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04
Oct
Failed Starbucks Via Challenge
Jeannie Chan

Today I took the Starbucks Via challenge… and I was disappointed.

First of all, I could tell the difference. I didn’t know which was which, but I could tell the difference… and I did not like Via. The regular brew had a cleaner taste. So, the challenge did not sway me to buy Via.

However, I learned something about Via… it could be instantly dissolved in cold water, or cold milk! Imagine the possibility in the summer! But, wait… it’s only 50 degrees out… I don’t need a cold coffee… So, that’s an irrelevant message to me. However, I believe that Starbucks would launch a cold Via campaign in the summer. But of course, the problem would be how to differentiate this against the Starbucks’ bottled Frappacino.

Toward the end of the demonstration, I learned something even more exciting about Via. I learned that Starbucks designed the most nifty travel mug for Via. It is a regular travel mug, with a twist off cap that allows easy storage of the Via packages. Now, why isn’t this the focus of the campaign?

I understand that Starbucks is about taste, but Via is about the on-the-go lifestyle Americans have. In addition, a quick survey online would reveal that many could taste the difference between Via and the fresh brew. I am not alone in this. So, by solely focusing on taste, Via’s campaign is missing the opportunity to truly address what the product brings to the consumers’ life. Via’s branding should not be built on taste, something people already expect from a Starbucks product. Of course, people would wonder if Via could deliver on taste, but it isn’t a problem, unless Via really couldn’t deliver… People would not buy Via because of taste. They buy Via because it’s convenient! They buy Via because they wouldn’t have to make a coffee stop. They buy Via because they wouldn’t have to wait in line for a coffee. They buy Via because they could save two minutes in the morning!

Now, let me also give you the context of how this demonstration went. The barista was very diligent in focusing on the taste message. However, being a coffee addict and a marketer, I was particularly interested about this product launch. So, I stuck around and chatted with the Barista a little. It was after I was given the coupon, and the other couple that was also at that particular demonstration had left, that I learned about the cold brewing and the travel mug. Now, imagine how many people never knew about those two really cool facts about Via. How much potential sale lost…

Photo credit: Starbucks Via travel mug, originally uploaded by mhaithaca.

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Category: Promotion, Public relations, Strategy / Tactics  Tags: ,  One Comment
11
Aug
OPEN: More than a card…
Jeannie Chan

American Express OPEN posted an interview with Seth Godin yesterday. In case you didn’t know who Seth Godin is, he is a marketing guru with many successful books and writes one of the most widely read marketing blogs.

I’m not a small business owner, so I was not familiar with the OPEN forum till this article was brought to my attention. Upon playing around for a bit, I found this forum most interesting, and it isn’t just because it hosted a variety of interesting contents.

Credit, at the end of the day, is a commodity. American Express, Visa, MasterCard, etc., offer basically the same thing. So, how do you differentiate? You offer something more. In the case of American Express OPEN, they offer information small businesses can use, about finances and otherwise. In this case, marketing and running a business in this economy. This feeds right into their position of being the credit solution for small business owners.

Now, how valuable is this information to small business owners? Are they really reading it? Are they truly interacting with it?

Does it matter?

Maybe not.

It’s not the fact that they are providing the information to small business owners that’s helpful in their positioning. It’s the fact that they are establishing themselves to be dedicated to providing the information to small business owners that is truly differentiating. It doesn’t just position OPEN to be the expert in small businesses, it also positions OPEN to be a partner for small business owners.

This creates a positive feedback loop. The better their consumers do, in part because of the information OPEN provides, the more business they can afford to do with OPEN. The more relying they are to the information OPEN provides, the more loyal they are to OPEN. Then, more small business owners think and act this way, the bigger share OPEN has within this segment. With the bigger share, OPEN can more effectively serve this segment.

So, are you dedicated to go that extra mile, to help your consumers with their specific needs?

Photo credit: I Scream, originally uploaded by voteprime.

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07
Aug
In a world of clutter…
Jeannie Chan

Story: Today, I got called by my Financial Advisor’s office. She was following up on if I received a form that needed me to sign. I rather quickly said no. Then I scrambled to my “to-do” pile to see if I forgot it in that pile. Nope. So, I hung up with the agreement that they will mail me a new form. Then, I walked over to my console table, and remember that I have the “still-need-to-go through” pile. Then, there it was: An unopened envelope from my financial advisor’s office. I opened it immediately, and called the office back. I found the form.

Insights: From that story, I had two insights.

1. I get way too much mail, and it takes me a long time to go through all my mail. Between junk mail, free magazines, paid magazines, newsletters, the useful and important mail often get lost in the piles.

2. In the world of emails, texts, etc., phone calls, a rather old fashion way of involving your customer, still works.

Conclusion: In today’s world, consumers are overwhelmed by information. High touch methods of consumer engagement remain to be the best way to break through the clutter, and differentiate you from your competition. Is that difficult to execute? Is that costly to execute? Yes and yes. But, consider this alternative: You choose the easy and cheap route, and your competitor choose the hard and expensive route. Who do you think would win in the end?

Photo credit: Why Didn’t You Call Me?, originally uploaded by bitzcelt.

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Category: Public relations, Strategy / Tactics, Web  Tags:  2 Comments
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