What will Starbuck’s do next to weaken one of the truly great Killer Brands to emerge in recent years?
First, they established the brand with strong, full bodied, european styled coffee for a different and more compelling expectation. That lured enough coffee drinkers to make them a big time brand.
Then because they didn’t appeal to everyone, they introduced lite-note coffees virtually indistiquishable from ordinary coffee. (I do not know for sure this fact, but I have been told by Starbuck’s managers that lite-note coffees which have been pushed in units for over five years have never reached 10% of beverage sales). Lesson, weaken the brand for very little gain.
Then they licensed the brand to others in other categories, e.g., ice cream. Then they franchised the brand to airports and such where people ordered Starbuck’s not from trained baristas but from fast food grade employees.
Then last week they hinted at the introduction of cheaper coffee. Today they confirm that they are introducing “instant” coffee at $1.00 per cup.
I admit they have taken a hammering from the economic situation and news shows everywhere showing people how to save money in tough times by foregoing their $5 coffee drinks. BUT STARBUCK’S SHOULD BE STRENGTHENING THEIR BRAND RIGHT NOW, NOT WEAKENING IT (NO PUN INTENDED).
Great article.
I fondly remember when Starbucks never even served Tea. It was great watching someone ask for Tea, and the Barista would reply: “We don’t do Tea”. Classic Starbucks.
Employees also could not wear perfume or cologne as is would interfere with the coffee aroma. Then they took away grinding the bean at the store all together.
Then they progressively over the years lightened their roasts.
Then they started the food and breakfast fiasco.
My favorite though is when they replaced the Marzoccos with push button automatics. I wrote a article on this move found here: http://www.undergroundartproject.com/blog/2007/03/22/espresso-the-romance-factor/
I own a carpet cleaning company and see my competition in panic mode weakening their brand by offering every service under the sun. They are turning themselves into full home service companies but do not understand the dynamics and fierce competition in that arena. Cleaning everything including the kitchen sink is the not the way reinforce your brand. I have approached this trend with humor on the front page of my website: http://www.getfreshcarpetcleaning.ca and have been getting great comments from my customers. If you have a service company try it, it will help you to specialize and build your brand.
As a former barista and starbucks manager I am ashamed at what the company has become. Shultz has allowed a beautiful display of American business to evolve into a corporate labor camp intent on squeezing pennies.
I just told someone recently that Howard Schultz should re-read his own book. It goes into the passion for coffee, the experience, etc…
* They used to have bold rich coffee, now we have Pikes Place everyday after 11ish.
* They used to have espresso made by manual espresso machines where the shot could be observed, now we have automatic espresso machines where the shot is drawn into paper cup.
* Starbucks used to be a coffee house, now it tries to be all things to all people. Reminds me of Dell a bit.
The net result…. I used to go almost everyday. Now I can’t tell you the last time I order something at Starbucks.
An Advertising Age editorial today asserts the opposite:
http://adage.com/article?article_id=134761
Evidently a debate is brewing. (No pun intended.)