Dear Starbucks, We Told You So.

We're Not A $4 Coffee Shop.

We're Not A $4 Coffee Shop.

Back in February we did a post about Starbucks and how the company was allowing others to define their brand. Well, they must have heard us because yesterday Starbucks’ CEO, Howard Schultz had this to say:

“There’s a myth out there that there’s this $4 cup of coffee at Starbucks. For whatever reason, Starbucks Coffee Co. has become the poster child for excess, and if you want to be really smart, you should cut out that $4 cup of coffee.”

Mr. Schultz went on to note that half of the chain’s beverages cost less than $3 and one-third are priced less than $2 and he admitted that Starbucks has been defined by its competitors. We told you so Howard.

Read more of what Mr. Sshultz had to say here.

The new campaign, created by BBDO,  will attempt to convince consumers that Starbucks products aren’t as expensive as they are perceived. Mr. Schultz said to expect social-media efforts, internet advertising, and more and sporadic TV ad buys he refers to as “brand sparks.” The song “Stand By Me” will be featured in the advertising. No date was announced for the launch.

If the idea is to convince the public that Starbucks isn’t as expensive as you think, we believe they’re still missing the point. Starbucks should be selling the value of the brand experience. It’s a more than a cup of coffee, it’s a place to escape, a place to meet and in this economy, a place to network, polish your resume and scratch out your next big idea on Starbucks napkin.

We’ll see if they agree when the ads break.

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~ by hookusa on March 19, 2009.

One Response to “Dear Starbucks, We Told You So.”

  1. […] know, your competition starts to nudge you in a different direction, which can derail your brand. Starbucks for example, recently got caught up in price wars with McDonald’s and Dunkin Donuts and for a […]

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