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In times of crisis part 2

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Free food; Welfare or good deed? In times of crisis fear and anxiety may be common amongst most people, but for others it may also mean times of opportunity.
I know that the media have told us that we are officially in period of recession. Some say that the media are trying to panic everyone (like they do most of the time). Nonetheless, we continue to see consumers forming big lines to spend money on "going out of business sales" like the one in Circuit City, filling sports venues to see their favorite teams, or buying gym memberships, etc. And then I keep asking myself why is it that some things continue to feel normal?

One thing that attracted my attention today was the Denny's free "Grand Slam" breakfast campaign. I confess that I tried to go and get my free food, but when I got there I saw a big line of people standing outside the restaurant waiting to be seated. I decided that I wouldn't stand in line in the cold for 45 minutes to get 2 eggs, 2 sausages, 2 pancakes and 2 pieces of bacon, all accounting for approximately 1130 calories, but that is just me. For some other people willing to wait long lines meant the opportunity to get thru the day starting with something fulfilling, but most importantly FREE!

In my opinion, I think that we can hypothetically compare what Denny's did today with the bread line of the old depression days, not to suggest that we are in a Depression or anything, but is Denny's really trying to show appreciation and empathy for the rough moments the American consumer is going through, or all they want is to strengthen their brand equity and fill their pockets in the future via this ambitious promotion? Whatever their position, the results of this campaign remain to be seen. Now, is it fair to compare Denny's with the private label products? Which continuously fight against big brand names for a share of the market via price strategy rather than a value proposition? What would people think of Denny's tomorrow? Will they be perceived only as the low-price breakfast option compared to IHOP and the rest? Or will they bee seen as the heroes that not only serve quality food, but also understand all of us consumers? Tomorrow after all this is over, are we going to look for Denny's for its value or convenience? Quite frankly, I was sold when I was told Free breakfast, but now I feel more skeptical for what Denny's strategy really was. Moreover, I am curious to know how will they position themselves next in the dining category? Any thoughts...

Comments

  1. IsaacFebruary 3, 2009 at 5:37 PM

    Interesting times we are living in. Unemployment is on the rise, and the GDP keeps fluctuating as if there was going to be no end. The stock market is reacting to the infamous close to $1 trillion 'stimulus plan' that is going to get our economy out of the red. The word 'free' has always weighted A LOT in the consumer's mind when choosing a product; One thing is for sure, with the consumer confidence being so low, it weighs today more than ever before.

    You asked, is Denny's relying on their equity? what equity, I ask. I think that this that they are doing is for the sake of creating awareness that "we are a company of the people, we are still alive, and we want to let you know that you have to get back to basics, enjoying a good simple breakfast at a diner." Will this strategic move pay off? I think it might in the way that they will forever be the company that offered their signature breakfast for free, the Grand Slam.

    I only have one more comment, Denny's brand will not be diluted, for we are in an economic downturn, so NOW is the time to advertise. Brands like this one, that advertise and drive consumers in the door will be the ones that survive in the long run. Although we know this from Brand Mgmt 101 that discounting sales will only give be the 'quick fix,' this time is different because Denny's will forever be the brand that gave 'free breakfast to the US' and consumers will not forget that.

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  2. VicFebruary 3, 2009 at 6:12 PM

    You know what, I agree with you. I definitely didn't see from that perspective. I just hope they follow up their efforts with a campaign that says: America we did it! We were able to serve you over 2 million Grand Slams, etc. And you are right Free means more today, and us consumers look for guidance, reassurance, and empathy. Who better than brands today to help us achieve that :)

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