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Brand Relevance: Making Competitors Irrelevant - always yours

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GAINING AND MAINTAINING RELEVANCE 307<br />

not relevant. Consider the fast - food industry, which has seen the<br />

development of the healthy subcategory, a shift that has challenged<br />

such traditional brands as McDonald ’ s, Wendy ’ s, Burger<br />

King, Pizza Hut, and KFC.<br />

One response option for a fast - food brand is to change the<br />

menu to make it more acceptable to those seeking healthy fast -<br />

food fare, so that if there are three or four in a group selecting a<br />

fast - food destination the brand will not get the dreaded veto.<br />

McDonald ’ s, for example, developed a way to make their signature<br />

fries with dramatically reduced “ bad ” fat. They also offer grilled<br />

chicken sandwiches, a variety of salads, fruit smoothies, and a<br />

choice of apples or fries in the kid ’ s Happy Meals. Burger King has<br />

wraps plus the Garden Sensations Salads with Marzetti salad dressing<br />

that are all natural. This does not make them destinations for<br />

the healthy - eating segment, but it can reduce the veto effect.<br />

McDonald ’ s had another relevance problem. The success of<br />

Starbucks was a serious threat to its breakfast and other off - hours<br />

business. It was also an opportunity. The advent of McCafe in<br />

2007, with a line that included cappuccinos and lattes, changed<br />

the competitive landscape. It created for many a point of parity<br />

with Starbucks with respect to quality. The result was that<br />

a segment of the Starbucks base started to include McDonald ’ s<br />

in the consideration set — McDonald ’ s became relevant, a really<br />

remarkable achievement that once would have been laughable.<br />

There are three diffi culties with this strategy. First, those<br />

attempting to gain parity, such as McDonald ’ s in regard to<br />

healthy eating, lack brand credibility. McDonald ’ s, for example,<br />

is associated with the signature items such as Big Mac, Egg<br />

McMuffi n, and Happy Meals, which are all designed to delivery<br />

eating pleasure rather than healthy eating. Second, it is not easy<br />

to create home - run new products, without which gaining parity<br />

can be diffi cult. In fact, a host of McDonald ’ s new products<br />

from McPizza to McLean Deluxe to Salad Shakers (whose containers<br />

were packed too tight to distribute the dressing) failed<br />

to gain acceptance. 8 McDonald ’ s has had few big successes since

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