As we all know you can’t go anywhere without seeing a McDonald’s in a 20 mile radius. The recession has been good to McDonald’s as consumer’s trade down to cheaper and faster food on the go. But what is next for the golden arches? It may just be the immense buzz going around about their new rollout of their $100 million McCafe campaign starting this year. This long-awaited national campaign for its new coffee line is touted as the biggest launch in its history.
Over the past 18 months, McDonald's has been steadily introducing hot and iced lattes and coffees, cappuccinos and mochas in individual markets across the country, and adding smoothies and frappes to the mix later this year and into 2010. With this coffee push, it’s the biggest menu initiative since it began offering breakfast in the 1970s. The $100 million spent on advertising is going to span across TV, print, outdoor, radio, Internet, and events. These advertisements will start off strongly throughout the summer, and well into next year. You may have already seen their marketing push with coupon booklets in newspapers for McCafe or in national television ads. Their goal is to portray McCafé as a fun, affordable brand that can make even the most mundane daily tasks more enjoyable.
McCafe has even made its way to the catwalk. In addition to their advertising budget, McCafe is the new sponsor of Mercedes-Benz Fashion Week. They will have a McCafe lounge and tents all throughout, marketing to fashion elites and fashionistas to get them hooked on their caramel lattes and frappuccino (and who wouldn't want savvy fashionistas with a McCafe coffee or latte in hand?)
The timing of the rollout just happens to coincide with the struggles of Starbucks. Will this new campaign help McDonald's become the coffee brand of choice? We'd love to know what you think.
Posted by Angela Slowik on May 26, 2009 5:26 AM
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Comments (1)
McCafe won't replace Starbucks - those people who are seeking the "third space" ambiance or customization that Starbucks offer aren't likely to substitute a $4 frappacino with a $2 McCafe latte. Despite McDonalds' happy characterization on commercials, no friends ever suggest, hey, let's go out to dinner, then have a nice hot chocolate and some good conversation at McCafe!
There are the vast customer segment in the middle, however, that are ripe for "poaching". McCafe offers a much better value proposition and combined with the aggressive marketing push, can become the place that people go to for a quick morning coffee or a lunchtime break. If McDonalds can peel people who go to Starbucks 4x a week and convince them to frequent McCafe twice instead, it will have achieved great success.
McDonald's also chose a very opportune moment to push the McCafe concept - in the recession all consumers are looking for a better value-proposition, and McDonalds seeks to deliver that with a lower (than specialty coffee) price point but a higher (than perceived McDonald's coffee) quality.
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wellheeled |
May 26, 2009 9:41 PM
Posted on May 26, 2009 21:41