US coffee market has been vibrant due to domestic competition among three rivals – Starbucks, McDonalds’ & Dunkin’ Donuts. Starbucks is the most sought after brand consumed by a majority of Americans. But McDonalds’ adopted frontal attack to have a category extension & a significant US coffee market share. They penetrated the café market by launching “McCafe” format with lesser price than Sturbucks & it offers beverages (coffee) along with burgers.
But this time Starbucks has been attacked badly by Dunkin’ Donuts. They adopted Viral marketing strategy to spread the news “In a recent national blind taste test, more Americans preferred the taste of Dunkin' Donuts coffee over Starbucks”. They have used social networking sites like Face book, Twitter & YouTube to form fan clubs to spread the message quickly. This type of comparative advertisement has not been adopted in US coffee marketplace before.
India is a growing market for café business. CCD & barista have a created a significant branded café market. But the Market is not as vibrant as US. I hope the major foreign café chains will come soon to India & make the market more competitive.
