It probably won’t come as a surprise to learn people are cutting back on little luxuries in this economy, and that includes their Starbucks habits. McDonald’s wants those customers and has launched a $100 million campaign to get them. The Golden Arches will add a line of espresso drinks this week called McCafe.
Apparently referring to the recession as an “opportunity”, the president of McDonald’s USA told MSNBC, “We think that the timing is right. We think the opportunity is right.”
The ads will be everywhere — radio, TV, online, billboards — and will try to sell us on the idea of McCafe as an affordable alternative. How much more affordable? That’s not clear yet. Starbucks, which has launched its own mega-campaign stressing quality, announced yesterday it’s cutting the price of grande iced coffees to $1.95 — a savings of 25 cents to 45 cents.
The Starbucks ads don’t mention McDonald’s by name but warn consumers not to go cheap, that doing so comes with a price. “Compromise leaves a really bad aftertaste,” one ad says.
