In my last post, I used Starbucks as an example of a brand that has lost its focus and is suffering from it. I also mentioned that they are in the midst of a turnaround as they begin to focus on reinvigorating the in-store experience once again! The one thing I forgot to mention, that, I believe, Starbucks needs to refocus on, is the menu. And this became more prevalent, in my eyes, after reading an AdAge article earlier this week.
Starbucks was never just about the coffee itself, but, rather, the total coffee experience. The insight that was at the heart of Starbucks brand expression was to "Deliver experiences that make life better in some small way". And in this turnaround, Starbucks is trying to do just that, making their menu selections healthier! They have now removed high-fructose corn syrup from its baked goods. These are all good moves to enhancing the total coffee experience and making its customers' lives better in a small way. However, this is, maybe, where they should have stopped, but they didn't.
In addition to the healthier baked goods, Starbucks will also be launching 2 salads! Salads?! Personally, coffee and salads don't mix. This does not enhance or even work with the total coffee experience - this is way off brand in my mind. Sure a few salads may sell, but I'm thinking when you're experiencing a 77% fall in earnings in the last quarter, you may not want to be increasing your operating expenses for a product that probably won't sell enough to cover its costs.
In this situation, I would be focusing on why people want to pay $4.00 for a cup of Starbucks. Instead of bringing in new and awkward menu items that further confuse the experience, I would be focusing solely on the coffee experience. The salads are not core to the strategy, rather it's just a gimmick to try and win short-term sales. But these short-term gimmicks will leave customers unsure of what Starbucks is truly good at affecting its brand in the long-term. Additionally, the Baristas will need to have more product knowledge, which only distracts from their expertise in making that perfect customized cup of coffee that completes the Starbucks experience.
Thank goodness Starbucks has a core group of loyal customers and a set of key profitable locations to help the brand stay above water for the time being. I really hope Starbucks begins to focus on the coffee experience, that it was founded on, and cuts away all the irrelevant noise that is currently detracting from the experience.
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First, love your blog. Second, Salad?!
ReplyDeleteOMG. Starbucks is beginning to compete with fast food. I'll forecast a bit and venture that new products will be pizza, hamburgers and then ice cream (might as well throw all fast food in there). I'll stop short of fried chicken as that's just too grotesque.
You're bang-on in your assessment, Nicole. Starbucks is confusing their mission -- and this is supported with your prior threads of organizational behaviour. Ultimately Starbucks will incur higher operating costs & reduced net revenue as their total drinks-served flatline and all this confusion causes their loyal customers to go to McDonald's for coffee.
Somewhere along the way the term "growth" lost its association with "core business competency" and what we're seeing now is the shotgun effect born from desperation in an uncertain marketplace.
If Starbucks centered themselves on the "coffee experience", then they'd have a LOT of potential. Just think...licensed Starbucks locations that sell...Spanish coffees, Irish coffees, "Special" coffee, etc. Staying on target while providing growth into currently untapped areas.
Somewhere in the process RS Gold the word "growth" missing it's connection to "core small business competency" in addition to precisely what we've been viewing might be Cheap Runescape Goldthe shotgun impact created from desperation inside an doubtful market.
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