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"Starbucks needs to do some corporate soul searching. Take a look at American Express. It doesn't sell credit, it sells membership. Coca-Cola doesn't sell soft
by Frocer 17y ago
"Starbucks needs to do some corporate soul searching. Take a look at American Express. It doesn't sell credit, it sells membership. Coca-Cola doesn't sell soft drinks, it sells refreshment. Starbucks, what do you sell … besides coffee? What do you stand for? Ambiance? Community? Social consciousness? Until you figure this out, count on losing both customers and shareholders."
This is totally wrong. In my opinion, Starbucks knows exactly what they stand for. They don't sell coffee, they sell a "lifestyle". If Starbucks were just a shop that sells coffee, it would've never become the giant it is today. People go to Starbucks to experience the hip, yuppie, modern ambiance. Not just for the coffee.
- mediaman 17y agoIndeed, what's so curious about this article is that Starbucks was the poster child for selling the experience versus the coffee, and has been used in many case studies to demonstrate exactly that point.
- derefr 17y agoI think the idea is that, basically, the Starbucks "experience" is what city life in general now feels like for these people. Starbucks is no longer differentiating on personality, because now everything else is just like Starbucks. they need a new schtick.
- lsb 17y agoExactly; and ironically enough, more indie coffeeshops have opened up recently precisely because Starbucks set their price point expectations so high that they get good margins out of it, versus $1 drip coffee.