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”.
I agree that Starbucks could very well win any battle they compete in. Starbucks is a powerful company with customers who are looked at as high profile people. Look at magazines like People and Star, there is always, with out fail, a picture of some famous someone with a venti iced latte in their hand and sunglasses on.
ReplyDeleteStarbucks clearly knows how to work that aspect of their reputation and places like Dunkin Donuts definitely do not. When I personally think of Starbucks I think of high end expensive coffee and when I think of McDonalds I think of the dollar menu and Mcflurrys. This is sad, but true.
I don't think that McDonalds and Dunkin Donuts are going to close up shop anytime soon, because they both know what works well for their own customers; like McDonalds dollar menu and Dunkin Donuts being open 24/7. I do believe that Starbucks is looked at in a very different light and I think that is one of the main things they are going for.
However different these buisness approach things, I don't think it is right for Starbucks to be so cut throat about things. I think that this move will actually come and bite them in the butt one day.