McDonald's 55 Cent Promotion

by David Robinson


After decades of international success, by 1997, McDonald's faced slowing sales growth and stiff competition in the United States. Price promotion seemed like a good way to rekindle sales growth. However, in June 1997, McDonald's corporate management abruptly announced that it was canceling its price promotion, 'Campaign 55,' which had been planned to last all year. The attention-getting pricing plan was to feature a different hamburger-sandwich each month at the bargain price of just $0.55 (in honor of the 1955 founding of the fast food chain). The promotion began with the company's flagship product, the Big Mac®. Since the regular price of a Big Mac was close to $2, it was surprising that the company's loyal customers joined restaurant owners and howled in complaint about the 'C-55' promotion.

Learning Objectives


This case is useful in MBA-elective courses on Pricing. It might also be used for discussion in a core Marketing course as a stimulus for a class discussion aimed at deriving the rules for effective sales promotion.

Details

Pub Date: Nov 30, 1993

Revision Date: Dec 1, 2011

Discipline: Marketing

Subjects: Marketing, Market positioning, Pricing

Product #: B5658-PDF-ENG

Industry: Fast food,Restaurants

Geography: United States

Length: 8 page(s)


Berkeley Haas Case Series
Berkeley Haas Case Series The Berkeley Haas Case Series is a collection of business case studies written by faculty members at the Haas School of Business. Cases are conceived, developed, written, and published throughout the year, on subjects ranging from entrepreneurship and strategy to finance and marketing. Each case includes a teaching note for use in the classroom.

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