Marketing in the News

     The article I chose
was about how McDonald's is expanding into energy drinks and dirty sodas. https://www.wsj.com/business/hospitality/mcdonalds-to-add-energy-drinks-crafted-sodas-to-menus-6ea7c304?mod=hp_lead_pos5. I decided to choose this article because it was interesting how a fast food company Franchise like McDonald's is changing its menu to add new drink trends. I feel like I go to McDonald's pretty often, so seeing them move beyond soda and coffee into energy drinks and dirty sodas was pretty interesting to me. It shows how even big companies need to adapt to what customers and what attention spans want right now. 

The article really explains how McDonald's is adding new beverages like Red Bull, Dr Pepper, and mango pineapple to its menu. The three main takeaways I've got from it were first, McDonald's is really just expanding into the fast-growing market of energy drinks and special beverages, which are now more popular than traditional coffee or soda. And I feel like this is important because if you don't keep expanding and evolving and growing and trying new things, especially as such a large business, you could fall behind. If you're not the first one to hop on the train or at least in the top ten, then it can be pretty bad, and your competitors can get more ahead of you. Second, the company plans to price these drinks lower than those of its competitors, such as Starbucks and Dutch Bros, to attract more customers to them. This is kind of smart considering that some people have a decision whether to go to Starbucks and get a fun drink or go to McDonald's and get a meal, and now you can get both at McDonald's. Third, this strategy is part of a long-term plan. Built on past testing, to compete in the beverage market, which is worth over $100 billion, and the testing is similar to the CosMc's concept.

Well, I would say the value proposition of McDonald's has always been convenient, low pricing, and just consistency. With this new lineup their strengthening that value by offering a trend of customizable drinks which are cheaper than their competitors. Which also has more convenience, so instead of going to Starbucks for a special drink, you can now get food and a fun drink for less money and faster. (sometimes)

The relevance of this article is huge because it shows a new strategy and market expansion. McDonald's doesn't really sell burgers anymore; it's trying to become a major player in your life. They're trying to basically get everything that you need in one place and sell it to you, and drinks are a large part of that. Drinks are also a high-margin product, meaning they give you more profit compared to a food item.

One major challenge I fear McDonald's faces is the strong competition, though. Because of Starbucks, Dutch Bros, and other places are already known for their drinks. And competitors like Taco Bell are already adding their dirty soda to the menu. Kind of leaves a crowded market that's sort of hard to stand out in, and also McDonald's has to realize that making these drinks can't slow down the service since its speed is usually one of the biggest advantages they have.

What makes this approach unique is how McDonald's is combining low price plus trends. Usually, trends and specialty items are associated with higher prices, but McDonald's is bringing the same ideas of fast food that clearly target Gen Z, who like trendy drinks and trendy things. But also don't wanna spend as much on an expensive coffee shop. 

In my opinion, this is a strong move, but it also has some risks. On the positive side, it helps McDonald's stay relevant and also tap into another category. But this could also possibly slow down operations and hurt customer experience. Also, I believe that McDonald's is built on an idea of simplicity, so adding more things to their menu could also just make it too overwhelming to order anything. If I were a brand manager, I'd probably focus on keeping it simple. Sure, you can promote these drinks on social media, but I would also like to pair these drinks with meals and possibly limit them to not overwhelm the menu or options. 

From this assignment, I learned that marketing is constantly growing and evolving, mostly based on trends. Even a company as big and old as McDonald's still has to innovate and adapt to stay competitive.