TV ads. will they work?

This article is really sad because it explains how Starbucks used to be so independently popular and now it’s going to all resorts, including television ads in order to get their business back. Starbucks is down by 77% since last year and we can all tell. Once again, here’s another article on how Starbucks is starting to go down the drain and doing everything possible to avoid this. Now millions of previous Starbucks customers won’t shell out for a cappacino. The problem is now a reality. Starbucks new campaign concinving customers that the price problem is actually a myth.

            The real problem, according to Starbucks is that people believe something about Starbucks that isn’t true. The article explains that although it seems old fashioned, tv is still the most effective way to get customers back and prove a point. The new campaign, as discussed in previous blogs is one to prove to competitors like McDonalds and Dunkin’ Donuts that their coffee may be a tad more expensive but it’s worth it because theirs is fresh and made to order. Let’s hope Burt Helm, from Business Weekly is right when he says the TV ads are the most effective ones.

            There new slogan, “It’s not just coffee, it’s Starbucks” describes the campaign in a nutshell. The TV ads, according to Helm will reach the most passive couch potato, guaranteed.

            One ad shows Schultz, the CEO, asking baristis about their coffee. They claim that they pour their heart into it. Personally, I think that’s taking it a little far. What does that even mean? Coffee is coffee. Some might be better than other, which I agree with, but saying your pour your heart into it isn’t going to change anything for me. On the other hand, that slogan might appeal to the ethos side of things. Coffee is, in fact an experience, and it can go a lot deeper than just drinking coffee. That is the point that starbucks is trying to get across. Even if it’s only to get sales back up, our country is searching for something or some hope in this day in age, and the new campaign might just be exactly what they ordered. We’ll have to wait and see. 

Who really comes out on top???

Article: http://www.suntimes.com/lifestyles/food/1560077,CST-NWS-coffeetest06.article

Finally, in an article from the Chicago Sun Times, Janet Fuller takes action and tests out McDonald’s, Starbucks and Dunkin’ Donut’s coffee to see what consumers really prefer. Because of the recent competitive spirit by all three companies, Fuller decided it would be a good idea to see which coffee was actually preferred.

            When ordering the coffee, McDonald’s took the least amount of time to make and came in at $3.19, for a 22-oz. Starbucks was $3.69 for a 20-oz and Dunkin' Donuts was $3.49 for a 20-oz. The tasters were three coffee-drinking Chicagoans who were asked to join in a blind taste test. All three agreed that McDonalds was dominated by a hazelnut flavor. Three of the four chose Starbucks, and the other one chose McDonald’s for a overall favorite. Most of them complained of the sweetness in the McDonald’s coffee and a good percentage complained of Starbucks being too strong.

            I’m really glad this was done because it goes back to the important thing, and that is what tastes the best. Starbucks has always been known for their good tasting coffee but is this true. Well I don’t think a better audience could have been chosen to test this out. All four of the testers were regular coffee drinkers and knew all the brands well.

            When it comes down to it, Starbucks gets so much grief from the media and our society for being so expensive, but this just proves that the money is worth it. Starbucks claims to only source the best coffee out there and they are right. Some people don’t have a preference, and for those people, go to McDonalds and get a cheap sugary coffee. But for those of us who care about the taste and freshness of our coffee, stick with Starbucks. It’s on average about a quarter more, which does add up, but if you are going to spend money on coffee, why not go all out? Go big or go home, that’s my motto.

            Let’s hope that Starbucks new campaign and cut in prices will reel some customers back in to the cafe we all know and love.

McCafe taking over??

 

I love this author! I was laughing my head off the whole way through. In this news report, Dan Neil explains the new continuous battle for the coffee between Starbucks and McDonalds.

            McDonalds just came out with a huge $10 million campaign to promote their cappuccinos, lattes, iced coffees and hot chocolate. This is the largest campaign McDonald’s has had since they came out with breakfast in 1970. This shows the aggression of the company to take over the coffee world. Neil explains that this could be hard to do for reasons I have discussed in previous blogs. The jist of it is that Starbucks is known to be a prestigious, well made coffee for elite people to go to. The problem is, in recent years, Starbucks has lost that aspect of the corporation, which was a huge mistake considering that was the part about them that really drew people in.

