This week we talked a bit about the idea of brand extensions, to me the whole topic of brand extension is fascinating because it can either go very well or very very wrong.
Recently, there was a lot of buzz around Starbucks announcement that the coffee giant will be introducing an alcohol menu across the US, this can be seen as a an example of a brand extension…. though I am somewhat puzzled with whether this brand extension have a potential.
http://www.independent.co.uk/life-style/food-and-drink/news/starbucks-to-sell-alcohol-if-youre-an-americano-6294125.html
As a Starbucks and wine kind of girl I was a bit confused with this move because from one way the idea of having wine in Starbucks did not seem too appealing to me, but in the same time it did not hurt me as a consumer so I was really indifferent to it because as a young adult I did not see any harm in having alcoholic options on the menu even if i may not use them.
In the same time, while I may not be “harmed” or “devastated” by this announcement some other consumers just may be. Starbucks cafe are always warm, inviting and friendly which also attracts a lot of family oriented people or parents that bring their children for a hot chocolate, those costumers may be worried that this new move by Starbucks may attract “a different kind of costumers” which may not blend with the current consumer base. If Starbucks offer alcohol menu to BC another costumer segment that might be unhappy are underage costumers due to regulations that may apply to them if alcohol is served in starbucks.
This brings me back to the question of what makes a brand extension successful? I believe that in order for a brand extension to be successful your current costumers or at least most of your current costumers should be harmed. Although I do see how this move by starbucks may hurt some costumers, I do not think (and i might be somewhat bias) that many consumers will switch from starbucks because they find this brand extension offensive or hurtful, so therefore I believe that this move will not hurt costumer loyalty. In the same time I do not think that bringing alcohol to starbucks cafe will attract a new market segment because I do not feel like starbucks will have enough of a unique selling point (unlikely to offer cheap prices and starbucks coffee shops do not exactly reassemble a bar atmosphere.) so unless starbucks creates some kind of a marketing miracle (which I believe they have the capability) I am somewhat indifferent to this brand extension, though I guess time will tell….