McDonalds | SILVER OVER GOLD
- Apophenia didn’t affect Corona sales.
- The complexity of branding and how it is currently perceived.
- How companies are promoting social distancing.
- McDonald’s social distancing branding controversy.
During my last post, I mentioned about Apophenia and how the current coronavirus outbreak was (supposedly) posing threats to the Corona beer brand. I was eagerly curious about their next move but unfortunately (or fortunately) after almost a month since my publication, I found out that although the brand had consulted with several marketing agencies, they chose to remain silent.
“SPEECH IS SILVER; SILENCE IS GOLDEN” — Thomas Carlyle
Truth is that this time, the supposed Apophenia effect didn’t impact sales. Some say that the “survey” shouldn’t even have been considered legit. Only 737 U.S. consumers participated, when on average around 180 million (55.3%) adult Americans drink alcohol every month. Yes, the number of people is not the only aspect to be taken into consideration, but in this case, they seemed to have failed on multiple aspects.
That apart, surprisingly, sales went up for a while. According to the company, “Corona Extra sales grew 5% in the U.S. in the latest four-week period, which ended Feb. 16 — nearly doubling the 52-week trend for the brand”.
Moreover, although sales in China, of not only Corona but beers in general, took a hit, it was mainly due to the decrease of outside activity in bars and pubs.
Marketing for survival
Followed by this brand image ruckus, companies have been looking for different ways to deal with corona, being it through donations, temporarily closing stores or like Pornhub offering free premium services. But in this post, I’ll focus on how companies are using their own brand as a tool.
When entrepreneurs start their business, the first thing they must do is to choose what service or product to sell. The first step is already arduous and is becoming even harder due to the globalization of information and manufacturing. Things are getting cheaper and more accessible.The sad reality is that whatever you thought about doing, there is probably someone else already doing it. Trust me, they are most likely to be better than you will ever be.
But don’t worry, the world isn’t falling apart. After all, we constantly see successful cases out there. The difference is that if in the past companies mainly focused their capital on manufacturing, now they are increasing the share of marketing.
Selling a product became more than just physical resources but a “lifestyle”. The beauty of branding is its ever evolving aspect. It follows trends of consumers and adapts accordingly. Yesterday was quality, today is lifestyle and the future is… to be defined. There is no answer for the future but to follow the society and understand their needs.
Lifestyle
But what exactly is lifestyle? Well… it’s complicated… It’s a set of different tastes, morals, likes, hobbies, beliefs… it’s everything that you could combine that differs from brand to brand.
Company branding and social distancing
In branding, logos play one of the most crucial roles. If I told you to guess which companies are related to the following keywords 9 out of 10 people, if not everyone, would right away know who they are.
- Three stripes
- Yellow M
- Half eaten fruit
- Red play button
This is how strong logos are bind to the company. When you see someone with an amazing outfit pass by, you would hardly go ask them where he/she bought it. But thanks to that little image on the chest, you would know exactly where to search for.
As such, the Slovenia-based creative director Jure Tovrljan decided to play with iconic logos and re-designed them to promote social distancing. It was an ingenious idea. A way to promote both social distancing and their own company.
Personally, NIKE made the best move. They did not only promote social distancing but did in a way that it perfectly fit their brand, their “lifestyle”. Don’t get me wrong, all (or at least most) companies are doing a great job by influencing people to stay home. But still, we must admit that NIKE did it pretty well.
If you have ever played in any competitive game, you know that the sensation of being in the middle of a crowd cheering for you is simply amazing. It boosts you up, gives you chills, you feel like you are part of something big. You are playing to win, for your team but also for your family, friends, school, state, or country. You are not alone. It’s an unforgettable emotion.
Mcdonald’s — Silver over gold
However, not every company is receiving a positive feedback. By the time McDonalds joined the movement, it was criticized by many including U.S. presidential candidate, Bernie Sanders.
At the end of March, the McDonald’s company posted a picture of their iconic golden arcs logo with a slight gap in the middle. For those unaware of the internal situation, it seemed to be an honorable move just like the companies above.
The problem is that branding does not move by itself. As mentioned before, branding is born from a company’s culture. It is not only about what they are trying to sell anymore but a complex set of internal and external perception. Life style does not apply only to consumers anymore but also employees.
The criticism has its roots on McDonald’s pre-coronavirus sick leave policies. Employees were supposed to have the right for an annual 5 days paid sick leave, which around half a million employees did not receive. The issue got worse with the company’s stance on the Families First Coronavirus Response.
Their hamburger formula did not change and their service quality stayed the same. There was nothing wrong with their products and services. The “Customer is King” phrase now applies not only to customers but also employees.
ESPY: to discover, as a distant object partly concealed, or not obvious to notice;
“The obvious is not always obvious”
