Starbucks Instant: Will it Starbucks Instant: Will it Pass the Taste Test?Pass the Taste Test?

Starbucks VIA Ready Brew

Ms. MorelandMs. SmithMr. Lesnak

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Needs, Features, BenefitsNeeds, Features, BenefitsProduct

Via Instant Coffee

Targeted Segment

*Starbucks drinkers that are on the go

*Coffee lovers short on time

Need

*For people who don’t have time to make a coffee stop/travelers who want the quality and taste of Starbucks

Features

Instant/ Individual packs in 3 or 12

Benefit

*Replicates the taste of Starbucks

*Convenience factor-benefits those who don’t have enough time to brew a cup of coffee

Threats & Weaknesses

• Instant coffee has notation of poor quality• Declining market in the US• Competing brands such as Folgers and Nestle

– Will they be able to create enough need for Starbucks instant coffee to make a profit?

• Starbucks’ sales have declined with introduction of McDonald’s McCafe

Starbucks Via: Will it be an Instant Starbucks Via: Will it be an Instant Success?Success?

YES!• Starbucks has great name and brand power• Starbucks understands its customers are on the go/ convenient

individual packaging in food/beverage market have done very well– Ie: Starbucks lattes in jars for on the go/Individually packaged snacks

• Taste testing in stores-give customers a chance to try it– Taste tests succeeded– Via to exactly replicate fresh brewed taste

• $17 billion Instant coffee market– Though instant coffee has declined in US, loyal sbux customers will

purchase their products– They should capitalize on this opportunity-each store brings in over

$1 mil in revenue, so they can afford to add a new sector to their market

• Starbucks is looking for turnaround since overexpansion a few years ago