Adding Value.
Posted by: admin in marketing, tags: coffee, marketing, soft drinks, Starbucks, value
What is coffee, really? Hot water run through some ground, roasted beans. What’s a soft drink? Carbonated sugar water. Pretty simple stuff, really. Yet, people are willing…nay, eager to pay $4 for a cup ‘o Joe at their local Starbucks, and $2 or $3 in a restaurant for a Coke or Pepsi.
What makes people willing to pay a premium for something with such a small cost of goods, and little inherent value?
I hate to harp on this “perception” thing (again) but people perceive that Starbucks coffee is better than Folgers, and they’ll pay more for it (plus the “experiential” thing that the Starbucks store represents). In a restaurant, when you want a Coke, you pay for it – without stopping to think that you can buy a case of Cokes at Sam’s Club for the same money you spend to buy a 12 oz. Coke while dining out.
Now THAT’S marketing. Read the rest of this entry »
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