Despite its iconic status, Starbucks has struggled of late, stung by disappointing quarterly results and closing some 600 stores. Where did the coffee giant go wrong? AND, do they have an opportunity to get back to the brand's heritage and core values? 

If you're like me, Starbucks had initially been a 'coffee treat' - that is, I would cherish those moments where I would opt for a $4 cup of coffee over having to buy a gallon of milk. As time went on, I got really hooked on the coffee AND the Starbucks culture - an environment with an amzaing brand experience that I wouldn't get from driving through McDonalds for an iced coffee. But I sense that Starbucks has moved beyond their initial brand experience — offering a bloated storefront with retail goods along with breakfast sandwiches to entice new customers.    

What can we learn from Starbucks early legacy and success?

Simply this, when creating a differentiating brand, insure that your entire company understands what your brand ultimately promises to customers. A brand promise is the backbone of any marketing strategy. Starbucks differentiated themselves by offering “indulgence and escape” not just “expensive gourmet coffees.”   

Delivering a memorable and relevant experience will drive customer loyalty and ultimately create brand ambassadors — people who not only buy from you but also virally testify to the benefits of your brand to others. Building a relevant experience is critical if your company is vying for optimum growth — even during economic fluctuations or competitor resurgence. 

Lastly, how do you create these experiences?

The answer lies in understanding what is important to customers. What information do they seek? What is valuable to them? What can you do to make their life easier? By understanding your brand and how it resonates with customers, you can create experiences rather than just selling products. 

Resources

Building Brands: Unlock Your Potential

Building Brands and Believers: How to Connect with Consumers Using Archetypes by Kent Wertime

Brand Channel

Best,

Denice MacDonald