Word: price
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...McCafé name. In one spot, for example, a chore - ironing one's shirt - becomes a much more pleasurable "choré" with McCafé coffee in your hand. That's kind of cute, but why don't the ads highlight the company's one major advantage over coffee competitors: price? With consumer spending still weak, shouldn't McDonald's be explicitly broadcasting its bargains? "Here's what everyone implicitly understands," Thompson says. "With our supply chain and the leverage we have, the products are going to be more affordable than other coffee offerings out there. What is less implicit...
...customers don't respond, however, Thompson promises they'll be reminded of the value. "We are not going to sweep under the rug the affordability aspect," Thompson says. "This is a long-term awareness campaign. You will see everything from taste, indulgence, convenience and price point across the body of work that will be presented over the next couple of years." Yet the company has so far resisted franchisees that have been too explicit about price. Last year in Seattle, a group of McDonald's franchisees ran a billboard that read, "Four Bucks Is Dumb," a clear shot at Starbucks...
...McDonald's might want to stay aggressive, because Starbucks won't go away quietly. The company is introducing a grande iced coffee for under $2 this summer, and the company has said it will lower prices on basic drinks in some markets. Starbucks has also just launched print ads taking direct aim at the quality of other coffee brands like McDonald's and Dunkin' Donuts. "Beware of a cheaper cup of coffee. It comes with a price," reads one ad. "If your coffee isn't perfect, we'll make it over," says another. "If it's still not perfect, make...
...Other automakers are reacting. Suzuki India this week announced plans to launch a 660cc car for the domestic market but did not divulge the car's price. Renault, Toyota and Hyundai are also developing small cars for the low end of the Indian market, now defined by the Nano. Volkswagen is believed to have plans for a two-door, rear-engine car. "The Nano has opened a big market segment, and all the players will certainly push up their launches to attract those buyers fast," says...
...MEPs did amend the ban to exempt seal products coming from traditional Inuit hunts. But Inuit leaders warned it would still kill their market. "This exemption is nothing but a ruse," Nunavut Environment Minister Daniel Shewchuck said in a statement. "With an outright ban on commercial trade, the price of skins will collapse, and with it one of the few ways in which the Inuit people are able to bring cash into their communities...