McDonald’s Corp. launches its smoothies nationwide Tuesday. The company declined to disclose the budget behind the smoothie’s launch, but McDonald’s Marketing Director Sofia Therios calls it a “respectable investment” for a company that spends more than $1.2 billion advertising annually in the U.S., according to Advertising Age’s DataCenter. McDonald’s marketing plans for smoothies include rounds of television advertisements that show dancers depicting the blending and pouring of the frozen fruit drinks. Participating McDonald’s stores will hold three national sampling days starting July 22, part of the reason the company recently told some stores to stop aggressive promotions, such as giveaways, so the chain would have adequate supply.
McDonald’s presence alone could boost the smoothie market, measured by the research firm Mintel at $2.5 billion in 2007, the most recent year available, something the company is setting out to do. That could also boost other smoothie players such as Jamba Juice Inc., Starbucks Corp. and Panera Bread Co.
“Even though we aren’t the first in the category, we are committed to grow the category,” Therios said in an interview. “We’re open to taking market share on the way.”
Jamba Juice stores in areas where McDonald’s has tested the product haven’t seen a significant effect on sales due to little customer overlap. Like Starbucks to McCafe, Jamba Juice offers consumers a “trade up” option to McDonald’s smoothies with more ingredients such as mangos and pomegranate juice and more customizable options, like vitamin or protein additions.
McDonald’s will make its pitch on value, highlighting a $2.29 price for 12-ounce smoothies, which come in strawberry-banana and wild berry flavors. Jamba Juice’s smoothies, meanwhile, start at $3.55 for 16 ounces.
Source: Chicago Breaking News
