Wednesday, March 3, 2010

Wake up and smell the desperation



McDonald's has made no bones about trying to take a big chunk of the coffee market away from such companies as Starbuck's and Tim Horton's. They pursue this for a good reason, the coffee market is a massive one worldwide and McDonald's already has the distribution and locations in place.

They have tried a number of different marketing tactics from the McCafe setting to advertising their coffee as being high quality for a lower price. Well they seem to have settled on the "free sampling" idea in the end. It seems like every week I am seeing a McDonald's commercial offering people the ability to try one of their coffees for free. And the period of time keeps getting longer and longer - the latest one I saw just yesterday was offering two weeks of free coffee time.

The tactic is a pretty good one, you get people to try your product because you are confident you're making a quality product. The people try your coffee, love it, and become hooked on McCafe coffee! Unfortunately now it is starting to get desperate in my eyes. What it may break down to is coffee snobs who enjoy a fresh brew to start the day, just don't trust the guy that works the fry-olator to make their morning fix. Understandable. There is a certain message that is communicated based on the type of coffee cup you show up with in the morning. Maybe McDonald's isn't matching up in that area.

But how would McDonald's go about fixing those areas? They already have tried the McCafe setting unsuccessfully, and the overhead of hiring a professional barista to work the morning shifts wouldn't make economic sense. So maybe sampling is all they have left, and is somewhat working for them. God knows they could use the revenue.