Pumpkin Spice is in the Air

As the fall season rolls around, damp drizzle replaces the summer sunshine, leaves begin to float to the ground, and pumpkin flavoured everything is everywhere. Yesterday, I finally gave in to this fad, and ordered my first Pumpkin Spice Latte at Starbucks.

Approaching the drink’s tenth year anniversary[1], Starbucks has sold over 200 million of these popular drinks[2], and last year alone Canadians downed upwards of 1.2 million litres of Pumpkin Spice Latte[3]. So, what makes this drink so popular? At around $4 a drink, the price is likely not the reason. Possibly the limited season of the drink pushes consumers to get as much of it while they can; last year there was so much demand that Starbucks experienced a pumpkin spice shortage, sending loyal customers into a frenzy.

With the success Starbucks has had, it is no surprise that several other companies are jumping on the pumpkin bandwagon. Tim Hortons is already selling their version of a Pumpkin Spice Latte, and McDonalds will begin selling a McCafé Pumpkin Latte competitively priced at $2.89 for 16 ounces[4].

Starbucks, Tim Hortons, and McDonalds are constantly battling on every single front for market share. Originally Starbucks and Tim Hortons were head to head to win over coffee consumers, but when McDonald’s introduced the McCafé coffee products, they became a main competitor. With all three major companies fighting each other for market share, the Pumpkin Spice Latte has become the battle of the fall.

* Note: If you’re one of the people that rolls your eyes at this fad, then you might enjoy the video below:


[1] http://www.forbes.com/sites/michelinemaynard/2013/09/22/how-starbucks-turned-pumpkin-spice-into-a-marketing-bonanza/

[2] http://www.theglobeandmail.com/report-on-business/industry-news/marketing/falls-secret-ingredient-for-drink-sales-pumpkin/article14196595/

[3] http://www.theglobeandmail.com/life/the-hot-button/mcdonalds-strikes-back-at-starbucks-with-its-own-pumpkin-spice-latte/article14517214/

[4] http://www.theglobeandmail.com/life/the-hot-button/mcdonalds-strikes-back-at-starbucks-with-its-own-pumpkin-spice-latte/article14517214/

Business Ethics

Last May, we witnessed the horrific collapse of a Bangladesh garment factory that took the lives of thousands of innocent workers. With illegally added floors, poor construction, heavy machinery, and swampy land as a foundation, Rana Plaza was a disaster waiting to happen.

Immediately following the collapse, worldwide criticism took off. How could anyone be expected to work in such a dangerous environment while making a mere $38 a month? The shock and disgust associated with this incident quickly evolved into a wave of guilt, as people looked at the tags of the clothes on their back, realizing that they too were contributing to this global problem.

After the Bangladesh incident, the unethical procedures many companies were accustomed to became such common knowledge, that they had no choice but to improve these procedures. Consumers began to demand knowledge about where their clothes were coming from. As a result, ethics have become a marketing tool for many companies.

TOMS, for example, is not only dedicated to addressing the problems of human trafficking and slavery, but has also guaranteed that for each pair of shoes purchased, a pair of shoes is given to a child in need. All of a sudden, paying $60 for a pair of canvas shoes doesn’t seem so bad.

In addition to company’s individual strategies, this past July, over 15 major companies, including Target, Walmart, and Macy’s, signed onto The Alliance for Bangladash Worker Safety. Many people cried it was far from a solution, but nevertheless it was a step towards one.

Sources:

http://www.cbc.ca/news/world/story/2013/05/23/bangladesh-building-collapse-report.html

Thousands mourn 1,127 people killed in Bangladesh factory collapse

http://www.toms.com/media/files/TOMS_TraffickingSlaveryEfforts.pdf