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Tom Redd

Vice President, Strategic Communications
SAP Global Retail Business Unit

Starbucks: Steel This Gift Card

December 7, 2012

FROM RETAILWIRE:
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...]

MY COMMENTARY:

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.

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