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Prophet, May 1, 2009 — For all the great marketers and great marketing, we still see too many instances of what I call “cart before the horse” marketing. The cart, of course, is marketing tactics, while the horse is the need to meet critical customer needs. The result is strategies and initiatives that falter before the finish line.
Wall Street Journal, March 13, 2009 — Until recently, being green was the best way for companies to demonstrate a sense of social responsibility, and for consumers to feel good about their purchases. Healthy food, hybrid cars, energy efficiency — these were the attributes that burnished brands.
But now green is taking a back seat to a new core value — value. Green hasn't gone away, but companies are having to consider their "value" equation to try to serve the millions of consumers who either can't afford premium experiences, or just don't want them anymore.
New York Times, February 18, 2009 — In Howard Schultz’s 1997 book about developing Starbucks, he wrote, “Nothing pains me more than hearing critics compare Starbucks to a chain of discount stores or fast-food operations.On Tuesday, the man who set out to improve Americans’ taste in coffee, unveiled instant coffee bearing the Starbucks brand. Packages of Via Ready Brew will appear in Starbucks shops in Seattle and Chicago on March 3, the same day that Starbucks will begin offering breakfast value meals in stores nationwide.
Advertising Age, January 26, 2009 — Antony Young
We know the recession is hurting purchases of big-ticket items such as cars and flat-screen TVs, but even life's seemingly small luxuries, such as that morning latte, are being hit hard. Indeed, an Advertising Age study found that 60% of Americans have scaled back from premium coffees in the past six months, with the mighty Starbucks experiencing a flattening of its froth. Enter Dunkin' Donuts and McDonald's, which both upped their coffee-marketing efforts in 2008, hoping to steal some of Starbucks' share.
Advertising Age, January 21, 2009 — Starbucks' campaign to promote volunteerism (and store traffic) got a huge bump today from no less than Oprah Winfrey — and by extension, Barack Obama.
The talk-show host talked up the java giant's "I'm In" campaign, which encourages consumers to pledge five hours of community service before the end of the year. Those who commit to doing so at Starbucks between now and Sunday will be rewarded with a free coffee.
Marketing Daily, December 8, 2008 — J.M. Smucker Co., which completed its acquisition of Folgers from Procter & Gamble in early November, is coming out of the gate aggressively by announcing pricing reductions on the brand.
Brandweek, November 11, 2008 — Given its recent financial struggles—at the core of which are weak sales that have forced the closing of about 600 of its U.S. stores through the first half of fiscal year 2009—the question many people are asking right now is: Can Starbucks get its mojo back?
Adweek, November 4, 2008 — A recent survey by YouGovPolimetrix revealed that the slumping economy is having a significant impact on how consumers perceive brand value. Budget brands like Wal-Mart and Old Navy were ranked highest by consumers, while more upscale brands and financial services firms ranked lowest, reflecting a loss of consumer confidence.
New York Times, October 30, 2008 — Since Howard D. Schultz returned to the helm of Starbucks in January, he has desperately tried to recapture the company’s original magic. Mr. Schultz has hired back one of the authors of Starbucks’s original success: Arthur Rubinfeld, its president of global development. Back at Starbucks since February, Mr. Rubinfeld is now guiding a renovation of its stores and refocusing on the urban markets that gave the company its illustrious start.
Wall Street Journal, October 27, 2008 — After unveiling plans earlier this year to sell espresso drinks at all of its U.S. locations, McDonald's Corp. now faces a fresh set of challenges.
The weak economy has prompted some consumers to brew coffee at home instead of buying it at coffee shops. A sharp pullback by Starbucks Corp., which is shutting hundreds of stores as its sales slow, has analysts questioning whether now is the right time for McDonald's to roll out its premium line of lattes, cappuccinos, smoothies and sweet, ice-blended frappes.
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