Sunday, September 18, 2016
The GreatestTrick Capitalism Ever Played
As we are currently studying supply and demand, here is a good article about how businesses increase demand by appealling to consumer tastes. Read the article and leave your comments (50-100 words). Since there are two articles this week only comment on one of them. p.s. don't write on how much you love pumpkin spice, stick to the business end of creating demand.
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43 comments:
Mervin Cherian
Period:2
One way they appealed to the consumers taste was by making the drink seasonal. This made one feel that if you don't drink it as soon as possible it will expire. During the recession of 2008 pumpkin became a comfort food. In 2010 flavor forecast by McCormick said that pumpkin spice was going to be a real hit that year, this made many large companies want to use pumpkin spice in their products.
The demand for Starbucks will continue to excell because there's always something new to try. The reason I enjoy Starbucks because of the secret menu , which is recipes made by people with many different ideas and preferences all over the world to keep the demand for Starbucks on going. There's so many different types of drinks that it would probably take months to actually try them all.
Aneeka Khan, 4th period
Despite the high prices of Starbucks, people still tend to buy it because of the high demand. I myself am a bit embarrassed to admit that I spend about $5 each time I visit the store. I feel that most people are peer pressured to try Starbuck's new drink because either their best friend, Starbucks menu, or Kim Kardashian is praising it, so we're forced to see what the hype is all about. So even though the price is very high, the demand for it never runs out. Also, the supply is seasonal, so we feel the need to try it before it goes away.
The "season" marketing technique is absolutely genius, It gets me every time, and it also gets other people as well. I guarantee if the pumpkin spice latte was out every day of the year it wouldn't have gain such a notoriety of being extremely popular. it creates this sort of need in our brains that we only have a limited time to buy this item. On top of that everyone loves pumpkin flavored stuff. It's a win-win for everyone. The demand goes up and so does the price. You better get it now while you can!
6th period
Rizna Noorani
Period 2
Starbucks is a very famous and respected coffee brand that offers products that their competitors don't. This is one way that they increase demand. Another way of increasing demand is by making a product scarce. For example by making the pumpkin spice latte only available during a certain time of the year, the company targets the scarcity of the product and uses it to their advantage.
Grace Swift
4th
Businesses have found a stealthy way to increase their demands by appealing to consumer's "seasonal" desires. With fall being a comforting season, consumers want something that they only get for a limited amount of time. The season's limited products give consumers a sort of tradition to look forward to every fall. With businesses taking this into consideration, the trend of "pumpkin" flavor stuff has increased.Starbucks did not raise their price for this flavored coffee, but instead made it limited to one season so it would be more desirable to consumers, hence the large demand for it. By giving companies a "flavor forecast" to help them decide what products to make, it just makes sense that Starbucks $4 flavored coffee was able to contribute to it and help start a trend.
Ashley Verghese
4th
Businesses have to find a way to appeal to consumers in a grand way.Starbucks has made the pumpkin spice latte to give a "fall" feel for the upcoming season. To appeal to the tastes they must incorporate a seasonal spice which relates to the fall which is discussed in "flavor forecasting". The emphasis that other businesses and Starbucks place on the pumpkin spice flavor creates a larger demand since it is the new trend of the season. By using its scarcity and the seasonal debut, it draws consumers in,making them want more since they can only have it in such a short amount of time.
There is such a large demand for pumpkin spice latte at Starbucks because it is only a seasonal drink. Thus, making more people feel the need to buy it while it lasts. By only having Pumpkin spice lattes available in the fall, it not only keeps the interests of many Americans, but boosts their business as well. people have figured out that pumpkin has been "a comfort food since 2008" and have been buying several pumpkin products each year. From pies to drinks, pumpkin flavor and spice have been rising steadily in numbers.
