When Charlie and Harry, my two five-year-old boys, walked in the door a couple of nights ago sporting new toy Hummers, they were excited. When I asked where they had gotten the cool trucks the boys replied that they had come in their McDonald's Happy Meals.
Right then I thought, "Ahhhh, Hummers aren't selling and gas prices are high so GM hooked up with McDonald's to seed a whole new generation of drivers." Talk about advertising to kids!
While this was an uninformed hunch, I wasn't surprised when Melanie Warner penned Would You Like a Gas Guzzler With That? in today's New York Times.
Melanie got in right when she said:
McDonald’s decision to include Hummers in its Happy Meals is surprising given that the fast-food chain has strived in recent years to bolster its image as an environmentally aware company. It has also promoted healthier menu choices and has avoided introducing indulgent 1,000-calorie-plus items, as some of its rivals have done. The company has also earned praise for its work with animal rights advocates.
So what gives? Well, it seems McDonald's long-term partnership with Disney ended last year and they are in need of new toys.
But why Hummer? The Hummer brand has come to represent all of the problems with big cars and their sales figures seem to show it:
Consumers have turned away not just from Hummers, but also from other large, gas-hungry vehicles. “People used to never ask about fuel economy numbers,” said Jesse Toprak, an analyst at the car-buying site Edmunds.com. “Now, it’s one the primary factors for many people in making car purchase decisions.’’
Sales of the H2, which currently costs about $96 to fill up at the pump, are down 34 percent for the first seven months of this year versus the same period in 2005, and General Motors has sold only 229 H1’s this year, according to Autodata, an auto industry statistics firm in Woodcliff Lake, N.J.
229!
Can these new toys really be good for the McDonald's brand? Does this relationship have the ability to rub off some of the negative GM brand perception from being out of touch?
Customers are waiting for GM, and those companies it connects with, to act with courage and grace by helping them lead better lives by providing them with relevant products in the context of today's marketplace.
It is sad to see an historically great company, like GM, lack this courage and grace. As I said in a recent post: "These days it seems like Detroit resembles the La Brea tar pits, a place where dinosaurs go to die."
"Mammals", like Toyota, will inherit the market by adapting to the changing environment.