sell
Source: http://gizmodo.com/5574937/starbucks-is-slowly-reviving-the-coffee-nerding-of-america
The Clover was a nerd’s way to make coffee. Every parameter precisely, digitally controlled, for the most of tweaky of experimentation—or you can make the exact same cup over and over. Then Starbucks bought the company.
What happened next: Waves of independent coffee shops ditched their $10,000 Clover machines, for practical and philosophical reasons. Starbucks rolled them out to 50ish stores across the Northeast, Seattle and San Francisco. Then expansion stopped. That was almost two years ago.
Starbucks’ first Clover showed up in New York around two months ago, in a nearly 20-year-old location that’s been converted into a concept store. The thaw is beginning. Starbucks plans to finally expand the Clover’s footprint gradually over the next 6-8 months, as they figure out how to integrate the machine into the natural rhythm of stores—which is basically dominated by Frappuccinos these days, not coffee.
In a way, it’s a hard sell. The kind of people who would be most interested in coffee made via Clover, designed to pull the most out of a coffee—so shitty coffee would taste shittier—don’t go to Starbucks. Starbucks is so reviled by people who actually like coffee that they’ve experimented with burying the Starbucks name two pilot stores in Seattle which are designed to look more like the kind of place that serves Intelligentsia or Stumptown coffee. So it’s heartening to see them try to live up a bit more to the ideals of caring about coffee and how it’s served.
For instance, while 30 days is what Starbucks considers the expiration date on beans in a store—16 days longer than any self-conscious shop would serve them—if you order a cup made with Clover, you’re far more likely to get beans roasted within the 2-week mark. (In part because there are limited quantities of some coffees served using Clover, like the Jamaica Blue Mountain they’re offering starting tomorrow.)
They’re also making use of their spin on Clovernet, which was one of the big hype points of the machine: Shops and their baristas could share, upload and download recipes for coffees made via Clover. Starbucks pushes recipes for each coffee it serves on the Clover—around 4-6—to stores via a similar network, so there are custom parameters for each coffee. African coffees get a different treatment versus South American ones, as they should.
For all the technology in the Clover, though, it ultimately comes down to the guy (or girl) handling it. Hopefully, it’s someone nerdy enough to know what the Clover was before it landed in front of them at Starbucks.
The iPod Touch Is This Generation’s Tamagotchi
Source: http://feeds.gawker.com/~r/gizmodo/full/~3/SM6HjEBs9Ok/the-ipod-touch-is-this-generations-tamagotchi
All these wonderful things we’re learning today, from data! First, we find out that Android is a guy thing. Now, we discover that the iPod Touch shares more demographics with glittering vampires than smartphones. iPod Touch: Kid stuff.
The age distribution makes a lot of sense, especially with the direct available comparison of the iPhone: the iPod Touch is a good gift, a plausible purchase, and a good investment for a young person right now. An iPhone with a $70-a-month minimum contract is a tougher sell, either to parents, or to kids mostly supported by their parents.
And these kids don’t just buy different gadgets than adults—they use them differently, too. For example, they looooove apps:
But they’re stingy little bastards, these kids: 
Buying an app can be tough without a credit card, so again, this isn’t shocking. But it does poke a little hole in the idea of the iPod Touch as a massive moneymaker for Apple. Hardware sales are tremendous and highly profitable, sure, but once the devices are in users’ soft little baby hands, they don’t keep raking it in like the iPhone does. [AdMob]
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Best Buy / Circuit City stores physically touching each other
this is on Fifth Avenue between 43rd and 44th streets in New York City.
In thinking about retail … this helps illustrate the tremendous challenges they face.
- online switching costs are pretty much zero — just type another URL; these two stores are physically touching — just walk next door
- they carry much of the same inventory from plasma TVs to computers to home stereo equipment to software, CDs, DVDs, etc.
- they both sell Apple iPods; consumers have already decided to buy an iPod for Christmas (for some reason), which store do they walk into? what differentiates the store with the blue awning from the one with silver letters? they both have “black friday” discounts but the price ended up to be about $1 from each other; both have geeks on staff, one called Geek Squad and the other Fire Dog
- and then there’s Amazon.com which is tax free and offers free 2nd day shipping.
THIS is a challenging marketing problem for retailers such as the ones pictured!
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