The video discusses a marketing dilemma faced by Starbucks, particularly in the UK, concerning their "pret" (presumably referring to Pret A Manger) brand, which is known for food. Starbucks, on the other hand, is primarily known for coffee and aims to increase its food sales. The dilemma is exacerbated by the established consumer habit of ordering food delivery, a trend that predates the digital age and was popularized by companies like Domino's in 1989. The core challenge for Starbucks is to encourage customers to expand their food choices beyond what they are accustomed to, a situation likened to the "innovator's dilemma" where a company, having achieved success with a specific product or service, struggles to adapt or diversify without jeopardizing its core identity or market position.

Marketing Brilliance

The Starbucks PR dilemma, okay. Which is Pret is mentally known for food in the UK and they want to sell more coffee. And Starbucks is known for coffee and they want to sell more food, okay?

And people have got into the habit of getting food delivered because they had food delivered before. You just booked it by telephone. You know, it was a pizza in 1989 or whatever. That was Domino's whole stocking trade.

And so actually getting people to broaden their repertoire within it's quite a common marketing dilemma. Which is it's almost a marketing call of the innovator's dilemma. You get known for one very good.

Starbucks vs Pret The Secret Marketing Dilemma

the Starbucks PR dilemma, okay,
which is PRET is mentally known for food
in the UK and they want to sell more
coffee and Starbucks is known for coffee
and they want to sell more food, okay?
And people have got into the habit of
getting food delivered because they had
food delivered before you just booked it
by telephone. You know, it was a pizza
in 1989 or whatever. That was Domino's
whole stocking trade. And so actually
getting people to broaden their
repertoire within I it's quite a common
marketing dilemma which is it's almost a
marketing call of the innovators
dilemma. You get known for one very good

Get Our Mobile App

Starbucks vs Pret The Secret Marketing Dilemma

Transcription