Starbucks chooses a cheap social-media campaign to push Via instant coffee
Filed under: Company News, Media, Starbucks
In February, Starbucks (SBUX) invited AOL to taste a secret new product. In my capacity as a coffee and Starbucks expert, I got a few samples of the product, Via, and uploaded photographs to Flickr before giving my verdict.I'd almost forgotten that Via's national launch was coming up -- next Tuesday -- until I received an email from Starbucks's Via "moderator," thanking me for posting such a great photo, and offering me both free instant-coffee packets and instant fame in the product's launch. All it would take, online community manager Anali Orr told me, was my permission (pdf link) to give Starbucks "a perpetual, irrevocable, non-exclusive fully-paid up and royalty free license" "without restrictions of any kind and without any payment or other consideration of any kind" -- other than, of course, three months' worth of free coffee packets.
The wording of the email had me shaking my head before I'd even opened the licentious agreement. But I had to marvel at this new marketing strategy, surely not invented by Starbucks, but used here with marked cheekiness: Viral marketing is so great, we needn't use any of the regular kind. Call it "crowdsourcing," or "brand loyalty," or "astroturfing," or any smart, critical buzzword: what it's really creating is a marketing strategy based on a desire not to spend money to generate enthusiasm among the less intellectual property-savvy consumers.
You could call it product marketing by social media, or you could just call it cheap. Marketers can now be stingy and hip in one fell swoop. And while they will certainly create minor tempests among customers like me -- those who know how much their photos are worth -- it might just work. Starbucks is banking big on the brand loyalty of customers and its employees, who have been told to sell Via packets aggressively. And not just to sell them but to "incorporate it into [their] daily lives," as a post on Starbucks Gossip relates.
Starbucks has a lot to prove with the Via launch. For one thing, as one Starbucks Gossip commenter states, CEO Howard Schultz must prove he's not living on a separate "planet, state of denial, or phase of dementia" to believe that customers who love premium coffee will buy instant coffee at nearly a dollar per cup (which is 12 times the cost of a cup of Maxwell House). Starbucks is walking the finest of lines between cultural relevance and anachronism. Is this really the time to launch a brilliant, groundbreaking, slightly-better-than-normal instant coffee?
My collection of '70s, '80s, and early-'90s cookbooks is rife with references to instant espresso powder -- surely the trendiest dessert ingredient in recent decades. Now Starbucks associates are urged to be creative with Via. And as most of them are too young to have made desserts from a 1987 issue of Gourmet, they're mixing coffee with milk and vodka, and into cupcakes. They're being taught sales strategies straight out of Glengarry Glen Ross to close the sale. It's wise not to pitch this Via strategy to the decidedly jaded media; most reporters and editors would deny that instant coffee is either new or hip.
So, about those photos. "Content creators" -- I wasn't the only one -- were offered a three-month "subscription" to Via, 12 packets each month, as a "thank you" for posting our images and videos. We were also offered the gift of a photo credit and a link back to the image in exchange for those perpetual, irrevocable, non-exclusive royalty-free rights to use the image in both the new StarbucksVia.com web site (which also will debut on September 29) and worldwide advertising.
I responded, indicating that I am a freelancer, and I only allow businesses to use my photos with payment.
A few hours later, I received an email from Anali Orr: "Unfortunately, the incentive to let us showcase your content is that we will link back to your Flickr page from StarbucksVIA.com allowing you to drive increased traffic and visibility to your page. However, we completely understand if you only accept payment and we will be sure not to highlight it on StarbucksVIA.com." And here I was, thinking that trading content for "increased traffic and visibility to your page" was a trigger for my spam filter -- a sales pitch that went out in the late 1990s, along with instant-espresso powder.
Update, September 25: I spoke with a PR representative from Starbucks today who called to brief me on the wide variety of marketing efforts the company is undergoing as part of this campaign. I've seen some of them, including the VIA road trip, where the Starbucks Live crew is posting videos, tweets and Facebook updates. She tells me this is the biggest launch in Starbucks history and will be supported with television advertising as well as the social media campaign. The email I received, she said, was just a tiny part of this campaign. On the day of the launch, I'll follow up as I talk to one of the heads of the campaign.
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Reader Comments (Page 1 of 3)
9-27-2009 @ 7:16AM
Me said...
Starbucks SUCKS !!!!! It is way over priced and not really good coffee. Instant Maxwell House is better than Starbucks.
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9-27-2009 @ 1:47PM
afton529 said...
Starbucks does NOT suck, but sadly your attitude does. The other coffee houses sucks. Starbucks is the best while other coffee houses including one that sells just donuts sucks. Also their lattes are better than McDonalds and especially Dunkin' Donuts. Both of their coffees are not made by these companies and yet, they are not organic either. Starbucks use organic coffee while Dunkin Donuts and other fast food just sell junk.
9-27-2009 @ 7:28AM
konky said...
IT FIGURES THAT ALL THE IDIOTS AND BOTS WOULD BE POSTING THEIR WEBSITES HERE. THERE IS REALLY NOTHING INTERESTING OR INTELLECTUALLY STIMULATING ABOUT STARBUCKS OR THEIR HYPED UP IMAGE AND COFFEE PRICES. 7-11 OR QUICK CHEK MAKE A BETTER CUP OF COFFEE WITHOUT THE FOO FOO. I DON'T DRIVE A BMW EITHER; SO I GUESS THAT MAKES MY TASTES EVEN MORE PEDESTRIAN.
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9-27-2009 @ 9:17AM
phillip said...
