Punch line: Starbucks decided to go downmarket with Via instant coffee and now finds itself in a street brawl with the potential to knife Starbucks premium image.
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Excerpted from BrandChannel: Nescafe Calls Starbucks’ Instant Coffee Bluff, November 19, 2009
Under pressure from Dunkin’ Donuts and McDonald’s, and with its brand value in decline, Starbucks introduced Via instant coffee with an in-store taste-test promotion intended to prove that the new instant can’t be told apart from the store brew.
Starbucks competing against store brands ?
Not the usual way to maintain a brand that was built upon premium-quality coffee and the idea that Starbucks stores are America’s “third place” (after home and work).
To counter Via, Nescafé is setting up sampling stations for a taste tests of their own: Nescafe vs. Via.
The Nescafe mantra: “A lot of hype. OR a lot of flavor.”
According to Nescafe, they’re winning convincingly.
Ouch.
Nescafé stands as a reminder and a warning: you can always take your brand down and compete on the low end.
But don’t expect your new competitors to take it lying down.
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Full article:
http://www.brandchannel.com/home/post/Nescafe-Calls-Starbucks-Instant-Coffee-Bluff.aspx
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