As the most popular and well-known fast-food chain in the world, it was no surprise when McDonald’s created its McCafe brand to keep up with up-and-coming coffee competitors like Starbucks and Dunkin’ Donuts. Offering a variety of affordable coffee and espresso beverages in their restaurants has helped the fast food company keep up with the competition, but McDonald’s will soon begin selling McCafe bagged coffee in stores to gain more of a competitive edge in the market.
Both Starbucks and Dunkin’ Donuts have been selling bagged coffee in grocery stores across the country for years now, and both have continued to keep a loyal following of coffee-loving customers. Although they are a little late to the game, McDonald’s, through a partnership with Kraft Foods Group, is launching a major marketing campaign to help stake its claim among other popular coffee brands in the grocery store.
The fast food chain began selling bagged coffee in Canada back in 2012, and earlier this year it conducted a few trials in the U.S. After receiving good feedback, McDonald’s decided to go forward with its plan to stock McCafe bagged coffee on grocery store shelves nationwide.
Creative agency DDB Chicago has a long-standing relationship with McDonald’s and will lead the creative process on the new campaign. Promotional efforts will include TV, print and digital advertisements on a national scale.
The new line of bagged coffee products will include premium roast, breakfast blend, French roast, Colombian, decaf, French vanilla and hazelnut whole bean flavors, according to Crain’s Chicago Business. K-cups will also be filling the aisles for those who prefer Keurig machines.
While a successful launch will help McDonald’s remain a key player in the coffee industry, they are not the only ones hoping to make a splash with the new McCafe bagged coffee. Kraft previously had a deal with Starbucks that ended on a bad note in 2011. They still have Maxwell House and Gevalia, but the widely recognized McCafe brand could help Kraft bounce back after losing its deal with Starbucks.
One factor that gives McDonald’s a major competitive edge is the fact that it is one of the most recognizable brands in the world. The fast food company hopes that customers will gravitate towards the familiar McCafe logo when perusing the coffee aisle at the grocery store.
“Considering that McDonald’s has many already proven products and what is arguably the world’s most recognizable logo, the McCafe brand will automatically gain a secure foothold in the bagged coffee market,” says Clayton Thompson of MyNetWire. “Having thousands of stores worldwide to offer this new product puts McDonald’s in a position to touch billions of people annually. Branding is of vital importance for building name recognition, expanding the customer base and encompasses much more than just a logo.”
With popularity on their side, McDonald’s has more than a fighting chance of keeping up with its competitors’ bagged coffee products.