Starbucks is taking a shot at rebranding themselves, with revamped locations that will now serve beer and wine. Will this brand renovation increase or decrease the profits of a corporation that reported $207.9 million of profits in the third quarter of 2010?
Starbucks has an extremely strong brand image. People associate comfort, cleanliness, and ambiance with it. It stands out in consumer’s minds as a reliable place to drink gourmet coffee and feel safe. Now, enter the proposition of introducing alcohol to Starbucks locations, as they attempt to draw in evening sales (70% of sales are made before 2pm.) Wine and cheese might seem like a good idea to draw in a night crowd, but it completely changes how consumers will view the company. Will people feel as relaxed and safe in an environment with alcohol? Will loyal customers fit this new target segment? The introduction will likely deter consumers who feel uncomfortable in such a changed setting.
Starbucks is looking to dramatically change their tried and trusted ways. This is a huge risk as they will completely alter their immensely strong brand image and most likely lose profit along the way.
Would you drink this?