Starbucks is about to introduce instant coffee. Is this a way for the Seattle-based conglomerate to grow income, destroy a brand, or both? After all, would a premium coffee company ever touch the instant category? It’s like Odwalla offering its customers a Tang-like substance.
In a Huffington Post advertorial, Howard Shultz of Starbucks quotes John Quelch, the Harvard Business School professor and marketing guru:
In a tough economy, consumers are redefining value. They are consuming less, and focusing more on seeking satisfying experiences that enhance their lives. He (Quelch) calls this growing segment “The Simplifiers.” They want fewer material goods, and more quality-of-life experiences. At our core, we have the right stuff to appeal to these consumers, whether it’s the respite from the world our stores provide or now with Starbucks VIA ready brew, quality coffee on-the-go.
I asked Jerry Ketel, President of Portland’s Leopold Ketel & Partners to discuss this development.
Ketel says, “Schultz is suggesting that people will seek out instant coffee as part of the Starbucks experience. I can’t wait to hear what Al Ries has to say about this. My prediction is that he will lambast Howard for diluting his brand (pun intended) and stealing more market share from his own company.”
Ketel adds, “Why would I want instant when I can just buy fewer cappucinos that are more satisfying experiences? The logic doesn’t make sense.”
