Starbucks Rebrands, Taps Localization Trend



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July 21, 2009 - Starbucks has announced that it will open three stores in the Seattle area that do not carry the well-known brand of the coffee shop pioneer. The first will open this week under the name “15th Avenue Coffee and Tea.”

While the first store to open was a former Starbucks that was slated to be closed, the two additional stores are brand new. All of the rebranded stores will bear the names of the neighborhoods in which they operate, the first being called “15th Avenue Coffee and Tea.” The shops are meant to reflect a more local feel; they will host live music and poetry readings, serve beer and wine, and use manual espresso machines as opposed to automated. Not only will the name be changed, but all merchandise will bear the new, local name. The Starbucks brand will be nowhere in sight.

While the pilot program of 3 stores is only being tested in Seattle, if the rebranding is successful the company said that it will expand the program into other markets.

The move comes at a time when many large businesses are changing their marketing efforts to reflect a more local presence. HSBC's new marketing line is "the world's local bank" and Frito-Lay's new campaign localizes the Lay's brand potato chip.

Worth a Shot

Starbucks got to the size it is by trying new concepts. These guys are good at taking successful chains despite heavy competition. Banks and other failing companies could learn a few things from Starbucks.

Starbuck Rebrands

If the CIA were running Starbucks, I don't think they could have come up with a more deceptive plan than this. One thing is for sure, it’s not rebranding in any way, shape or form. They are merely trying to capitalize on the “go local”, anti-corporate wave that's growing across the country. For what other possible reason could this launch be taking place? They won't look like Starbucks, they won't taste like Starbucks, but when the green leaves the cash register at the end of the day it’s going to be heading right to the Starbucks corporate offices and there's nothing local, small scale or Mom & Pop about that. I'm not saying that it isn't a smart business move. I am saying that it’s a sheep-in-wolves- clothing move. And it's certainly anything but green. The whole idea of going local is to keep jobs, revenues and profits in the local community. To give small entrepreneurs a chance to make a living by delivering a local product. It’s the chance for a whole string of individual business people to secure a market for their locally-made and locally-sold goods -- from bakery items to bagels to office supplies to restaurant supplies. But when the Big Guys don the mask of being a little guy, watch out. Personally, I go out of my way to do business with the local Java Joes or small green grocer or hardware store, and I try to hit the Farmers Market every chance I get. Maybe now I have to insist on proof of residency, a driver license or something like that to make sure the guy in the local store is a local. Not just someone masquerading as such. To me, it’s the same kind of thinking that created derivatives and credit swap that almost brought down the U.S. economy and banking system. Here a little thought! Hey Starbucks, if you really care a hill of beans about local coffee shops then leave a piece of the market on the table for them and don't pretend you're local when you’re not. Irv www.greenmarketingblog.com www.mindovermarkets.com

Branding only, or truly a shift to local?

I'm trying to discern whether this is the edge of an interesting and helpful shift, or simply marketing-creepiness / "local-washing." The story doesn't make it clear whether the plan -- if the pilot succeeds and the idea rolls out more widely -- is to not only brand locally, but to SOURCE locally. Printing, reusables/recyclables, materials for the build-out, maybe local roasting of beans, etc.? And of course, keep most of the profit local as well. The VISA of coffee. Seems to me that the "global local corporation" could be a promising step in the story of our energy and consumption descent. But only if it's a serious attempt to run a global corporation by nurturing local business. Hope there's more exploration of this. In 5-15 years, I think we'll see "local" kicking "global"'s ass.

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