Grande Mocha, Vino and Cheese

Last week, Starbucks announced that it will be serving regional wines, beers, and cheeses as well as other happy hour delights. Apparently the coffee conglomerate has been brewing the idea of Happy Hour for quite some time and is testing it in the Olive Way store in Seattle.  This is just one of the many re-branding tactics that Starbucks has tried in recent months; they have also launched an instant coffee called via available in regular, de-cafe and now caramel and mocha flavors.

The emphasis is no longer on your extra-hot-grand-café-mocha-with-skim-milk-and-whipped-cream but rather a nice Merlot with fruity notes paired with crackers and a sharp cheddar served on fine china.  The coffee chain has been going through a form of re-branding in an attempted to boost profits and afternoon/evening sales by appealing to the happy hour crowd.  This might sound strange but let’s reverse the idea. A bar that serves liquor and cigars that now wants to serve skinny lattes, fat-free frapaccinos and world music CDs. Still sound a little odd, perhaps not.

Let’s look at it like this. We live in a 24/7/365 world where most if not all of us are constantly on the move. I know I start my work day checking my morning emails during breakfast, I listening to conference calls via speaker phone as I apply my make-up and the news is always on either in my apartment of in my car. I take calls on weekends and answer emails during lunch with friends. Starbucks is simply capitalizing on the 24/7/365 lifestyle. This is ironic considering they have slowed down the once speedy barista to concentrate on customer services, resulting in long lines of impatient customers.  However, what diligent, meticulous business person who is always on the run wouldn’t want free Wi-Fi and a local brew before heading home to  do more work.  

Starbucks wine and brew appeals to those who need an in-between rest period besides just the evening commute.  Another positive is that Starbucks has always been economically proactive with it is using recycled paper in the cups or free-trade coffee beans. The wines and brews being served at the test store at local to the region thus the profits are going back into the community.  Here in Connecticut we have several local and regional wine trails that Starbucks could benefit from as well as dairy farms that produce local cheeses. I know it would be great to walk up the block after work and decompress after a long day with a glass of cabernet.

I think this re-brand venture could work for Starbucks if executed properly.  Prices should be reasonable. In order to compete with other restaurants that offer happy hour wines should be priced between $5.50 and $7.50 a glass and beers between $5.75 and $7.50 a glass. These prices offer affordability and class without being overpriced. The aesthetics have to be a combination coffee and wine bar. No one wants to feel as though they are sitting in a coffee shop waiting for an Oktoberfest when a soccer mom and her brood stroll in. Starbucks might consider using of more plush love seats and chairs or higher tables and chairs to give more of a bar/lounge feel.

Regardless, Starbucks has a lot of mull over as the attempt to brew coffee, serve alcohol and appeal to the happy hour crowd.

This isn’t your Mother’s Social Network

 Unlike a lot of Mom’s, mine is not on FaceBook. In fact, my mother’s FaceBook consists of cutting out newspaper announcements and either mailing them to me or leaving them on my dresser from when I’m home to visit. Little does she know that I am already aware that so-in-so is having a baby, or that what’s-her-face already got married.  When she exclaims, “how do you know that already?!” I simply say: “FaceBook.” Yet, it isn’t just FaceBook that feeds the need for instant communication.

The internet has provided a whole new set of media rules. It is not just print, radio, TV and billboard anymore. Now it is networking sites such as Twitter, Skype, Friendster and Youtube. Ten years ago it wasn’t “do you have a business card?”  It was “do you have a website?” Viral and social media have taken over traditional forms of media quicker than anyone would have predicted. Recently, newspaper websites such as USA Today’ s top picks, have been using video plug-ins to broadcast various stories; not only does it save on space but takes less time to listen to a story than to read it.  Major corporations are using social media to expand their brand identity and awareness. Big Y (a northeast coast grocery chain) is on Twitter and has 277 followers, Dunkin Donuts is on FaceBook and has more than 1 million followers, and P&G has a section where you can watch video about their various products. Social media makes it possible for push/pull advertising that occurs within seconds and it is all in the capacity of the click. 

Some may say social media is solely a form direct response and has nothing to do with branding. However, because interactive media has blown the lid off of the very idea of what branding is they are not that far apart. Thanks to Interactive media and social media, brands can be direct sellers and have immediate, instantaneous contact with their consumers and thus resulting in extensive impulse buying and more revenue. For example the musician and rapper Eminem had a video on thisis50.com where he was wearing a white, G-shock watch. That is free advertising for G-shock, and the video pulled in over five thousand plus viewers. Seeing the watch on Eminem then drives viewers to the G-Shock website. Then when one person buys the watch, he or she might go on Twitter, FaceBook etc to share their costumer experience and BAM! 1000 more watches sold. Because consumers actively seek out what others think about various products Social and Interactive Media are crucial to a company and its brand if it wants to continue growing and expanding within the market.

Filling the Gap

As many of you know GAP was under extreme scrutiny from their customers this week as they unveiled the stores news logo via FaceBook and Twitter. Thanks to the power of technology the logo-nastiness spread faster than Britney Spears goes through husbands and I must say I was not a fan. The logo came across as cold, boring and quite frankly just plain ugly. Not at all what GAP represents. The reasoning behind the change was to “inject new life into the changing brand.” After 41 years how much change does the company need? According to the website, in 2009 the company operated 3,095 stores compared to 3,076. By the end of 2010 the store expects to close about 110 stores and only open 65 new. Simply put 35 stores will be left in retail dust. Hurting for revenue anyone?

GAP failed for a number of reasons. They didn’t let consumers know ahead of time that they were even thinking of changing the logo. Loyal customers found out much thanks to the web. Plus there was no customer input, no test group, nothing. Another reason, Brand Identity: When customers are loyal, they are loyal. Because people often form emotional attachments to brands a sudden change can be like a painful break up, especially if it comes out of left field. It is often met with shock and disappointment. Finally, this change was drastic to the tenth degree. I guess GAP didn’t considered a small change, they figured go big or go home, well GAP you clearly went home.

GAP “continuously looks for ways to connect with their customers” (http://www.gapinc.com) well they certainly connect with customers this week. But could it all have been part of a large plan?

GAP’s branding snafu reminded me of the unveiling of New Coke back in 1985. The tag line was “the best just got better.”Not according to the public who was outraged with the new formula and the new taste. Allegedly, Coke changed the formula to taste more like Pepsi. Needless to say it didn’t last long. Coke pulled New Coke from the shelves and went back to its original version. GAP is now asking consumers for their logo ideas. Websites have popped up with “create your own GAP logo,” with some sites clearly mocking the company and others actually attempting to help it. The makers of this new logo and GAP, Inc, did do something right, they got people talking.