{"id":29450,"date":"2009-08-27T02:07:07","date_gmt":"2009-08-27T01:07:07","guid":{"rendered":"http:\/\/www.corporate-eye.com\/blog\/?p=29450"},"modified":"2009-08-27T02:07:07","modified_gmt":"2009-08-27T01:07:07","slug":"starbucks-banks-on-loyal-customers-willingness-to-pay-more-for-a-latte-fix","status":"publish","type":"post","link":"https:\/\/www.corporate-eye.com\/main\/starbucks-banks-on-loyal-customers-willingness-to-pay-more-for-a-latte-fix\/","title":{"rendered":"Starbucks Banks on Loyal Customers’ Willingness to Pay More for a Latte Fix"},"content":{"rendered":"

\"starbucks-sign\"Starbucks<\/a> has been struggling for some time.\u00a0 With stores closing and menus changing, the pricey coffee chain has been trying to find a way to revive its business that has all but tanked at the hands of the failing economy.\u00a0 This week, Starbucks announced a new tactic — price gouging its loyal customers.\u00a0 Okay, that might be a bit harsh, but it’s certainly not going to be a welcomed change, even for the most loyal Starbucks brand evangelists.<\/p>\n

According to an article in The New York Times<\/a>, Starbucks is boosting prices on some specialty drinks by as much as 30 cents, but the company is quick to point out that the prices for some of the most popular basic drinks will go down marking the first price decrease in Starbucks history.<\/p>\n

Let the brand positioning struggle begin.<\/p>\n

So who is Starbucks these days anyway?\u00a0 Is this still the premium, elitist brand that required a special insider education to be able to correctly order your coffee without looking foolish?\u00a0 Or is this now the every man’s brand positioned to compete more closely with new coffee competitors like McDonald’s? At the same time, Starbucks has been testing new product offerings such as alcohol in stores in Seattle.\u00a0 What’s next?\u00a0 The Starbucks coffee bar and nightclub?<\/p>\n

Strong brands are focused brands.\u00a0 It’s going to be a tough road ahead for Starbucks unless it picks a brand position and sticks with it.<\/p>\n

The question is whether or not there are enough addicted Starbucks customers who can’t live without their premium coffee fix who will be willing to pay the higher prices and whether or not there are enough regular coffee drinkers who will be enticed into Starbucks stores for a coffee that will now cost 5 to 15 cents less than it used to, but probably still costs more than McDonalds or Dunkin’ Donuts.<\/p>\n

Let’s put it this way — that’s a lot of different coffee drinker demographics all walking into the same store.\u00a0 Can Starbucks really cater to them all?<\/p>\n

What do you think?<\/p>\n

Image: Flickr<\/a><\/em><\/p>\n","protected":false},"excerpt":{"rendered":"

Starbucks has been struggling for some time.\u00a0 With stores closing and menus changing, the pricey coffee chain has been trying to find a way to revive its business that has all but tanked at the hands of the failing economy.\u00a0 This week, Starbucks announced a new tactic — price gouging its loyal customers.\u00a0 Okay, that […]<\/p>\n","protected":false},"author":4,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_lmt_disableupdate":"","_lmt_disable":"","_genesis_hide_title":false,"_genesis_hide_breadcrumbs":false,"_genesis_hide_singular_image":false,"_genesis_hide_footer_widgets":false,"_genesis_custom_body_class":"","_genesis_custom_post_class":"","_genesis_layout":"","footnotes":""},"categories":[9],"tags":[2611,1200,310,100,110,5461,213],"class_list":{"0":"post-29450","1":"post","2":"type-post","3":"status-publish","4":"format-standard","6":"category-best-practices","7":"tag-brand-competition","8":"tag-brand-focus","9":"tag-brand-positioning","10":"tag-brand-strategy","11":"tag-corporate-branding","12":"tag-retail-brands","13":"tag-starbucks","14":"entry"},"yoast_head":"\nStarbucks Banks on Loyal Customers' Willingness to Pay More for a Latte Fix<\/title>\n<meta name=\"description\" content=\"Starbucks plans to raise premium coffee prices by as much as 30 cents. 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