Right product? Right place? Right time?
Think of Starbucks? What comes to your mind? Contemporary, upbeat …. ? If that’s the case, what do people have to say when Starbucks decide to open one of its stores at historic site of Beijing’s Forbidden City. Right product—certainly yes. Right place and right time – a definite no.
Built in 1420 and home to 24 emperors until the end of imperial rule in 1911, the Opening Forbidden City is one of China’s top tourist attraction and a Unesco World Heritage site. Clearly, opening up one of its stores there does not go hand in hand. It will definitely be a sales booster (I’ve been there and have seen the store full of people), with Starbucks being an established brand. However, due to cultural sensitiveness, this is not a wise move. The Starbucks brand was told it could continue if it carried other brands. Sadly, to protect its brand image, Starbucks declined and the branch was closed down after much protests.
Source: internationalbusinesslawadvisor.com
Source: urbanantiques.blogspot.com
Source: tokyoshoes.com
Morale of story? Place, is definitely a crucial part of the 4Ps, and if not handled properly, it could harm one’s reputation and result in negative word-of-mouth.