            With Starbucks’ new campaign, they are trying to bring this aspect back. The past couple years have been rough for the “green mermaid”, but the good news is recently, their losses have stabilized. Neil predicts this is starting for two reasons. The first is that maybe Starbucks' clientele is clinging to a hope for better times in the future, or they are spending money on affordable luxuries, while necessities grow increasingly unaffordable.

            Neil brings up a very good point concerning the McDonald’s campaign. The word McCafé doesn’t exactly roll off the tongue. Having three stressed syllables makes it a hard word to say. I totally agree with this. The campaign will be a hard one to talk about casually for this reason.

            Even though Starbucks is starting the new campaign to attempt and bring it back to their original state, I doubt that can be done with the new items on the menu that resemble fast food milkshakes. According to Neil, a decade ago, the Starbucks audience was primarily affluent, college-educated intellectuals, a self-selected group of customers. Starbucks was the one who imported the notion of cafe society into the United States. It was the promised "third place" between home and work, where one could relax, read, talk and delectify a good cuppa in peace. Starbucks was social without the media. Things are really different now, and it looks to me like they won’t be going back. 

I'm headed to work...at Starbucks.

Article: http://www.dailycomet.com/article/20090502/ARTICLES/904309937/1008?Title=When-the-office-is-a-coffee-shop-it-s-a-different-buzz

 

Ever seen someone sitting at Starbucks with a computer, coffee, and a phone in the middle of the day? There’s a good chance they are out of a job and have made Starbucks their office. With the Wi-Fi opportunities and the comfortable and quiet atmosphere, Starbucks is the perfect place to work. Jill Colvin from the Columbia news service put a new twist on things when she explained that Starbucks’ sails should actually be heading against the recession because of all the people who are out of work that have now made Starbucks their new office.

The cool thing about it is that Starbucks is helping one aspect of our economy that is growing. Colvin explains that even before the economic downturn, America’s independent workforce was growing, with more than 10 million independent contractors, consultants and freelancers in February 2005, according to Steve Hipple of the U.S. Bureau of Labor Statistics. Now, in more recent months, their numbers have soared, with Web sites such as ODesk, which matches employees with independent contractors, reporting an increase of 450 percent. Starbucks is actively participating in this soaring business and benefiting from it. Or are they? Some would say that because there are so many business people taking up desks all day, others are less likely to come in and get a cup of coffee, thereby hurting Starbuck’s business. Either way though, Starbucks is getting more and more people coming in every day who have lost their jobs and are using Starbucks as a place to work and use the online resources to get back into a steady job.

This gives me an appreciation for Starbucks and their laid back environment with chairs and good music where ANYONE can come and do whatever they want. Starbucks deserves a pat on the back for providing this working space, whatever the motives may be.

Doug Lange seems to think a little differently. He says internet at Starbucks has become a huge problem. Starbucks used to be a place where people would come and talk and be a community of people, now people are selfishly absorbed in their own lives. But isn’t this true of our whole society nowadays? What is Starbucks going to do? Stop having Wi-Fi? That would be foolish and dumb. All they can do is provide the best atmosphere for sales possible, and hope and pray they make some money.

Starbucks Declares War...

article:http://online.wsj.com/article/SB124112408062074463.html

This article kind of sums up what a lot of the previous articles have been talking about but now Starbucks is actually taking steps to compete with these newfound competitors such as McDonald’s and Dunkin Donuts. Although Starbucks is not coming out and actually saying anything, they are basically implying with their new ads that if you being the consumer choose to “compromise” your coffee, you will regret it in the end. The corporation has decided to use advertising to play with people’s consciences.

            This could or could not be a realistic approach. Although the words in the ads are putting guilt trips on the consumers, the problem is this isn’t a real moral issue. There is nothing in our conscience that tells us that it is wrong to drink bad or not as good coffee. Or is there? Maybe for avid coffee drinkers, there could be a sense of guilt for not showing loyalty to Starbucks since for all these years, they had been loyal customers, or they could really not care and choose to care more about their wallets in this hard time.

            Is Starbucks using these ads to foreshadow a coming price drop in the coffee? Or is this just purely a advertising technique. The article reported that Starbucks plans for this campaign to be long-term, which make me think this could be the first step in drawing our society back into an obsession and addiction to “$4 lattes”. The article also reported that McDonald’s recently displayed a billboard that read, “four bucks is dumb” which shows that McDonald’s is fully aware of the battle for the consumer.

