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Starbucks has done what many said they couldn’t do. Develop a successful revenue stream selling coffee outside the stronghold of their classic community coffee house locations.

And the big news isn’t that they just barely broke even or had a reasonable year in a bad economy. The product, brand-named VIA, built a 30% share in the premium single serve/pod category in one year, according to an article at Brandweek.com.

The story goes on to say this product has been in the works for almost 20 years and its launch was supported by the single-largest marketing push in company history. And while all this is truly amazing, I think a few other details are also quite telling.

The brand appeals to the same basic higher-end demographic as their stores serve. Its packaging is limited to just a few servings each to drive repeat demand. It's priced to maintain a healthy margin. It was launched with in-store promotions and with trial sampling in chains such as Target served by Starbucks baristas.

All this is to say it doesn’t fight the established brand but extends it very effectively without cannibalizing their primary in-store business. And supported by a communications budget that allows them to maintain positive market pressure when others are retreating, it has been extremely successful to say the least.

Read the full article and a linked story about the launch last year.

To talk to someone about helping you build a more successful brand marketing program, contact us today by e-mail or phone, 903-534-5220.