While reading through various articles on www.brandchannel.com, I came across an interesting piece by Mark Miller, titled “Starbucks Boosts Brand with New Energy Drink and Corporate Citizenship”. In his article, Miller discusses Starbucks’ initial steps into the energy drink space, as well as how they have chosen to strengthen their brand through corporate citizenship.

Over the last ten years, Starbucks has transformed from an ordinary coffee company to the ultimate caffeine freak’s heaven. They’ve managed to retain their competitive advantage, even in the face low-cost competitors such as Tim Hortons, because of the entire experience that they provide their consumers with. Starbucks has positioned itself as a coffee company catering to social individuals that desire power in their decisions—they want a cozy place to meet with friends and corporate prospects, while having the ability to customize their drink. Over time, the little green label has become a brand that symbolizes a busy, outgoing lifestyle of an individual that desires control in their life.

Where does energy drink expansion fit into this picture?

The strength of the Starbucks’ brand has immense reputability, and from the moment that this product line is released, it is certain that it will be a strong competitor with long established brands such as Red Bull and Monster. Because of its commitment to social responsibility, and its dedication to customer satisfaction, it is likely that Starbucks will see success in any further development of its beverage line.

To see Miller’s blog, go to http://www.brandchannel.com/home/post/2012/03/22/Starbucks-Refreshers-Energy-AGM-032212.aspx

Last month, one of my classmates, James, wrote a piece about how celebrities act as reference groups to consumers, and as such, they must do their best to make ethical decisions. James refers to Paris Hilton as an example, stating that the debut of her Chihuahua puppy in “The Simple Life” caused a skyrocket in Chihuahua sales, which has now turned into a massive influx of this breed being brought into local animal shelters. Should celebrities really be responsible for the fads that may be created based on how they present themselves to the world? Are reference groups really as powerful as James claims them to be?

Although, yes, celebrities are essentially just ordinary humans, I have to agree with James and say that celebrities need to be conscious of the signals that they send to their fans. Whether you’re an actor, a singer, or an elite socialite, you have the power to impact and change society in a variety of ways. When T.I. released his hit song “Whatever You Like” with the lyrics “Stacks on deck, Patron no ice,” teenagers everywhere thought that it was cool to walk around with a bottle of Patron in hand, as if they were one of T.I’s groupies.  Similarly, with the growing number of size zero waists around Hollywood, young women and men are being bombarded with the message that “Nothing tastes better than skinny feels”. Celebrities have an enormous amount of power over society, and I think they owe it to society to use this power in a way that will further benefit society in the future. The power of reference groups is immense, and if we can channel this power in a productive way, there is absolutely no limit to the ends that we, collectively as a whole, can achieve in the upcoming years.

To visit James’ blog, visit https://blogs.ubc.ca/jamesshaw/

Over the course of the past few weeks, I have had the opportunity to delve into the thoughts and beliefs of my peers surrounding the popular brand names that bombard us with various marketing tactics in our everyday lives. One argument that caught my eye was that of my classmate Rajanvir, who discussed the community based marketing approach that has led Lululemon Athletica to success.

In his article, Raj argues that Lululemon’s competitive advantage over its athletic wear competitors is largely due to the educational setting that it places it’s trend-seeking consumers in. Although I agree completely, I also question whether Lululemon’s success is largely due to it’s sly ability to cause consumers to realize a need that can only be satisfied with their product. Do consumers really need eighty dollar yoga pants? Do we really need the super short running shorts which could be substituted for a lower cost alternative by Adidas or Nike?

Theoretically, the answer is No. However, in the case of what consumers want, the answer is a definite YES. Lululemon taps into consumer’s ‘Esteem’ needs, making them realize that what they really need is to be regarded as an athletic, highly accomplished individual with a well balanced lifestyle. Thus, this inner need, combined with the fact that we live in a society which highly values progression and self growth, ultimately lead to a strong “want” where consumers are willing to pay a high price for goods that could technically be found elsewhere for less.

Lululemon has mastered the art of triggering a need within its target market, and subsequently being the best company in terms of fulfilling this need. Thus, I believe that the educational setting that Rajanvir mentioned, in combination with this subtle technique, has ultimately led to Lululemon’s success both on a local and international scale.

Raj’s blog can be found at https://blogs.ubc.ca/rajanvir/2012/01/16/hello-world/