            In my opinion, our society is so wrapped up in image and status that Starbucks looks like it could win this battle. In other words, if the recession improves, people will go back to the more elite Starbucks. But this is a big if. No one knows where our society is headed so Starbucks is definitely taking a risk, but I can also sense them scheming something in the near future which would cause everyone to go right back where they came from, living the American dream, drinking a “4$ latte”.

Value Meals...at Starbucks?

article:http://www.bloggingstocks.com/2009/03/04/starbucks-3-95-breakfast-brand-new-day/

Starbucks has finally joined the masses and introduced a so-called "value-meal". For $3.95, customers can get a breakfast item, either a sandwhich or oatmeal, and a latte. Sound like a revolutionary idea? It does theoretically, but the problem is, the same loyal Starbucks customers will be enjoying these deals, but that's not what Starbucks is aiming at. Starbucks used this new deal to bring back in the unfaithful Starbucks customers who have now turned to McDonald's, and to customers who have never gone to Starbucks because of the prices.

The problem is this new deal is not doing that, 3.95 is still a good half-dollar more than a McDonalds combo meal which includes a sausage or egg Mcmuffin, a hashbrown, and coffee. Plus the fact that it's probably faster. In these hard times, there's a good chance customers will turn to this option.

Some Starbucks customers are very concerned that the company is spinning out of control and is starting to look more like old navy when it should look like Lacoste. This is true. Not only are they lowering their standards by introducing this new value product, but they are changing who they are. This is what people love about Starbucks, the class and the high-scale products. This new value meal almost seems to cheapen it.

The good news is that Starbucks stock has gone up 8 cents since the new deal. This could be a temporary high that could be followed by a bigger drop than before for the reasons listed above. I like the new deal personally, and I can see myself getting sucked into getting it. Also, oatmeal is bery nutritious and in a society where people are constantly looking for healthy options, this is a great draw to the new deal.

For now, it looks like things are going up for Starbucks so let's hope it stays this way for a long time. The good news is, despite the new value meal, the infamous Starbucks coffee still exists, and isn't that was initially drew people to the world famous coffee shop. Ultimately the coffee will draw people despite any other sales pitch the corporation may try to offer to work against the current recession.

Bye Bye Wolf Coffee, Hello Starbucks

Article:http://www1.pressdemocrat.com/article/20090420/ARTICLES/904209934/1349?Title=Last-cup-for-Wolf-Coffee

Why are there Starbucks EVERYHWHERE? I don't know, but Wolf Coffee is asking the same question. According to Kevin Mccallum, Wolf Coffee's original intentions were to provide a sit down coffee place where customers could go to enjoy a cup of coffee in Sonoma County, CA. The problem is, Starbucks has literally run the once largest independent coffee house chain in Sonoma County out.

Mccallum explains that the once successful coffee shop now has at least 4 Starbucks right around it, and no one would even be able to find the shop without first running into numerous Starbucks. This is pretty ridiculous, considering Wolf is a local and very popular coffee shop that i'm sure has a lot of history in the county. It's a shame that Starbucks is running out the more laid back, enjoying coffee shops, where customers can go to enjoy a cup of coffee and a book, and reflect on their life. It wasn't just one or two stores, but the 42 stores total in the area have really taken a toll of the business at Wolf coffee.

Rick and Jeannie Mariani, the owners of Wolf explained that our culture was once a sit-down and enjoy a cup of coffee kind of culture, but it has turned into such a fast paced, drive-through, type culture. This is why a place like Wolf was bound to go under. Wolf will still be operating a whole sale business so the coffee can be sold at grocery stores and other shops, but there will be no more actual coffee shops.

I am from a very fun city where we, the residents, pride ourselves on the small local restaurants and coffee shops. So I, speaking from experience, would be very upset to hear if one of these shops were closing. Wolf has every right to be annoyed with the whole sitation, considering their initial success. Starbucks should probably rethink this because they are going to end up with a lot of bitter customers who refuse to add to their monopoly on coffee houses.

