4. March 2009 by admin.

Starbucks is launching an instant coffee, Via.

Some say this move is the “ultimate act of watering down a brand” and others are raving that ”the move might actually be the smartest the company has made recently”.

The way I see it, Starbucks is going after additional sources of revenue where there is demand and alignment with their core competency–a smart business move.  

I do not believe this product line expansion into instant coffee will tarnish Starbuck’s brand in itself. However, the quality of the instant coffee, its positioning, packaging and distribution channels might be damaging if not properly executed.

As an espresso lover I personally hate instant coffee and would not give even Via a try, but Starbucks has already reached 2.5 million java aficionados to try it out!

What about you-will you give Via a try? Will Via affect your perception of the Starbucks’ brand negatively?

Posted in Marketing Discussion | 2 Comments »

4. March 2009 by admin.

A report by Forrester proposes a new marketing metric (engagement) that includes four components: Involvement, Interaction, Intimacy, and Influence.  

The authors of the study claim that “using engagement, you get a more holistic appreciation of your customers’ actions, recognizing that value comes not just from transactions but also from actions people take to influence others. Once engagement takes hold of marketing, marketing messages will become conversations, and dollars will shift from media buying to customer understanding.” 

 The way I see it, “engagement” is the new way of defining a sophisticated loyalty and referal program using new media as platforms and marcom vehicles. It is a key component of a solid and synergetic marketing strategy. We should embrace it and learn how to maximize its potential. What is your take on this? How are you using Social Media in your marketing mix and how are you measuring its success?

Posted in Marketing Discussion | 3 Comments »