Comments on: Starbucks Rolls Out $1 Coffee and Free Refills http://www.everyjoe.com/articles/starbucks-rolls-out-1-coffee-and-free-refills/ Sports News - Tech Reviews - Entertainment - Life Tips for EveryJoe Tue, 01 Dec 2009 20:03:07 -0500 http://wordpress.org/?v=2.8.4 hourly 1 By: Branding Posts That Got People Talking During the First Half of 2008 http://www.everyjoe.com/articles/starbucks-rolls-out-1-coffee-and-free-refills/comment-page-1/#comment-321084 Branding Posts That Got People Talking During the First Half of 2008 Tue, 05 Aug 2008 15:00:38 +0000 http://www.brandcurve.com/starbucks-rolls-out-1-coffee-and-free-refills/#comment-321084 [...] Starbucks Rolls Out $1 Coffee and Free Refills [...] [...] Starbucks Rolls Out $1 Coffee and Free Refills [...]

]]> By: McDonald’s Attacks Starbucks with Free Coffee http://www.everyjoe.com/articles/starbucks-rolls-out-1-coffee-and-free-refills/comment-page-1/#comment-322100 McDonald’s Attacks Starbucks with Free Coffee Tue, 15 Apr 2008 02:29:04 +0000 http://www.brandcurve.com/starbucks-rolls-out-1-coffee-and-free-refills/#comment-322100 [...] by closing their stores to retrain baristas, hopping onboard the Got Milk campaign and offering $1 short cups and free refills. Are Starbucks’ efforts working? What do you [...] [...] by closing their stores to retrain baristas, hopping onboard the Got Milk campaign and offering $1 short cups and free refills. Are Starbucks’ efforts working? What do you [...]

]]> By: Jeff P http://www.everyjoe.com/articles/starbucks-rolls-out-1-coffee-and-free-refills/comment-page-1/#comment-321288 Jeff P Tue, 05 Feb 2008 03:17:19 +0000 http://www.brandcurve.com/starbucks-rolls-out-1-coffee-and-free-refills/#comment-321288 I see 2 potential reasons behind this strategy. #1 - let's go with a $1 price point for a limited time and then raise it up after this sampling period is over. Starbuck's may be out to show the McDonald's coffee drinkers their joe is better and then raise the price. Another strategy may be what I've long called the Taco Bell move. Taco Bell competes with Taco John's in my market. Consistently Taco Bell is 30 cents cheaper than Taco John's. They make it up in volume - pure and simple. So, perhaps Starbuck's is trying to bring more customers in with a cheaper price point and making it up for it in volume. Does the $1 cup apply to regular coffee only? If so, they should be OK. If not, can they keep up with the demand and also - are the $1 drinkers going to put up with the potential wait they may endure for customers drinking the specialty coffees? All in all, this should be very interesting to watch. I see 2 potential reasons behind this strategy. #1 – let’s go with a $1 price point for a limited time and then raise it up after this sampling period is over. Starbuck’s may be out to show the McDonald’s coffee drinkers their joe is better and then raise the price. Another strategy may be what I’ve long called the Taco Bell move. Taco Bell competes with Taco John’s in my market. Consistently Taco Bell is 30 cents cheaper than Taco John’s. They make it up in volume – pure and simple. So, perhaps Starbuck’s is trying to bring more customers in with a cheaper price point and making it up for it in volume. Does the $1 cup apply to regular coffee only? If so, they should be OK. If not, can they keep up with the demand and also – are the $1 drinkers going to put up with the potential wait they may endure for customers drinking the specialty coffees? All in all, this should be very interesting to watch.

]]> By: Prescott Perez-Fox http://www.everyjoe.com/articles/starbucks-rolls-out-1-coffee-and-free-refills/comment-page-1/#comment-321376 Prescott Perez-Fox Thu, 24 Jan 2008 16:23:03 +0000 http://www.brandcurve.com/starbucks-rolls-out-1-coffee-and-free-refills/#comment-321376 I've been drinking less Starbucks since they raised prices back in November. My usual drink (grande non-fat, no foam latte) used to cost $3.97, but now it costs $4.06. That might seem very slight but trust me, that extra six cents is annoying, requiring me to break that invisible $4 barrier. NYC has 8.375% sales tax so I'm trying to cut back on buying [prepared] food altogether. If this $1 scheme comes to New York, I'll be likely to buy a cup, then split it with a friend and top the rest off with milk. Now that's savings! I’ve been drinking less Starbucks since they raised prices back in November. My usual drink (grande non-fat, no foam latte) used to cost $3.97, but now it costs $4.06. That might seem very slight but trust me, that extra six cents is annoying, requiring me to break that invisible $4 barrier. NYC has 8.375% sales tax so I’m trying to cut back on buying [prepared] food altogether. If this $1 scheme comes to New York, I’ll be likely to buy a cup, then split it with a friend and top the rest off with milk. Now that’s savings!

