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Jul 8
Is The Starbucks Business Brand Declining?

Is Starbucks growing too big, too quicsmall_biz_reflections.pngkly?

In the light of recent closures and layoffs, consumers are talking about what has changed with the Starbucks business brand.

We've looked at the pychological triggers Starbucks uses to influence its customers. We've looked at how Starbucks uses their website to connect with their client base. 

Then there are the people who rail against the corporate culture. They prefer to support the independent coffee stores, theaters and bookstores. Is that you? If so, you may like to try Delocator, the search for indie outlets. 

Ellen Wulfhorst for Yahoo News, quotes Jim Carroll, a Canadian based trends and innovation expert.

"Starbucks was a cool brand, and then all of a sudden it's not a cool brand," he said. "There's this new global consciousness that is out there that can suddenly shift."

Pye Parson adds 

"Once it went corporate, it wasn't Starbucks anymore."

Is The Starbucks Brand Being Diluted?
Others like Starbucks for its convenience and predictability. From avant garde coffee innovator to convenience and predictability - Is this a case of brand erosion or dilution... or is it a strategic direction for Starbucks with their business brand?

  • What are your thoughts?

 

 

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13 Comments/Trackbacks




If it's not strategic direction, it should be. The effect that growth has on corporate culture always reflects a pattern similar to the one Starbucks is experiencing. I think the smart thing to do is to prepare for change, but prepare in a way that will allow you to keep as much of your original identity as possible. Without preparing for it, you'll lose every ounce of identity your businhess once had. So it's a choice, either "lose all" or embrace/prepare for growth and "lose some."

I love how Delocator's logo is very Starbuck-esque.

As pointed out in the previous articles, Starbucks creates a community of people that "can afford this". The independent coffee shops rely on the people that don't like Starbucks because of social reasons and economics reasons. Personally, I "self-gift" at independent shops because I feel the overall experience better fits my lifestyle. Maybe it is the positioning of locations in my area, but I avoid all the suits when I get my macchiato.

Hi Ben
Great advice about preparing for and embracing change. I guess it's about being proactive and responsive to change, but also about foreseeing it and keeping in touch with what customers want and changing demographics etc.

Yvonne, Starbucks was the perfect brand to dig into these discussions. They built their brand and engaged community but with growth they seemed to lose the connection to that community. The Starbucks brand-consumer relationship started off as ardent lovers and midway Starbucks decided "we're just acquaintances." They diminished brand equity and suddenly many people realized they were paying $4 for coffee, experience be darned. When Starbucks decided McDonalds was competition it was clear they had lost sense of their branding message. They can blame store closures and declining profits on the economy but I believe the problems began long ago.

Hi Chad
The Delocator logo is a clever jibe at Starbucks and corporate culture. I like the personality of the indie coffee shops too. As you say, it's whatever suits your lifestyle.

Hi Karen
A great analysis!

I love your "ardent lovers" to "we're just acquaintances" transition analogy for the Starbucks brand-consumer relationship. :)

Perhaps once you are so popular you can't be seen as exclusive anymore.

I've always avoided Starbucks, the coffee isn't great and the prices horrendous. When wasn't Starbucks corporate? It's been corporate ever since I've heard of it. I've never seen them as innovative - what's innovative about selling coffee? I'm one for the independants.

How you keep a personal touch when franchising is a big problem I guess.

A business and its customer are in a relationship just like any a normal couple. When the relationship turns sour beyond salvage, 1 party will usually take the initiative to move away.

When a business sees it's customers as money machines and not human beings, that's where problems start to brew.

Hi Evan
You raise an interesting point about the challenge of keeping the personal touch when franchising. I guess customer service is the main area, as pretty much everything else is "by the book".

Hi Vivienne
I like your analogy of a couples relationship and 1 partner moving away when things go sour for one or the other.

Thanks for stopping by.

Starbucks fell victim to its own creation. They created 'experience marketing' then failed to create an evolving experience. After 2 or 3 'half caf, soy milk lattes' the thrill of getting just what you wanted is gone, sadly.

While I still believe experience marketing is a viable strategy, we all should be reminded that we're only as good as the last experience to the fickle public. The experience doesn't have to be new, just remarkable enough to hold their interest and instill loyalty.

Hi Dina
I enjoyed reading your insights. Thanks for joining in the conversation.

The difference between "new" and "remarkable enough to hold their interest and loyalty" is an interesting one, as things can't be "new" forever.

» Experience Marketing - From Starbucks To ING To Profit from SmallBizMentor
In response to my recent post Is The Starbucks Business Brand Declining? many commenters talked about relationship marketing and experience marketing. It was an interesting conversation. Thanks to Ben Jones, Chad, Karen Swim, Evan Hadkins, Vivienne Que... [Read More]

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