Percolating what some experts are calling the “coffee wars,”
McDonald’s is taking on Dunkin’ Donuts and Starbucks with its new line of
coffee beverages that includes customizable lattes, cappuccinos and mochas.
Introduced in May, 2009 with a reported combined media spend
of $100 million, McDonald’s found ways to ‘McCafé your day’ by turning your
morning commute into a commuté and your cubicle into a cubiclé. In the world of
McCafé something ordinary takes on a whole new caché just by adding an “é.”
McDonald's chief creative officer told Ad Age that the accent shows that there
is "a wit and charm to the brand, and to the products and to McDonald's."
On launch day, McCafé took over YouTube’s homepage, and
their first foray on this medium was so successful it helped legitimize YouTube
as a premium ad space. The company also advertised heavily across TV, print,
outdoor, radio, Internet, and events.
As an extra incentive for consumers, McDonalds ran a
promotional contest to win a $50,000 Visa gift card and a $500 McDonald’s Arch
Card, asking contestants to submit a story and photo about how McCafé improved
their day. On McCafé’s own micro-site, visitors engaged in ice skating,
attending the theater, and making coffee art.
While Beverages make up about 5% of McDonald’s business,
McCafé poses a real threat to competitors at 79 cents less than the cost of a
same-sized cup of Starbucks. The sales figures back it up, with an overall 2.2%
rise in August 2009 (attributed to McCafé and other new products like the Angus
Burger). McDonald’s successfully capitalized on a trend in cost-conscious
behavior among consumers. But long term success hinges on one question: Does a McDonald’s
McCafé make your day?
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