Comments on: Starbucks’ latest branding decision: a tall, grande, or venti mistake?

By: Neil Edwards

Neil Edwards — Mon, 10 Aug 2009 22:33:49 +0000

Yep, I had picked-up the different name for each outlet, which gives rise to an interesting theoretical question: if the brand is to have infinite physical iterations and the customer experience is going to be truly different at each location, how many different ‘brands’ can the organisation manage before it is forced to start replicating?

That really does need a coffee to work out.

By: Rob Meyerson

Rob Meyerson — Mon, 10 Aug 2009 21:36:46 +0000

Neil and David,

Thanks for your comments! I agree with most of your points, but I think many bloggers are overlooking a significant fact—that this store will be the only “15th Ave E Coffee & Tea.” Because it is a one-off, I don’t see it simply as the creation of a new Starbucks sub-brand, like Lexus is to Toyota. While I don’t fault Howard Schultz or any of his team for being on their toes and trying something new, I have concerns about their specific approach. I think the strategy’s at least a hair off target, and it sounds like we all have some serious doubts about whether they’ll get the execution right.

This would be a good conversation to have over a cup of coffee sometime…

By: Neil Edwards

Neil Edwards — Sun, 09 Aug 2009 13:06:10 +0000

I’m with David on this one. There is much evidence to suggest that the Starbucks brand has peaked. As marketers, we shouldn’t condem Shultz for being aware of his brand’s position in the brand life-cyle and look to experiment with something new.

Tailoring your product to your audience is one of the basic principles of marketing.

I am a fan of the endoresment mark approach. I think this is not only more honest, but should, in theory, allow all the positive associations with ths Starbucks’ brand to be leveraged (I appreciate this is a debatable point in the eyes of some), while overlaying it with something innovative and new.

The important point is that there is something different in the customer experience in the new stores. The reports suggest that this is the intention, but the strategy will unfurl if it can’t be maintained. The organisation will undoubtedly want to leverage the efficiencies of its larger operation, for example in purchasing. If that also extends to recruitment and training, one wonders how different the customer experience can really be. Same coffee, same staff, same processes – will we essentially be left with only a change in decor?

I too have blogged in more detail on this topic. Putting the star and bucks back in Starbucks http://bit.ly/h8yrQ. Interested to receive comments.