Also from Tom Redd...
Retailing with Precision
December 7, 2012
Just last week we discussed Starbucks' use of scarcity to build the perceived value of select estate coffees. Now the chain is offering a limited edition gift card that is sold only through the Gilt luxury products website and costs $450. Do you think the Starbucks Metal Card aligns with the company's brand? [more...]
Well, another problem for airport security. I can hear the TSA announcer—"If you have a Starbucks Stainless Card please remove it from your pocket and place...."
Not too much of a surprise. CNBC's Jim Cramer was on the Starbucks push this week as they move deeper inside the home with their coffee maker and more. Starbucks is a brand that can easily become part of a person's "style." So fine, move to go after the top 1-2% income earners. There are plenty of people that drink 1 or 2 "bucks" almost every day. That is $6-$8 and burns through $450 in about 3 or 4 months.
In addition, this offer opens the door deeper into one of their markets and soon if you have one of these cards, you will get deals from their partners. This is a 1-2% shopper tracking device.