Is Starbucks Diluting It’s Brand with Via?

October 7, 2009 @ 11:07am

by Mason Razavi

When Starbucks announced that they are launching their version of instant coffee, a thought went through my head: Good job Starbucks, way to take the “luxury” out of “luxury brand”. Known to many as providers of premium coffee, and to others still as simply carrying a premium price tag, entering the instant coffee market seems like a diversion from Starbucks’ overall plan of being the top coffee vendor in the world.

Love ‘em or hate ‘em, it’s become trendy to slam Starbucks by making a snide comment on paying $5 for a cup of coffee. I always found that statement slightly inaccurate; after all, can a triple grande non-fat, no whip, peppermint zebra mocha (my old supervisor’s drink of choice) really be considered just another cup of coffee?

Still, Starbucks has made efforts to downsize their organization and readjust their strategy to provide some lower priced options. Most notable was that they began to offer breakfast combos including a hot drink and a meal item for around $4. Now with their instant brew, Via, Starbucks takes another step in becoming a value-driven retailer.

One has to wonder how much this will impact Starbucks’ image in the long term. I once read something intriguing in a book on management and motivation about how you should play to your strengths instead of trying to be everything to everyone. Stick to your guns, do what you do best, and get even better at it. In another book I read that was geared to songwriters, the author very specifically and emphatically noted that it is paramount to make 1 or maybe 2 styles your own, and not try to become the be-all and end-all of songwriters who can write beautifully in every style. To that end, is Starbucks diluting it’s own brand by trying to be everything to everyone?

After all, people don’t drive BMWs because they’re practical, they don’t buy Tiffany’s because they’re affordable, and they certainly don’t wear Diesel jeans because of some “everyman” sort of image. People certainly don’t visit Starbucks for affordable, practical coffee buys. Most people walk into a Starbucks knowing what it is and expecting to spend a few bucks.

With the economy being the way it is, it’s certainly not a bad idea for Starbucks to reposition themselves as value-based retailer, or at least to have those options, and I trust that greater minds than mine are concerning themselves with the long-term affects of such decisions.

For what it’s worth, yes, I tried the taste challenge, and yes, they did taste remarkably similar. And no, unfortunately I’m not getting paid to say that.