08/04/2008 08:21:40 PM (1)
Homogeneity and it's close relative, consistency are cited as critical components of brand success.

Many analysts tell us that brands have to deliver consistent experiences if they want succeed and that homogeneity is what consumers want and desire.

It's therefore interesting to read about the demise of Starbucks in Australia.

According to the BBC..


"The mighty Starbucks coffee empire has been handed a heavy defeat by thousands of small Australian cafes in the fight for a nation's taste buds.

Eight years after it began selling its espressos and frappucinos in Australia, the US giant has succumbed to powerful financial and cultural pressures and has closed 61 of its 85 shops across the country.

Savouring a morning cup of coffee has become a ritual for millions of Australians - yet one that Starbucks failed to capitalise on, in spite of the way the chain had become a global cultural phenomenon during the 1990s.

"It was maybe too standardised," says Michael Edwardson, a consumer psychologist in Melbourne.

"Early on it was unique and different, but as it became a global chain the standardisation made it lose some of that coolness and edginess. It was quickly copied and lost its lustre.”

What does this suggest for brands?

Perhaps brands need both consistency and inconsistency; they need to flex and play with both elements. It's clear that consumers today probably need a mix of both. Certainly parts of brands need standardized elements, but they also need to surprise and delight their customers. They need to get ahead of the curve, rather than behind it.

This is incredibly demanding and challenging for brands; the idea of staying ahead and bringing surprise to consumers depends on having great intelligence and brilliant execution, not to mention the investment required to support change.

Too often, brands sit back and wait too long to make changes. Instead of getting ahead, they wait until the last minute to do something. They try to get away for the longest possible time without making changes.

As this story shows, culture has the power to move much faster than brands. Brands need to recognize the rapid pace of change and invest not just in the intelligence to stay ahead, but act on it before it's too late.


Posted by Ed Cotton
Tags: starbucks (10) branding (53) marketing (13) culture (8)

Comments
the 3 mistakes of Starbucks in Australia
1. Too easy to replicate- there are 3-4 chain stroes with exactly the same menu, at a similar price point in similar locations, it all just became the same 2. Shitty service - too keep costs down they employed largely young unskilled or student labour, basically people who turn up get paid and go home. Service quality is not a priority in the stores. This is a problem because it means that in most stores the experience was awful, only a handful of stores provide a level of service that would make a customer CHOOSE them over a rival 3. No community connection - Starbucks made no effort to connect with people in local communities on any level. Promotion was pitiful and feedback i have recieved is that consumers felt they thumbed their noses at people in the community. Many US lead compaines have become successful in Australia without augmenting their products simply be getting involved in communities and showing people they appreciate their support and patronage.
Posted by Mark on 08/09/2008 05:24 AM
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