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Tuesday, Jun 23, 2009

Nescafe Jabs Their Coffee Sticks At Starbucks

Feeling the need to defend yourself is a sign you feel threatened. Spending money on advertising to dissuade or change people’s minds about your competition is a sign you are afraid.

My buddy, John Moore from Brand Autopsy, sent me these pics from Chicago. They’re bus shelter ads for Nescafe’s Taster’s Choice instant “coffee sticks” targeted directly at Starbucks new VIA instant coffee.

VIA is Starbucks new instant coffee product, currently testing/available in Seattle, Chicago, and London.

I don’t know if Starbucks is advertising VIA. Nor do I know how well the product is doing. Nevertheless, I think Nescafe feels threatened.

Taster's Choice Ad 1
Taster's Choice Ad 2

Two Key Thoughts

(1) They are actually building more awareness for Starbucks. As a Taster’s Choice drinker, I may – through Nescafe’s ads – have learned that Starbucks has a new, similar product (even if it is more expensive… hmmm… I may have to check it out.

(2) The ads talk about variety and low price, but not quality and taste. This indicates to me that Nescafe has to avoid the taste discussion, knowing Starbucks is better.

400% More Expensive

400% more expensive sounds like a lot. But, doing the math, Starbucks VIA is around 83¢ a cup and Taster’s Choice 24¢. I don’t have research, but I don’t think the ONLY reason people drink instant coffee is because it is cheap. It’s convenient.

If Starbucks tastes 400% better than Taster’s Choice… it may be worth the extra 59¢ to spurge for Starbucks.

Thanks for the pics, John


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4 reactions

  • (1)
    David BarnesTuesday, June 23 2009 at 5:30 pm

    Agreed, an incredible foot shooting exercise. It simply clarifies what anybody who’s heard of Starbucks Via already knows — high price, premium product.

    Especially since my limited exposure to the Tasters Choice brand suggests that it is far from a taster’s first choice:

    “Me and Vince would be happy with some freeze-dried Taster’s Choice right, but he springs this serious GOURMET shit on us! What flavor is this?”

    Why do you need “flavors” of coffee?

  • (2)
    karin @ the essential orangeWednesday, June 24 2009 at 1:01 am

    Hi Paul

    Talk about defensive…you should also check out Nestle’s online activity: http://tinyurl.com/kwankt.

    Check out my post on this topic on the Orange – and leave a comment :)

    kk

  • (3)
    edExWednesday, September 30 2009 at 8:58 pm

    Starbucks has always been bad coffee with an overpriced tag. For a mere dollar you can now get the crumbs in a sealed tea bag with hot water— 50¢ extra you can get you small (tall) cup of their regular coffee.

    I just do not see the deal here, but people will fall victim, as people usually do for brand names.

  • (4)
    杂/杂志 » 星巴克速溶咖啡出师不利Thursday, October 1 2009 at 4:23 am

    [...] 与此同时,速溶咖啡的老大哥雀巢也大打广告指责Via仿冒其产品且价高质次,他们的广告语这样说:星巴克Via的价格是我们的4倍,味道却远不如我们。 [...]

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