(Un)Branding: What to do when your brand becomes a liability

2009
07.23

In one of my recent posts I highlighted the innovative use of Product Displacement as a humorous and clever means for fostering brand affinity. If you read that post, you’ll remember the example of “Coffee Bucks” and how, in a strange way, it actually worked out for you-know-who.

sbx

Starbucks have struggled with trademarking infringements in emerging markets

Now, I should confess that I spend a good deal of time at Starbucks, enjoy the fact that there’s one on every corner (literally) and can’t complain too much about the product. That said, it is quite sad to see a brand that first established itself as something anti-commercial, local and authentic go the way of Mickey D’s. But here’s an interesting twist in the evolution of the green giant…

Earlier this month, the Seattle Times reported that Starbucks are opening three new unbranded locations, starting with the first in Seattle’s trendy Capitol Hill. Called “15th Avenue Coffee & Tea”, the store will  be absent of any Starbucks logos and all merchandise will be labelled with the 15th Avenue name. According to their SVP of Global Design, the new store format and name is intended to give the stores a “community personality” and will serve beer and wine in addition to the coffee they’re famous for. Sneaky? Or just smart?

I have to applaud their recognition that the brand has actually become a liability in some markets and for their more discerning consumer segments, who like me, are pleased to be able to get it anywhere, but disappointed by just how commercial the brand has become. It’s a bold move, although the stores they’re trying this with are supposedly stores that were slated to be closed in their recent wave of re-sizing. Perhaps this is a smart move too, since the neighborhoods are likely to be buzzing with the news of a pending store closure and perhaps likely to welcome with open arms their new “local independent”? Of course, there is the possibility that local may shun the new store as an insult…

It also occurs to me that by giving us what we ultimately desire – decent coffee we know and like – in a setting that is more appealing, not so in-your-face, and doesn’t play into the MacDonalds-ization of their brand, Starbucks are fostering even stronger connections with their brand. Kinda like the Coffee Bucks example… we know what it’s all about, but don’t mind because it feels like a real acknowledgement of our needs. In the case of product displacement, the need is to not be insulted by obvious brand insertion, and in the case of 15th Avenue, it’s the need to “go local” but still stick with what we know.

I know there are a lot of coffee fans who read this blog… how do feel about Stealth Starbucks? And what the marketing implications? Are they just resetting the clock, or are they onto something very innovative? At least it would help with their trademarking challenges… I mean, what branding would the wannabees copy if there is none?

Would love to hear your thoughts as always.

-D

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3 Responses to “(Un)Branding: What to do when your brand becomes a liability”

  1. Analia says:

    I think it sounds like a good idea. I would absolutely frequent this establishment, but so would every other resident of our town simply because that’s what we do: everytime ANYTHING new opens out here, people flock.

    On a side note, the font on the beautifully-written article is crazy small.

  2. Sagar says:

    Interesting move by sbux. Reminds me of Amazon’s attempt to unbrand itself from endless.com, its shoes site (we all know how that worked out). I doubt people will take much offense to such a move. Have you visited Bookstar down on Ventura Blvd? It has the look and feel of a scrappy indie bookseller, but is wholly owned by Barnes & Noble. I think people expect this sort of unbranding from large companies.

  3. Nikhil says:

    Very interesting move on the part of SBUx. Like you I am a regular visitor at SBUx (actually just got back to work after a quick 30 min break there) and am intrigued with the various initiatives that Schulz has taken since becoming the CEO again. Looks like he might be succesful in reviving the (un)brand.

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