Just saw this flash up on MSN and couldn’t help but wonder why it took Starbucks so long to counteract McDonald’s Free Coffee Mondays. I think this is a long overdue Starbucks Marketing Strategy to pull in the market share that can no longer afford $4 for a blended drink. I actually think the VIA Ready Brew is priced just right, given I am not a huge fan of Starbucks coffee, just its atmosphere.

The new VIA Ready Brew, which will sell for about $1 a cup, is a “transformational instant coffee that replicates the body and flavor of Starbucks coffee,” the company says.

The launch comes just as Starbucks prepares to offer “breakfast pairings” value meals.

It wasn’t very long ago McDonald’s came out swinging for Starbucks customers by offering very cheap coffee including free coffee at some stores on Mondays throughout the nation. McDonald’s marketing strategy has paid off. Profits were up 7% last quarter. With the coffee promo and people starting to count pennies, the Dollar Menu at McDonald’s has exploded. People are ditching the night out at Applebee’s for the drive-thru at McDonald’s.

It’s funny that the coffee industry is losing business to a fast food chain. You would think that there are enough intelligent people in charge of running these companies to foresee that people are now going to save money and time. Cost is a huge factor, and so is service in determining where people are going to frequent. The days of old where getting average, overpriced coffee was the “thing to do” are over.

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Billboards are shooting up everywhere taking shots (espresso) at Starbucks. In Western Washington (home of Starbucks) hundreds of these billboards are beginning to appear even right next to Starbucks.

McDonald’s has erected a billboard in sight of Starbucks headquarters declaring, “four bucks is dumb.”

If Dunkin’ Donuts’ taste test commercials were the schoolyard equivalent of blowing spitballs at the coffee giant from afar, then the latest from McDonald’s is like pulling a wedgie. Starbucks employees driving northbound can see the billboard on their way into the city.

Another billboard slogan jabs, “large is the new grande.” The two phrases are displayed on 140 billboards in Western Washington, some of them near Starbucks cafes.

It is pretty clear that Dunkin’ Donuts’ and McDonald’s Coffee are taking stabs at Starbucks market share (even with Starbucks Gold Card Marketing Strategy) . I have to wonder how the economy plays in people’s quest for better deals. Starbucks is on the pricey side and personally I think their coffee is plain and bland. I would much rather go to my neighbor Ristro Coffee or Dunn Bros. Coffee in Fargo.

Each week I will point out some real marketers of genius. Through this series, I hope to show some ways not to market yourself or your brand.

This week we salute you, Ristreto Coffee of Fargo, ND. Only you would decide to put yourself in between a Starbucks and a Caribou Coffee. In a town with an average temperature of -8, you said to hell with it and opted out of the drive-thru. Your coffee might be worth getting out of my car for. Unfortunately for you, they both have a drive-thru.

Upon closer inspection, we can see that Ristreto Coffee is closed while they move to a different location. The reason for the move, I am assuming, is due to the extremely poor location they are currently in. No further than 200 yards to the east of Ristreto Coffee is a well-established Starbucks Coffee with a nice, covered drive-thru. With North Dakota winters pushing the envelope of -20, a covered drive-thru goes a long way.

About 200 yards to the west of Ristreto Coffee is a Caribou Coffee. For those of you unfamiliar with Caribou Coffee, it is the upper Midwest’s competition to Starbucks Coffee. This Caribou Coffee also has a drive-thru and has been serving in the same location for a couple of years.

Why on earth would someone pick a spot in the middle of these two? More importantly, their business is located in a strip mall with no street access. Considering the street in front of their business in one of the busiest in town, this is a problem. Not to mention it has no drive-thru option for the people traveling on the busiest street in town. Further more, Ristreto Coffee sits right in the middle of two brewing giants. Unless the baristas are serving your coffee topless, I see no reason for people to walk through the door. I hope the second location goes much better for the people over at Ristreto Coffee.

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