The Keyhole makes observations about consumers, brands, ads, & marketing, through a predictive customer loyalty lens. Most marketing is ineffective to today's bionic consumer, given undifferentiated products, loss of "brandness," & hard to come by profits. Marketers talk about "engagement" but nobody seems to be doing a very good job measuring or integrating it into what they do & it shows! The Keyhole opens a dialogue on this subject & suggests real-world solutions with the marketing community.
Tuesday, June 12, 2018
Does Celebrity Brew Political Ambitions?
Howard Schultz is leaving Starbucks this month. The
company announced he’s “thinking of a wide range of options. . . from
philanthropy to public service.” “Public service” has become the code word for
“politics.” Will he be missed?
Well, Schultz retired once before to the detriment
of the brand – then came back, and the brand has been growing, but not like it has
in years gone by.
There have been a number of ill-considered Starbucks
social programs. The “Holiday Cup” debacle, the “Race Together” cup debacle,
and the arrest-of-two- black-men-waiting-for-a-friend-in-a-Philadelphia-Starbucks
debacle. Oh, and they’ve raised prices. Again.
Brand Keys tracks Starbucks in its Customer Loyalty Engagement Index. There have been brand ups and downs, but current
numbers show it to be #2 (in rankings by their own customers), with the
out-of-home coffee category looking like this:
1. Dunkin’ 2. Starbucks 3. Tim
Hortons 4. McDonald’s
As these rankings always correlate (.80+) with
consumer behavior, it’s not surprising to us that Starbucks growth has slowed
dramatically and investors are underwhelmed by the company outlook.
The company is hoping China will be its salvation.
It’s looking to triple revenue there over the next five years.
And maybe that’s why politics are looking like a
real opportunity for Mr. Schultz.
Find out more about what makes customer loyalty happen and how Brand Keys metrics is able to predict future consumer behavior: brandkeys.com. Visit our YouTube channel to learn more about Brand Keys methodology, applications and case studies.