The Largest Rollout in Starbucks History, or the Economically-Oblivious Coffee Company

Starbuck Vegan Brownies vs McDOnalds Premium BurgersYesterday marked the largest rollout in Starbucks history. The three-year project is complete and ready for the public. What was implemented? Not a price reduction.

Starbucks is redoing its food menu in an effort to offer “real” food (i.e. no artificial flavors, dyes and trans-fats). The bakery case is getting a 90% overhaul.

What brought on this sudden rollout? Mayhaps it’s the fact that McDonald’s has been promoting its McCafe like crazy. Perhaps it’s the chain’s 8% sales and 77% earnings drop since last quarter. Either way, I think Starbucks is taking the right steps in the wrong direction.

I am speaking as a consumer and a Starbucks’ fan. My qualm with Starbucks is not the lack of “healthy food options” — it’s the lack of money in my pocket after one visit to the place. Damn, people, give your consumers a break! I realize that the government is not calling our economic times a crisis, but I’m sure that there are more individuals than not who are feeling crisis-like symptoms. No one’s asking for a handout, but a hand would work. Why do you think McDonald’s is doing so well? Value. It keeps its prices down. Even now, when all food chains are struggling, McDonald’s is gaining in sales.

In an ironic turn of event, McDonald’s rolled out a “premium” offering of their own. Sticking with their strengths, they’ve rolled out a Premium burger. Though currently available in select markets as a promotional item, the burgers will eventually be offered nationally in three varieties: Deluxe (topped with mayonnaise, yellow mustard, a slice of tomato, lettuce, red onion rings, sliced dill pickles and American cheese slices); Bacon & Cheese (topped with ketchup, yellow mustard, red onion rings, sliced dill pickles, three bacon slices and American cheese slices); and Mushroom & Swiss (topped with mayonnaise, sautéed mushrooms and Swiss cheese slices). McDonald’s is keeping the National launch under wraps, yet somehow publicized their “test” launch on the same day Starbuck’s attempts to re-invent itself. I smell a mole in the coffee.

I really hope that Starbucks succeeds with all this effort because I would hate to lose my Tall Mocha Frappuccino’s in a Grande cup, extra ice, and no whip.

Rena Prizant is a Copywriter, Ad Creative and mammal in the Chicago area, professionally word playing since 2002. Rena writes smart, engaging, dynamic copy for a broad range of mediums and industries; and loves helping start-up’s get their branding feet. Visit www.RenaPrizant.com or Twitter WriteLeft.


Starbucks lança campanha focada em redes sociais

Starbucks
Creative Commons LicenseMarilynn K. Yee/The New York Times

Sempre avessa à publicidade tradicional, a Starbucks deu início ao que já é considerado o seu maior investimento em comunicação. E apesar de se render a uma campanha de posters, outdoors e comerciais de TV, a marca quer estimular o engajamento de seus fiéis consumidores na internet.

Além dos 1.5 milhões de fãs no Facebook, a cada 8 segundos alguém fala sobre a Starbucks no Twitter. Portanto, essa não é uma iniciativa com hotsite ou algo centralizador, mas sim voltada totalmente para as mídias sociais. Uma das ações da empresa de cafés de Seattle, vai premiar aqueles que postarem fotos posando na frente dos cartazes da campanha.

A inspiração para esse tipo de ação veio das próprias pessoas nas redes sociais, já que segundo a Starbucks existe uma espécie de corrida para ver quem publica primeiro a foto de uma loja nova, da decoração especial de Natal, de um novo produto, etc.

O próprio Howard Schultz, CEO da empresa, conta no vídeo abaixo como essa campanha vai se desenrolar, e mostra as peças que já estão sendo veiculadas em diversas cidades dos EUA.

A verdade é que, além de aproveitar o fato de ser uma das marcas mais mencionadas na internet, a Starbucks quer combater os esforços do McDonald’s em promover o seu McCafé, no que chamam de “commoditização” do café.

Os caras do Ronald dizem que café é tudo igual, e que você pode tomar um pagando mais barato no McDonald’s. Já a Starbucks quer provar que existem cafés e cafés, e que você merece pagar um pouco mais para desfrutar dos melhores grãos e de um ambiente para verdadeiros apaixonados pela bebida.

Quem vai ganhar essa briga no balcão, só o tempo dirá, mas no ambiente online a Starbucks já está bem a frente. Como diz matéria de hoje no NY Times, o desafio maior é tornar os seus fiéis seguidores na internet em fiéis consumidores também.

Brainstorm #9Post originalmente publicado no Brainstorm #9
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If You Had $100 Million?

This is an excerpt of an early 2009 interview with a McDonald’s Coffee-Banger Street Lieutentant who asked to be kept off the record. I asked him what he would do with $100 Million…

“A hundred million? We’d use the-playersit to knock Starbucks the *&^% out! Yeah! We’re tired of that punk chain hanging around. Don’t they know who we are? We are Mac-Don-Olds! MacD. Or Big Mac, to our friends. And that Starbucks been runnin things for too long. I thougAwright man, so here’s the story. Starbucks been cornerin the coffee business for a while now, you know? And for us, that was too long. They lost their focus. Got sloppy. Opened too many stores. Charged too much. People got tired of goin there, ya know? So, other shops started hanging out on their turf, right? Dunkin’ Donuts. 7-11. Caribou. They all make a pretty mean brew. And, you know what? A dude don’t have to wait in line for no 20 minutes at those other places, or use fancy terms that don’t make no sense! A grande means small! What? All them other places produce quality product…and it’s all about gettin’ caffeine into the blood, right? Mmm. I can feel it now.ht we had ‘em a couple months back, but they hung on like a booger. But we got the credibility, ya know?fourbucksisdumb2

We were just watchin, you know, playin’ it safe for a while, but then we got tired of those little coffee-bangers running around…this is our turf. They was ruining da whole coffee business! We are Mac-Don-Olds. King of all these streets! Why not let the real King take over? We brought in all the heads, the bosses, and met out at Hamburger U. It was decided to sock it to ‘em! Free Coffee Mondays. Everywhere. Give it away, earn their trust, then sell it, sell it, sell it! All the way to the bank.

