McDonalds will be thinking all their Christmases have come at once. Who ever did the deal with Weight Watchers should be given a lifetime's supply of Big Macs for free. This is one smart move but one sadly that will cost Weight Watchers dearly over time. Both these brands are iconic and stand for very different values (nothing either should be ashamed of). When these brand alliances are formed they really need to be a win/win situations and the value for each party carefully considered.
McDonalds has been in the firing line from health authorities for some time and as western governments globally try to tackle the obesity tsunami brands such as McDonalds are very exposed.
First McDonalds responded with a switch to canola-sunflower oil to reduce saturated fats, they then decreased the sugar in their buns by 40% then it was the salads and now brilliantly it is the Weight Watchers endorsement. This is the big slam dunk compared to the previous initiatives.
Hands up all those who think McDonalds make a killing on salad sales? Correct; they aren't selling many, in the supermarket trade these products are called 'lost leaders' and this is a very apt term for McDonalds salads.
Keep an eye on how McDonalds respond because they masters at this game. Perhaps Telecom executive should spend a semester at McDonalds university and learn the art of 'positioning'.
So what is in it for WeightWatchers; a very expensive erosion of values. I'm sure members will feel betrayed and abandoned. Forget the semantics; "we are trying to show you that losing weight doesn't mean you have to avoid every indulgence". They are partnering with a fast food giant and that by association translates to a cop out. It would be like Tag Heuer selling watchers through the Warehouse.
So why did they agree to it, was it money or fame or perhaps they have run out of ideas as to how to re-energise their brand. Fill me in here guys?
Sunday, March 7, 2010
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