Ashley Crumbaker
Pd. 6
Laura Rezmer-Cooper
Period 2
Starbucks is one of the biggest coffee brands out there, and offer many things to their customers that competitors don't. By selling the PSL for a few month out of the year, it makes people want it more. I even admit that i can't wait for Pumpkin Spice Latte season, so i can get my own as much as possible. This is a genius way of marketing because since it is sold at one time, more people will want it when it is out, making Starbucks loads of money. When it is PSL season, everyone makes sure to get as much of it as they can because they know when and where it is sold. Even if it is sold at 5$ people are still willing to buy it because they want it. The seasonal selling of this product is a genius idea. Now I have to go pick up my PSL while I can.
Even though Starbucks is overpriced all around the world, consumers will still make an appoint to drink it. Starbucks is a very large and famous company which provides delicious coffee and more. It's a bandwagon type of thing. Due to this, demand is created and there needs to be more supply. With this, the market price for Stabucks increases and profit is made. Seasonal drinks cost a little more than their everyday drinks do because they are there only for a short period of time which makes it desirable to customers to try.
Starbucks is widely known and highly successful not because they beat their competition with low prices but because they have products and techniques that keep the consumers wanting more. Every so often, like Fall, when the pumpkin spice flavor comes out, Starbucks advertises that it is only here for a limited time so come and get it before its gone. They also have a secret menu which allows customers to feel special and offer deals that the customer thinks is a bargain.
The article I read was quite interesting. It makes me think about how capitalism and marketing go hand in hand. Starbucks, the largest coffeehouse and cafe, was brilliant in the knowing how to utilize the spice companies and various spices to manufacture to add to normal coffee. The pumpkin flavor was a derivative of numerous spices, which added up to the end result of tasting like pumpkin. At the same time, Starbucks was clever in creating this flavoring during the fall season, where pumpkin is a major key component and food ingredient. In addition, their marking genius launched copycats in various industries, which mimicked several food and drink ingredients. However, Starbucks cornered the market and created their own demand where consumers patiently wait in line each year to get their pumpkin spice latte. This product line extension has been a great success for Starbucks and has become a model for other developing products for consumers.
I think what Starbucks did with the pumpkin spice latte is a very smart idea. They found a way to appeal to the consumers taste, and more people are motivated to buy some since it is a seasonal drink. If the pumpkin spice drink was available everyday, it would most likely be the most unpopular drink. Making it a seasonal drink makes people feel like they have to get it as soon as possible. Plus, girls love to kick of the fall season with a typical selfie with this seasonal Starbucks drink. It is a great idea.
Vanessa Marcano
Period 2
By creating a drink that is only offered at one time of year, and is associated with fun and festivity, the demand for that drink will obviously go up. What Starbucks did with this drink was a very clever marketing strategy, they took a drink, that if offered year round would not be so popular, and turned it into a symbol of autumn. The way Starbucks advertises their drinks makes consumers want it more than they actually do. No one wants to be left off the bandwagon, and everyone wants to be updated and in the know on what is popular now. Starbucks knows that by offering this "seasonal" drink that people will come get it only because they don't want to be the person who missed out on the annual pumpkin spice latte. Starbucks knows how to increase their demand and profits, and it works well for them.
Zain Bhai
Period 2
Starbucks created a drink that can be created any time of the year, but choose do sell it during the fall season, a time when we most likely want something like pumpkin. The drink itself is good, but with the short time to buy it you most choose either your regular choice or a pumpkin spice latte. The opportunity cost of not buying it is high than. This creates more demand for this one drink.
The pumpkin spice latte is a fun and festive way to consume one of your favorite drinks. Not only that but it is coming from starbucks. Obviously the demand for the pumpkin spice latte is going to go way up since it's a once and only opportunity you can get the drink. These drinks will cost more so starbucks are making a huge profit over the so called "seasonal drink" that is only served once a year.
Jose De Leon
Period 2
Lloyd Videau
6th period
The pumpkin spice latte by Starbucks coffee may be it's most popular drink but it is only limited to the fall season. By doing this the low supply of the drink makes it's demand increase allowing them to have great sale numbers and profiting abundantly from it. Perhaps if the drink was all year long it wouldn't be as popular and the demand would surely decrease due to quantity increase.