(KFC tried to do it with chicken… Chicken? Who wants to walk around with a chicken breast in their hand!? Man, give ‘em a Coke! But not a hunk of chicken!)

Anyway, Starbucks started runnin’ around, not sure which way they was goin’…sending out crazy messages that they weren’t “special,”  just a regular cup of Joe. What regular coffee costs $4? Well, they cut their own brand apart, right out from underneath their own-selves. Punks! But, they still here. So, now we gonna finish it, And, after we’re done with Starbucks, we goin’ after that creepy-King-looking %*&!)$&@#+)$ that plays with sponges…”

And there you have it…McDonalds once again to make the streets a virtual coffee war zone. AdAge printed a story this morning, speaking with Neil Golden:

“I assure you that we’re going to be surrounding the consumer with very relevant messaging,” said Neil Golden, chief marketing officer, McDonald’s USA. He said the initial ads “will pulse on and off very strongly through the summer, with sustained weight well into 2010.” 

The fast-food chain won’t state how much they’re going to spend overall, but the goal is to add $100 billion to the bottom line in 2009. With McDonalds on the prowl again, the other competitors are circling the wagons for the upcoming battle.

Starbucks, after directionless floundering a month ago, finally responded by running full-page newspaper ads designed to tell their story and to warn consumers not to “trade down.” This marks the first branding campaign of any weight in years, and comes six months after  Wieden & Kennedy quit the account, citing that Starbucks did not seem receptive to driving the brand forward.starbucks-revised-bag

One  has to wonder at the recent choices made by Starbucks, and their new agency, BBDO. They’ve closed 600 stores, cut  1000 jobs, and sent out conflicting messages that stated “we are like everyone else” but “we are still the premium  choice.” To top it off, they choose newspaper, a medium that is failing in its own right, to deliver their messaging?

 Time will tell if Starbucks is able to survive in the long-term, but one thing is certain: McDonalds is coming. Again.

 Jeff Louis: Strategic Media Planner, Project Manager, and New Business Coordinator. His passion is  writing, contributing to BMA as well as freelancing. He’d love to hear from  you: linkedin.com/in/jefflouis or twitter.com/jlo0312.


Starbucks: Take a Lesson From Mr. Mom

Starbucks

Starbucks

During these trying economic times, I would just like to say, “Thank Heaven for Starbucks.” Arguably one of the most expensive cups of coffee currently available on your local street corner, Starbucks has stepped up to the plate and is now offering all of their delectable products at half price! (No, not really.)

No, what the Seattle-based coffee giant is planning to do is launch an advertising campaign to convince consumers that their products are not as expensive as we think they are…their coffee is not a luxury, but just a plain ‘ol cup of Joe.

I definitely missed that day in class. The day that listed the number of  companies that changed nothing about their business model, but successfully re-branded their products. The day that a company, once touted as a luxury, trendy, “go to” brand actually tried to reverse this identity by stating, “We are nothing special.  There is nothing extraordinary about what we do. And, contrary to what you may think, our products are not expensive.” Trust us.

And, maybe Starbucks is right. Maybe they are getting a bad rap as being an over-priced luxury. The WSJOnline reported that, ”…according to a December survey of coffee shops in Chicago by a stock analyst for William Blair & Co., some sizes and varieties of Starbucks were less expensive than Dunkin’ Donuts coffee when adjusted for size differences.” (Source: WSJ Online

Which raises so many questions, such as; “Why is Starbucks comparing themselves to Dunkin’ Donuts?” But, that is another topic. The truth of the matter is that this will be an extremely complicated reverse branding effort, and possibly a brand-killing error. Rather than defending the hard-won Starbucks brand position and capitalizing on the “brand experience” embodied by Starbucks, they have decided to attack positions firmly held by competitors, namely Dunkin’ Donuts and McDonalds. 

If you ever saw the movie Mr. Mom starring Michael Keaton, you may remember the scene where Keaton’s movie wife, Teri Garr, is in an ad agency meeting with their top client, a canned tuna account. The meeting, oddly enough, was to determine the best strategy to use for a premium brand during a recession. Teri Garr’s brilliant strategy was to maintain positioning while throwing consumers an incentive. The end result: A campaign that did not compromise the brand and offered lower prices during ”these trying times.” In essence: “Still the best tuna best available, we understand our consumer’s problems and therfore are lowering our prices.” Sounds like a winner to me.

The Proper Starbucks Protocol

starbucks512Starbucks follows a certain protocol for customers as far as serving their drinks. Ideally the protocol is as follows:

    • Order Your Drink
    • Pay for your Drink
    • Get the Receipt
    • Wait for your Drink to be done

Now along that line comes the need for a receipt. It is normally issued after you pay for your order. Normally, these receipts were not given much attention but apparently today, you need to keep it before you get your drink.

A new policy at the UT’s Starbucks locations is requiring customers to show their receipts in order to get their drinks.

Mary Leslie Patterson, marketing director of University of Tennessee campus dining, said the new policy was implemented at campus Starbucks locations in early February. Starbucks employees were noticing that some customers weren’t getting the drinks they ordered because someone else took them.

(Source) Tennesse Journalists