[intercept marketing taking your product to the streets]
Working in Washington DC provides numerous outlets for a java fix so I often find myself in coffee shops either for a pick me up, Internet access, or a quick meeting. With Starbucks in the news suffering from declining revenues and nearly 600 announced store closings (none in DC) my interest was piqued, just how many Starbucks locations are near me? Well a quick visit to the locator and I soon learned that I am serviced by no fewer than 91 convenient locations within 5 miles. This, of course, does not take into account the numerous delis and hotel coffee bars also selling Starbucks coffee.
While in a new Dunkin’ Donuts yesterday (which by the way had a line out the door), I was reminded that density does not equate to success. There seems to be anti-Starbucks sentiment abound. What played a key role in their success, the air of exclusivity, now seems to be playing a role in their pull back. Given the economy is it almost snobbery to be seen with a Starbucks cup these days?
Dunkin’ Donuts on the other hand seems to be aligning itself with this cultural shift. Here is Washington, they have committed to opening 80 new stores in the metro DC/MD/VA area. A new menu offering of egg-white flat bread sandwiches also seems to be doing well, although I will stick to the local deli making fresh egg not microwaved sandwiches. They have a great opportunity to really play out the “America runs on Dunkin’” campaign here in Washington. I would love to be involved in taking that message to the streets.
As an experiential marketer we can influence behavior and move consumers to action – but the brand has to deliver. Customer service, high quality products, pricing and fast service is what will keep them coming back.
August 24th, 2008 at 7:42 pm
[...] Read the rest of this great post here [...]
August 25th, 2008 at 10:35 am
Great post, I have been covering the Starbucks, DD, experiential saga for some time on my blog…I look forward to reading more from you!
August 31st, 2008 at 9:47 pm
Two of my favorite things, great post.
September 4th, 2008 at 11:54 pm
Interesting topic. Thanks for the info.
September 5th, 2008 at 12:24 am
Dunkin Donut’s “Fritalian” commercial was very successful in encouraging the snobby Starbucks stereotype. I thought it was very clever and funny on their part. Great blog entry!
September 5th, 2008 at 1:17 am
I have to agree with your take on Starbucks. There definitely seems to be a backlash.
September 5th, 2008 at 12:23 pm
Oooh, your lens makes me want a good latte or espresso. Check out some exciting ways to get to your fav. coffee house at http://www.squidoo.com/2wheelers
September 5th, 2008 at 2:59 pm
I was just thinking about Dunkin Donuts the other day when I saw an ad. I haven’t seen a single advert for them since the old “time to make the donuts” days. It would be kind of cool to see one again (the donuts, that is). When I was in elementary school my mom always went to Dunkin to get donut holes for my class parties. Unfortunately, I think all of the stores in the Denver area closed years and years ago. Very sweet to see them making a come back.
Starbucks, I think, is suffering from such over-saturation in the market that they’ve become passe and generic. The name just doesn’t have the same cache and value that it a few years ago.
September 5th, 2008 at 3:13 pm
Starbucks is simply too big for their britches and too proud of themselves.
September 5th, 2008 at 4:28 pm
My dad would be lost without his Dunkin Donuts. Great story!!
September 5th, 2008 at 8:01 pm
Great post on marketing and the importance of not just having a brand, but having the quality to back it up.
September 5th, 2008 at 10:52 pm
Starbucks used to my favorite coffee shop. I spent a lot of money on their coffee. Then more Starbucks were built within 2 blocks of each other in my area and I wondered how wise that was because they weren’t the only coffee shops in the area. Then I moved and there was no Starbucks for a couple of years. One was finally built and I quickly went over and bought a large cup of coffee, only to find out that the price had increased over $1.00 for that cup of coffee. That cured me of Starbucks. Haven’t been back since. For me, they crossed the line.
September 6th, 2008 at 5:30 pm
I have a coffee maker and an expresso machine. I can also bake from scratch. Why on earth would I want to be a regular Starbucks customer; they overcharge worse than most places — exceptions are designer loose tea shops.
As far as just doughnuts, I can’t believe how popular Krispy Kremes became. To me, they’re just glazed doughnuts, very plain jane. But people gush over them, while I thought they tasted just like every other glazed doughnut I’d ever tried — better than nothing, but surely not as good as chocolate filled, or chocolate glazed with chopped nuts. I even had to look up their name in Google because I couldn’t remember it, that’s how not-impressed I am with them (and the same with Starbucks).
Places like Starbucks and Krispy Kreme market to snobs and snob wanna-be’s, which works well in milk-and-honey times. But those times are over for now, so marketers are going to have to study marketing trends from depression/recession times until things pick up.
September 7th, 2008 at 2:07 am
Enjoyed the sampling test and experiments. Keep up the good work.
September 9th, 2008 at 2:49 am
I left a comment yesterday, or this morning. Either it’s still in moderation, or maybe I wrote something someone didn’t like (since I bake and make my own coffee).