Filed under: advertising, branding, customer service, loyalty marketing
So what is this, my 4th or 5th post about Starbucks? It’s the 5th. I wrote one when Howard Schultz declared that he would return to daily management because Starbucks had lost its way; I wrote one when Starbucks launched its new daily brew, Pike Place; I wrote one when the company announced that it was pulling back on its entertainment initiatives and eliminating its music business… etc, etc.
The point of all my meanderings this year is that Starbucks wandered too far off course and, like all companies, must become and remain exceptionally good at delivering on its core brand promise before even considering whether or not consumers will consider anything off-strategy or loosely complimentary (as CDs, books, magazines and smelly egg sandwiches most assuredly are).
Starbucks = Coffee + Service. Get this right first.
Why is this so hard? And I’m not saying it’s forever: you closed 600 stores this year and $4 coffee is becoming increasingly unaffordable. Bad times call for you to pull yourself together and take actions that will hold your loyal base close to you while the economic cold winds blow. Just… for awhile!
It’s a shame that they just can’t seem to handle that. In the lengthy Portfolio interview that marked Schultz’s return to day-to-day management, he despaired at how badly Starbucks had strayed from providing a great experience and the best coffee. Then he told the journalist how excited he was about the smoothies (from Italy!) the chain was about to launch.
GAH! Doing… right… thing! Back… to… basics… But let’s… just… slip… in… ONE… cool… little… gee-gaw!
Eesh.
This week, Starbucks reinforced this on strategy/off strategy line of thinking by kicking off two discount programs to try to help its customers (the strategy part: keep coffee drinkers), while simultaneously announcing a new co-publishing deal with Farrar Straus Giroux for The Traveler, a picture book, described as “a beguiling and tender fable about what really matters in life.” Is there an unmet need for full-price picture books at Starbucks? No.
I’m frustrated. And I had a cup of coffee from the deli this morning. It was cheaper, there was no line and no one tried to sell me an iTunes card.
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