McDonald's launched a marketing blitz today aimed at taking market share away from Starbucks through its line of McCafe drinks. The multi-channel campaign features TV and print spots with online components of a microsite and Twitter feed.
Starbucks prepared for this battle by rolling out full page ads in this past Sunday's New York Times. The ads aim to reinforce the premium quality of Starbucks coffee and move consumer perceptions away from coffee as a commodity.
Price is McDonald's weapon which will be hard for Starbucks to overcome. They can really only hope that haven't permanently damaged their brand by introducing Via instant coffee in weak attempt to get down to their competitors levels - earnings tumbled 77% in the fiscal second quarter. This move might have proven to be its Achilles heel - McDonald's is entering the battle just as its opponent is slightly wounded. Do you think the McBlitz will work? Will McDonald's emerge as the winner of this battle? Is Starbucks' brand tainted too much to ever regain market dominance?
--Stacy Cohen
