What is a Starbuck?

It was once pretty clear what Starbucks was all about. Even before they came to my town, I knew that they were this place that made specialty coffee drinks, just for you. You paid a premium price, but they were very tasty.

Then the downfall. Brand Extension. Starbucks Music. Starbucks in the grocery store, etc. The brand became diluted instead of extended.

Finally the economy hit and hit hard. The backlash came from consumers, the competitors, both the local coffee shops along with McDonalds and Dunkin Donuts attacked and the Starbucks Mermaid started smelling fishy.

Try this, try that, it looks like panic instead of a thoughtful game plan, and despite the fact that I still like their White Mocha, the shine is gone.

There is another company that lost it's idenity and Starbucks should look and learn before it's too late. General Motors.

G.M. had a brand for every buyer. The Chevy and Pontiac were the starter cars. Olds and Buick were the cars you bought when you were moving up in the world. And a Caddy, well, a Caddy was the sign that you were big time. Then G.M. got confused and mixed it all up and now they're in the tank.

For more on the Starbucks confusion, read this from JWT Anxiety Index.com:

Starbucks has traditionally been regarded as a premium brand thanks to its comparatively high price point and general fussiness (size “tall” = small, etc.). At a time when low price is everything to many consumers, it’s in a tough spot. Which explains why Starbucks is now trying to straddle the line between value and premium with its new breakfast offerings—so-called pairings that allow patrons to buy food (egg sandwiches, oatmeal, etc.) with coffee for just below $4. These are targeted at the budget-conscious, infrequent Starbucks customer.

The danger is that Starbucks will lose its premium proposition by emphasizing value. And consumers might find the value proposition dubious, considering that a “deluxe breakfast platter” (eggs, sausages, hash browns and a biscuit) can be had for a similar price at McDonald’s. And that other ubiquitous beverage chain—Dunkin Donuts—now sells a small latte for 99 cents. In terms of price, there seems to be a race to the bottom among fast food marketers.

But Starbucks isn’t about fast food, and there’s no way it can compete on price, it should differentiate itself by emphasizing the quality and nutritional value of its offerings (its “perfect oatmeal,” for example, has fewer than 200 calories).

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