Product details

By continuing to use our site you consent to the use of cookies as described in our privacy policy unless you have disabled them.
You can change your cookie settings at any time but parts of our site will not function correctly without them.
Case
-
Reference no. 9-503-020
Subject category: Marketing
Published by: Harvard Business Publishing
Originally published in: 2002
Version: 8 January 2003

Abstract

In August 1998, George Cohon, founder and senior chairman of McDonald''s Russia, is facing an economic state of emergency. Russia is in the midst of a severe currency crisis--the ruble has plummeted in value, creating massive inflation and widespread economic disarray. Traffic in the 26 restaurants has plummeted, and Cohon is struggling to figure out how to entice consumers back to McDonald''s. Cohon is debating two issues: 1) whether to raise prices and 2) whether to add low-priced items, such as cabbage soup, to the menu.; Provides 1) a demonstration of how to build a brand from the ground up, based on a value proposition that is both emotional and utilitarian, 2) a demonstration of the variety of things a company can do to build the trust of its customer base, and 3) the opportunity to question where the true heart of a brand lies--in the product itself (in this case, in the menu items) or in something more intangible.

About

Abstract

In August 1998, George Cohon, founder and senior chairman of McDonald''s Russia, is facing an economic state of emergency. Russia is in the midst of a severe currency crisis--the ruble has plummeted in value, creating massive inflation and widespread economic disarray. Traffic in the 26 restaurants has plummeted, and Cohon is struggling to figure out how to entice consumers back to McDonald''s. Cohon is debating two issues: 1) whether to raise prices and 2) whether to add low-priced items, such as cabbage soup, to the menu.; Provides 1) a demonstration of how to build a brand from the ground up, based on a value proposition that is both emotional and utilitarian, 2) a demonstration of the variety of things a company can do to build the trust of its customer base, and 3) the opportunity to question where the true heart of a brand lies--in the product itself (in this case, in the menu items) or in something more intangible.

Related