McDonald’s Slams Starbucks in the Advertising Wars

It is not surprising that the advertising wars over coffee is escalating in Seattle. It is the head offices of Starbucks and McDonald’s is making a statement. With advertising messages like “four bucks is dumb“, McDonald’s is pursing those coffee dollars aggressively:

“…”The billboard placement was done because we picked high visibility locations,” said Alan Finkelstein, who owns four McDonald’s in King County. “We really wanted to point out that ordering an espresso at McDonald’s is quick and simple. Small, medium and large. It’s easy.”"

link: Starbucks won’t slug it out in ad wars

At this point, Starbucks is not responding in kind. Starbucks is taking the so-called “high road”. It remains to be seen what Starbucks response will be if the McDonald’s campaign goes national and starts to erode its sales numbers. The “high road” may be bumpy in a poor economy, with less disposable income for small luxury items such as coffee. Starbucks marketing has the challenge of seeming to be sensitive to the economic stresses of a majority of its customers. At Starbucks prices, is that possible?

Catherine Forsythe