Starbucks: When a Brand Loses Its Brand

The Seattle Times reported today that a newly renovated Starbucks is opening… without the Starbucks name. What brought about this change? According to Tim Pfeiffer of Starbucks, the new name gives “a community personality.” Of course this is a marketing tactic, but I think it speaks to something deeper of the issues surrounding the brand itself.

During its expansion, Starbucks has passionately pursued establishing brand and image. One of the best references for this is the wonderful lecture Bryant Simon gave in regards to the depth that consumer choice makes in establishing personal identity, specifically with the Starbucks brand. Starbucks has hired the best in the industry for marketing, such as Scott Bedbury in the 90’s, known previously for his work at Nike. Crafting an ‘affordable luxury’ image for themselves, Starbucks poured millions into promoting and maintaining this idea. However, with increased competition from McDonalds and a recession, Starbucks is forced to retreat from their luxury status. Starbucks most recent ad campaign focuses on crafting a sense of quality that isn’t offered by others:

However, with this pilot store opening up, Starbucks’ internal studies may have revealed something painful for Starbucks… perhaps that their brand is so etched into consumers minds that the expectations and ideas conjure up an upscale aloofness (rather than ‘affordable luxury’) that consumers don’t want to be a part of. Completely devoid of any Starbucks logo or name, all products will be branded “15th Ave Coffee & Tea,” even retail coffee bags. While Starbucks PR says that it’s to create a community feel, it also establishes that the Starbucks image isn’t cutting it these days. Does the removal of a brand name from its product signal that the image is so off track that the only way to resolve it is to remove it?

Store Renovation Photo by Slayer Espresso