Starbucks and the Smell of a New Dip

Chris Wilson

Chris Wilson

May 9, 2007

Starbucks LogoThe brand's "watered down" right? So logically the next step is to drown what's left of the brand, while trying to make a profit? Clearly, scent of crisp green bills are the only thing on the mind of Starbucks CEO, Jim Donald, who recently expressed interests in offering of breakfast sandwiches to customers. This is interesting considering the memo that chairman Howard Schultz sent out in February, discussing regrets of how the "Starbucks experience" has become a commodity. Schultz stated,

...we have had to make a series of decisions that, in retrospect, have lead to the watering down of the Starbucks experience, and, what some might call the commoditization of our brand."

How does offering breakfast sandwiches do anything more than overpower the already "watered down experience" that Schultz is warning about? What Schultz realizes is that, the things that set Starbucks apart will soon be lost unless a company reformation takes place. But how do you reel in and rejuvenate over 12,000 store locations? Seth Godin points out the Dip that Starbucks faced in its early beginnings. Does Starbucks see what could be their next big Dip standing right in front of them?

Chris Wilson, Marketing Strategist

Chris Wilson

As Vice President of Strategy at Publicis CRMOne and author of Fresh Peel, Chris examines why marketing strategies fail to produce expected growth. Over 20+ years, including 11 years at Oracle advising brands like Harley-Davidson, REI, and The North Face, he has helped executive teams diagnose post-purchase breakdowns. His work connects customer behavior, MarTech capabilities, and business economics to build systems that scale long-term customer value.

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