Friday, November 16, 2007

Starbucks is going to advertise? You mean, like on TV?

The NYPost seems to have missed the importance of it all, hiding the news in the last lines of the story: "The stock has dropped more than 30 percent this year, hit by worries about store saturation, increased competition from once unlikely specialty coffee rivals such as McDonalds and Dunkin Donuts, the weaker economy and soaring dairy prices. In a first for the company, Starbucks plans to begin a national TV ad campaign starting Friday to try to boost traffic over the holidays."

Of course AdAge has the details -- blah blah animation blah blah Wieden & Kennedy blah blah blah -- but, really, for the best, most giggle-inducing quotes, you have to go to Seattle's Post-Intelligencer: "a defiant Chairman Howard Schultz said the world's largest coffee chain would fight off competitors and bring customers back. 'As a national leader, we have an opportunity to make sure our voice is heard in the all-important media of TV. This is the beginning of a new opportunity for us,' Schultz said during a conference call."

And the kicker: "The TV campaign begins Friday, and it will be energizing and 'so holiday that it will blow you away,' Chief Executive Jim Donald said in an interview."

So holiday? Or so Raven? Y'all! I can't wait.

3 comments:

Make the logo bigger said...

Guess that McCartney thing never quite worked out?

Irene Done said...

See, that's interesting. I haven't read anything about all that -- the books and music can't sell if no one's in the store. I was amused/saddened by this bit from the P-I article:

"Without mentioning by name rivals McDonald's and Dunkin' Donuts, Schultz said consumers over time would not be satisfied with a 'commoditized experience or flavor' and they would trade up to the company that built the industry."

What the hell is Starbucks but a "commoditized experience?" I think they should be worried that their version of the commoditized experience -- even one with attractively packaged mints and ex-Beatle music and feel-good Mitch Albom books -- may not be compelling enough. In which case: panic!

HighJive said...

Starbucks has totally missed the point regarding its competitors. Given the increasingly awful economy, people will no longer accept paying big bucks for a cup of liquid that is parity with Mickey D’s and Dunkin’ Donuts. The Starbucks “experience” is apparently not that important, as people will gladly forgo it in favor of the surly and simple-minded workforce at fast-food joints. Schultz would be better served by dropping his grande prices versus running tv commercials.