Mark Price

Starbucks a Great Testing Ground for Grocery Sales

August 20, 2010

FROM RETAILWIRE:
When Starbucks introduces a product into grocery stores it already knows whether the item can generate repeat purchases because it has first tested those items in its own stores. Does Starbucks have an advantage over other food and beverage brands when it comes to new product launches in grocery stores?      [more...]

Starbucks indeed has a good testing lab in their stores for products that can be launched in grocery. The greatest advantage is that they have a well-fed (or drunk?) group of advocates who can represent their brand to other potential customers. The built in advocacy group is what other marketers would kill for.

However, one factor to keep in mind is that Starbucks frequent customers are a small segment of the grocery store audience, and may not represent enough volume for the grocery market. Products must meet the needs of best customers and the Starbucks brand, but also be accessible to a broader audience who do not frequent the home of $4 lattes on a regular basis.