[ Starbucks goes on the ad attack ]
May 01, 2009 | By Associated Press
Starbucks Corp. posted four print ads on its website yesterday in a sneak peak of a new multimillion dollar marketing campaign meant to take on lower-priced rivals in the gourmet coffee market.
The ads, which are running only in the U.S. at launch, will begin running May 3. They do not mention any competitor explicitly, but clearly attempt to keep customers from switching their allegiance to players such as McDonald’s Corp. which has been heavily promoting its coffee in both the U.S. and Canada.
One print ad tells consumers to “Beware of a cheaper cup of coffee, it comes with a price.” Another warns customers that “Compromise leaves a really bad aftertaste.”
Other ads focus on what Starbucks has long said makes the company stand-out from other coffee retailersthe quality of its beans and its customer service.
In a video addressed to the company’s employees posted on the company’s website and on YouTube, chief executive Howard Schultz called the ads “a little tongue in cheek,” and said the company will be “very clear and very purposeful that the time has come for Starbucks to tell its story.”
On Wednesday, Schultz said on a conference call with investors that the Seattle-based chain will launch the marketing campaign to focus more on value and the quality of the Starbucks experience.
The comments came after the company reported its fiscal second quarter net income fell 77%, mainly due to charges related to a cost-cutting campaign, though the company managed to beat analyst estimates by one cent per share.
The company’s same-store sales fell 8% both worldwide and in the United States.


