Boring Market

If Starbucks were able to bring the ‘cool’ factor, would it grow sales?

The pressure on Starbuck’s stock is less on cash flow and growth, but on the perception of the brand.

Individuals invest in future performance, and how consumers see Starbucks on the frontlines directly affects performance. Apple, for example, has a very ‘cool’ brand. They are less in the business of selling computers and iPods, but rather in business of selling a fashion item. Even after you look past the quality of products and seamless integration between items, the truth is a Mac Book Pro will make you look cool.

Starbucks had this same conation in years past; the Starbuck logo used to mean luxury. Though, luxury doesn’t necessarily equate to being ‘cool’. Cool refers to the wow factor, the remarkable and the cutting edge. Starbucks needs to throw everything including the kitchen sink out the window. They need to step away from being associated with another quick service restaurants (some would call fast food) and branch out into their own category to reclaim the wow factor.

Consumers are driven by experiences.

When consumers walk into an Apple store they often are not in the mood to shop, rather they are in the store for the experience.

Consumers are known to surf the web on Apple’s Mac Books, fiddle with the newest iPod and text their friends on Apple’s functional iPhones. Employees are roaming asking questions, always there to jump at the opportunity to help consumers explore their products. More importantly, they allow people to explore products without being intrusive and that cool.

Employees know that the large percentage of people that go into an Apple store will never buy an Apple product in the same visit, and understand that the best education for a consumer is a hands on fun relaxed atmosphere.

How can Starbucks mirror Apple’s cool factor?

There is no quick fix for Starbucks to copy the cool factor Apple has.

Rather, Starbucks needs to create there own style and wow factor. This wow factor is not going to be about new drinks, new prices or even new markets of growth. The cutting edge has to been in operations, new technologies that make a barista job more efficient and fun. This operation change will easily translate to the experience the consumer has, and will distance themselves from other quick service restaurants.

Starbucks has already tried new technologies such as wi-fi in more stores, LCD screens, and a partnership with Apple iTunes store; all to have no effect on the majority of consumers. These attempts have not worked because they do not drastically change the operation of a store, but rather add to a distraction of why Starbuck exists. In order for Starbucks to be cool, it shouldn’t be a hassle (or stressful experience) to get a great cup of coffee.

Tags: Apple·Cool·Experience·Factor·Starbucks·Wow