Talk about "in your face." McDonald's has put up a billboard promoting its espresso within sight of Starbucks' headquarters. Oh yes, it also has another message: "Four bucks is dumb."
Another billboard, among group of 140 in the western part of Washington, states, "Large is the new grande."
Alan Finkelstein, a McDonald's franchisee in the state, told the Seattle Post-Intelligencer, "The billboard placement was done because we picked high visibility locations. We really wanted to point out that ordering an espresso at McDonald's is quick and simple. Small, medium and large. It's easy."
Despite McD's jabs, it unlikely that Starbucks will respond just as it has ignored a Dunkin' Donuts comparison campaign that shows actors choosing its coffee in blind taste tests.
"We get a lot of questions on the competition and that everyone seems to be picking on Starbucks through their advertising and try to reposition Starbucks as expensive or snobby, and, boy, when is Starbucks going to start advertising and join in that coffee conversation?" Starbucks Chief Marketing Officer Terry Davenport said recently.
"We're not going to get into that conversation. We're not going to get sucked into the, 'My coffee is better than your coffee,' price point type of coffee conversation. We're going to play at a much higher level."
While comparison ads have largely been seen as ineffective in the past, some believe they can work in light of present realities.
Emily Bryson York, a reporter for Advertising Age, told the Post-Intelligencer, "A big part of this is the economy and marketers feeling like the economy is in horrible shape, people have fewer discretionary dollars and you have to sharpen your elbows...The thing about these comparative campaigns is you have to hammer away at them for a long time. You can't just hit someone and then run away. You have to have a lot of marketing dollars to put behind it and that's something that McDonald's could theoretically do."
It isn't known yet if McDonald's will roll out the campaign beyond Washington.
Discussion Questions: What is your reaction to McDonald's comparison campaign with Starbucks in Washington State? Is the time right now for comparison campaigns? Do you agree with Starbucks' decision to not respond to McDonald's or Dunkin' Donuts?