Brenda Benson-Okey
2nd Period
Starbuck's Pumpkin Spice Latte is claimed to be a popular drink in fall; however, due to its status of being a limited drink in the fall, the drink is low in quantity but popular in demand. The price of the latte would increase since it is in limited stock, thus profiting the company.
Barry Stainrod
Period 6
The artificial season created for the pumpkin spice latte as well as the flavor forecast by mccormick have created a demand for the pumpkin spice flavor. Since the pumpkin spice latte is scarce during the year, people flock to Starbucks to get the drink for the few months that it will be out. When a large reputable company like mccormick makes a forecast for certain flavors they have the potential to influence the entire market and even evoke demand for flavors such as pumpkin spice on their own.
Period 6
The scarcity of the pumpkin spice latte from Starbucks makes it a popular drink during the fall season. Due to it being exclusive for a period of time, its demand shifts to the right. Therefore, it becomes apparent that the pumpkin spice latte would lack in popularity if it were to be offered year-round.
The pumpkin spice latte has become an international phenomenon over the last couple of years. It is a seasonal drink, only available during fall-winter, allowing Starbucks to increase their sales immensely. Starbucks uses a very clever marketing strategy by incorporating pumpkins into the drink because during this time of year pumpkins are a major key component in almost everything, ranging from food to drinks, and even to candles.
Daniel Doucet
Period 2
Americans love to think of pumpkins as seasonally fall, and as such many producers will take advantage of this and create themed products to fit. Starbucks has made tremendous profit off of this by selling their limited quantity pumpkin spice latte to a larger demanding crowd. Starbucks can control the price (on a latte that isn't even pumpkin flavored) because it is creating a limited time offer every year. This is very similar to how Disney only sells certain movies every year, and the rest are put into "the vault". These marketing strategies help producers get sales NOW rather than LATER.
Because certain companies like Starbucks comes out with seasonal drinks there are also food companies like wing stop who sell a certain flavor of wings for a certain time. Because the wings are something new and hopefully good the buyer would want to purchase as much of the wings as possible before they stop selling them. This creates a large demand for that specific flavor of wings. If they were available year round like other wings then the demand probably won't be as high.
Abraham Mebarkia
Period 2
The new trend in pumpkin spice and pumpkin products is not completely natural. Starbucks and other producers have created an illusion of scarcity by only providing it during mid summer and fall season. As a result demand for it has increased because of the limited quantity. Although these marketing tactics may be seen as slightly deceiving, they achieve the companies' end goal of having a higher demand for a product by creating artificial scarcity.
6th period
The pumpkin spice and flavor was trend that started with Starbucks and their pumpkin spice latte the trend has brought great sales to anything pumpkin oriented. The trend which is continually fed by the large amounts of pumpkin products created and the increasing size of the market, the trend that appeals to so many people although its not actual pumpkin the technology and advancements in flavoring techniques allow pumpkin flavored products to be made cheaper and faster.
Dennis Laison
Period 2
I think the people at Starbucks are geniuses for creating such a demand for a certain product. By limiting the time that the drink is offered, many people believe that they need to consume more of the product before it runs out. In addition, pumpkin is the perfect flavor because it ties back to the roots of many Americans and allows people to have a certain satisfaction every time they drink the beverage. As a result, Starbucks makes our personal tastes scarce and creates an astoundingly large amount of demand.
Gabrielle Le
Period 6
I find it interesting and a bit humorous that there is no pumpkin in a pumpkin spice latte, as well as the fact that Starbucks and other food companies have made a "season" out of pumpkin. Just like Girl Scout Cookies, it is a very smart business decision to make pumpkin spice lattes available for only a few months out of the year. People feel the need to buy them while they are available. It is pretty incredible how the PSL started a huge popularity spike in pumpkins that affected so many foods. There is a lot of psychology that goes into choosing flavors like pumpkin that I was not aware of, such as the fact that it is a comfort food that makes people feel more secure during recessions. Overall, the pumpkin spice latte was a very shrewd business decision on the part of Starbucks.
