starbucks

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In the part of my brand strategy presentation where I lay out my framework (1 claim, 3 proof planks), I talk about the many targets a brand must address. With B2B products, the targets tend to be job or function-related. For a healthcare service, as an example, I might want the brand to speak to patients, docs, care-givers and insurance companies. This adds complexity when it comes to finding the claim. On the consumer side of the house, the targets are often consumer segments.

starbucks machiatta

I was reading about a Starbucks barista in Williamsburg Brooklyn this morning and how he is one of group of highly skilled Howard Schultz employees, dialing up the flavor selections of artisanal brews, soon to be released under the “Roastery” name — coffee draughts which may list for as high as $10. The Williamsburg drinkers of this high-end coffee are not the bulk of the Starbucks buyers around the country; they’re not part of the double, double, half hazelnut, half vanilla, two sugars, muffin top set. A group that pays the bills.

So how does one brand cater to both targets with a single Starbucks brand? Without, sorry for the pun, diluting the brew? Well, the brand has to be future proof. It has to have a claim and proof plan array that appeals to all segments. Though I am not privy to the Starbucks brand strategy, I know it’s accommodating. It will handle the Roastery and the mixed coffee drink crowd. Starbucks has a brand strategy that encompasses. That includes. But also focuses. Starbucks has mad blending skills.

Peace.

 

 

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Fight the Machine.

verisimo

Starbucks executives, always on the lookout for ways to make more money (as they should be), have, until now, sat idly watching the growth of Nespresso and Keurig. Home and office brewing of coffee in single servings it is a hot category.  A category that follows the razor blade theory…discount the device, make money on the replenishments.

Starbucks see this single brew trend as not going away and recognizes coffee bought in pods is not coffee bought at their retail stores. Sooo, they’ve decided to sell a coffee maker. In other words, they are betting against themselves and accelerating the single serve brew category.

Stop it!  This is not a line extension, it’s a cannibalization. It diminishes the mission of the brand. These machines are the enemy.  The afternoon Starbucks run, the mocha, choca, locca $6.50 morning drink, the aroma of the coffee beans and din of the cool music gone. Fight it. Go all Davy Crockett on its ass. Davy may be dead but he’s alive in our hearts and minds and he defended and reshaped a country.

Starbucks is part of the craft economy. Convenience be damned.  Starbucks needs to stand up and fight! Fight the machine. Peace this holiday season.

 

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Tea-ness.

teavana

I love this logo. I am not a hot tea guy but the marketer in me sees the tea drinking trend and mad growth potential in the US.  Apparently, so does Starbucks who purchased Teavana last year.  For those unfamiliar, Teavana is a retail chain selling various teas and tea-making accessories.

The block letters of the logo and the word itself, do not make the logo perfectly readable.  The name isn’t particularly poetic or easily mispronounced, but the mark before the name is splendid. It’s Eastern, relaxed, friendly and conveys warmth and goodness.

I’m not sure tea is the Facebook to coffee’s MySpace just yet, but keep your eyes peeled.

I’ve spoken with the CEO of a big ready to drink iced tea brand, which is growing quite nicely YOY, about the “tea-ness” in his brand plan and I am waiting for him to step up.  He’s 65% committed, but not all the way there yet.  When he rolls, he’ll whoosh his volume.  Tea’s, hot then cold, are going to be the haps.  Peace!

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One of Starbucks cornerstone brand traits is its rich, hearty, no-nonsense coffee. A brilliant differentiator for the masses. The aroma in the store, the bags of beans the real time brewing all contribute.  It is this rich taste however that has kept some coffee drinkers from being customers. And that is a sales opp. How do we convert a person from a “drive by” to a “drive in?”  And do it while preserving “our thing.”  The answer is by moving the cheese a little. And these cheese is the roast.  Roast gets you credit for rich and flavorful.

Introducing Starbucks new Blonde Roast – a lighter flavored, easy drinking coffee option. Tagged with the line “It’s the coffee we’ve been missing for the people we’ve been missing.”  I haven’t tasted the product, but I like the marketing and positioning. It’s quick, telling, contextual and a focused new product. It’s what consumers, or should I say non-consumers want.  It’s not a tea or a slushy…it’s coffee. And a long time coming.

Turn on the sales steamer, this puppy is going to be hot and bring in  a lot of new faces.  Bravo team!

PS. I’m sure hours were spent deciding to leave the “E” on the word blond or take it off. Interesting choice.

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So yesterday I suggested that Starbuck’s misnamed its new fruit flavored iced coffee product Refreshers, jumping straight to the benefit in the name, and not necessarily an uncommon benefit at that. Starbucks missed an opportunity.  Here is link to the video explaining how Refreshers are made. Green coffee extract is the secret to the new product.  Three words that together don’t particularly make the mouth water.  No wonder they called them Refreshers.

Here are a couple ideas and words that may have been overlooked in the naming meeting. Words that don’t deliver the benefit, but work to explain the new product.  The  Is of the Is-Does, as it were.

-Pre-roasted

– Natural state beans

– Pure caffeine

– Arabica beans

-Young, you get the idea.

Naming is hard.  Think Apple.  Brand are empty vessels into which marketers pour meaning. But consumers extract meaning from brands and the first experience in the name. Make it a good one. Peace. 

