Starbucks is in the news again in attempt to get same store sales back on track. The company is considering offering a value menu along with rolling out instant coffee. I find this humorous, since Howard Shultz, CEO in the past has said he does not see McDonald's as a direct competitor...hmmm? I have always admired Starbucks for trying to be the leader in new product development but in the current economy people want to see more value in their $3.00 cup of coffee. Starbucks is going to attempt this by selling instant coffee which will cost about a dollar a cup for $2.95 for a pack of three where one can but a 30 cup can of Folgers for $2.65. Click on the links above and read the articles for more information.Do you think Starbucks "Gets It" anymore? Selling a $1 cup of coffee, what will that do to the Starbucks brand? Is it better to be developing more products instead of offering promotional discounts? Should they be offering better promotions with more value before they lose even more customers to McDonald's and their $0.67 coffee. In times likes these how do luxury brand companies hold on and maintain their customer base especially when there are so many available substitutes? I would love to hear your thoughts
No comments:
Post a Comment