Sunday, 15 February 2009

Starbucks coffee launch will cause a stir

I read that Starbucks are planning to start selling instant coffee at $1 a cup.

This is a game changing business move and I really hope it is successful.

The new product will create some new news and should attract new consumers into their stores who are now able to afford the coffee and who would like to sample the famous Starbucks brand experience.

However, this launch will create some major challenges.

In order to protect their margins they are going to have to minimise cannibalisation, while at the sometime significantly increase the numbers of cups (and customers) they serve per day/hour/minute.

This is going to increase queue lengths & and times spent waiting, which will mean a change in the whole brand experience.

Their in-store mission says: “....our stores become a haven, a break from the worries outside, a place where you can meet with friends....”

This launch will make this mission hard to deliver.

Starbucks are masters of brand experience so it will be interesting to see how they handle it. I will watch with interest.

No comments: