Originally Posted by
channa
That is actually a good point, and identifies a possible risk with this move.
Illy is well regarded, but they don't have the brand recognition of say Starbucks in the United States. The quality is there, but people aren't familiar with it.
I could see this being a potential issue with certain customer segments. Then again, those segments may not care. So long as it's better than FreshPoo, they may not care.
Those that know coffee, will appreciate Illy.
Those that don't, won't care. They just want a cup of coffee.
I'll take my mother in law as an example ... She's a typical(ish) leisure traveler - only flies a handful of times a year. She loves her coffee, but isn't a snob about it. Maxwell House is just fine for her. She won't order a coffee on a United flight because it's so bad, but once she sees the Illy branding, she'll know it's better. Not that she drinks Illy at home, but she will at least recognize it as a premium coffee compared to previously. We've talked about how awful FreshPoo is several times; she'll be really excited by this.
Will she fly more often because of it? No. But will it make her think of United as a more premium airline? You betcha.
This is a marketing move, and a shrewd one at that. Again, I don't see the bottom dollar net incremental cost being more than 1m annually, but the amount of 'premium' branding United will get for that is worth a whole lot more than that!
.... And the fact that USdbaAA is still serving the 'poo? All the better for UA.