Tuesday, September 27, 2011

How Starbucks Transformed Coffee From A Commodity Into A $4 Splurge

Stanley speaks here about the importance of vision. It is a theme that can't be emphasized enough. Nike had vision. Starbucks had vision. Stanley shares an insider's view of the Starbucks's history, and it's interesting to learn that even Starbucks CEO Howard Scultz didn't fully realize his company's potential for growth. But he had a vision, and he, like the leaders of Nike, were relentless in bringing this to fruition and using it to craft the brand experience. Rigor in matching the vision to the brand experience is essential, and that must define every brand touchpoint. As Stanley says, "No one is going to pick up your product and try it if they don't want to buy into the experience." The man has vision.
Stanley, how would you define "brand"?
A brand is an entity that engenders an emotional connection with a consumer.
[It is a feeling that your customers get]

What do you mean by an "emotional connection"?
Consumers emotionally connect with brands when the brands repeatedly provide something that the consumer wants, desires, or needs.
Let's return to the moment a person first realizes they have to make a choice between coffee brands or soda brands or shampoo brands. How do people really make choices? Do you think people are conscious of the processes they use?
I think the best brands are those that create something for consumers that they don't even know they need yet. A coffee brand like Starbucks created something people didn't know they needed. Same with Nike. Who knew we needed a high-end performance running shoe? I think when people are surprised or delighted by how a brand can change their lives by just making it a little bit better--or a little bit more fun or a little more performance-oriented--that's when they start creating a connection with that brand.
The concept of a person not knowing that they need something is a fascinating one. Clearly, there were millions of coffee shops all over the world before Starbucks launched its particular brand of coffee shop. How do marketers create desire for something that consumers don't know they need?
I think great brands create the "end state" first. When launching a new product, marketers are not very specific about how a product actually works. They express more about the result. They talk about what you will feel or what you will be like if you choose to engage with that brand or that product. The Apple commercial in 1984 was a great example of this. There was very little about the product in the spot. It was all about the aftereffect of the product.

Source: Fast Company, Debbie Millman
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