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The problem with appointment promotions is they don’t really build customer loyalty. When Starbucks tells you to come to the store on Thursday between 12 and 2 P.M. for a free apple fritter and they publicize it in a big newspaper ad, you have to make an appointment to go.  They’re trying to generate traffic. If you must buy a new cup of something in order to get the free fritter, it’s about product trial.  It’s not really a loyalty play because everybody can participate.  Unexpected promotions are much better for loyalty building. 

Unexpected promotions are much better, also, because they’re more social. With an unannounced promotion, especially one of the free variety, there is a wonderful surprise and feeling of serendipity. With mobile phones what they are today and our “always on” culture, free can go viral fast.  And those virused are usually best friends or most appropriate friends. 

Let’s say I go into Starbucks to order coffee and get a blueberry fritter, not my usual apple fritter. As I’m waiting online I might tweet or 4square it.  Or, text my commuting office mate.  Why would I do that?  Because I’ve been hit with a pleasant random act of kindness and I can pass it on. I’ve been recruited to be a good guy.  And Starbucks has enlisted me to curate their promotion.  I mete it out based upon who I think will enjoy it.  The human algorithm.  And, by letting “the people” promote your promotion, you can spend more money on the giveaway itself and less on advertising. Try it you’ll like it. Peace.

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The Ford Story

ford

Ford Motor Company does not really have a campaign today. An old mentor of mine, Peter Kim (now deceased), once told a very important client that “campaigns are overated.” The Ford story is not a “Drive One” campaign story – it’s a lot of little ones.

It’s social media stories curated by Ford’s Scott Monty. It’s leadership demonstrations by CEO Alan Mulally. It’s smart marketing directed toward millennials, the next generation of car buyers. It’s a promotion where a 100 cars not yet available in the U.S. are given to average Joe and Jane bloggers to drive for a year. And for the tech-savvy it’s a cool product like v.2 Sync the in-car software that in the future will have the ability to shut down texting while the car’s in motion. For motor heads, how about a newly engineered engine that offers V8 power with V6 fuel efficiency. Or the Edge that goes beep-beep when you are about to back into a fire hydrant?

This is a car company that smelled the Starbucks and decided to do something. A lot of somethings. This is a car company that is showing, not telling. Ford is rebuilding an American car company with good product, forward product development and no campaign. The story is a wee bit disorganized, but the gestalt is that this company is beginning to win – on many fronts. And Bill Ford deserves credit for getting out of the passing lane for a few miles. Go Ford Go. Peace!

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starbucks via

VIA ™ is a new instant coffee product sold by Starbucks and though they probably won’t ever use the word “instant” in its description that’s what it is. You make it by simply adding water – hot or cold. VIA comes in a little beef jerky size packet and it is a horrendously bad idea! If Starbucks doesn’t take VIA off the market soon I’m afraid it will have a long term, devastating effect on the brand. And please don’t write me saying how strong last week’s sales were. Creating an instant Starbucks experience is counter to what the brand stands for. This move is akin to the failed over-exposure of Krispy Kreme… selling old donuts in gas stations.

Most everyone has been to a Starbucks and knows its sounds and smells. Some of the sounds, unfortunately, have been removed thanks to the addition of time-saving espresso machines. Another mistake. (Remember the jarring thump thump the barista made as s/he settled your ground coffee into the metal espresso vessel?)

The store, the cup, the cardboard cup insulator, beans and music — the starched baristas all contribute to the rich coffee experience. Instant Starbucks removes it all. Thousands of consumers will pour the VIA granules into their chipped Dodgers cups tainted by a hints of soap and say “Hmm, tastes like Folgers.” Lose the VIA, Howard Schultz…and fast. Bad experiment. Peace!

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McDonald’s just reported sales and they are up 2.2% worldwide, missing analysts’ targets. Sales in the US were expected to be up 2.8% and came in at 1.7%. Value meal wars were partly to blame, but if you ask me the whole McCafe product extension is the cause. The New York Times reported the story – not a big one I might add – and nowhere is there a mention of the McCafe coffee line. I didn’t like the gourmet coffee move when I first read about it, and I don’t like it now. It’s not core.

Burger King, on the other hand, which for all its strategic and tactical ups and sideways owns the idea of “flame broiled,” decided not long ago it wanted to upgrade stores with state-of-the-art broilers. If memory serves, they’re supposed to be installed pretty soon. (I’ll have my fact checker get on it.) This is Russ Klein’s major stroke of genius. Crispin Porter, his agency, does great work and the King is the King, but flame broiling is what sets BK apart — and what should help them take a big chunk out of McDonald’s market share. Peace!

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The front page of The New York Times today has pictures of smiling Iraqis, smiling Al Franken, a smiling German choreographer, a not so smiling uninsured couple and a big fat, juicy hamburger.  4 out of 5 ain’t bad. The first section of the Times is 34 pages thick with ads from Macy’s, Bloomingdales, Verizon, Liberty Travel, HSBC, New Balance, Chevrolet, Starbucks, Barnes & Noble, Sirius-XM radio and Cadillac.

 

The financial pages suggest hope and the bank ads are about saving, not spending. My friend Cory Teffiletti, who publishes a newsletter called “The Digital Influencials,” is once again filling his space with some exciting start-ups and Twitter is growing so fast, we marketers haven’t quite figured out what to do with it. In fact, it seems there is a Twitter Conference on every corner of every major city this summer.

 

Right or wrong, marketers of every stripe are embracing social media as a new way to improve sales and that has started up a cottage industry of consultants. Social media is also making traditional agencies fight harder for their breakfast – another good thing. Embrace the good people. I smell goodness in the market. Peace!

 

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