Starbucks needs a more radical rebrand if it’s to regain ground in the fiercely competitive coffee shop war, a former branding adviser to the chain has argued.
As the world's largest coffeehouse company celebrates its 40th anniversary with a new logo and expanded menu, Tom Ellis of branding agency 1HQ even suggests the traditional British favourite tea could help revive its ailing fortunes.
A byword for aggressive expansion for over a decade, Starbucks recently saw its growth reversed by the global financial crash and intensified competition, with hundreds of underperforming stores closing in 2008.
The chain’s new logo will retain the famous twin-tailed mermaid but shed the brand’s name, now seen as superfluous to brand recognition. New products will include the Cocoa Cappuccino, Starbucks Tribute Blend coffee and a range of new pies and cakes.
Starbucks was the big thing in coffee houses and a lot of other brands - McDonalds included - have caught up
Tom Ellis, 1HQ client development director of research and strategy
Speaking in a BusinessWings.co.uk webinar, Ellis, client development director of research and strategy at 1HQ, said: “I think Starbucks has done a brand development rather than a rebrand. They perhaps need to consider more fundamental issues to avoid becoming tired.
“After all, they were the big thing in coffee houses and a lot of other brands - McDonald's included - have caught up.”
Ellis, who helped mastermind tphe success of Oats so Simple, which transformed the fortunes of its manufacturer, Quaker Oats, as well as percetions of porridge as a laborious meal to prepare, says the brand must be bold to stand out in a crowded market. “It would be interesting to see whether tea can take on coffee, for example,” he suggests. “After all it is a healthier drink, which would be in line with current trends.”
Also in the webinar, his colleague Claire Nuttall, insight and innovation director at 1HQ, suggests tea drinkers are being short-changed by the company: "Starbucks does not deliver the same experience for tea drinkers either. All the coffees are branded coffees and owned variants, whilst tea is very much the poor relative at the same price. It's disappointing for tea drinkers...”
