Did you take note of Starbucks’ announcement to roll-out a nationwide discount program for morning patrons to get an afternoon iced drink at half-off? At the least you have to look at it as an interesting development for the marketer of a high value proposition.

“Discount” is a word used heavily by many. A quick Google search revealed you can find the word on 455 Million pages. Starbucks’ decision to use it as a traffic builder to boost lagging sales was described as, “hitting the nail on the head”, by Brad Stevens, the chain’s VP of customer relations. It remains to be seen if it has long-term impact on their customers’ value perception.

There’s an eternal discussion among marketers about the “slippery slope” of discounting. Arguments can be made often for introducing discounts as a temporary tactic to move the needle. The lasting effect of discounting can sometimes lead to erosion … not only in margin, but in the way a brand is perceived.

Starbucks made a significant investment in establishing themselves as destination, creating a certain set of “brand permissions” among their loyal consumers. My guess is you could ask a hundred people what they think of when you say Starbucks and not one of them would say discount.

What’s your opinion? Risky move, or smart reaction to a tough economy by a marketing superpower? Let me know what you think.