Too much Starbucks? Print E-mail
Friday, 23 March 2007

This morning I read an article about the increasing competition facing Starbucks, particularly from Dunkin’ Donuts. Even though Starbucks seems to reign over the caffeine-dependent, other coffee providers are stepping up and offering a better brand of coffee but at about half the price.

I admit I do enjoy my White Chocolate Mochas from Starbucks, but Dunkin’ Donuts has a pretty good cup of Joe too. It runs a close second in my book, particularly when I don’t feel like spending $4 for a cup of coffee. Dunkin’ Donuts also is introducing a new advertising campaign this spring and a new spokeswoman, popular TV chef and personality Rachel Ray.

An interesting note in this article is that Starbucks, the company that single-handedly made $4 coffees acceptable, is wondering if rapid growth will dilute the brand, leaving ample space for competitors.

Can there be too much of a good thing? Is a Starbucks on every corner going to leave us searching for something more unique? Starbucks is poster child for brand building, but when is a brand saturated? Share your thoughts on this business model and marketing challenge. 

Holly Fisher
Electronic Media Editor

Comments (2) >>
...
written by Bob Slogin on March 25, 2007

Rachel Ray is hot hot hot.... Perfect to serve up a hot cup of Dunkin Donuts coffee!

Brand Management....not coffee
written by Steve James on March 23, 2007

Starbucks is just an awsome brand, not an awsome cup of coffee. In December they sold bags of "Christmas Blend". What the heck is that? So the ride up has been spectacular...but now what? They sit on a pile of cash and cannot possibly dream up anything else to do with a burned bean while competition mounts. HHhmmm... Looks like it is time to diversify. Sir Paul McCartney and the new record label may be one once such way to leverge the brand.

Stranger things have happened. Kiss (the rock band) has opened the coffee house in Myrtle Beach, SC at Broadway at the Beach. (I kid you not - http://www.kisscoffeehouse.com/) Kiss now has their own brand of coffees.

If Kiss can make coffee, surely Starbucks can make music. Trends change.

This has nothing to do with coffee or music. It is pure brand marketing and brand leverage. Dunkin Donuts missed that boat a long time ago. Is it too late for them? Unless they have compeletly changed their thinking at the top, yes, it probably is. For a brand like Dunkin Donuts to say "Hey, let's compete with Starbucks!" means they are followers.

I am not sure if Kiss selling coffee shows brand leadership, but they are cetainly leveraging their name just like Harley Davidson does - by putting it on anything it will stick to.

Starbucks could take over the free world right now. It could run for President. Again, the entire conversation has nothing to do with coffee, donuts, music or motorcycles. It is about riding one large wave of brand popularity and extending your 15 minutes of fame to 30 minutes.

Shareholders love that.

Steve

Write comment
quote
bold
italicize
underline
strike
url
image
quote
quote
Smiley
Smiley
Smiley
Smiley
Smiley
Smiley
Smiley
Smiley
Smiley
Smiley
Smiley
Smiley


Write the displayed characters


 
SCBIZ Book of Lists
SC Launch!
CRBJ Cross Promo
SCBIZ Daily
Who's Who
SCEDA
DeptofCommerce
Orangeburg County Economic Development
Santee Cooper

SCBIZ Login

In order to post to the SCBIZ forums, you must first register or login below.