Although Starbucks revenues fell for the quarter ended June 28, it posted a $151.5 million profit, which was better than analysts expected and far better than its $6.7 million loss during the dark
days of last summer, Melissa Allison writes in the
Seattle
Times.
Emily Bryson York reports that part of the improvement can be traced to the big marketing budget attached to McDonald's launch of its McCafe -- at least in the eyes of CEO
Howard Schultz. While naysayers in the media and Wall Street predicted that the McDonald's ad juggernaut would have a negative impact on Stabucks, quite the opposite occurred.
"Various marketing campaigns" -- including Starbucks' own first branding campaign -- have "created unprecedented awareness for the coffee category overall and has actually had a positive result on
Starbucks' business," says Schultz.
Starbucks' next big marketing push will be for Via, the instant-coffee product. "We are going to create a very creative campaign that will be
different than what we've done to date and will take advantage of the social media that we become very good at as well as traditional levels of media," Schultz says.
advertisement
advertisement
Read the whole story at Ad Age, Seattle Times »