Jasmine Patience
Period 2
From pumpkin pie to jackolanterns, pumpkins have become an autumnal embodiment. Fall is generally when the temperature begins to drop and many feel the need to warm up with the comfort of a pumpkin spiced latte. Pumpkins also have a strong connection to the first Thanksgiving, making the consumers of pumpkin themed goods feel as if they are linked to the early Americans by participating in the pumpkin craze. By only making the PSL available for a few months, Starbucks, and many other companies that produce pumpkin flavored treats, are able to create a sense of urgency in its customers. The buy it while I can mentality takes over, providing for a strong burst in profits further proving the pumpkin genius.
4th Period
Starbucks first introduced the pumpkin spice latte in 2003 and have sold over 200 million units since then. However, pumpkin and pumpkin spice became more popular when they became comfort foods during the recession in 2008, and companies have taken advantage of this increase in demand ever since. Starbucks and other companies know that if they only off pumpkin spice products "seasonally", then the demand will be very high during that season because people feel pressured to buy the product before it goes away for a majority of the year. This is a smart way to increase the demand of a product that is already associated with fall due to Halloween, thanksgiving, and the harvest season of pumpkins during August-November. Most consumers are more likely to want pumpkin products in Octoberr rather than May, so companies that only offer these products seasonally are smart in creating more demand at s time in which demand would already be highest.
Farrah Au-Yeung 4th period
As a for-profit company, Starbucks is making a smart move by promoting pumpkin spice lattes as a seasonal drink. Because the drink is considered as "limited edition", the quantity demanded of the drink increases whenever the drink comes out (such as now). From the law of demand, the price of the drink can be set higher by the company as consumers would be drawn towards the drink anyway. The scale of Starbucks also allows it to have an unlimited supply of the drink, even though most of the consumers consider it to have limited supply. Basically, Starbucks's tactic allows it to gain more profit through advertisements and creating higher expectations in the consumer market.
Shaban Momin
Period 4
The company of Starbucks is a very popular and well known company that sells coffee and is highly demanded by people world wide. I believe that the people of Starbucks are truly brilliant due to the fact that they created such a big demand for the Starbucks pumpkin spice latte. Since the pumpkin spice latte is only a limited time offer people are urged to buy it instantly. I believe that since the drink isn't available all the time it increases the demand and popularity because it allows a large number of people to consume it right before it goes away.
Making pumpkin spice lattes as a seasonally available entity drives demand and creates an urgency for consumers to visit Starbucks. The company is able to create a "hype" for their product, which also drives the sales of the other drinks and food items sold in its franchises. Even though pumpkin seems to be an integral part of the drink, the drink itself does not contain any pumpkin, proving that high demand is created through allowing consumers to relate to the product and setting trends using ads and relatable topics, as opposed to actually focusing on the content or nature of the product itself. This allows Starbucks to have the upper hand in controlling both supply and demand.
Milen Thomas
(6th period)
As good as the latte might be I wouldn't necessarily say that it the latte itself that keeps the consumer coming back for more. With the genius seasonal idea and the face of Starbucks afillistex with the latte, that's what keeps the consumer coming back for more. If you were to find that exact same latte in Walmart but this time replacing the Starbucks brand with a brand like great value, consumers wouldn't constantly come back for more. No disrespect to the taste of the latte but the brand that is associated with the product is what sells.
John Abraham
Period 6
Although Starbucks has achieved massive success in the last 40 years the company realizes that it must modify its brand to appeal to changing consumer tastes.As competition in specialty coffee drinks increases, Starbucks has recognized the need to expand its brand in the eyes of consumers. With drinks such as the pumpkin spice latte the company brings a way way to adapt their product and image to appeal to the shifting of demands of their target markets.Giving this "pumpkin spice latte an expiration, meaning you can only get it at this time only, allows Starbucks to have a lead against other competitors due to its increase in demand.
