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Starbucks Re-branding Efforts...Are they Working?
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Is Starbucks still a coffee icon?
In an effort to save the Starbucks brand and ultimately, the mega coffee chain’s profits, the company has begun to implement many changes.
The biggest and most talked about change is the closure of 600 stores. Jut as the company made thousands of people happy when a new store moved into their neighborhood during the chain’s expansion, now these people will have to adjust to the loss of their coffee fix, but to the economic loss in their community, and of course, workers losing their jobs. Recently, Starbucks corporate also announced that an additional 1,000 administration positions will be cut. Of that number, 550 positions are layoffs with the balance being positions lost to attrition.
For the stores that will remain open, here are a few of the changes as a result of the re-branding efforts:
- Last spring, Starbucks announced a change in the daily drip coffee offering. Instead of switching out different roasts each day, the company introduced a new roast called Pikes Place Roast™. The pr people at Starbuck’s say the new roast was inspired by the original store and the company’s return “…to the very best elements of our heritage and bringing back the simple romance and excitement of coffee,” said Howard Schultz, chairman, president, and CEO. I find it interesting that after all of the chain’s growth they are going “backwards” at a time when they need to be focusing on the future. Starbucks has a link on their site for customers to share an idea, vote, and discuss all things Starbucks. Check out the negative feedback on the new Pikes Place product. With so much negativity surrounding an idea that is supposed to strengthen the brand, Starbucks’ management went back to the drawing board and came up with a new idea (and continues to offer the new but widely unpopular roast).
- Once known for it’s fantastic selection of drip coffee, the coffee company has introduced a new line of specialty, premium-priced drinks that surprise, don’t even contain coffee! Straight from their press release: Starbucks Launches Vivanno™ Nourishing Blends New Vivanno™ Line Offers Balanced Beverage Options for Customers Seeking Healthier Solutions On the Go. Targeting those wanting a more “nutritious” beverage, Starbucks’ nutritionists went to work and created this new healthy alternative. Are they a coffee shop or a smoothie shop?
- Ah, cutbacks abound at stores. I was shocked to learn that the decaf version of the Starbucks Frappucino line has been discontinued chain-wide. The in-store employees have told me that “it wasn’t profitable”. For those of us coffee drinkers with health issues, caffeine must be avoided or drunk sparingly. So, with the “gas-station quality” (as penned by a disappointed Starbucks customer on their site) new brew that most find easy to avoid, now Starbucks is taking away the decaf version of a favorite summertime beverage.
Is Starbucks aware of the missed opportunities that these changes bring forth? Customers complaining about not having the selection of coffee that built the coffee empire and customers not being able to buy decaf versions of the popular blended beverage are actually being “shut out” as customers. Starbucks is missing something…the emphasis on coffee perhaps? Whatever their re-branding plan is supposed to do, right now, as I see it, they are slowly forcing customers away from the brand that people have been loyal to for so long. Real coffee drinkers will find a new source for their “real” coffee and then Starbucks will be wondering where they went wrong.
For more info: View the Starbucks press room.
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