From Original Post Here

Starbucks seem to be taking a very post, post-modern approach to its brand strategy as it tries to emerge from the clouds.

Closing stores- classic cost reduction strategy

Introducing smoothies- classic brand extension, but a little off the core brand

Getting rid of food- cost reduction and focus

Buying Clover machines and introducing them in key markets-extending the brand into premium markets and classic brand defense.

The strategy seems to be all over the shop and the Clover purchase seems to be the move that runs counter to the brand trying to be price competitive in a new challenging marketplace. The average cup of Clover brewed coffee is approx $1 more than a regular cup. The win here is if they can make regular Starbucks beans taste better when brewed by the $11,000 machine.

According to Wired, who’ve researched the topic in great detail, the answer is as follows:

“I smell, I sip, I inhale. I can’t tell which cup of coffee is which —
and neither is anything special. Is it the beans? My palate? After a
few minutes, I finally pick it out: This coffee tastes a little bit
like hype.”

Ouch!

Posted by Ed Cotton