Admit it. When you read the title (or saw the article in Ad Age or on the news) you did a double take. It's hard to get your head around the fact that Starbucks is not only entering this category, but have been researching and studying this for 20 years!! Why were they interested in 1989 and my word why introduce it now?
I have long admired Starbucks for their tremendous innovation and progressive marketing approach. In the US they redefined coffee as an experience and a personal indulgence. Rather than drecky coffee at the diner or off the street cart, Americans were finally able to enjoy premium coffee. But much more it became a happening, a truly experiential brand - comfy chairs, soothing music, free wireless, great coffee aroma, a new exotic language to go along with personal service in building your own customized beverage. Plus a company with values and character that we could respect and actually admire - benefits for ALL employees, a credible corporate position for environmental and fair trade issues and a clear philanthropic approach.
So I'm not sure that I get or understand this latest move. The brand extensions into retail with bagged coffee, bottled frappacinos and ice cream somehow seem less risky to the brand since they were not directly core products and they have greater control over the quality and shopping experience. Even the music and coffee related gadgets all fit.
Admittedly, I haven't tried Starbucks VIA™ Ready Brew: A Breakthrough in Instant Coffee and after my sample arrives I may be proven wrong. Just a guess, but the act of pouring hot water and dried coffee into a mug and stirring is not the kind of "coffee experience" people associate with Starbucks
Given the general state of the economy, Starbucks recent closure of many stores and layoff of staff, it might be the time to reinvest and support the cornerstone of the franchise.... Not launch a potentially risky and damaging extension.
What do you think? I'd love to hear your thoughts and ideas.
Read the Starbucks announcement here: http://news.starbucks.com/article_display.cfm?article_id=168
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