. . .and it’s different for all of us. As you say, our own experiences with brands determine much of how we feel. Thanks for opining, Brett.

By: Walter Graff

Walter Graff — Fri, 27 Feb 2009 18:04:45 +0000

He also said in an interview the other day where the head of the UK spoke after that he thinks the UK is heading into depression and anarchy. To which the minister said, Mr. Shultz’s company is tanking in the UK but that should in no way mean we are. We are not. He is trying to push his bad luck on all of us.
Starbucks has made the classic mistakes… too big too fast, trying to sell records in it’s stores, has had employees attempt to form a union in the last year, along with twenty other failing ventures of theirs related to poor decision making… oh yea and letting their product slip so bad in quality that they closed every store one day last year to teach people how to make coffee. Don’t confuse bad business with bad economy. Starbucks has a bad business model, the economy will turn around, already is. Starbucks may best be remembered in Wikipedia, or just be a sub-brand of someone that buys the name. It’s time to change the coffee grounds.

By: Brett Birdsong

Brett Birdsong — Fri, 27 Feb 2009 17:46:19 +0000

Why is McDonald’s campaign having NO EFFECT on me? Why am I still stopping every morning at Starbucks for a Grande SCL 2= (If you don’t know what that is, consider yourself a nube) with the reduced fat turkey bacon sandwich? I’ll tell you why.
Every morning for 2 minutes I’m the most important person in the place. They recognize me, remember my drink and always have a smile that isn’t glued in place.
Their baristas are knowledgeable, friendly, and seem to be happy to see me. (contrast this to the blank cow-eyed expression on the acne pocked face of your average MickyD worker)
I’ve never been asked: “you want fries with that?”
There is no 27 foot high jungle gym with 38 miniature wailing banshees swarming over it at the other end of the room, so my business meetings are conducted to the sounds of jazz, and the gentle tones of muted conversation.
I stopped drinking coffee dispensed from big machines a long time ago. “Wheres the SCL 2= button?”
For these reasons, when I need a weekend mini-retreat, I find myself at Starbucks, certainly not at McD’s
And lastly, HAVE YOU TASTED THE SWILL AT MCDONALD’S???? Of course you couldn’t charge $4 for it! They shouldn’t charge one dollar for it.
Now, I do admit, I live in the Pacific Northwest, and the Starbucks experience which is the norm here, may not be the norm elsewhere. I’ve noticed a definite decline in magic the further you get from the Emerald City, in the Windy City for instance, my Starbucks experiences were decidedly different. (My inside contact at Starbucks says that this was because I was actually at a licensed store, instead of a company store, but still)
The bottom line is that, while funny (and they are), the McDonald’s campain is only going to draw people who don’t really like coffee, don’t care about the rest of the experience and only care about price.

By: Ted Mininni

Ted Mininni — Fri, 27 Feb 2009 17:35:27 +0000

Jerry,
You’ve raised a good point. . .to that I’ll say this: one person’s dislike when it comes to coffee, espresso or latte is another person’s nectar. We all like different things. You are right in this regard: for those who try McD’s new beverages and find them distasteful, they aren’t likely to be lured in with future new product intros. For those who do like them, however, the opposite is true.
Great insight, Jerry. I appreciate your comments.

By: Jerry

Jerry — Fri, 27 Feb 2009 16:39:10 +0000

I echo the sentiment of a lot of the other comments about Starbucks, but, have you tried the McDonalds espresso? It sucks. It’s horrible. So you have an interesting marketing campaign that leads you to a bad product. I call that a disaster.

By: Claudia

Claudia — Thu, 26 Feb 2009 18:55:08 +0000

Hey there,
Good blog, I just found it and I am already a fan.
I hope it is not too brash but I have just started writing about my own weight loss. I lost 25 pounds in one month, so I am really glad, and I am curious if you could write about the weight loss system I used for your blog readers.
My most recent post is acai berry weight loss.
If you would like to do a link exchange that would be incredible as I want to discuss my weight loss success with your readers. If I can lose that much weight then anyone can. Whatever you do, don’t give up and you WILL meet all your weight loss goals!
with kind regards,
Claudia

By: Ted Mininni

Ted Mininni — Thu, 26 Feb 2009 11:44:04 +0000

Krista,
Until the global financial meltdown of the past fall, things were booming in parts of Asia. Asians were becoming very westernized in the sense of becoming more materialistic. They were eager to spend money on luxury and “lifestyle” products in a big way. Since the current economic situation is global, I expect the acquisitions pace has slowed down in your part of the world, as well.
What price is a cup of coffee, even very good coffee, worth? I suspect you’re about to find that out in Malaysia too, Krista. Thanks for weighing in on this; it’s always terrific to hear from folks in other parts of the world.

By: Krista

Krista — Thu, 26 Feb 2009 07:12:59 +0000

I don’t know about you guys (and gals) but Starbucks is very expensive coffee here in Malaysia. Over here, we pay RM1.00 for a regular cup of coffee (not Starbucks) and RM10 minimum for a cup of Starbucks coffee! I am not a coffee fan but really, aren’t the prices a bit too ridiculous? And the snob appeal is there I suppose. To be seen drinking coffee/tea at Starbucks, relaxing with your book or laptop is THE lifestyle. Frankly I think Starbucks in Asia is way overpriced. Yet, Asians still love Starbucks.

