Beginning today, McDonald's is going to be advertising its newest venture -- fancy coffee. It's supposedly the fast food giant's biggest advertising launch EVER. Check out the TV ads here. (And apologies for the random ad that may appear first -- I couldn't find a sample on YouTube yet.)
Mickey D's entire premise is to keep getting your fancy coffee...but get it for a lot less than you would pay at, say, Starbucks. And if it works, well, Starbucks needs to watch out. Some analysts say McDonald's McCafe could dent Starbucks' revenue by 5%. Not good, especially since Starbucks closed hundreds of stores and laid off over 12,000 employees last year.
But Starbucks isn't just sitting on its overpriced tush and letting McDonald's steal its customers. America's favorite yuppie coffee house is shooting back with a campaign touting the quality of its coffee as compared to McDonald's and other cheaper brews -- and it's is not making any apologies for the price. Here is a sample ad:
Starbucks Chief Executive Howard Schultz says "We don't want the public to be misled that all coffee is equal, because it's not." Perhaps, but is your coffee worth an extra $2 a day, an extra $10 a week, and an extra $520 a year??? Given the current economic climate (I know, I know -- all my recent talk about the recession makes me sound like a broken record...), maybe not. Starbucks is already having to push back on rival Dunkin' Donuts, so McDonald's entrance into the coffee industry is probably raising the blood pressure of quite a few Starbucks employees.
So....what do you think of the new McDonald's ads? Enough to make you trade your Starbucks for a McCafe?
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