Spikes Asia

McDonald's Coffee Retirement

DDB, Hong Kong / MCCAFÉ HONG KONG / 2024

Case Film
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Overview

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Credits

Overview

Background

Since the introduction of its McCafé sub-brand in Hong Kong, McDonald’s has been on a long-term mission to democratize high quality coffee in Hong Kong. For many years, McDonald’s has offered two tiers of coffee offerings - the base McDonald's coffee and higher quality McCafé coffee. With consistent efforts throughout the years, McCafé coffee is perceived to be on part with major players in the coffee category at a more affordable price point with greater convenience. In the latest chapter of its coffee-democratization mission to win the market, McDonald's decided to institute a permanent free coffee upgrade, replacing McDonald’s coffee with McCafé coffee across all its stores to further capture the coffee market. Before the campaign, McDonald’s share of the Hong Kong coffee market sat at 17%, behind the category leader Starbucks which sat at 25%. With this upgrade, we had the ambition to become number one.

Idea

McDonald's Coffee is Retiring! To get the attention of McDonald's coffee's silent fans and coffee lovers for our big announcement, we went back to a fundamental human truth – you only realize your love for something when you lose it. We decided to give our silent McDonald’s coffee lovers a shock – “McDonald’s Coffee is Retiring! It will say goodbye today!” This announcement triggered numerous netizens express their love to McDonald’s coffee, even created a ripple effect of organic conversations on what is happening. When conversations were at their highest, we revealed the reason behind – a free upgrade to McCafé coffee across all our stores!

Strategy

Although Hong Kong’s coffee marketing is undergoing premiumisation, coffee still fulfils a functional purpose in many customers’ lives. This is the market that McDonald’s coffee plays in, being many people’s daily coffee driver across a variety of occasion. In our focus groups, many customers have expressed fondness for McDonald’s and especially McCafé coffee’s surprising quality at affordable price points. Although McDonald's coffee is one of the most consumed coffees in Hong Kong, it is also the least talked about on social media. We wanted to leverage silent McDonald’s coffee fans to help us amplify our big upgrade announcement. To achieve this, we went back to a fundamental human insight – you only realize your love for something when you lose it. We wanted to spark a public outcry to grab attention for McDonald’s surprisingly good quality and large fanbase, and then delight customers with our massive upgrade announcement.

Execution

Our idea: “McDonald's Coffee is Retiring!” We decided to give our silent McDonald’s coffee lovers a shock by announcing that McDonald’s coffee is retiring, prompting them to stir up a ripple of organic conversations on social media that will help our announcement become the talk of the town.

Our announcement began with a single social post – “McDonald’s Coffee is Retiring - It will say goodbye today!”. To give gravitas to our announcement, we dominated the front-page of all free newspapers in town, featuring a white McDonald’s coffee cup and our bold statement. We also dominating major touchpoints to reach everyone on the way to the office or school, including all 3 of Hong Kong’s cross-harbour tunnels and various outdoor ads. On the same day, when conversation levels were at its highest, we revealed that the reason behind the retirement was in fact a free permanent upgrade to McCafé coffee!

Outcome

The campaign took the city by storm! We generated a total of USD$2.1 million worth of PR value with an overwhelmingly positive tonality.

Mentions of McDonald's coffee went from near 0 before the campaign to over 90,000 social mentions, propelling McDonald’s social-share-of-voice among major coffee brands from only 2% in the months preceding the campaign to a whopping 40% during the month of the campaign, making it the most discussed coffee brand on social media.

In terms of sales impact, our coffee upgrade increased total coffee sales by 21% (measuring one month after our announcement).

As a result of this campaign, McDonald’s was able to overtake the market share of the leading player in Hong Kong’s coffee market for the first time, ahead of Starbucks’ market share by 1%, reaching a new milestone in McDonald's mission to democratize high quality coffee in Hong Kong.