Can brands that become intertwined with our culture measure up if they grow out of control?

An interesting post by Michael Morton of Marketing Monster explored whether Starbucks is killing its cool factor by over-expanding to become an everyday, ho-hum brand.

I agree with his premise that eventually people will begin to question the appeal of Starbucks now that we’ve become inundated with Starbucks stores. Look in every major U.S. (and many international) cities and it’s hard to find a block or two that doesn’t have this retailer piping steaming hot coffee to thousands of consumers. 

We’re clearly not at the kill point yet, however, because, I believe, that Starbucks is at the apex of its brand appeal to so many customers. But it’s fairly easy to look back on other historically popular brands that became part of our culture to see how the decline begins with over-expansion and a host of other factors. For instance, I remember when the Gap had a mass appeal similar to Starbucks over a decade ago. When people thought of jeans, the Gap usually came to mind. And the Gap went through an enormous period of growth. While still popular, I don’t think that this apparel chain has anywhere near the hip and unique image it once possessed.

Tommy Hilfiger is another great example. Just a few years ago, wearing Tommy’s oversized, baggy clothes became a part of the hip hop culture. This was almost done by accident. Then the company overly commercialized the look, and its appeal to this audience completely vanished. My assistant Dandy thought of another interesting brand that fits this bill – J-Lo. She was the hottest, sexiest brand around only last year. We had J-lo perfume, clothes, make-up, music, etc. She became a cultural icon to a very large consumer audience. Where is J-Lo today? Good question.

Comments

[Ted]

I disagree and here's why: The brands listed in your blog that fell out of favor among consumers live and die by one of the most fickle things in business - style. What's hot this month or year or decade is out of style in a blink of an eye, and usually for no apparent reason.

The same is not true, in my opinion, with a company like Starbucks. Its brand appeal is not directly linked to style as dictated by mainstream media, Hollywood and the MTV generation. Instead, its appeal is based on a good, convenient product that appeals to the daily routine of the average American consumer (i.e. caffeine/coffee addiction) that will never fade.

I visit Starbucks every morning. Some would call it an addiction; I call it my routine. Unless the five Starbucks that I pass between Grand Central and my office disappear or the company suffers from some horrific crisis, I'll be visiting Starbucks for the foreseeable future.

[med supply guy]

very interesting post ed, and it got me thinking. so i was going to write a reply, but ted already hit it right on the head. gap, tommy, etc are all fashion related, and as ted said, can be gone in a wink.

i think starbucks is a complete waste and Dunkin Donuts has much better coffee, as does 7-11 for a LOT LESS! but starbucks has become a part of our culture and those (like teddy) that go there, swear by it, and make it part of their routine, just as ted said. so yes, starbucks continue to grow, but sadly, starbucks has become like a morning shower for many...it just aint gonna change anytime soon.

[ed]

I never said that Starbucks would fall out of favor. I think that the company will lose its "cool" because people will eventually become sick and tired of seeing the brand and all that it represents everywhere. Eventually, due to constant over exposure, this company will stop being the hip meeting place and cultural icon that it currently is. BTW, this might also happen simply because trends and appeals change and a different upstart might come along that displaces Starbucks. More than likely, it actually will fall out of favor when this happens.

The big question is how will Starbucks evolve when this happens to get its groove back.

Maybe my examples weren't ideal. So, how about this one -- Apple. in the 90s Apple was the hip, cool alternative to PCs and Microsoft (the arch villian). An entire Apple cult sprouted up around this. Then the company went through bad times (over expansion was one reason)and fell out of favor...many thought forever. Where is Apple today? The company reinvented itself to become a different type of cultural icon.

Also look at Coke. Coke has lost market share for a number of years now. If someone asked you whether soda and specifically Coke would ever fall from favor 20 years ago, you would have screamed no way.....