I agree with your post what idiots
9-27-2009 @ 8:06AM
george said...
really good piece of reporting...i will look for your followup....Starbucks may be the most reviled non banking corporation in america......i saw the beginning of the tv blitz yesterday....instant coffee? well, well,well...good luck with that.
and cheers to you, ms. gilbert, for not selling out. no pay, no play. is starbucks not the most obnoxious company of earth? sorry apple........your a close 2nd...
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9-27-2009 @ 8:59AM
Glenn Kilgore said...
A new brand of coffee. I'm confused, and I guess less-intellectual, because I missed something in the article. Besides the author having her feelings hurt; was the coffee any good? I will admit I am a Starbucks fan. There goes that less-intellectual thingy again. Also, I have learned in my short stay on this planet that you pay for the name on a product too. I haven't tried the new instant coffee, but have heard from people that have, and got good reviews from them. Oh, and I didn't have to pay them for there opinion. Was that a bad thing? So, being a less-intellectual I need more information, but I guess I won't get it here. Too much personality and not enough information.
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9-27-2009 @ 9:05AM
adrastia9 said...
These stupid spambots are everywhere. I'm so sick of reading their stupid ads.
Anywaiz... I'm not paying $1 for one packet of instant coffee. I get my coffee at Dunkin Donuts and Wawa, which is a 7-11 type store on the northeast coast. Starbucks is very expensive, which is why I rarely go there. I think this is a pretty cheap and pathetic marketing strategy. Trying to use people as basicaly free advertising in exchange for three months of free instant coffee.
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9-27-2009 @ 9:18AM
Lara said...
Starbucks coffee is horrible. BUT, with their genius marketing they tapped in to the misguided notion that "expensive means better". Those who want to appear hip and rich buy in to this notion lock, stock, and barrel. It became a bit of a status symbol to be seen walking around with that Starbucks paper cup in one's hand. This economy has turned that around to make those folks with Starbucks cup in hand look like marketing victims. It's such a money drain to spend $5/day on crappy coffee, and many folks have figured that out.
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9-27-2009 @ 9:23AM
mikegberg said...
"...in the name of Starbucks, or its designees throughout the universe in perpetuity in any and all media now or hereafter known..."
Can't we all just agree on our utter hatred of lawyers?
Reply
9-27-2009 @ 12:25PM
adorablechikxx3 said...
omg yes i hate lawyers
9-27-2009 @ 9:37AM
Shawn said...
Well I am one of the few who actually WILL try Via out. I travel across the US for work and can't always find a Starbucks convienently. Friday in Atlanta I had to drive 15 miles just to find a location. I can find hot water or have a microwave in my hotel room so this may just be the alternative I have been hoping for.
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9-27-2009 @ 10:53AM
Bobby G said...
What a tard. You drove 15 miles to pay five bucks for a cup of Starbucks coffee. You are the quintessential pod person. Aside from being sublimely stupid, it is a very UN-GREEN strategy as well.
9-27-2009 @ 11:15AM
shana said...
uh dude, fifteen miles? how many dunkin donuts did you pass to get there? its better!
9-27-2009 @ 9:58AM
jack said...
If people want to pay that money their more than welcome. Not me. Barista's and coffee tweekers, ha ha ha... Give me a good bartender and a 4 dollar midori margarita anyday!
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9-27-2009 @ 10:02AM
Mike said...
Another gimmick to to get people to turn loose of their money, be it hard earned or not. I have never stepped foot in a Starbucks coffee shop and never plan to. I seldom purchase coffee from anywhere but my local grocery store in a preasure sealed can or brick. I leave my house every morning with a steaming hot container filled with my favorite brand of java made from my own coffee maker. More than enough to see me through as I arrive at my job 45 min. later. I must really be old, old school for trying to save a few cents by staying away from places like Starbucks. If I want to blow my money on something, I had much rather treat myself to a nice vacation with the pocket change (that adds up to a small fortune in a short time) that I save from not patronizing ridiculous high priced retailers. But to each his own. In my opinion, the little story of the ant and the grasshopper rings true more today than it ever has. Just a 57 yr old hard working hand speaking his thoughts.
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9-27-2009 @ 1:07PM
vet said...
Hey, your loss!!
9-27-2009 @ 10:03AM
Lil said...
I will buy VIA because it is the ONLY instant coffee that I can make ICED coffee with using instant coffee. Otherwise, I have to make it and use brewed coffee. VIA tastes great and makes a great iced coffee. That is all I use VIA for. Otherwise, it's too expensive. And, one packet will make two (2) iced coffees.
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9-27-2009 @ 6:27PM
Deb said...
I have to tell you, I've had a lot of regular coffee, premium coffee, European coffee and instant coffee's. The new Starbuck coffee is terrific. I know it's priced higher than most, but it tastes better than any of the other coffee's I've tried over the years. And, they're great for taking along when you're traveling. Those "in-room" coffee's are horrible...Starbuck Instant will make that first cup in the morning worthwhile when you're on the road. I just can't say enough good things about it.
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9-27-2009 @ 10:23AM
Kristen said...
I have tried it as they were giving out free samples a couple days ago. I was far better than any other instant coffee, but as a staple day to day, I'll stick with my brewed coffee. But if I were traveling and needed my Starbucks fix, I would use it.
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9-27-2009 @ 10:38AM
pete said...
I can't ever forgive or forget Starbucks for selling "Kona" coffee several years back when it was actually a cheap Brazilian coffee. When busted their response was "well we were buying it from the Kona Coffee Company"...those in the coffee business should be able to know the difference!
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