Starbucks Brand Watered Down?

Recently Starbucks announced is was shuttering 600 under-performing locations to try to get their sagging balance sheet back in order. The premium coffee brand is feeling the heat from investors and customers alike.

Not only are things not going so well for Starbucks, but there are people who are rooting for their downfall. How could this be happening to Starbucks--arguably one of the hippest, coolest, well respected brands ever? Was it the rapid growth, the soft economy, new competition, product issues, or the natural cycle for what amounts to a casual dining restaurant brand?

A recent Reuters article on the subject illustrates how consumer sentiment has turned on the coffee giant. Here are a few quotes:

• "I'm so happy. I'm so not a Starbucks person," said Melinda Vigliotti, sipping iced coffee at the Irving Farm Coffee House in New York. "I believe in supporting small businesses. Starbucks, bye-bye."
• "Amen," chimed in Keith DiLauro, a local caterer. "They went too big, too fast."
• "Starbucks was a cool brand, and then all of a sudden it's not a cool brand," he said. "There's this new global consciousness that is out there that can suddenly shift."
• Indeed, said Pye Parson, who hails from Seattle and works at Birmingham's Crestwood, "Once it went corporate, it wasn't Starbucks anymore."
• "The people that work there are very pleasant, but the stores are devoid of any kind of real charm or personality," he said. "They push a button, and a machine does everything from grinding the beans to brewing the drink."

They found some positives comments too:

• "It's convenient," said Anthony Castro, sitting in a Starbucks near his job at New York's Museum of Modern Art. "I know what to expect."
• In Birmingham, Crestwood regular Gary Adkins said he felt Starbucks gave employees good salaries and benefits. But now Starbucks' plans call for cutting up to 12,000 full- and part-time positions.
• Not everyone felt strongly. "It's just coffee," said Marc Poulin, a systems administrator at Zibetto Espresso Bar in New York. "If I was an investor, I'd care."

Here's the link to the complete article.

I couldn't help but think as I was reading this story that radio station call letters or companies could be substituted for "Starbucks" and we would not be too surprised. Let's face it, if Starbucks can fall out of favor so can radio. This quote is worth repeating:

• "The people that work there are very pleasant, but the stores are devoid of any kind of real charm or personality," he said. "They push a button, and a machine does everything from grinding the beans to brewing the drink."

Now, let's change it up a little:

• The DJ's are very pleasant but are devoid of any kind of real charm or personality. They push a button and the computer does everything.

The good news is that radio stations and their on-line stablemates are living and breathing entities that start every day with the opportunity to deliver content that was better than what was on yesterday. Or we can be just another provider of audio entertainment in a sea of audio entertainment providers.

What's better about your radio station today?

Consumer 2.0

There's no shortage of advice on how to reach young consumers and a recently released report from Mr Youth and Rep Nation boil it down to this Top 5:

(click on the image and it will open a larger and easier to read picture)

These findings have implications and offer opportunities for both the programming and sales sides of our business.

Our challenge: radio, by its very nature is a mass appeal entity. Our entire system is built upon a platform of gathering as many listeners to our frequencies as possible and enticing them to listen for as long as possible. Therein lies the great paradox for broadcasters. How can we be personal, hyper-niched, and be a flexible brand all wrapped up in a singular mass-appeal broadcast signal? That is where our live interactions (on-air and in your communities), our websites, social networking, and mobile strategies come into play.

Some things for you to ask yourself:

• Do you and your staff have a clear understanding of what your brand means to your listeners; and is it strong enough as the power of the brand (all brands, not just radio) erode?
• Are your outward messages, across all your platforms, real and genuine?
• When was the last time you used your real listeners to endorse your radio station?
• What do your messages communicate to your listeners; and do you say anything that won't be filtered out?
• Are you enabling your listeners to create their own content?
• Have you planted the seeds for your listeners to form an active community centered around your station?

More and more, these are the type of conversations I have with clients and perspective clients. These discussions tend to be ongoing since things are moving very fast and not much is static for very long.

Share this list with your co-workers and then add to it. I would not be surprised if you came up with 3 or 4 times the number of questions worthy of asking.

I found this report thought provoking. If you would like to read the entire presentation simply click here.