The Unbranding of Starbucks
Wednesday, 19. August 2009, 20:27:43
Starbucks are running a trial scheme of coffee shops which are completely unbranded. Apparently these shops will look like an ordinary local coffee shop, host things like poetry, open mic and music events. Do all the things you would expect from a small local coffee shop, but at the same time be a Starbucks in disguise.
Conventional marketing tells us, build up a brand name to build up customer perceptions of security, quality, familiarity. You want your customer to not only be able to walk into any one of your stores and feel at home, but at the same time get such a preference for your products that they do not buy customer alternatives. In that respect Starbucks have done amazingly well, their name, their brand has reached iconic status and become synonymous with coffee
This is the first time personally i've heard of a company deliberately unbranding themselves. Is this a case of a brand backfiring, not because of low quality or service but just because they have become so big? I have on many occasions complained about the center of Birmingham having so many Starbucks, with some practically being on the opposite corner from each other. I remember reading that this was part of Starbucks original market entry strategy, that even if one branch was in direct competition with another, the loss was acceptable for the increase in brand awareness.
This is now a strategy which is no longer productive. With the brand being so big, the stores in competition with each other are no longer required. Its probably more cost effective to shut one of the branches and focus on the other. That coupled with the recently losses Starbucks have taken in the financial crisis is probably the reason for the store closures over the past year.
At the same time customers are sick of seeing a Starbucks on every corner, sick of seeing their local coffee shop close down because of the Starbucks down the street. We are once again entering a market without choice or variation, eventually all the colour and fun drains away and you find yourself realising that this years summer Frappachino is just the same as ever other years with a little twist.And so they turn to radical measures, will it work? I don't know, conventional marketing is useless to predict this in my opinion. Could the Starbucks brand possibly be any bigger in the US and EU than it currently is? That have the kind of money to back this scheme, isn't it likely that the biggest competition to these unbranded coffee houses could be actual Starbucks branches?
But it leads me to one interesting question. Does coffee need branding? These days i can walk into a coffee house pretty much anywhere in the world and know i will probably be able to get a Cappuccino, Latte, Espresso or maybe even an Americano. So the question is why do i go to Starbucks?















