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Starbucks announced that it will be adding books to music, movies, and (of course) coffee. They are well on their way to achieving their aspiration of being the 'third place'...
...home, office, Starbucks. This is a logical brand extension.
I was speaking about Starbucks the other day at a conference and one of the participants said, "Starbucks won't be around in 20 years -- it's a fad."
I think if Starbucks had stuck to selling coffee and stopped innovating, that would be the case. But Starbucks has been consistent in innovating and differentiating itself from its peers - and it has forced the entire retail and fast food industry to take notice.
Now you can get espresso at Dunkin Donuts and 'good coffee' at McDonalds. It's all thanks to Starbucks!
By the way, I write this from one of the 155 Starbucks in New York City...!
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Comments
William I've been watching CNBC's American Made series on American entrepreneurs, and I noticed in the first show Howard Schultz talked about the '3rd place' concept. Found it very interesting, but even more interesting when John Mackey of Whole Foods said that he ALSO wanted people to see Whole Foods as the '3rd place' inbetween home and work.
Very interesting, seems a sign that retailers are realizing that they have to give customers more than a product, but rather, an experience, if they want them to stay.
Posted by: Mack Collier | 05.19.06
It's interesting that the likes of Starbucks, McDonalds and other mega brands often have entered a city or town and bought out the cafes and coffee shops that often were the hearts and hangouts of their communities...
Now, those retailers are looking for the Magic Formula to create the same "third place" customer experience that the originals created quite organically.
Posted by: Ann Handley | 05.21.06
How right you are, Ann! You've made a great point. From Applebee's jingle "Eatin' Good in the Neighborhood" to CVS's past campaign: "Your Neighborhood Pharmacy"--many corporate giants that have taken out the community "mom and pops" have come to the realization that acceptance and successful integration into Every Town USA might hinge on reaching out as being new, but good neighbors themselves.
Posted by: Claire Ratushny | 05.22.06