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January 13, 2006
Starbucks Goes Hollywood?
Dear Howard:
Are you OK? I'm worried about you.
I knew something might be wrong when you first proposed the Hear Music Coffebar project for your Starbucks stores in 2004. Yes, innovation is crucial but I and about a million other customers knew immediately this burn-your-own-CD project would fizzle because it's not part of your core business.
Now we hear you have cozied up with Hollywood. The word is that Starbucks plans to promote movies, sell DVDs and even get involved in film production. Huh?
Selling CDs of store music from subtly-placed racks is one thing, but partnering with Lions Gate's films seems like you're Pulling a Deion. I've named that to commemorate when pro athlete Deion Sanders tried to play both professional baseball and football; he diluted his football career and turned out to be a not-very-good baseball player (because he was too busy being a football player).
The Wall Street Journal says you plan to advertise movies on cup sleeves, offer trivia games on chalk boards, and feature words from films in the pastry cases...
Have you fallen down one of those magnificent staircases in company headquarters? How does this movie stuff enhance the Third Place customer experience? Now my head hurts.
We know Wall Street expects you to maintain your rocket-ride growth. I imagine the Street, like the Al Pacino character in The Devil's Advocate, is smiling while it holds a knife to your throat. "Go ahead, secretly add Oxycontin to the espresso," the devil whispers in your ear as the knife's edge presses against your carotid artery. "It'll drive comps at least 10 points."
Perhaps it was your 2004 quote in BusinessWeek that indicated the first sign of trouble: "We are [...] much more than a coffee store. We are becoming alternative distribution."
Howard, remember this quote?
The underlying foundation of this company is not about growth. It is about the passionate, soulful connection we have with our people, [and] our customers...No matter how many avenues [we pursue], and now matter how much we grow, our fundamental core values and purpose won't change.
It's from your book.
Sincerely,
A loyal customer
Other blogs that reference Starbucks Goes Hollywood?:
» Starbucks and Hollywood? from :: cawleyblog ::
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» Starbucks - one step closer to being a straight up multinational pimp from Canuckflack
I was puzzled by the news that Starbucks had struck up a distribution deal with Lions Gate fims - as was Church of the Customer. The marketing strategy associated with the deal seems suitably low-key for the coffee chain, but I can't help but think the... [Read More]
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» The Buzz of the Starbucks Bee Movie from Idea Sandbox Blog
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» Mainstream-Coffee from marketing-blog.biz
"Kaffee trinken" ist - zumindest für mich - gleichbedeutend mit Entspannung, Genuss, Ruhe. Nie im Leben würde ich mit einem "Coffee-to-go" über die Strasse hampeln oder mich während der Direktindielinkeherzkammerzufuhr des kleinen Gepressten von Filmtrail [Read More]
I predict that one day when you mention the word Starbucks someone will be referring to their car. GM is already doomed but this will truly change the auto industry.
Does my new Starbuck G5 come with a coffee holder?
He can't be serious!
Okay, I'll dance...
This is what I just posted on the Starbucks Gossip site...
What's all the hubbub? What's different about SBUX promoting a feel-good movie than any of the other projects they get involved with?
SBUX promotes book drives, community clean-up events, new products, a credit card, a gift card, new beverages, a whole assortment of CDs, partnerships with other folks who carry SBUX coffee... yada yada yada...
And all of this information the barista has helped to deliver time and time again... ON TOP of their everyday duties of hand-crafting beverages and trying to deliver the "Third Place" experience for customers.
Partners know when they are before a customer who is receptive to a message about any of these - and those who are just there to get their coffee and get out.
Yeah, it's a different venture for SBUX. But so was opening a restaurant called Cafe Starbucks. So was putting video return boxes in-store for Kozmo... So was Strawberries and Cream Frappuccino. All these things have been tested to see if/how/what works and connects with customers and provides value. Some things stick... other things go away.
Has SBUX ever ever said it's in the pure coffee business and nothing else? No. Always 'in the people business' serving coffee.
So, this is another way to see how far the brand can stretch in providing something of value to customers.
If customers don't like it. They'll stop doing it.
I just don't see much customer value in this partnership. I see a lot of financial value to Starbucks - THE COMPANY - but very little value to customers.
Starbucks - THE COMPANY - will receive an undisclosed percentage from box office sales, DVD sales (even at non-SBUX locations, and merchandise sales from the movie. That's potentially millions and millions of incremental dollars going the SBUX bottom-line.
While Starbucks customers will receive the pleasure of reading placards promoting the movie next to muffins in the pastry case, reading trivia questions on the Daily Offering board, reading quips on cup sleeves, and engaging in forced conversations about the movie with employees behind the counter. Not sure I see the customer value there.
If "Akeelah and the Bee" is truly a good feel-good movie, it shouldn't need Starbucks to create awareness. Dig?
From a financial POV, I clearly see the value. But from a customer POV ... I struggle to see the value.
Hmmm...this reminds me (sadly) of why I avoid Amazon these days. I'm a book addict and there is just too much "non-book" noise on the site - Buy this! Buy that, Here's something else! Irritates me.
Sounds like Starbucks may be headed down the same noisy rat hole. I go there for the atmosphere - not commercials and sales pitches. Complementary marketing - such as having the CDs available for the music they're playing - Great! All part of the ambience (which I may want to create at home.) Bombarding me with tons of other stuff. Terrible idea. I get enough of that elsewhere. I'll leave.
What's all the stank about? I think there are too many marketing traditionalists out there!
Starbucks deserved kudos for taking risks and innovating where others wouldn't dream to. Lets call this Akeela and the Bee movie campaign for what it is - a hybrid cause-marketing campaign filled with lots of positive emotional captial and edutainment at point of sale.
Who doesn't want something interesting to read or play for when chilling at the THIRD PLACE? Bet you a lot of their average customers do...Reading and drinking coffee go hand and hand as the ritual goes...or think about crossword puzzles. And to their defense, Starbucks has long supported literacy as a cause and issue for their company's philanthropic dollars.
Further, movies are increasingly proving their salt as meme-carriers for provoking and stirring cultural and social change (think Bowling for Columbine, What the Bleep, ScaredSacred, etc...). Almost every documentary film today is expected to have a clear social marketing and outreach plan in order to secure funding.
Sure the execution of this campaign is bit over the top (borders on the saccharine) and could be refined with a bit more authentic gravitas...But lets give credit where credit is due.
