McDonald's will soon spend $100 Million marketing their new McCafe's featuring $2.29 tall latte's. The powers to be calculate their market to be worth a cool $1 Billion. My bets are with them.
But let's face it. That's a lot of money for a cup of Joe. Let's look at the choices available:
1. At-home brew per cup: $.25 2. At-home packet per cup: $.65 3. Fast-food per cup: $.89 4. Gas station, any size: $.99 5. Tim Horton's, Dunkin' $1.19 6. Starbucks, tall: $1.49 7. Office blend: FREE
If McDonald's can get you to upgrade your coffee purchase to $2.29, imagine the profits they will make. Imagine the increase in sales. And imagine why you would upgrade in the first place.
All for a cup of Joe. And here is the biggest reason why McDonald's will succeed: coffee is addicting and once we form a habit where we buy, we stick to it.
What are you drinking?