Thursday, February 19, 2009

Branding in a Recession


Desperate measure or attempt to renew brand loyalty?
On Tuesday, February 3, Denny's served more than 2 million free Grand Slam breakfasts across the US. After announcing this promotion on Super Bowl Sunday, people lined up for hours to get their free meal. The news reported that while some people ordered drinks and left generous tips, others ate their breakfast with water and some didn't even bother tipping their waiters. Tough times indeed. Overall, the restaurant chain estimated that the Grand Slam promotion did "better than break even" from selling profitable drinks. So the questions become: will this promotion really help Denny's revert their downturn in sales? Will this promotion, together with all of their advertising that focuses on getting "a real breakfast", help Denny's renew its brand?



1 comment:

Ben Jumper said...

I don't know about others in my generation, but if it were left up to us, I'd say no. From what I see, we're looking for the next free give-away, whether it be music downloads, video games, movies, concert tickets, breakfast, or anything else. We just want more for less. Or rather, more for nothing.

For example, IHOP is celebrating their self-created National Pancake Day on Tuesday. You walk in and get a free short stack (3 pancakes), no questions asked. 2 years ago, I went to IHOP for every meal. I had 9 pancakes in one day for free. I did buy some eggs once or sausage another time, but that's only like $2 or something. Because I grew up in the South, I have good manners and tipped as if I paid for the whole meal, but there's no rule that says you have to. I would assume that most in my generation wouldn't.

And gimmicks like that don't make me go there more often. I just gets me in the door during the actual event.

That's my two cents.