By Claudia Perez
Welcome, my dear readers, owners of small and medium-sized businesses, to a new weekly meeting. Today, we will be discussing some marketing initiatives and expenditures that do not have a significant impact on building or strengthening Brand Equity. The analysis I present below is based on a purely personal perspective and serves as an invitation to reflect on the best ways to build Brand Equity.
The two examples I will be addressing today are two well-known brands: Uber and McDonald’s
THE UBER CASE: A CRITICAL APPROACH
This is not the first time I have conducted research on Uber in marketing matters. I really like the idea and the concept behind this brand because: It represents and innovative transportation initiative, flexible and perfectly applicable to different markets; it is a sustainable example of the collaborative economy that serves as an alternative source of income for many people; it is a wonderful example of how technology helps solve a concrete need, which, in the case of Uber, is mobility.
In recent times, I have noticed that the brand spends a lot of money on promotions to reach new customers and on travel discounts for certain routes.These expenses include large investments in digital advertising, traditional media, and direct subsidies to customers.
We can agree that discounts are powerful tools, especially considering the strong competition Uber faces in various markets. However, if we consider that Uber is the flagship and pioneering brand in this service category, its marketing expenditure should focus on maintaining its Brand Equity, otherwise it could fall into a price war, ultimately attracting disloyal customers who are only interested in promotions.
Additionally, the brand risks being associated more as low-cost option rather than as an innovative, reliable, and quality alternative-elements that distinguish it.
If I were Uber’s Marketing Director, I would take the following measures:
1.Allocate a large part of the marketing budget to amplifying its pioneering and reference status within the shared mobility sector through marketing campaigns, that highlight innovative features and the ease of navigation of the app interface.
2. Focus on delivering a message of reliability. As part of my previous studies, I have identified that once of the brand’s weaknesses is the issue of safety. Therefore, I would focus my marketing initiatives on trying to reverse this harmful image. The approach should aim to build an association between Uber and safety, emphasizing this trait above the competition.
3. Finally, I would direct my marketing spending toward the ecological theme, which is one of the brand’s mission and values according to Uber’s website. My messages would imply the company’s commitment to reducing its ecological footprint by promoting trips in electric vehicles and/or shared rides.
These elements contribute to enhancing the brand’s cutting-edge image, overcoming harmful aspects, and supporting the sustainability efforts and commitments that characterize it.
THE MCDONALD’S CASE
In previous years, McDonald’s has flirted with introducing premium products into its offerings and has launched marketing campaigns to promote these products. Nationally, the company is characterized as an affordable and popular fast-food option, accessible to the whole family.
In my opinion, it is a mistake, a misuse of budget, and harmful to its brand Equity to invest resources in promoting products that do not align with the consumption patterns of its customer base and to try to attract a segment of consumers unrelated to the brand, who already have loyalty programs for these same products with other brands.
f I were McDonald’s Marketing Director, I would take the following measures:
1. Focus on consolidating Brand Equity through the launch and promotion of affordable offers for its customer base, providing advantages over close competitors like Wendy’s or Burger King.
2. Promote healthier menu options as part of its catalog, such as vegetarian, vegan, gluten-free burgers, and low- calorie shakes at prices aligned with the brand. In this way, without abandoning the concept of fast and affordable food, the brand adapts to the needs of a changing market and increasingly diverse and demanding consumer demands.
3. Lastly, direct marketing efforts to appeal to the iconic and nostalgic sense of the brand. McDonald’s is part of the history and identity of a country. Because saying McDonald’s in the world is saying United States.
So far, my dear readers, this is a very personal and particular approach. I hope you have enjoyed this post, and whether or not you agree with me, the important thing is to reflect, research, and contribute solutions that allow us to be more successful and effective.
As I always say, I bid farewell not with a goodbye, but with a “See You Next Week” to continue talking about this wonderful world of marketing.
If you want to learn a little more about marketing, I invite you to read my latest post: Positioning, Personality and Brand elements: The necessary Harmony for a Sense of Identity