McDonald's Launches Media Blitz for McCafé Line

Taunted by the credit crunch, Starbucks made like Mickey D's earlier this year and began offering breakfast pairings—selling coffee and breakfast foods together for the low, low price of $3.95. Apparently the tables have turned; McDonald's will soon offer a new line of premium coffees called McCafé. Sounds lush.

And that's the point. The Golden Arches want to target all types of coffee drinkers willing to spend on "affordable luxuries" even in the midst of a recession. McCafé will initially include cappuccinos, hot and iced coffees, and hot chocolate, and will add smoothies and frappes to the line later this year. With a national media blitz that began today—$100 million spent across TV, print, outdoor, radio, Internet, and events—McDonald's expects the launch will add up to $1 billion in annual sales.

Advertising Age noted a TV spot that highlights the accent mark into the line's name. "When you 'McCafé your day,' a commute becomes a commuté. When a pal drops by your cubicle with an iced mocha, it's a cubiclé."

"This is one of the bigger drumroll moments in McDonald's marketing for some time," UBS analyst David Palmer told AdAge. Palmer believes that the initial trial for the premium coffees could hurt Starbucks by as much as 5% in revenue and same-store sales.