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.

Just the other day I noticed Starbucks had started a new promotion, the Starbucks Gold Card. Although, it is not quite like the Centurion Black Card, it is on the right track. If you have seen this card or have purchased one, let me know your thoughts about the promotion. Do you like it or dislike it? Are you interested in getting one? Play the video below to hear my thoughts on the Starbucks Gold Card.

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Click the pictures below to view the larger version

Outside of the Starbucks Gold Card Brochure

Inside of the Starbucks Gold Card Brochure