Starbucks' most recent marketing campaign is simply brilliant.
In case you haven't seen it, it promotes their new VIA instant coffee by challenging viewers to taste the difference between VIA and a cup of brewed Starbucks. If you went into any Starbucks store during the 4 day promotion period, you could take the taste test and get a free cup of Starbucks brewed coffee.
On its face, this would appear to undermine their store business. After all, if you can get Starbucks taste with instant coffee at home, why buy the (more expensive, less convenient) brewed coffee at the store? Many industry professionals scratched their heads at this campaign, thinking that it was brand and margin cannibalism at its best.
There is a trick, however. You CAN tell the difference. VIA is good, better than any other instant coffee, but not as good as Starbucks brewed.
The campaign achieved two actual objectives, NEITHER of which was to have you conclude that VIA was as good as Starbucks brewed coffee.The campaign was cleverly conceived as the taste test challenge. Motivations to go to the store include:
- It got people back into their stores, reawakening old consumption behaviors that changed with the sudden economic downturn. (High-priced coffee was a particular focus of newspaper articles on saving money.)
- It replaced customers' current home-brewed coffee with VIA, a high-margin, coffee that is perceived as great tasting AND more convenient because it is instant. This product-line extension will significantly expand their home market share.
- to test a value proposition in a down economy (I love Starbucks, but it is expensive. Maybe VIA will give me the best of taste and price)
- to take a CHALLENGE! (I bet I can taste the difference)
- to gain bragging rights (I DID taste the difference)
- curiosity (Did they really manage to do it?)
The campaign was only dangerous if VIA was as good as Starbucks brewed coffee, which they knew it wasn't.
No matter what, it leaves the customer feeling like an elite coffee drinker because they COULD taste the difference; in essence, the customer WINS the challenge, which was Starbucks' objective all along.
This campaign may well cause people to return to stores (by reinforcing an old behavior) AND replace their home coffee with VIA.
A creative, brilliant, clever campaign.
Also good reminder that your apparent goal need not be your ultimate objective.
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October 08, 2009 04:13 PM EDT
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![]() Plain Spoken (samgerace.gather.com) is a collection of writings from my perspective as a Midwest entrepreneur. As you may gather from the title, I hope you find my thoughts on entrepreneurship, the interactive space, and technology to be simple and direct. I look forward to your comments. Jump into the conversation! My background: I’m a successful serial entrepreneur. My companies have raised over $250 million in growth capital through the private and public markets during my twenty-four year career as a growth-company CEO, including over $2M in angel finance, over $50M in venture finance, and over $200M in the public markets. I am currently the CEO of Veritix, a venture-backed sports and live entertainment marketing information systems and ticketing company. I am the Founder and former CEO of Be Free (NASDAQ: BFRE), an Internet marketing information systems company, as well as PCX Information Systems, PCX Consulting, and Unmistakable Software. In addition, I am a former Director of Valueclick (NASDAQ: VCLK) and Chairman of Ayalogic, Inc., a venture-backed voice game technology company. From time to time I hope to invite thoughtful guests along to contribute posts. Note that as this is meant to be a more focused conversation than some on Gather (hence the use of the blog format), I will edit the posts that appear here. I do welcome potential submissions, but ask you to understand that I will include only those posts that meet my editorial goals for the blog. Thanks! Recent Posts
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October 08, 2009 04:13 PM EDT
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![]() Nov 21, 2009 5:54AM EST
Marilyn is looking for whatever there is. N. commented on a post "I don't live in your state, but I agree with you and I am on one of your Congressman's mailing lists, so he hears from me quite a bit and doesn't seem to mind that I'm from Connecticut. Marilyn" more Nov 21, 2009 5:49AM EST
Marilyn is looking for whatever there is. N. commented on a post "Starbucks, yes. GM or Chrysler? That's something I don't know, but would actually doubt it. I'd have tried that Starbucks, but since a lot of the stores are closing, we had one near us in Connecticut and . . ." more Mar 25, 2009 2:42PM EDT
Ken Fanger commented on a post "Ok there is no question that "waiting to see" what is going to happen will result in it happening somewhere else. So that means what are we to do. Which individuals should be talking and where should they . . ." more Recent Videos
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Plain Spoken: Sam Gerace's Blog
Owner: Samuel Gerace
Location: Cleveland, OH
Created: Feb 06, 2009
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