Starbucks Going Stealth
Are big corporations sensing a new marketing trend - a growing preference among consumers for local businesses? According to the New Rules Project, Starbucks is "unbranding" three of its Seattle locations in an attempt to make them appear as locally owned businesses. New Rules says this is part of a corporate trend to "imitate and co-opt local-ness." This is a significant departure from the normal policy of large retailers to keep their image, or brand, precisely the same in every location. Fast food chain buildings and menus, for example, are darn near identical wherever they happen to be. If a savvy outfit like Starbucks is breaking with that trend, what does that mean?
Is "local-ness" now a selling feature? Has the reliable predictability of national brands become a disadvantage? Or are corporations attempting to improve market penetration by keeping branded and unbranded stores in the same location? My guess is the latter. If the corner Starbucks has 25% of the market, why not put a phoney independent, "Jake's Java," (my apology to Jake if there is a real Jake's Java out there) on the opposite corner and snag an additional 25%? A different question, albeit related, is whether they can get away with it? As a consumer, I am usually looking to enjoy something with a local flavor - especially when traveling. But how will I know that Jake's last name is really "Starbuck?"
I'd like to hear from the marketing experts out there on this one.
1 comments:
Ed, this is an interesting article. It demonstrates the fear that the large chains have about loosing business to smaller local stores. Maybe the day of the mega companies are finally seeing their demise. It may be the right time for the Mom & Pop businesses to begin a new renaissance. People hopefully are starting to see that doing business locally will help their own economy. With increased business for the local companies there will be an opportunity for more small boutiques/stores & restaurants catering to the local residents to compete.
Many of the services would be available with the personal touch rather than the coldness of the large corporate machine. While prices may be lower at some of the larger stores, once they push out the local stores the prices will raise again which will hurt the residents in the long run.
Ed thank you for this article. If you have any responses for me feel free to contact me at:
Steven Ridnor
Rembrandt Insurance & Annuities
Westlake Village, Ca
(888) 498-6444 x-101
SDRidnor@gmail.com
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