Brewing Thoughts About Brand Fatigue
A Reuters news story posted February 25th detailed a leaked Starbucks corporate memo from coffee Chairman Howard Schultz on his perceptions of the “watered down” Starbucks brand. The concept got me percolating! While the country is captivated with the gossip filtering from the Anna Nicole and Britney sagas, I find myself equally mesmerized by the concept that Starbucks’ homogenization has led to the “sterilization” of the Starbucks experience and opened up the door for the latte-fast food competition in their market.
In an attempt to grow quickly, Starbucks’ brand has become commoditized so sufficiently that even McDonald’s now is considered a competitor. To add insult to injury, a recent Consumer Reports study (http://www.msnbc.msn.com/id/16951509/) rated the quality of McDonald’s coffee above that of Starbucks. Who would have guessed that tidbit five years ago when buying a $4 venti skim latte?
Why do I share this cup of knowledge? It is a wake-up call to all of us to think carefully when we launch our brands and expand the scope of our influence. Make sure that your unique educational experience is not lost to a mass produced look and feel, ensure that your logo doesn’t overshadow your institution, and guarantee that your brand and messaging stay true to your roots. Also, periodically review your list of competitors both from a quality standpoint and from a consumer standpoint. Although you may scoff at those you view as lesser competitors, periodically ask yourself: do students value your superior product and view an education from your institution as money well spent?
The article concludes by quoting again from Chairman Schultz’s memo: the ‘“current state of affairs” had allowed competitors “to position themselves in a way that creates awareness, trial and loyalty of people who previously have been Starbucks customers. This must be eradicated.”’ A parallel to a college or university’s current students, alumni and donors can be made. Is your credibility with those closest to you a mug half full or a mug half empty? Maintenance of relationships can be time consuming, but it is much easier than rebuilding loyalty or trying to attract new customers. Just ask Starbucks.
(For full disclosure purposes, I have to admit that I am addicted to Starbucks coffee, and even my five-year old daughter can rattle off her favorite drink: “kid’s hot cocoa barely warm with extra whip.” Chairman Schultz—you had me at “hello.”)