They all laughed at Christopher Columbus when he said the world was round; 
They all laughed when Edison recorded sound;They all laughed at Wilbur and his brother
When they said that man could fly;They told Marconi wireless was a phoney
- George and Ira Gershwin
A few months ago it was leaked that Starbucks had created a new instant coffee. Pundits scoffed, what were they thinking?
This week the instant coffee arrives in stores with the name: Via. Ad Age had a great story about how Starbucks plans to market the new blend. It reported in part, “The chain is expecting between 8 million and 10 million consumers to visit its 7,500 company-run cafes in the U.S. and Canada to participate in a taste test that runs Friday through Monday. Participants will receive a “thank you” card good for a free coffee on their next visit, and $1 off their purchase of Via at any Starbucks.
The CEO chairman and mastermind of Starbucks Howard Schultz said in a call with reporters,”I’ve been fooling people for almost a year now, at home, at the office. I make coffee for my wife almost every day. I tell people this is the instant version of Starbucks brewed coffee and they’re shocked.”
What makes this such an interesting story is that I can’t think of one other brand trying to get you to try their cheaper version and then proudly saying you can’t tell the difference. It’s kind of like Ralph Lauren’s POLO or Coach spending millions to tell people their outlet stores had the exact same merchandise.
“This is not your grandmother’s instant coffee,” Schultz said. “The quality of Starbucks Via is a mirror image of the quality and taste of Starbucks brewed coffee.”
This is not like GAP owning Old Navy but defying someone to tell the difference. GAP realizes they are covering two distinct markets that have some overlap and my guess is so does Starbucks but they are crazy like a fox.
Do they really expect the Starbucks venti customer will switch to instant? Probably not but it gave them the opportunity to come back to the market with lots of press. They also sent out coupons to their 4 million Facebook Fans. What was the hook?
You have to come in to the stores to taste it.
Whether they buy Via or not, Starbucks is expecting 8 to 10 million customers to visit from Friday through Monday. And while they’re there they also may become reacquainted with the habit of their morning coffee.
In a recession the first thing to go for some are the indulgences of specialty coffee; a weekly habit can easily cost $100 a month. It’s not a secret that their traffic counts are down, this may just be the gimmick to bring those who have built Starbucks into one of the most easily recognized brands in the world back to the cup. They’re addicts after all trying to be good and not realize they are being led down the garden path to their old ways.
Via
Sure, Via is a product that is targeted to the larger fast food and vending machine market which is a big; somewhere between 17 and 21billion. Yes that’s with a B. Who wouldn’t want a branded Starbucks cup of coffee out of a vending machine at your mechanics or hospital waiting room over the swill that had been sitting on a burner for two days?
Pundits are still puzzling why Starbucks would “push instant” at the expense of their premium brand. Crazy like a fox.
Notice they could have just as easily sent packets in the mail for you to try or bundled it with your morning newspaper. But they knew the goal of their event: to get people to come back to the store and rebuild a brand sorely in need of a jolt.
Instead of thinking how you can give profits and product away, find a way to have the guise of a giveaway mask your main objective: to get them to return to your store.
