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May 18, 2010
Starbucks Surprises With Natural Fusions Naming and Branding
I have already posted my thoughts on Starbucks' move to revamp and repurpose the Seattle's Best™ brand name. Their new initiative, however, has me scratching my head.
They are offering us flavored coffee in the supermarkets via their "Natural Fusions" line, and, amazingly, the Starbucks brand name will be front and center.
Sixty percent of Starbucks customers buy the flavored stuff, and eighty percent of American coffee drinkers buy flavored coffees, so this is a great way to reach a bigger market. It is also a shot across the bow of Maxwell House and Folgers.
The flavored coffee market is a $265 million business, and Starbucks will offer Vanilla, Caramel and Cinnamon flavors.
The only thing is that flavored coffee is to real brewed coffee as, say, the canned mixed drinks sector are to single malt scotch. This is a move that is "way down market" as 24/7 puts it. They go on to say that:
The Seattle's Best move can be defended because it does not carry the Starbucks name and the parent company can wall off the effects that the new product will have on the Starbucks image. The new flavored coffees carry the Starbucks brand, a sign to both the investment community and consumers that the firm is willing to risk sales at its flagship retail stores in the hopes that it could quickly pick up market share and profits in the grocery store business.Other bloggers are not as circumspect: Sandbox tells us this is the turning point for the company.
They compare Starbucks coffee to "Boardwalk" on the monopoly board and flavored coffee to the low-end, "Mediterranean Avenue." Saying, "It doesn't matter if you're making the premium quality product. You could make the best quality, gourmet, all-natural, organic, fried pork rinds in the world, but, you're still selling fried pork rinds."
Ouch.
I just cannot understand why Starbucks did not put the Seattle's Best brand name on this new coffee.
Needless to say, I am surprised by this move.
Technorati Tags: Starbucks, Seattle's Best, Starbucks Products, Flavored Coffee, Boardwalk, Instant Coffee, , Branding/a> Starbucks Branding
Posted by William Lozito at May 18, 2010 5:12 AM
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Beverages
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Brand Naming
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Branding
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Licensing
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Marketing
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Naming
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Product Naming
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