Nathan Detroit runs Starbucks into the (instant coffee) grounds
Posted on September 30th, 2009, by admin in UncategorizedToday’s Wall Street Journal has an article on Starbucks push for its
instant coffee. At the March annual meeting Starbucks prez Howard
Schultz first described the new Via instant coffee. Howard is
photographed looking like a cross between Nathan Detroit and the
villain on an episode of LA Law. Howard has gotten rid of the
basketball team he once owned, thank goodness, but he still seems tone
deaf to how his personal image represents his company. Buy this guy a
pair of khakiis and a blue oxford. He’s incapable of doing a good
fake like Steven Jobs. Jobs used to dress like Howard, although he
usually looked more like Sky Masterson than Stubby Kaye’s taller
brother, or for those who remember, Sheldon Leonard.
The money quote from Julie Jargon’s article is “We’re convinced a
majority of people won’t be able to tell the difference,” said Mr.
Schultz, who explained that he has been secretly serving Via to people
at his office and home for months and they haven’t realized they were
drinking instant coffee.” Why not serve Folger’s crystals? This is
revealing a core problem at Starbucks which is how far everyone is
from the product they sell. If Howard -the company President- and his
friends can’t tell the difference between instant coffee and what is
supposed to be gourmet product why should customers have any
confidence in them?
The Seattle Post Intelligencer had an article on Th, May 1, 2008 by
Andrea James.
Starbucks hopes new drinks can lift profits
Energy beverages, smoothies, food among changes planned
Starbucks’ newest initiatives — including offering fruit drinks –
seems puzzling, and “all over the board” to outsiders, said Bradford
Hudson, a marketing professor at Boston University who teaches the
Starbucks case study.
“It’s interesting to try to figure out what’s going on with
Starbucks,” said Hudson, who has watched the company for 10 years as
an academic and as a customer. One of Starbucks’ success secrets –
which Schultz is aware of — was to treat coffee as if it were wine,
and to appeal to connoisseurs, Hudson said.
“I don’t think most people know the difference between good and bad
coffee,” Hudson said.
“The reason people think Starbucks coffee is good is because Starbucks
tells them it’s good. … In my mind, there’s something inherently
contradictory between a position based on connoisseurship and 30,000
units.”
The Via packaging is cool. The product, alas, is still recognizably Nescafe. I kind of wanted it to be good. The Starbucks counter folks are cool–they gave me a free regular coffee to try alongside the Via, like the Pepsi Challenge. Of/c I had just purchased a double espresso. So I trudged out of SB with THREE coffees.
The Via did make me like the regular SB coffee more, so maybe this is “Nathan’s” secret strategy. Introduce a slightly crappier product and the regular one does seem more gourmet.
The Via packaging is cool. The product, alas, is still recognizably Nescafe. I kind of wanted it to be good. The Starbucks counter folks are cool–they gave me a free regular coffee to try alongside the Via, like the Pepsi Challenge. Of/c I had just purchased a double espresso. So I trudged out of SB with THREE coffees.
The Via did make me like the regular SB coffee more, so maybe this is “Nathan’s” secret strategy. Introduce a slightly crappier product and the regular one does seem more gourmet.
BTW I love your blog!