Oct. 2, 2006 | This is another installment of the “Starbucks Mailbag” posting where I give a perspective on questions I’ve received about Starbucks strategies and decisions.  (You can read the previous two “Starbucks Mailbag" postings here and here.)

Jeremy (Boise, ID) emailed me a question about the iconic Starbucks paper cups … “I love the regular logo on the white cup. During the Holiday season, they change the design of the cups. Does the design change really boost sales that much?”

*********************************** 

[My answer]  Hmm … interesting question Jeremy.  To mark the Holiday season, Starbucks cups change from its regular white logo’d look to a festive red color design.  Does this cup design change boost sales?  I’m not sure Starbucks has data which isolates the Holiday cup design as being a factor in boosting sales during the Holidays.

Sales at Starbucks always increase during the Holidays for a variety of reasons including … customers buy more merchandise at this time because of the gift buying season, six weeks of social shopping outings with friends and family seems to always include drinking coffee, wintry weather always drives more hot coffee beverages purchases, etc.

As you can tell, it is tough to isolate the red Holiday cup design from all the other factors helping to increase sales during this time.  By the way, Starbucks will generate almost 25% of its yearly sales during the six-week long Holiday shopping season with many Starbucks stores doubling their average weekly sales during these six weeks.

What the red cup does is very Pavlovian in that it triggers something with Starbucks customers to recognize it is the Holiday season. As crazy as it sounds … customers seem to await the red Holiday cup as it helps to put them in the “Christmas Spirit.”  It also, and maybe more importantly, puts in-store employees (Baristas) in more of a Holiday mood.

*********************************** 

If you have a burning Starbucks-related question but never knew who to ask, use the contact form and ask me. My answer to your question might appear in a future Starbucks Mailbag posting.