Commentary

Starbucks Shot of Coffee Campaign- by Greg Strid

Starbucks is starting to feel the pressure from a
slowing economy. The Seattle-based coffee behemoth
offered coupons in several major newspapers for a
free tall (Starbucks for small) Pike Place Roast coffee,
redeemable on Wednesdays through May 28, 2008.
Why spend so much money on a nation-wide campaign,
only to offer what by today’s standards is a shot of coffee?

I keyed in the words: starbucks+coupons+usa today, and
discovered that the ad was placed in the “Money Section”
of the paper- they also took out a full page ad in the Wall
Street Journal. Apparently, they are targeting mainly
males (sorry for sounding sexist, but unfortunately finance
is still dominated by men). But, I am a man who reads
financial rags; I also have a serious caffeine addiction, and
I’m sorry, a 12 ounce “tall” coffee just does not provide an
adequate fix.

Although it is a generous offer (one that gives off more than
just a whiff of desperation), Starbucks should go all the
way and offer the Venti, 20 ounce cup instead of the
dainty “tall” shot glass size. Let’s face it, most of the people
who read the financial section in major newspapers are already
customers, and they are most likely to be unhappy, tired men
(or less than happy women suffering from serious caffeine
dependencies) who need coffee served in a bucket.

Anyone who reads the financial pages and drinks coffee by the
gallon, has probably seen Starbuck’s stock chart. As of today,
the company’s shares are fetching around $18, down from a
high of $40 about a year and a half ago. The market, and
Starbucks’ core java drinkers believe tough times lie ahead
for premium-priced coffee pushers. A slowing economy means
less disposable income, and people may start to think
twice before plunking down over $2 for a cup of coffee.

Overall, the coupon idea is a good one. It is a way of rewarding
regulars and enticing new customers (if there are any out there)
into the store. But, why not do it right by offering what java
junkies want- a coupon for a truly American-sized coffee?

©Greg Strid 2008

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