Also, now that Starbucks is starting to close down stores aroudn the nation, i'm sure they understand the feeling. It could be Karma, or maybe just the downturn in the economy, whatever it is, both companies are hurting bad.

Fiscal Report for 2008, let's see if this one is actually true...

Article: http://www.businesswire.com/portal/site/google/?ndmViewId=news_view&newsId=20090422006395&newsLang=en

Starbucks is releasing their annual fiscal report for 2008. To do this, they have created a website called Starbucks Shared Planet with interactive sections of the report that are important to them. I think this is a really cool and actually spent a good amount of time exploring the website myself.

In one part of the website it Starbucks claims that they have always been committed to doing business in a responsible way. To me, this is a very bold statement and really shouldn't be made with all the fuss about how much water is wasted daily by Starbucks, and how they refuse to use recyclable cups.

I like the idea behind explaining everything on an interactive website and I like that everything on the website is explained and illustrated well. 

On the website, there is a mug pledge where customers or visitors to the site can pledge to bring in mugs rather than using the non-disposable cups. To me, this is hypocritical because Starbucks is encouraging customers to bring in mugs when they could easily switch to an alternative hot coffee cup which would be recyclable.

I'm excited to use the report in my most recent paper concerning ethics and Ads by Starbucks. This whole ad and campaign very clearly states Starbucks so called "intentions" for coporate responsibility so it will be interesting to see if any of their practices ignore this commitment and campaign. 

On the website is a virtual tour of the new green Starbucks which illustrates all the green aspects of the  new stores. Also, the article shows the numbers on ethical sourcing, stewardship, and community involvement. The new numbers are astounding and I have never seen such high numbers since i first began studying the corporation. This will really make for a good measure of Starbucks real practices. 

Starbucks decided to open up this site on earth day, which i know will draw more customers in. This is a great way to get people involved in the Starbucks shared responsibility campaign. There is an aspect of advertising that has to be examined so that customers know that Starbucks is backing up what is in the Social Responsibility report with actions. 

McDonalds taking over

Article:http://www.forbes.com/feeds/ap/2009/04/15/ap6294709.html
This article describes in length the reason for the recent drop in shares for Starbucks. The new McDonalds coffee campaign could significantly hurt Starbucks so experts are telling share holders to sell stock. This is very sad to hear about Starbucks because Starbucks has always been such a signature American tradition, but I guess with the new recession, people really don’t have an option anymore. The difference in prices for McDonald’s coffee and Starbucks is about 40 to 45 cents. That is enough to send people to McDonalds. I really don’t agree with Starbucks for doing this. McDonald’s has always been the number one fast food restaurant for Americans, and now they are choosing to compete with the number one coffee retailer. The article suggests that Starbucks addresses this new problem directly. There could potentially be a quality gap, but like I said earlier, in these times, it really doesn’t matter to consumers. This issue is very important and serious so that is why I chose to address it. Time and time again, the issue of Starbuck’s prices comes up. It really is hard for this kind of business to survive in a time like this, because for most, coffee is an optional luxury, especially high quality Starbucks coffee. This new campaign for McDonalds will be key factor in sustaining U.S. same-store sales momentum according to the article which will be very good for our economy, so I do have mixed feelings on the issue. I guess since spending so much quality time with Starbucks recently, writing papers and researching, I have special place in my heart for the corporation. I hope both companies will prevail and the economy will improve, obviously. That would be very hard, obviously, but I believe with the new instant coffee campaign for Starbucks and new similar ones, Starbucks will be fine.

