RESPONSE: It’s the right time for Coffee

According to Angus Todd’s It’s the right time for Coffee, he addresses McDonald’s aggressive marketing campaign of giving away free coffee (about 60 million cups to date) as a wise marketing decision for the company to gain valuable market share. He also addresses Starbucks’ powerful campaign about the necessity of quality over cost and how this company may control a large segment of the market.  Due to the recent economic downturn, however, this has became a setback for Starbuck since their customers’ loyalty shows to decline.  I agree with Angus’ reasoning of how McDonald’s new products have created a competitive edge in the coffee industry.   The economical state has provided an incentive for consumers to seek for a coffee house that offers a welcoming atmosphere while charging for less.  I believe, McDonald has successfully merged into the coffee industry at the right moment to gain its hopeful amount of market share.  Overall, does this marketing decision demonstrates that the majority of consumers value the price of a product more than the quality?

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