An interesting experiment in service design is unfolding this week as Starbucks and McDonalds aim their marketing cannons at each other. Starbucks is taking out full color, full page ads to tout their entire product/service/experience. The initial ad, launched today, covers quality (they only use the top 3% of available beans), Fair Trade (good karma), employee training, and health benefits to all employees who work over 20 hours. The last paragraph covers the user experience side: "Oh, and a little bit of the price of a cup of Starbucks coffee helps furnish the place with comfy chairs, good music, and the right atmosphere to dream, work and chat in. We all need places like that these days."

And in the other corner we have McDonalds, launching their "McCafe" brand on TV, radio, the Internet and in print. (Is it me, or do those billboards make the product look like plastic?) But watch out Starbucks: McDonalds is on a tear, particularly in this economy. They are a massive marketing machine, not to be trifled with. But the real questions is: Should Starbucks really be all that concerned with McDonalds? How many people do you know that are loyal to both those brands? Is Ralph Lauren concerned about Old Navy?
(more…)