25 June 2010

Get more relevant.



The focus again today is on brand strategy, not advertising.





Specifically, lattes, wine and wi-fi.





Most of you following know Starbucks is one of my favorite brands. Inconsistent baristas and a recently misguided Via campaign (imo), but still a great brand. And a brand truly committed to understanding consumers and giving them more of what fits within their lives.





The latest announcement comes a little late, but makes up for it's timing with some extra buzz.





First the late part. Starbucks should have had free wi-fi ages ago. It should not take Panera and McDonald's applying competitive pressure for a brand in an obvious leadership position to get on this bus, but better late than never.





Now, the extra buzz part. The addition of wine is very smart.





Starbucks' early success has a lot to do with being the anti thesis of most other restaurant concepts. Rather than the 'get 'em in, get 'em out' philosophy most operators believe is mandatory to keep the registers ringing, Starbucks has always encouraged customers to linger. And sometimes without even making a purchase.





It set its sights on being a gathering place, with a great product that you'll naturally buy. But more importantly, a place that quickly becomes a habit, worth the premium and a badge. Whether it's a place for socializing, a place for getting work done, a place for a business meeting or something else, it is a destination. People feel comfortable hanging out.





Now that they've set this stage, it's time to leverage to start doing more. More of what's relevant for their consumers.

Wine makes natural sense, as does wi-fi. And I heard about some cool exclusive, branded Internet content stuff that's coming down the pike too - all of which will be accessible to those hanging out at Starbucks.

A year or so ago, there was a lot of speculation about Starbucks going down. It didn't happen then and it won't happen now, because they have a loyal following and make smart business decisions like this that keep them relevant. Simple and ON STRATEGY.

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