A Magical Marketing Formula

Okay, I can not believe that I am right back on this McDonald's vs. Starbucks topic, but it will not go away!

While Starbucks is launching its new better-for-you breakfast menu with minimal fanfare and questionable success (there ain't no lines outside the stores), McDonald's is reporting global sales surges.

According to some reports, recent Olympic promotions have helped to boost the sales. But that is a bunch of nonsense. And as much as it pains me to say it, McDonald's is just out-marketing Howard Schultz.

The special sauce: Yesterday I stopped at Starbucks for my noon grande wet cappuccino, then breezed by McDonald's for a McChicken sandwich and a small fry. The former set me back $3.35... the latter cost me two bucks.

McDonald's seems to understand what Starbucks is unwilling to acknowledge: in difficult economic times, high-priced coffee becomes a luxury for the average Joe (plenty of whom were buying their coffee at Starbucks).

Somebody needs to wake up and smell the coffee.