A few days ago I had my first cup of Illy coffee.
It came on a brushed metal tray accompanied by a thin sliver of dark black chocolate, a short glass of water and low fat milk in a clear beaker. It was decadent.
Maybe it was more than just the presentation that made it one of my favourite coffee experiences in recent memory.
Maybe it was the atmosphere, for I was alone in a foreign city.
Maybe it was Yvette. The gorgeous waitress who brought along the tray of Illy. Her auburn locks flowing gently in the crisp autumn air…
Focus.
The point is, my friends, that I wasn’t drinking just a cup of coffee. For those 15 minutes or so, while I sipped my precious brew, I was transported from the current reality of my world. The BlackBerry would have to wait. The fires would have to burn just a little longer. I could not quell them at this moment in time.
It was an experience. I suppose, this is what marketers mean when they talk about creating brand experiences. It was an experience that far exceeded the price because for those 15 minutes it provided a temporary escape.
And while I sipped the last few sips of Illy and stared blankly at the neatly wrapped sliver of chocolate I started to scribble how Starbucks could be fixed.
Yes, I was nerding out.
Wait, Starbucks is in trouble? Wieden just quit the Starbucks account blaming micro-management and a lack of direction. Coffee prices are sky-rocketing. A bear economy that has people questioning their daily need for 4bucks. Jobs are being cut and stores are being shut-down. Yes, trouble is brewing at Starbucks (sorry, I just couldn’t resist the pun).
See, Starbucks was built on a belief that coffee should be an experience. It offered an alternative to the mediocre coffee that most Americans had become complacent with. An alternative to the Dunkin Donuts of the world.
But along the path of it’s exponential growth it seems to have lost its way.
The Starbucks’ problem is not one of advertising its an issue of marketing. How does Starbucks continue to attract and retain customers? This is fundamentally a question that needs to be addressed by marketing.
Here’s how I would fix Starbucks:
1. Get back to “retail theater”
Remember, I’m not buying 4bucks for the coffee. I’m buying it for the experience. The escape. And with the pressures that a struggling economy brings that temporary escape will become even more of a necessity.
When I walk into a Starbucks I don’t want to see crumbs on the floor, the cream and sugar empty and that whole area where I stand stirring my coffee adding a dash of cinnamon in disarray.
Design experience theory suggests all of these small details can make a notable difference in a user’s experience. In fact studies show that people report having a higher sense of satisfaction from their cup of Joe when these details are in order even though they have no direct impact on taste.
2. NO price promotions, NO discounts and NO brand TV commercials.
Resist the temptation. That’s the easy way out.
There’s been talk of Starbucks experimenting with mass media when they’ve generally stayed away from these traditional brand building tactics. I’m sorry but you just can’t adequately capture the Strabucks experience with a TV spot. I’ve seen some of their past attempts and it just seems odd and off-putting. It doesn’t feel right.
The experience is individual. It’s felt. And it will be different for each person as it should.
Okay I kinda lied. They should use mass media. But to solely promote and create awareness for the different causes and philanthropy efforts they support. Show us how Starbucks is helping coffee farmers in Brazil. Show us how Starbucks’ employees are volunteering their time.
It’s about humanizing Starbucks. And that’s what the function these forms of mass media should serve. (If you haven’t already you’re going to hear a lot more about the humanizing of corporations. I’m willing to bet it will be the buzzword for 2009)
3. Bring back the allure of exclusivity
Tall, Grande, Venti. Dunkin Donuts doesn’t have that shit. Even though I feel like an idiot saying Venti it helped differentiate the finer differences between Starbucks and the others.
Starbucks needs to create more of these finer points of differentiation. The things that help make it exclusive. The things that help you associate with the Starbucks tribe.
4. Focus on becoming the “hub” of the community
This should be the goal. Baristas that know your name (and I’m sure it wouldn’t hurt if they had auburn locks that flowed like…focus). Small business networking events after-hours. Local art exhbits. Spoken word and poetry slams. Book clubs. You get the point.
The local Starbucks should serve the need of helping neighbours connect and make friends with each other. It should be a throw-back to the front porch. When people sat outside and actually talked to their neighbours.
Yes, Starbucks should be and can be more than just the coffee.
Until then I’ve got a new best friend. Her name is Illy.
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2 Comments
I will start off by saying that I am not an avid consumer of coffee but I do hit up starbucks maybe once a week but it isn’t for any of the reasons stated in your blog that make me go there. From a financial standpoint, they haven’t been doing well but that could be due to a number of reasons. If you were to ever hit the starbucks lineup on our campus, the line is never ending. Nobody wants to pay $5 for a cup of coffee but the reason students keep packing the line at starbucks is location and convienence. With our fast paced daily lifestyles most people won’t have 15 minutes to sit down and enjoy a cup of coffee. Everything in life today seems to be on the go. When you deliver a high quality product like Starbucks does in comparison to your competitiors, there shouldn’t be a starbucks store on every corner of the street like there is. I agree with points 1 and 3 that you made on how to fix starbucks as well as the fact regarding no price promotions and no discounts. The media is everywhere around us from tv, internet, billboards and whatever else it might be. I agree with the fact that I can’t imagine a successful starbucks ad convincing me on their cup of coffee but thats why they pay those marketing guys the big bucks. There is always a way to brand a product in a successful manner. But to conclude, Starbucks just needs to stop opening up a chain everywhere you go. That’s part of that exclusivity thing you mentioned. If I see a starbucks on every corner of the street, it just has the image of just another coffee store.
Yogi - great points.
Think the problem with closing out locations will be the franchises. Not 100% sure on the model that Starbucks uses but would imagine they have a mix of corporate owned locations with the majority being franchises. If that’s the case, they would have a difficult time closing locations. Also, they have an aggressive growth plan in place that calls for opening locations - so if you’re not making revenue from opening locations the question switches to what other services/products do you create to fuel your growth? Think their whole music angle is doing really well. They’ll need more ideas like that….thoughts?
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