]]> By: Kelly http://www.everyjoe.com/articles/starbucks-rolls-out-1-coffee-and-free-refills/comment-page-1/#comment-321375 Kelly Thu, 24 Jan 2008 16:15:30 +0000 http://www.brandcurve.com/starbucks-rolls-out-1-coffee-and-free-refills/#comment-321375 My good friend, who manages a Coach store, said that the drop in Starbucks earnings last year was the single scariest thing for their store. When folks start cutting back on "luxuries" like $4 latte, that's a sign that the market is slowing. And once you've given those luxuries up, it's hard to be wooed back. I think this is smart. We have a new Starbucks near us and I know my husband would be inclined to go more if he felt like he was getting a "deal" - like free refills. He would bring his laptop, drink lots of coffee and probably end up there for lunch where he'll spend too much money on lunch. But he'll *feel* like it's okay because of the free refills. Companies that respond quickly to change survive if they make the right choices. I think this is the right choice. My good friend, who manages a Coach store, said that the drop in Starbucks earnings last year was the single scariest thing for their store. When folks start cutting back on “luxuries” like $4 latte, that’s a sign that the market is slowing. And once you’ve given those luxuries up, it’s hard to be wooed back.

I think this is smart. We have a new Starbucks near us and I know my husband would be inclined to go more if he felt like he was getting a “deal” – like free refills. He would bring his laptop, drink lots of coffee and probably end up there for lunch where he’ll spend too much money on lunch. But he’ll *feel* like it’s okay because of the free refills.

Companies that respond quickly to change survive if they make the right choices. I think this is the right choice.

]]> By: Susan Gunelius http://www.everyjoe.com/articles/starbucks-rolls-out-1-coffee-and-free-refills/comment-page-1/#comment-321370 Susan Gunelius Thu, 24 Jan 2008 14:19:19 +0000 http://www.brandcurve.com/starbucks-rolls-out-1-coffee-and-free-refills/#comment-321370 Phil, You make a great point that loyal Starbucks customers will now hang out at Starbucks even longer than they may have before with the free refills. I think new customers will also give Starbucks a shot with lower prices and free refills. I am anxious to see how the changes affect the Starbucks brand in the long run. Phil, You make a great point that loyal Starbucks customers will now hang out at Starbucks even longer than they may have before with the free refills. I think new customers will also give Starbucks a shot with lower prices and free refills. I am anxious to see how the changes affect the Starbucks brand in the long run.

]]> By: Susan Gunelius http://www.everyjoe.com/articles/starbucks-rolls-out-1-coffee-and-free-refills/comment-page-1/#comment-321369 Susan Gunelius Thu, 24 Jan 2008 14:18:10 +0000 http://www.brandcurve.com/starbucks-rolls-out-1-coffee-and-free-refills/#comment-321369 Prescott, I agree with you - McDonald's has such a different brand image, I don't think loyal Starbucks customers will abandon them. By the way, I'm on my way over to your blog to check out your post. Thanks for including the link! Prescott, I agree with you – McDonald’s has such a different brand image, I don’t think loyal Starbucks customers will abandon them.

By the way, I’m on my way over to your blog to check out your post. Thanks for including the link!

]]> By: Phil Gerbyshak http://www.everyjoe.com/articles/starbucks-rolls-out-1-coffee-and-free-refills/comment-page-1/#comment-321367 Phil Gerbyshak Thu, 24 Jan 2008 05:15:16 +0000 http://www.brandcurve.com/starbucks-rolls-out-1-coffee-and-free-refills/#comment-321367 Very interesting. I'm curious what this does to the brand. I'm meeting someone at a Starbucks tomorrow night. We'll see if it smells more like the Starbucks of old. I sure hope so :) Will this help? Time will tell, though free refills do mean I'll stick around longer, potentially connecting my Macbook up and surfing on a paid for T-Mobile connection, eating a muffin, or just telling more people to meet me there. Very interesting. I’m curious what this does to the brand. I’m meeting someone at a Starbucks tomorrow night. We’ll see if it smells more like the Starbucks of old. I sure hope so :)

Will this help? Time will tell, though free refills do mean I’ll stick around longer, potentially connecting my Macbook up and surfing on a paid for T-Mobile connection, eating a muffin, or just telling more people to meet me there.

]]> By: Prescott Perez-Fox http://www.everyjoe.com/articles/starbucks-rolls-out-1-coffee-and-free-refills/comment-page-1/#comment-321362 Prescott Perez-Fox Thu, 24 Jan 2008 04:18:23 +0000 http://www.brandcurve.com/starbucks-rolls-out-1-coffee-and-free-refills/#comment-321362 McDonald's wants the fancy-pants $4 lattes and Starbucks wants the down-and-dirty $1 drip. Sounds like a primary campaign more than competitive coffee. Personally I don't think McDonald's is a threat at all, because both of these companies have built up tremendous brands that are too deeply rooted in the consumers' minds. Starbucks is likely to see a surge in footfall from this policy, especially at stores located near a bunch of offices — instead of heading to the kitchen, workers will just jump down to street level for a free refill. And of course while they're there, they might as well buy a muffin, and some mints, and a CD. Overall, I think it will work financially, but I hope it doesn't do damage to the brand. And yes, I already blogged about it. http://www.perezfox.com/2008/01/23/starbucks-goes-for-broke/ McDonald’s wants the fancy-pants $4 lattes and Starbucks wants the down-and-dirty $1 drip. Sounds like a primary campaign more than competitive coffee.

Personally I don’t think McDonald’s is a threat at all, because both of these companies have built up tremendous brands that are too deeply rooted in the consumers’ minds.

Starbucks is likely to see a surge in footfall from this policy, especially at stores located near a bunch of offices — instead of heading to the kitchen, workers will just jump down to street level for a free refill. And of course while they’re there, they might as well buy a muffin, and some mints, and a CD. Overall, I think it will work financially, but I hope it doesn’t do damage to the brand.

And yes, I already blogged about it.

http://www.perezfox.com/2008/01/23/starbucks-goes-for-broke/

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