STARBUCKS are going down everywhere

ARTICLE: http://www.bizjournals.com/sacramento/stories/2009/04/06/daily40.html

Mark Anderson wrote a short article in the Sacramento Business Journal concerning the closing of 7 starbucks stores in the Sacramento Area. The rest of the article explains where exactly the stores will be closing. What I thought was interesting were the comments left on the article. One person, a mom or “fan”, explains why Starbucks is such a great asset to any community. She has four college aged children who have participated in the training programs and been were included in the benefits for part time workers. I never knew Starbucks did either of these. Although people complain about Starbucks’ hypocrisy concerning their social responsibility, Starbucks really has made large strides in improving other aspects of our society, like, training new workers in the field and starting them off with benefits as a boost into the work world. She explains that the stores closing is a disappointment because people will lose these extra bonuses and jobs that are desperately needed. The economy is what is causing all of this, it has nothing to do with Starbucks. I think that it is obviously partly the economy, but also I’m sure it has to do with the high prices Starbucks has. There service is normally really good and their coffee and food is excellent but their prices are a little high, so in these hard times, their business will inevitably go down. A cup of coffee is normally the first thing to go when people start cutting down financially.
The second comment comes from a man who is ecstatic at the new closure of the stores. He explains that the over abundance of Starbucks everywhere overrun all the small locally owned coffee shops and it’s about time these other shops get business. He has a little bit of a sarcastic attitude by saying things will only get better when they(Starbucks) is “long gone”. Both critics examine separate issues about the Corporation and both are true in certain ways.

Disturbing Cup Messages...

LINK: http://www.wnd.com/news/article.asp?ARTICLE_ID=55564
This is an article about a woman who was extremely offended by a quote on the side of the Starbucks cup. In an effort to display different opinions by different individuals, Starbucks has allowed people to send in their own little opinions on different things to put on the cups of Starbucks customers. The quote basically questioned why people go to God in difficult situations. Yes, there is the issue of freedom of speech, but for someone who is really in love with God, this is really hard to see. I agree with this woman completely because i feel like she does. I could not enjoy a cup of coffee that was demeaning God in such a way, since He is our creator. It is cool to see the opinions of people around the world, but to me this is repetative. We all know there are people who don't believe in the power of God, we don't need to read it while we sip our coffee. I think Starbucks should do a better job of screening what goes on the cups in order to prevent a loss of customers. In another instance in the same article, Baylor University, a baptist university in Waco, TX refused to use a cup which included a quote by a homosexual. The quote reffered to his homosexuality basically encouraging people to come “out of the closet” and not to repress it. To me, this is also a very personal issue and shouldn’t be printed on my cup of coffee. This is a moral issue and putting these words on the cup only encourage people to believe this is right. Whether it is or not, Starbucks is not repecting the opinions of it’s customers by adding these quotes. I now have a new view of the company because I know the words on these cups were chosen by a Starbucks individual and probably reflect the company in some way.

Evil Starbucks Non-Recyclable Cup

LINK: http://www.greendaily.com/2009/02/09/the-evil-starbucks-non-recyclable-cup-issue/

In a presumably biased internet news source, Cat Lincoln speaks of the “Evil Starbucks non-recyclable cup issue”. Cat explains two main problems she has with this issue. The first one is that Starbucks tries to get around the issue by explaining that their present cups are 10% post consumer waste, but the problem with this is that consumers go through 2 billion of those cups a year, and the only place for them to go is in a landfill. The second issue Lincoln finds is that although Starbucks is promising to change to recyclable cups in 2015, there has already been cups made that serve the purpose of holding hot drinks and are recyclable, so what is holding Starbucks back from using these?
In Starbucks defense, I’m sure they aren’t willing to give up the quality of the cups they presently use, which keep coffee hot for a long period of time. Starbucks prides themselves on the quality and “experience” of their coffee. These cups coincide with this goal. On the other hand, we, an consumers, are paying a pretty penny for the coffee and Starbucks does in a sense “owe” us this one favor. They seem to keep avoiding the issue because it is obvious there are alternatives to the cup so why not do something about it? I would need to look more into the cost of each cup to completely understand what’s going on. But, if the prices were similar, it seems to me a “no-brainer” that Starbucks begin using these new cups just to calm all the fuss. Overall, though, Starbucks does a great job at keeping up the quality of their corporation and I would never want that to change about it. In other words, if the new cup causes Starbucks to cut down in other areas, it’s not worth it.

