McDonald’s mega-partnership with BTS: it’s the “Golden Repackage” strategy

Thursday, May 27, 2021 by Snacks
_Apparently,  BTS makes fries taste better [Bonfanti Diego/Cultura via GettyImages]_

Apparently, BTS makes fries taste better [Bonfanti Diego/Cultura via GettyImages]

"I-I-I'm in the stars tonight"... McDonald's has been seeing stars (and $$$ signs) thanks to its Famous Orders program, which launched last year. Fried chicken sandwiches weren't the only stars of McD's quarter: meal partnerships with Travis Scott and J. Balvin boosted digital sales. In McD's own words: "nothing had a greater impact on our digital business than the introduction of Famous Orders." Last quarter, McD's sales even beat pre-pandemic levels.

  • "The BTS Meal"... Yesterday, McD's released its long-awaited meal with K-pop sensation BTS. It's the first celeb collab to launch globally.
  • Unbox it: 10-piece Chicken McNuggets, medium fries, a Coke, and two Korean-style dipping sauces (sweet chili and Cajun). Missed opp to call them "Dynamite Nuggets."

So much more than nuggies... This BTS deal is more than a meal — it's a global event. People are obsessed with BTS, and McDonald's is milking it. Fast food chains operate on razor-slim profit margins, so promotions like these can be game-changers:

  • Merch: McD's is dropping a limited-edition BTS merch line (including: a fuzzy purple robe with a fries logo). J. Balvin and T. Scott also got merch.
  • Exclusive content: McD's is releasing "never-before-seen digital surprises" featuring BTS in the McD's app to drive digital sales.
  • Spots: McDonald's TV ad — which debuted last night —  uses BTS' newest hit, "Butter." So smooth.

It’s the “Golden Repackage” strategy... McD's just proved that you don’t need a new product to gain new customers. The best thing about the BTS meal: it's composed of basic items that McD’s is already making. Just ship franchisees the dipping sauces, and voila: BTS Meal. Famous Orders drive sales without adding new ingredients or workflows. McD's calls it: "maximizing digital investments without adding any restaurant complexity." This repackaging strategy drives customers to the app and keeps them there, boosting loyalty and sales.

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