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Starbucks: Another day, another change

If it's Wednesday, that means another change at Starbucks (NASDAQ: SBUX), right? Reuters is reporting that SBUX is "reworking 90 percent of its baked goods." The latest move by the caffeine king is to start selling baked goods without high-fructose corn syrup or artificial flavors and dyes. The company will also introduce salads and other items -- nothing like a coffee and some salad, right?

According to Michelle Gass, SBUX's executive vice president of marketing, "Food has been the Achilles' heel of the company. [...] That statement will be long buried after we launch this program." The new campaign from SBUX will be promoted as "Real Food. Simply Delicious." and is an extension of last year's healthy campaign.

Continue reading Starbucks: Another day, another change

Starbucks tries to Tweet for profits

I have ridiculed Starbucks (NASDAQ: SBUX) in the past, but I actually have to give them some props for trying something new. Of course, this newest move is a double-edged sword, but we'll deal with that in a moment.

According to The New York Times, SBUX will display new advertising posters in six major cities and will try "to harness the power of online social networking sites by challenging people to hunt for the posters on Tuesday and be the first to post a photo of one using Twitter."

Continue reading Starbucks tries to Tweet for profits

Starbucks needs a new marketing campaign

Starbucks (NASDAQ: SBUX) is in such a pickle. On the one hand, it's famous for its java-room atmosphere and its quality coffees that cost an arm and a leg to acquire. On the other hand, growth is gone and its stock is in the dumps, forcing management to do what is necessary to bring traffic into its locations. According to this article, the company will be experimenting with vouchers and discounts at many of its stores throughout the summer. One example given involves a free iced coffee promotion in several major cities.

Just the other day, I wrote about increased competition in the coffee wars from McDonald's (NYSE: MCD), which continues to bolster its java strategy. Things are getting tough out there for Starbucks, and it's a shame that the company has to go this discount route. It's a funny thing when it comes to sales -- people get used to them awfully quick, and in the case of Starbucks, it sort of blemishes their model of making people pay up for their exotic lattes. Starbucks needs to be careful and not be too aggressive in offering discounts. Of course, the natural response to my assertion is, if the company is doing badly, isn't it management's responsibility to step up and get people to cross the threshold of their locations? It sure is, but one thing I've always noticed when any kind of retailer isn't performing like it used to is that it doesn't tend to implement new marketing campaigns that focus on the experience a consumer gets when she walks through the door. I think that can be more effective than waging a price war.

That's what I would say to Starbucks. Create an innovative, unique marketing campaign based on the image of Starbucks and try to keep people paying those high prices. Granted, that's easier said than done, considering everyone has a tight budget these days. Giving away free coffees is fine on one level, but it's a slippery slope for a company that based its model on expensive beverages.

Disclosure: I don't own any company mentioned; positions can change at any time.

McDonald's vs. Starbucks: Let the games begin

The coffee wars are starting to get interesting.

Lately, Starbucks (NASDAQ: SBUX) has felt a few sharp elbows from burger giant McDonald's (NYSE: MCD). Starbucks is a story "in transition," with any luck back to its growth and glory days. And with the return of Chairman and founder Howard Schultz to the CEO role, Starbucks is going back to the basics.

Effective immediately, Starbucks will be offering a regular cup of coffee aptly named Pike's Place Roast after the location of Starbucks' first store in Seattle. This blend of coffee will be offered every day for customers who don't want to try the flavors of the week and prefer on a standard, regular cup of coffee. Pike's Peak was blended after feedback from over 1,000 customers.

Continue reading McDonald's vs. Starbucks: Let the games begin

Symbol Lookup
IndexesChangePrice
DJIA+20.0310,246.97
NASDAQ-2.982,151.08
S&P 500-0.071,093.01

Last updated: November 10, 2009: 10:10 PM

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