Yash Bindal
Period 6
According to this article, the pumpkin space latte has gained much of its popularity from a combinationof seasonal availability, changing tastes in 2008- 2010 and "pumpkin season." It was ingeneuos on Satbucks' part to recognise the combination of these three factors and produce one of its most popular drinks. I was partuclarly interested in how the article claimed that the PSL benifited from pumpkin season, while greatly expanding it at the same time.
The reason the Pumpkin Spice Latte has so much demand isn't due to it's taste alone, Starbucks manages to sell so many PSL's because of their "for a limited time only" gimmick, and due to it's label as a comfort food during the recession of 2008. The PSL's can be made all year if need be, but they only make them available for a short time in order to build up a demand for them, because if people know that it will only be on sale for a certain time of year, they will buy it out of fear of missing out.
Period 4
The Pumpkin Spice Latte has been a craze mainly for its scarcity. The fact that businesses can manipulate people's tastes to increase demand for a product makes it possible for pumpkin-esque products, especially the pumpkin spice latte, to reach success. The blog states that Starbucks is able to increase demand by "treating the drink's debut like a premiere and making the drink scarce by only offering it during a 'season.'" In reality, there is no scarcity. Anyone can make their own pumpkin spice drinks with the necessary ingredients. They have created an illusion; a mere thought that if they do not get one now, they will have to wait another year to try the product. Many businesses have mastered this and use it to their advantage. As demand for the product increases, so does the price of the product in order to reach equilibrium.
Stanley Johnson
6th Period
The move that Starbucks has made is very clever in my opinion. By creating a restriction on when the product is available for the consumers allows the consumers to buy more of the product while it is available on the market. The pumpkin flavor is very suitable to many Americans and is well loved because of its origins in the past especially during the recession. By having this flavor back in Starbucks allows the consumers to re-experience the satisfaction that comes with the pumpkin flavor. Starbucks ultimately allows its consumers to have a flavor in which they love and also creates a high demand for the flavor which helps their business.
Anjana Thomas
2nd Period
Since the coming of the pumpkin spice latte at Starbucks in 2003, the season of “PSL” began. Since then came the big scheme of pumpkin spice everything. This immediate craze due to the fall season and that the “pumpkin spice” is a limited drink have had consumers manipulated into buying more and more during this time of year, making every year a homecoming premiere for the pumpkin spice everything.
Jessica Jose
4th Period
The pumpkin spice latte is high demand when fall comes along because it is only available for a limited time. By making the drink only available for a limited time, consumers are urged to buy more and are more likely to pay more for the product due to its restrictions. Although the tactic that Starbucks uses might be deceiving, it works. The pumpkin spice trend that Starbucks made popular gets more and more attention every year. People anticipate many things when the falls season comes along and pumpkin spice latte's are definitely one of them.
Hannah Enyioma
6th Period
Pumpkin spice latte and the craze that follows it is a product of good marketing. Limited supply creates high demand and high sales. Starbucks, a big player in the Pumpkin Spice craze, holds a large part of making Pumpkin Spice a seasonal trend. Making the flavor limited only to a specific season and creating a great amount of hype around the product makes the flavor synonymous with the season of autumn. Making a product synonymous with a specific time or season is a marketing tactic that creates demand for the product.
Victor Varghese
Period-6
In my opinion its Starbucks one of best business trick to get more consumers. The pumpkin spice latte is not always available, Its only for a limited time. This have huge impact on people that all will be thinking of getting a pumpkin spice latte before time runs out. Also the advanced technology helps Starbucks to make more pumpkin spice latte in less time. People tend to buy something that is limited make companies rich.
pumpkin spice latte has definately done a lot in adding versatility of pumpkin to the global market as a whole. it has increased a lot over time , starbucks choice of doing this has increased the demand for pumpkin in other products as well
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