Have you stopped at Caribou lately?Often I like to get a mocha and a muffin. The latest promotion the barista, err employee will counter and say would you like to make that a large drink and get the pastry for just a$1.
Lets do the math
Small mocha - $2.90
muffin - $1.95
TOTAL: $4.85
Large mocha - $3.90
Muffin - $1.00
TOTAL: $4.90
What's the up sell and profit of that? A mere $.05? Is this a good idea for Caribou?
On another note, the free shot of espresso promotion when we "spring ahead" is a great idea and a great example of viral marketing. Truly an awesome low cost high appeal promotional idea.
9 comments:
Assuming that this promotion is more than word of mouth...
Although the numbers do not add up to a better gross profit, the purpose may be to get people to try a muffin or get in the habit of buying a large beverage instead of a small. The real test will be how well sales of these items hold up after the promotion.
Take Care
Michael
I think its a good idea because all your doing is paying a mere extra $.05 and get a lot more drink and the same size muffin. So this might help them in the long run but then again people might just say forget it because of the way the economies going and hold on to that extra $.05 to help for something more important later on.
Taylor, 3
i agree with what your saying.but did you think of what the cost of a large drink and a muffin would cost. A small drink and a muffin cost the same but with a large drink you maybe getting a better deal. i like this promotion.
Ashley Froelich,6th hour
The promotion is a good deal for customers and may also attract some traffic into the stores. Although there is little to no monetary advantage for Caribou, the coffee junkie traffic into the store will be more than welcome from the business.
Miles Anderson 6
Yes I think it is a good idea, because it is only five cents more. Your getting more to drink for five cents. It will bring more customers in too. Overall I just think it is a very good idea for Caribou.
Brady Loew Period 6
That muffin does look way to tasty to not enjoy the promotion...
Heather Borhauer
I think it is a good idea because it will trick the consumers. Most will not realize they are actually spending more. They also get more of the drink for nearly the same price.
I also think the free shot of espresso is a good idea. This will definately appeal to the people and attract them to go to Caribou.
Max B.
P4.
The promotion is a good idea because the majority of consumers won't try and calculate the difference and will assume that since they are advertising it, it's a better deal of course. I'm not sure in the long run if the company will benefit from this promotion, because for $.05 more the consumer is getting quite a bit more drink. However in my mind, I like the promotion and would go with it for myself.
Amanda P.
p.4
I think this is good for the customer because they get extra drink for only $.05. They only way I think it will help Caribou is that it may bring in more customers, other then that I dont think that it will benefit Caribou.
Kyle R.
6
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