It is so Much More Than Coffee (Part 2)

Popular wisdom says that good friends are best recognized in times of crisis. Ironically, the same refers to good corporations. I am sure that most of you are aware that Starbucks closed 600 stores nationwide last summer. Following the progression of the economic downturn the number is almost double as of present date. However, as every true player Starbucks have found ways to bounce back, well maybe not on every corner but at least on every TV.

As mentioned in the last week’s post Starbucks shies away from mass advertising. However, when sales numbers were going down, Starbucks resorted to TV ads to lure customers in. The most notable example was the massive ad campaign of Winter 2008, supported by numerous in-store promotions, guerilla campaigns, digital and multimedia marketing. One great example of the digital efforts of Starbucks is the “Sunny Day” campaign in China. The campaign was built to introduce the Starbucks Bottled Frappuccino to the Chinese commuter. Starbucks developed and produced a special soap opera series, called “A Sunny Day” (hence, the name of the campaign) that was shown in the Shanghai subway. Each story episode ran for three minutes, timed perfectly to appeal to both long-distance and short-distance subway commuters. The film is a story about a young girl from the Chinese countryside who moves to the capital to discover love, blogging, and Starbucks. Chinese subtitles enable commuters to follow the dialogue despite the subway noise, and the episodes are posted online so people can follow the storyline if they miss a showing. The film is a mixture of drama and advertising and as Howard Schultz explains, it creates a “real entertainment for Starbucks customers.”

Another unusual campaign was the “Bring on the Day” guerrilla marketing campaign that promotes the Starbucks DoubleShot drink. The marketing of the product is interesting in a number of ways. First the target audience was the on- the-go type of person, young working professional who simply does not have time to sit and chat at coffee shops. Unlike the loyal Starbucks consumer who goes to the coffee shop to enjoy his coffee, to meet his friends, to work on his laptop, the on-the-go consumer wants to quickly energize with his coffee drink so he can go back to work. Thus, Starbucks introduced the product as the “get your going” beverage. The campaign took place on the busiest street intersections in downtown financial districts, near office buildings, outdoor parks, and shopping areas. Young hip bike messengers approached the target consumer with the ready-to-drink beverage and handed it out along with a clear, relatable message- “Starbucks is here to get you through your day.”

The grassroots efforts of the “Bring On the Day” campaign were accompanied by the launch of a new website (http://www.doubleshot.com/) that offers product information and re-iterates the “Bring on the Day” message. Another element in the re-positioning campaign was the national ad campaign run on cable channels such as BET, E!, FX, MTV and VH1. The ad features the rock band “Survivor,” singing a personalized version of the song “Eye of the Tiger” to a young professional getting ready to go to work. The message is clear and simple - “prepare yourself for the day with DoubleShot.”

Yours truly,

ILINA

It is so Much More Than Coffee (Part 1)

Starbucks was created around the idea that customer service is key to driving a successful business. The story of its creation is quite fascinating. In 1982 Howard Schultz came to work one day with a passionate idea. He wanted to recreate the spirit of Italian coffee-drinking rituals at the wholesale coffee company he worked for. He tried to persuade the owner of the company to offer traditional espresso beverages in addition to the whole bean coffee they were already selling. Unfortunately, the idea was squashed and Schultz decided to quit and start his own coffee shop. In his new coffee shop customers could choose from a wide variety of coffees and make their own special cup. Two years later he bought the company that he originally worked for and this is how the first Starbucks emerged in Seattle.

Twenty-five years later, Schultz expanded his coffeehouse with 9,000 stores in 48 countries, all united around the idea that delivering great customer experience is paramount for successful business development.

Starbucks’s business model is less about providing a great cup of coffee and more about providing a great coffee experience. Starbucks has built a brand image that is consistent with those unique consumer experiences that the coffee shops have delivered to customers over the years. The powerful application of emotional and experience-based branding has transformed Starbucks into a brand that is associated with hospitality, relaxation, and ambiance.

The essence of the brand is not about coffee-drinking, it is about the coffeehouse experience. It is the homey coffeehouse experience and the inane versatility of the products that are behind the highly successful performance of Starbucks internationally. Another unique attribute is the local character of the brand. Despite the fact that Starbucks has more than 9,000 coffeehouses around the world, it is not a mass brand. Starbucks shies away from traditional mass advertising, building instead brand loyalty by delivering great in-store experiences.

The signature Starbucks branding consists of unconventional, one-on-one, small-scale campaigns, very much tailored to the local consumer, and aimed at relationship-building, rather than massive brand recognition. In 2006 Starbucks spent only $95 million on advertising, which includes billboards, print advertising, and online advertising. (Allison, 2002) For comparison, Coca-Cola spent $2.5 billion, and Nike spent $1.7 billion. Instead of spending its marketing dollars on TV ads, Starbucks uses in-store experiences as its main marketing tool. To be continued…..

Welcome to My Blog

Hello everybody and welcome to my blog!!!!!

I am a graduate student at American University in Public Communication. This blog is specifically designed for my New Media and Technology class. However, the blog will not be focused on new media only. It will explore the realm of marketing and branding , focusing on unusual, innovative, hip and worth discussing approaches, campaigns, initiatives, etc.

There is so much going on out there right now that consumers are over-saturated with messages and appeals. Research shows that the average consumer receives between 30,000-50,000 ad messages a week and as a result we are prone to effectively block most or all marketing appeals. Thus, marketing pros are racing each other in figuring out creative and engaging ways of grabbing consumers’ attention. This blog will be dedicated to those who do not do business as usual but develop exciting and insightful ways to reach out to the public.

I hope you have fun with my blog and I welcome comments and feedback.

Yours truly,

ILINA