Tuesday, November 9, 2010



First Starbucks rolled out Via, a line of instant coffee that threatened to undermine the company’s core identity as a premium coffee vendor. Then came the “stealth Starbucks” stores, locations stripped of the company name and logo meant to blend into their neighborhoods. Now Starbucks, a name synonymous with “coffee” in America, has started serving beer and wine in one location and may eventually serve alcohol in thousands of stores worldwide. And all of these developments have happened in little more than 18 months.


All of this reminds me of two brothers in Ohio. One owned a hardware store and the other owned a grocery store. The two stores were across the street from each other and in time them developed a friendly competition that grew into an unfriendly relationship. The brother that owned the hardware was not happy when his brother with the grocery store started selling motor oil for below his cost. Finally the brother with the hardware started selling bananas in his hardware way below cost. The hardware brother became known as the "banana man" for his marketing move. Now that Starbucks, the coffee people of America, is selling wine. How will associate this with the Starbucks famous image? Are they a wine shop or a coffee shop? Why not do what you do best and stick to it? Is the economy making institutions like Starbucks changing to survive? Are tanning beds and a coin laundry service next for the Starbucks venue? Stay true to your trade!





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