Starbucks Coffee, Now in Instant

LINK: http://www.nytimes.com/2009/02/18/business/18sbux.html?_r=1

In a recent New York Times article, the CEO of starbucks is quoted again, regarding the new instant coffee and the quality of Starbucks. This is somewhat of a follow up on my previous blog which was about similar issues. Although this doesn’t directly relate to the ethics of the company. I think this really shows the motives of the company. Ethics does have a lot to do with customer satisfaction.
The new instant coffee really does solve the problem of cost. Of course, not everyone will want the instant coffee over the freshly brewed coffee but for some it makes a world of difference. Not only is the instant coffee solving problems but Starbucks is starting new value meal where you can get a drink and a meal for $3.95. Cost has been the main setback with all of Starbucks products, so this will make a big difference, I believe. I am personally very excited about the new instant coffee! It sounds really good and convenient. The coolest part about it is the price. The small packages will average under a dollar per packet. You can keep the packets with you whenever and just add hot or cold water and you will have yourself a cup of coffee.
Scuhultz stirs up converstaion about the new type of coffee responding to critics who say this is “off-brand” for the corporation. Many critics say this is a desperate move for Starbucks. He explains that they are going to reivnent the type of coffee saying, “this is not your mother’s instant coffee”. There will be multiple different flavors which will be nice as well.
Overall, I believe this is a great new idea for Starbucks and it will hopefully be a huge hit. Instant coffee is a huge part of the coffee industry world-wide and Schultz is hoping it will be a huge hit in Europe as well. I guess we will all just have to try it and see for ourselves!

Starbucks CEO: 'We want to be trusted'

LINK:http://www.seattlepi.com/business/403964_starbucks18ww.html

In a local Seattle Newspaper, Andrea James spoke of Schultz, the CEO of Starbucks Cofee Co, and his recent concerns about the company. Often, people write off Starbucks Coffee, speaking of their $4 cup of coffee. Schultz refuted that argument by saying that half the beverages sold cost less than $3, and one-third cost less than $2. He argues that there is also a reason why their coffee costs so much, their coffee is very good and different from any other company. In order to prevent this "deception" about the corporation, many different websites and blogs have been created explaining the quality of coffee and the company.
I agree and disagree with Schultz and his arguments, he complains that because of the economy, a morning cup of coffee for most Americans at Starbucks is the first thing to go. This makes total sense and I don’t blame the American public for it. Why spend three bucks on a cup of coffee when you can make it at home for a quarter, especially considering the amount of Americans in debt? I also think that Starbucks prices are a little too high. Yes, there coffee is very good and one of a kind, but there are plenty of places with quality goods who charge a normal amount.
Schultz mentions that all Starbucks wants as a corporation is to be trusted and valued. These are great goals and I believe they are really accomplishing them. You can always count on a good cup of Starbucks coffee when you go. But, this issue is completely separate from cost. I completely trust and value Prada, but that doesn’t mean I will go and spend $4,000 on a hand bag.
To conclude, Starbucks has really become an American trademark and symbol so despite the high prices, I think it’s every capable American’s responsibility to buy coffee from Starbucks when able.

Business Ethics and Compliance

http://www.starbucks.com/aboutus/businessethicsandcompliance.asp
As I was cruising through cyberspace, I came across an article on the Starbucks Website full of zeal and questionable claims. The title read “Business ethics and compliance”. Of course, the title caught my attention since it had the words ethics and business in it. I read the short 3 paragraph description of Starbucks “commitment” to doing what’s right. Right off the bat, I had a problem with this, and it had directly to do with our second writing project concerning ethics. In this excerpt, Starbucks claims to have “everything” in common with business ethics. But, who defines business ethics? How many different things must a company do to become ethical, and how do we know that what Starbucks is doing is “ethical”? You can’t call yourself something that can’t be measured. Meriam dictionary defines ethical as accepted standards of conduct. What is acceptable? Something may be acceptable for one person, but completely unacceptable for another. The second sentence in the first paragraph says “We are committed to doing what's right - from the way we source our coffee to the way we treat our partners, customers, shareholders, and business partners” What is right? In our world people have all different measures of what is right and wrong. Now, obviously, there are certain things in this world that are naturally right and wrong, and most people would agree with the practices of Starbucks being “right” or “good”, but no one and nothing is completely, 100% right, or good. Everyone and everything has bad qualities. I have read way too many criticisms of the company and the way they operate to believe they are completely committed to doing what’s right in every area. I ran into a girl yesterday and was chatting with her about Starbucks. She had only worked there for 2 months after quitting because she hated it. I asked her what made it so bad and she explained the pay was not worth the work and the schedule imposed on her. This is just one of many examples of Starbucks falling short of their commitment to business ethics. I am not in any way putting the corporation down for all the things they have done to change the way corporations operate, but one must look into the reality of the corporation before accepting the claims presented here.