More on Starbucks

After chatting with my Marketing prof at the break yesterday, I brought up Starbucks' marketing of Via. I mentioned my anecdote about being offering Via for free (essentially). OUr topics for the day were segmentation and brand extensions, and it wasn't clear where Via fit in Starbucks' overall strategy.

Our prof generally thought it was a bad idea. He said that while Starbucks has had success in selling its coffee beans and branded ice cream in grocery stores, Via was different because they were also trying to sell it in their own stars. Here you have a coffee brand that appeals to people who will 1) stand in line and 2) pay a hefty premium over deli coffee. Does Starbucks expect these people to stand in line in order to pay a premium for an instant version of coffee they can already acquire in other ways?

From my own life, I can say that if I want Starbucks coffee, I can either 1) stop in a Starbucks while I am out or 2) make coffee in my french press using beans I buy from Starbucks. The only time 'instant' single-serving enters the equation is if I am not going out and don't want to make more than one cup. This is an extremely rare situation.

That being said, I want Starbucks to succeed. Despite all the criticism leveled at them as they have become an international uber-chain, I still like the company, their products, and the fond memories of Seattle that they bring to mind.