Now that’s stretching it, Starbucks

Starbucks has been in the news quite a lot recently… Howard’s email on why the stores don’t have the same “brand love” going on they once did… problems with opening the Forbidden City site (which I believe is really wrong!)… and now out of London… Starbucks is launching its own record label, Starbucks Records, and top names in music are already being linked to the venture, possibly including former Beatle, Paul McCartney.
The brand says it will sign established and new artists to the new label, which builds on in-roads into music that the coffee chain has already made. The chain has already released albums under the label Hear Music, which licensed songs from other companies… Under the new label, Starbucks Records, the chain will be able to pick and choose artists and music that adhere more greatly to its brand identity… Starbucks has opened four Hear Music Coffeehouses where visitors are able to purchase music and burn it to CDs.
Source: Joanne Payne, Brand Republic 13-Mar-07

Now, I understand the CDs have been a hit in the stores. I’ve picked up two myself. But when does a coffee company decide to go into music? And extend the brand name into this arena? Has no one over there studied positioning?I quote from the master Al Ries “Customers want brands that are narrow in scope and distinguishable by a single word, the shorter the better.” Coffee. Music. Only one, Starbucks.

I’m not saying Starbucks the entity cannot go into music. Hear Music should become that brand and supported with dollars rather than stretch Starbucks to try and mean two things in people’s heads… because it is not going to. And I predict, more people will question the quality of the coffee (are they focussing on this at all?) when they start seeing music of Starbucks artists.

Who do you think you are?

Two great campaigns launched last week…

First, New Belgium Brewing, an employee-owned brewery that’s environmentally conscious has launched its first national print campaign. Three of seven ads launch in 16 states this month, from Chicago to California and Montana to New Mexico, using the tag line: “Follow Your Folly. Ours is Beer.” They’ve created a great site followyourfolly.com where you can watch videos and learn more about saving the environment. Cultivator Advertising & Design created the campaign.

Gillette and NASCAR have a partnership called the Gillette Young Guns featuring drivers Kurt Busch, Carl Edwards, Jamie McMurray, Ryan Newman and Jimmie Johnson. Driver Kasey Kahne is the newest member of the Young Guns so they’ve created a new ad “Prank Revenge” that promotes the Gillette Fusion Power Phantom and is definitely on the fun and funny side. The ad will run exclusively during NASCAR programming. BBDO New York created the ad. Revolution sends kudos to both agencies.

When was the last time you used the yellow pages to find a company or product… AND when was the last time you used a search engine to find out something? Is your current web site helping you or hurting you?

On this day…

On this day — March 8th in 1930, Mahatma Gandhi began the campaign of civil disobedience in India. Historically, 32 years later The Beatles performed for the first time on the BBC in Great Britain. Big day for revolutions and cultural evolutions.

There 298 days remaining in 2007… what do you plan to do with yours?

Keeping your creative fire burning

I found this jewel in the last Arizona Artists Guild newsletter and wanted to pass along.

Keep an Illustrated Journal By Jill A. Brownley
Create and keep an illustrated art journal of your painting ideas, your travels, daily thoughts, dreams, or… well, almost anything that you’d like to keep in a notebook. Artists often talk about “the importance of the moment” when painting.That’s how it is with art journaling, too. Draw what you see and what you like… forget about whether or not it will make a good picture.

Go out and look at things and just draw. Slow down and notice things that you normally wouldn’t, such as wildlife, doorknobs, light posts, or an old gate. As you slow down little things become brilliant. Grass growing through a cement crack, a stop sign, an antique car…suddenly matter because you notice them.

No matter what medium you work in—photography, watercolors, drawing, collage, or mixed media—you can create with whatever materials you have on hand. Be innovative and embellish with found objects, beads, or fabric. Be inspired by what moves you. After a while, you will have a notebook full of fabulous ideas for new art work!

What did you do that was fun today?

Should your customer break up with you?

Indulge me for a moment… think about one of your favorite purchases. Maybe it was a big, luxury splurge or an on-going service (carwash, pedicure, etc.) for yourself.Remember how happy you were researching it… seeing glossy pictures as you desired it. You were even happy buying it. That first time your toes were done… the technician so wonderful and caring. And now… now where is it? Post-purchase has the glow disappeared?

Much can be made between courtship leading to marriage and corporate courtship leading to purchase.
As a prospect, you are wooed. The company leaves you messages in all your favorite magazines and during your favorite programs. When you went to their website, they began flirting with you… sending discounts and special promotions. Then you purchased. They were so excited. They sent two thank yous. They smiled. They called. And now? Now they want to eat in front of the TV with sweats on.

Marketers estimate that acquiring a new customer costs five to eight times more than keeping an existing one. The average company loses 20-40 % of its customers every year due to delivering an “under-whelming” customer experience. Research shows that a decrease in customer defection of only 5% can improve a firm’s bottom line profits 25-85%, depending on the industry. Likewise, in some sectors, an increase in customer loyalty of just 1% is the equivalent to a 10% cost reduction. Don’t ignore customer emotions and the important role they play in propelling customers to deeper loyalty.

What feeling does your company want to leave its customers with? As management consultant Alan Weiss says, “Logic makes people think. Emotion makes them act.”How has your company been as a lover? Is your attention just as constant? Do you slip special notes into their statements saying Thank you? Do you offer them sneak peeks at products or the same specials as new customers? How would you feel coming across an ad in your favorite magazine from a company you already buy from still talking to you? Many times industry experts pan this idea but why? I would feel great knowing a company still loves me and my money. Take a look at your practices and where you might be able to make small changes. Go listen to Customer Service and see how they are treating customers. Find out wait times. Start paying attention.

When is the last time you asked a customer how they really were? And listened to the answer?

Getting a Grip…

I love articles like the following from this week’s Brandweek…Study: Ad Avoiders Can’t Be Ignored
Ten to 15% of adults 17-35 fall into the category of “ad avoiders” and generally find advertising “annoying,” according to a new report from Microsoft and Starcom… The report found two types: passive avoiders who simply can’t be bothered with ads, and active avoiders who message to advertisers is “be good or be gone.” Now I’m sorry but did we really need a study to tell us there were people in the
U.S. who hate ads?!! I was actually surprised by the percentage…. guess these are the hard core serious ones.The five-paragraph article mentions that these consumers’ habits makes them hard to reach by conventional means. Well… yeah… duh. What this article fails to realize is that none of us are such one-dimensional creatures. Okay, a mother doesn’t like ads and spend her time reading books and playing board games… this makes her immune to advertising? Mothers are the most powerful audience for spreading the word about good products and are very loyal when they do find one.Make a great product. Keep your current customers happy. Let them spread the word about how great you are. Make it easy for these new customers to find you. Keep going.And who did you want to be when you were 8?

Still Blowing Bubbles

Interesting piece of childhood nostalgia and market data all rolled into one helpful nugget of research….Here are the top 10 brand preferences of kids 6-11 who chew gum.
1. Bubble Yum (51%)
2. Hubba Bubble Bubble Tape (49%)
3. Bubblicious (44%)
4. Wrigley’s Juicy Fruit (38%)
5. Hubba Bubba Max (33%)
6. Bazooka (30%)
7. Ice Breakers (28%)
8. Trident (26%)
9. Other Brands (24%)
10. Wrigley’s Winterfresh (19%)Source: Experian Simmons National Kids Study Fall 2006When was the last time you blew a bubble?