How to market a “premium” brand like Starbucks in an ailing economy?

February 10, 2009 – 11:21 am – No Comment

Starbucks has been having a very hard time in the current economy. Its sales of “premium” coffee and other beverages has been slipping so much that it has had to close 600 of its stores in July and has just announced the closing of 300 more stores.

So, how do you market something like Starbucks in the current economy? Looking at the company’s performance over several years leading up to the recession, it was doing very well. When times were good the company over expanded and is now facing the problems with it. With consumer spending down, consumers aren’t willing to spend their money on something they can make at home for less (and also don’t have to make an extra stop on the way to work).

I believe that it is time for Starbucks to adapt to the current economy and reflect it in its prices and offerings. Other restaurants have adapted and understand that right now consumers want less expensive offerings (or something they would consider a “deal”) not premium prices.