Friday, February 13, 2009

Instant Starbucks?

So, at one time, in a galaxy far, far away, there ways this coffee house that decided to become larger than life.

They grew from their humble beginnings to one of the worlds most recognized brands. Thousands of other coffee shops opened up with their version of a mocha, etc.

The concept was you pay 3 or 4 times the amount you used to spend for a standard cup of coffee, and they create a delicious drink diversion that is customized just for you.

Starbucks was the McDonalds of the coffee business.

There were so many that in some cities they were across the street from themselves! In my town, there is one inside a grocery store, and at the other side of the parking lot, is another Starbucks!

So what happened? How did they fall? Was it the economy? No, they were having problems before that.

But the sad side of it all is that they appear desperate. It's almost like they are asking themselves in a panicked frenzy, what can we do to make money NOW!?!?!

That's not what is going on, but that is the perception. But Starbucks needs to really take a good hard look at themselves and determine who they are, what they are and only do things that help their brand image. Otherwise, they'll be as appealing as a watered down cup of instant coffee.

Read this from AdAge:

CHICAGO (AdAge.com) -- Premium java giant Starbucks is venturing into what some would consider lowbrow territory with a soluble-coffee product called Via, according to three executives familiar with the matter.

Starbucks declined to comment on the launch, which is said to be a long-term pet project of CEO Howard Schultz and as such will get a significant marketing push.

Starbucks will begin testing the soluble coffee -- a term that conjures up images of instant brands such as Folgers, Sanka and Brim -- by selling it in Starbucks cafes as early as next month. It's unclear as yet whether the company will also extend the product to supermarkets, where it already has a presence with ground Starbucks-branded coffee.

The chain is announcing its plans next week. More information is expected to be unveiled at the company's annual meeting March 18.

Although the new product seems well-positioned for the current economy in which premium-priced coffee can be a tough sell, Via is not just a sign of the times. The instant product has been many years in the making and is designed to mimic the taste of store-bought Starbucks -- the point the company is expected to make in its marketing for the brand.

"It's a breakthrough in soluble coffee," said a person close to the project.

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