Starbucks to Open Tazo Tea Shop

Go to Starbucks for coffee? How about having some tea?

Starbucks is looking to open a new 1,700-square-foot store solely dedicated to its Tazo tea in the fall. It planned to sell more than 80 varieties of loose-leaf tea and other tea products. It will also offer hot and cold tea drinks, brewing equipment, pastries, packaged chocolates, infused sugars and honey.

This Seattle-based company decided to enter the new area because they see tea as a $95 billion global market that represents a significant growth opportunity.

According to the data from Euromonitor International, a privately owned, market intelligence firm, 5.6 million tons of coffee were consumed at home and through food service channels like restaurants last year, as tea were drank up approximately 2.9 million tons.

Both figures above exclude ready-to-drink products. Sales of ready-to-drink tea beverages through stores, restaurants and vending machines hit $56.2 billion in 2011, up from just over $32 billion in 2006.

The new store arrives at a time when Starbucks is aiming to expand its brand beyond coffee. Earlier this month, Starbucks announced plans to buy Bay Bread for $100 million and last year it bought the Evolution Fresh juice brand for $30 million.

Greek Elections delay the inevitable.

Global Leaders hailed the results of the Greek elections on Sunday which resulted in a win for the New Democracy party over the leftist Syriza party who had vowed to tear up the terms of the bailout under the premise that the European Union could not afford to have Greece leave the Euro. With the victory of the New Democracy party led by Antonis Samaras there is a common understanding that Greece will push for a review of their bailout terms as they believe they have accepted considerable pain by electing the pro bailout party to power. Reports coming from Germany suggest that the terms of the bailout are non-negotiable however they would be open to discussing the timeframe surrounding the arrangement.

The problem with the continued financial aid being given to Greece is it is just building on their already insurmountable debt and what they really need is not more funding but a complete write down of what they owe to the Eurozone governments (€161 billion) as well as the European Central bank (€50 billion). One of the major arguments against this is the potential of other indebted countries such as Ireland seeing Greece receiving these huge cuts in what they owe and wanting similar treatment. So the dilemma remains, if the EU continue to enforce these austerity measures on Greece then it is more then likely that the Greek economy will continue to shrink and therefore they will not be able to raise the funds to repay there loans and will require further aid from the European Union.

There is a growing number of people who believe that Greece leaving the Eurozone is no longer a case of “if” and more a case of “when”. This could result in a number of disastrous scenarios with investor confidence in other nations damaged. Confidence in other highly indebted countries such as Spain and Italy could suffer and cause them to move money from these banks to the safer banks in Germany or the Netherlands which may result in more banks defaulting on their payments. Another problem with Greece leaving the Euro is the fact that a switch to the Drachma would result in a huge devaluation of the currency which would make repayments of Greek debts even more difficult. It is time for more radical action to be taken as it is clear that the measures being taken at the moment are not enough to save our faltering economy. If major changes are not made in the near future then this will spiral further out of control and this is something that the vulnerable Irish economy can ill afford.

Last week saw the launch of Kellogg’s first ever 3D interactive cinema ad, which was created by glue Isobar. The ad falls under the ‘It’s all lies’ campaign and was launched in line with the new Men In Black movies. It claims to be the first ever ad that can be tasted and, that by the end of the advert, consumers will be able to taste their Rocky Road Rice Krispies Squares bar. Kellogg’s claim that taste will be achieved through ‘audio taste technology’ which has given them high hopes for the success of the ad. Sally Tribe, Rice Krispies Square’s brand manager, has said that Kellogg’s are always trying to push the boundaries with their brand.

Upon watching the ad, it is clear that it fits perfectly under their ‘It’s all lies’ campaign as it is not possible to actually taste the product. It cannot be argued that the ad doesn’t show high levels of creativity, but there is a fear that younger consumers may be confused, or even disappointed, that they cannot actually taste the product. This is a risk that Kellogg’s are happy to take. They have supported the launch of the ad by explaining that interacting with customers adds ‘real value to the product’ and they feel that it will help bring many more followers to the Squares brand.

The launch of the cinema advert appears to follow in the steps of a new trend of interactive movies, which are moving into 4D. These movies are getting customers to interact on an increased level through smell scratch and sniff cards, rain and vibrations. Is this something that we are going to see more from marketers in order to interact more with their consumers?

It is clear from the advert that Kellogg’s are looking to integrate their customers into their advert and interact with them on a new level. All in all, the ad has given the snack bar a whole new dimension and has shown that Kellogg’s aren’t afraid to think outside the box. Looking to the future it appears that Kellogg’s are one to watch out for. The question is, what will they think of next? 

Diversification of Fashion Labels into the Cosmetic Market

Tapping into a $170 billion market sounds appealing to fashion designers in today’s world. They just cannot resist. The cosmetic and perfume industry in the world is worth an average of $170 billion worldwide with the USA and Japan having the largest market. Europe alone leads the cosmetic market representing almost €63 billion with sales in France exceeding €6.5 billion alone. The Cosmetic and Perfume industry is one of the industries that has had consistent growth over the past 40 years and has not suffered greatly in the decline from retail sales over the past couple of years.

In saying that, it also has been one of the most developing industries in terms of celebrities. Celebrities have been developing their own range of perfume, celebrity affiliates with brands such as Rimmel and Kate Moss and the increasing amount of online retail outlets being set up and the growth of online sales.

In terms of fashion designers and the luxury clothing market well any one can see in  current times that it’s a declining market but the large brands are still there and going strong. In order to overcome this period in the industry,  they are expanding their customer reach to lower price range.  The dilemma being that people want the brand, but cannot afford the cost of a €600 pair of shoes or €2500 bag. In so why not develop an accessories or cosmetic range to target customers, keep the brand awareness out there, with diversifying your product range and in the process increase sales as well as hopefully targeting potential new customers that were previously not attainable.

But that is the very thing that luxury fashion brand designers are doing such as Christian Louboutin who has decided to diversify his iconic read soled shoes to hand bags and men’s shoes but more recently announced the launch of a Louboutin cosmetics range for launch in early 2013. The cosmetic range will be collaboration between Louboutin and Batallure Beauty ltd. Batallure Beauty already has a famous clientele of Madonna and Justin Bieber. Also following close in his footsteps is the renowned fashion designer Marc Jacobs who has also announced that he also will be adding a cosmetic line to his current clothing and fragrance range.

Does this diversification into the cosmetic industry damage their reputation and their new found lower price points in the retail industry? That will only be decided over time, but until then we will enjoy the anticipation of the new lines.