By: Neil Anuskiewicz

Neil Anuskiewicz — Thu, 26 Feb 2009 02:03:47 +0000

Yes, I look forward to being proven wrong. I don’t particularly need to be right.
God speed to McD’s in their quest…

By: Ted Mininni

Ted Mininni — Wed, 25 Feb 2009 17:20:37 +0000

Very valid points, Neil. Ones that have been raised before, as well. As you point out: it would be great to know whether McD’s is able to pull in new customers due to its expanding coffee drink choices. Will they just be able to increase business to their regular customer base? Will they add more sales and profit dollars during off-peak meal times? I’ll bet we can find out in a couple of months’ time. Company press releases and statements, case studies, etc, ought to divulge some telling information. Stay tuned.
Thanks, Neil, for offering a very valid POV.

By: Neil Anuskiewicz

Neil Anuskiewicz — Wed, 25 Feb 2009 17:08:19 +0000

If there were not a high opportunity cost then I would agree with “why not?”
But McD’s marketing budget is limited just like any company’s budget is limited. Trying to steal some latte customers from Starbucks, etc., during a recession seems a less than optimal use of resources.
Will McD’s publicize how this is working out? I could be completely wrong and customers are lining up for lattes — as opposed to inexpensive food and regular coffee — as we speak.

By: Ted Mininni

Ted Mininni — Wed, 25 Feb 2009 14:39:09 +0000

Many have pointed out on this post and on past ones, as you have, Neil, that strong Starbucks brand adherents are not likely to switch to other brands. However, there are lots of folks out there who aren’t so attached and might be wooed away to try other brands? Whether those brands are McDonald’s coffees or lattes; Dunkin Donuts or other more sophisticated brands. . .
McD’s may also be trying to capitalize on the fact it has considerable traffic already in its stores. Why not try to build more sales on its coffee/coffee drinks for more of its existing customers? By telling the world that a latte doesn’t have to cost four bucks, maybe McD’s is trying to capture some business that might go elsewhere for a caffeine fix?
And why not entice customers in during non-meal times to just get a cup of Joe or try out a new latte instead of going somewhere else? While McD’s latest campaigns have been very tongue in cheek and pointed where Starbucks is concerned, is it the entire story? I wonder. . .

By: Neil Anuskiewicz

Neil Anuskiewicz — Wed, 25 Feb 2009 14:22:00 +0000

Whether it is the local coffee shop or some place else, I have always been the house coffee and a snack kind of person.
While there will always be many who stay with their favorite specialty drink at their favorite place, the biggest change we are likely to see is more simple coffee. Obviously, Joe is cheaper and provides less profit per customer, which hammers places that rely on expensive drinks.
This is why the marketing campaign by McD’s still does confuse me. Are people really going to flock from Starbucks to McD’s to save a few cents on their lattes? I find that very hard to believe.
Those who are that price conscious are going to switch to coffee no matter where they get it. Lattes are not like gasoline where people are going to shop all over the place to save a few cents per latte.
I do not see how this campaign by McD’s could possibly pay off but maybe I am wrong. They will sell a few extra specialty drinks but the increase will be at the margins. It hardly seems worth the effort. I just do not understand why McD’s is not focusing on other things right now?
There is definitely a high opportunity cost of McD’s spending these marketing dollars trying to steal a few latte drinkers from Starbucks. Every dollar they spend on this Quixotic quest is a dollar *not* spent on more profitable efforts.

By: Ted Mininni

Ted Mininni — Wed, 25 Feb 2009 13:12:47 +0000

Motyka,
Thanks for sharing your POV with us. I appreciate your kind words, too. You’re so right that new product intros and marketing campaigns, well-executed or not, can be total flops, great successes or something in-between. Only time bears out what those will be. You’ve echoed what many others have said: getting away from core competencies and a brand image that have made companies successful, usually spells big problems. Getting back on track is a challenge as it is, but making a number of missteps certainly doesn’t help.
Thanks, Motyka, for weighing in with your insights.

By: Ted Mininni

Ted Mininni — Wed, 25 Feb 2009 13:08:16 +0000

“Me, I will keep making coffee at home with trips to my local coffee shop and an occasional trip to Starbucks, too.”
Many are on the same page you are, Neil. They plan to make their own coffee at home and occasionally treat themselves at Starbucks or another nice coffee shop. Or they will try McD’s, Dunkin Donuts or other less expensive brews to economize.
Has anyone out there tried Via yet? If so, what’s the verdict on it? Good? Fair? Not good? I’d like to hear from you.
Thanks, Neil, for checking in on this topic.

By: Motyka Johnson

Motyka Johnson — Wed, 25 Feb 2009 05:26:07 +0000

Ted,
You know how to pick a great topic; I don’t think enough can be said about McDonald’s or Starbucks. Both have been responsible for brilliant marketing campaigns, as well as a few flops (remember McSoup?). I think Dave’s response is right on the mark. This is the time for Starbucks to refresh its focus on its core competencies. It is hard enough that their two greatest competitors are McDonald’s and Nestle; an attempt at being a price leader against either of these two would be a debacle regardless of the state of the economy.