Advertising: Marketing Strategy of Last Resort?

When a company announces a TV ad campaign, it is rarely noteworthy because the appearance of new TV ads is an everyday occurrence. It’s not an everyday occurrence for Starbucks. The iconic coffee house chain is airing its first ever TV commercials to coincide with the holiday shopping season. Declining store transactions and competition from lower priced Dunkin Donuts and McDonald’s are factors behind the decision to move into TV advertising.

Is advertising the answer to overcome stagnant sales? In some cases, maybe, but not for a brand that became legendary through every conceivable means but advertising! Starbucks created its point of difference around the experience of enjoying coffee in a Starbucks coffee house. It’s not about price, convenience, or anything else. If store visits are down, Starbucks has to take the proverbial look in the mirror to ask why.

Are there aspects of the Starbucks experience that have lost their appeal to consumers? Many people suggest that if Starbucks wants people to visit its stores it could start by offering free Wi-Fi Internet access, as most of its competitors offer. Starbucks’ ad campaign may be noteworthy because it is the first ever for the company, but don’t look for it to be noteworthy for raking in sales increases this holiday season. Link

Author: Don Roy

Don Roy is a marketing educator, blogger, and author. His thirty-year career began with roles in retail management, B2B sales, and franchise management. For the past 22 years, Don has shared his passion for marketing as a marketing professor. Don's teaching and research interests include brands, sports marketing, and social media marketing. Don has authored over 20 articles in scholarly journals, co-authored two textbooks, and self-published three books on personal branding. Don is an avid hockey fan and enjoys running. He and his wife, Sara, have three sons. View all posts by Don Roy