McDonald's Recession Marketing Strategy: Take On Starbucks

Fast-food giant is trying to offer low-cost alternatives to gourmet coffee.

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McDonald's is one business that has proven somewhat recession-proof. So you might want to take note when they unveil a marketing strategy. As the AP recently reported, that strategy seems to be to target and undercut more luxurious brands--in this case, Starbucks coffee.

The ads portray the drinks as the antidote to a miserable day and aim to get consumers to see the beverages as affordable, quality alternatives to lattes at more gourmet chains like Starbucks Corp.

McDonald's doesn't have to show that they can get you the same bang for less buck. At a time when cutting back is the premium for many consumers, they just need to show that they can give you the bare minimum quality to keep you reasonably happy for a much lower price. That's something that many small-time entrepreneurs can emulate--they tend to be good at doing things similar to the competition, but for less.

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small business

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