$100 Million Coffee War Campaign from McDonalds

Coffee Lovers Benefit the Most

Summary: As another player in the industry of specialty coffee retailers, McDonalds Corp., is committed to fight seriously in the coffee war campaign. Their marketing ads worth $100 million dollars are targeted to compete with Starbucks, the leader in the industry.

McDonalds Corp. implemented price cuts and new ad campaigns to entice coffee lovers to try their new latte.

Joining other specialty coffee retailers, the country’s biggest hamburger chain began a marketing campaign worth $100 million including print, radio, TV, outdoor ads, and online ads for its line of espresso drinks. Right now, these McCafe drinks are being rolled out to 14,000 locations in the U.S.

According to Don Thompson, McDonald’s USA President, “We think that the opportunity and timing is right.” The recently released ads portray drinks as antidote to a consumer’s miserable day. Their primary aim is for the beverages to be seen as quality and affordable alternatives against the lattes of Starbucks Corp.

Just two days before McDonald’s ads release, Starbucks ran a full page print ad in Sunday New York Times. It will be the first ad from their own campaign which positions their drinks as less pricey than what consumers might expect and with higher quality compared to competition.

Recently, the sales of Starbucks slid as consumers bypass small luxuries (such as lattes) in order to save money. As part of its appeal to bring sales up, it has announced a 25-45 cent reduction in the price of grand iced coffees, which now sells for only $1.95. The prices may vary by location, but as far as company-owned stores are concerned, this price will stay until June 29.

$100 Million Coffee War Campaign from McDonalds

Coffee Lovers Benefit the Most

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