Starbucks Verismo launched sold out in US, wonder what would happened if it launched in Singapore?

by chee leng-Oncoffeemakers

Verismo by Starbucks

Verismo by Starbucks

Why do I asked such a specific question? In Singapore?

This is because, in Singapore, there is hardly any Keurig presence and I wonder if Starbucks Verismo can replicate the success that it has in US.

I find it interesting to note that even though Starbucks is going to launch a single serve coffee machine Verismo, GMCR (Keurig) is still willing to go into a partnership with them.

And the deal states that even after Starbucks launched their Verismo, the deal would continue.

I imagined Keurig customers going into Starbucks to pick up some K-cups. Then one fine day, Starbucks come up with a great promotion or even give the Verismo away.

Would that customers stick with keurig. He/she is already going to Starbucks to get their regular supply of single serve coffee pods, and if they changed their machine, would they ever go back to using Keurig again?

The price of Verismo at $199 is the market standard.

There is nothing too fanciful about this machine, though it is said that they are able to use real milk instead of powder to make your latte and cappuccino.

What I believed Starbucks has done successfully is controlling the distribution channel, the route to market.

In fact, in an interview with Forbes, Starbucks CEO Howard Schultz stated that they control around a quarter of the K-cup market.

Now, K-cup is so powerful in US mainly due to the 30 plus patents that they hold (patent seems to be the buzz these days), 2 important ones expired in September.

That expiry would definitely
lead to many competition, one of which I believed is what Upshot has done.

And with Verismo launched, I think keurig is going to faced a tough shopping season for Christmas.

My $0.02

Starbucks seems to have planned it so well:

1. learned more about single serve coffee, first partner with one leading brand: Tassimo.

2. Why not learned more from the market leader: Keurig

3. Formed partnership to learned even more about single serve coffee market: Keurig

4. Launched own single serve coffee machine while at the same time observing what the market leader is doing

5. Refined own strategy and better market Verismo.

Now, Starbucks is the master at marketing. Look at their Via, an not so instant coffee that was an instant success.

I believed they would make an impact this Christmas. I am just curious as to the type of promotion they would be launching.

I think the tough market for them will be Europe and Asia Pacific.

The litmus test for their marketing poweress would be in Asia Pacific. Keurig has only a very small presence being handled by UCC (Ueshima Coffee Company) and single serve means Nespresso in Asia.

CBTL (Coffee Bean and Tea leaf) did not manage to make any significant inroad in Asia, and if Starbucks by riding on their distribution outlets managed to penetrate this market dominated by Nestle (Nespresso, Dolce Gusto and Alegria), it is a showcase of how good they are in marketing.

And that is the reason why I asked if this Verismo would be sold out in Singapore as well.

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