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Is Starbucks Diluting It’s Brand with Via?

October 7, 2009 @ 11:07am

by Mason Razavi

When Starbucks announced that they are launching their version of instant coffee, a thought went through my head: Good job Starbucks, way to take the “luxury” out of “luxury brand”. Known to many as providers of premium coffee, and to others still as simply carrying a premium price tag, entering the instant coffee market seems like a diversion from Starbucks’ overall plan of being the top coffee vendor in the world.

Love ‘em or hate ‘em, it’s become trendy to slam Starbucks by making a snide comment on paying $5 for a cup of coffee. I always found that statement slightly inaccurate; after all, can a triple grande non-fat, no whip, peppermint zebra mocha (my old supervisor’s drink of choice) really be considered just another cup of coffee?

Still, Starbucks has made efforts to downsize their organization and readjust their strategy to provide some lower priced options. Most notable was that they began to offer breakfast combos including a hot drink and a meal item for around $4. Now with their instant brew, Via, Starbucks takes another step in becoming a value-driven retailer.

One has to wonder how much this will impact Starbucks’ image in the long term. I once read something intriguing in a book on management and motivation about how you should play to your strengths instead of trying to be everything to everyone. Stick to your guns, do what you do best, and get even better at it. In another book I read that was geared to songwriters, the author very specifically and emphatically noted that it is paramount to make 1 or maybe 2 styles your own, and not try to become the be-all and end-all of songwriters who can write beautifully in every style. To that end, is Starbucks diluting it’s own brand by trying to be everything to everyone?

After all, people don’t drive BMWs because they’re practical, they don’t buy Tiffany’s because they’re affordable, and they certainly don’t wear Diesel jeans because of some “everyman” sort of image. People certainly don’t visit Starbucks for affordable, practical coffee buys. Most people walk into a Starbucks knowing what it is and expecting to spend a few bucks.

With the economy being the way it is, it’s certainly not a bad idea for Starbucks to reposition themselves as value-based retailer, or at least to have those options, and I trust that greater minds than mine are concerning themselves with the long-term affects of such decisions.

For what it’s worth, yes, I tried the taste challenge, and yes, they did taste remarkably similar. And no, unfortunately I’m not getting paid to say that.

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You spent how much?

June 1, 2009 @ 8:08pm

Updated — July 6, 2009 @ 5:28pm

by Mason Razavi

Let me start by saying that as a general rule of thumb, I’m not the type that tends to cling to a brand name. For example, I have a friend who will only buy Sony electronics, Ford cars, and Oakley sunglasses. My nose ironically stuck in the air, I often considered myself to be above this seemingly baseless snobbery. Sadly, I recently found out that I too am privy to the expectations, vision, and lifestyle associated with high-end products…which is why I spent about $200 on a pair of Ray-Ban sunglasses. A pair of Ray-Ban Cockpit RB3362’s, to be exact.

Why? I had never before spent more than maybe $20 on a pair of shades before, yet for years I had been attracted to the allure and understated class of a pair of Ray-Ban aviators. Finally, I had some disposable income that I could feel less guilty about throwing away on a pair of sunglasses that, without the little logo on the right lens would probably be worth about $25.

So I did it. They’re awfully nice, and come with a little cleaning cloth and case, also stamped with the classic logo.

Ah, the power of branding.

Those $25 shades that work the same as their $200 Italian counterparts are missing one thing: a brand. Much more than just a logo, a brand allows a company’s products to transcend the ordinary to become associated with a lifestyle, an exclusive club, or perhaps just a sense of endowment (no jokes about overcompensating. This is a family blog).

For me personally, I don’t care if other people on the street see them and think “wow, this guy must be some hot S.O.B.”. Rather, it’s to satisfy my own needs, my own desire to sport a pair of sunglasses that have achieved legendary status.

For what it’s worth, I showed my friend. You know, the one who’s all about Sony, Ford, and Oakley? According to him, these look like $10 sunglasses. Go figure. I guess the understated isn’t for all of us.