In a time of job cuts and home foreclosures, a $4.00 latte is one indulgence that some Americans are willing to forgo. Although Starbucks’ premium lattes are what made the coffee shop famous, the premium prices are now hurting its profits.
Competition with places that sell cheaper coffee, such as Dunkin Donuts and McDonalds, has pushed Starbucks in the direction of more affordable beverages.
Starbucks plans to launch its new line of instant coffee, Starbucks Via, next week. Although the launch was supposed to be kept secret until February 17, executives leaked the story to Advertising Age, and now it’s appearing everywhere, from blogs to Fortune magazine, to the Wall Street Journal.
According to Fortune, stores will begin selling Starbucks Via, which is powdered coffee that just needs hot water, as early as next month. The product will be sold in packets that come in packages of three for $2.95 or 12 for $9.95. As a result, consumers will be able to have a cup of Starbucks coffee for under $1.00.
If the taste is the same as regular Starbucks coffee, Starbucks may have created one of the most memorable products of 2009. If the taste isn’t comparable to its original brew, the product will disappear.
Unfortunately, many people have negative biases against instant coffee that may discourage them from trying Via. A Wall Street Journal article explains, to counter the problem, Starbucks went through hundreds of versions to replicate its signature brewed coffee taste and plans to heavily push samples to consumers. In addition to sampling, it will be interesting to see how Starbucks positions and promotes this new product launch.
Will an inexpensive, instant version of America’s favorite luxury coffee sell? Or will people continue to indulge on their more expensive favorites? Does this campaign require re-educating consumers about the great taste of instant coffee?
