Selling Frappuccinos in the UK
Wednesday, May 18, 2011 at 11:11AM Below, I have embedded an ad from a campaign that Unruly Media is running in the UK for Starbucks. I would like to hear your opinion. Beneath the video, I have given mine.
One of the challenges for any company is to decide if it wants to go for fast growth and large profits, sacrificing a few of its values along the way, or if it wants to remain true to its roots, even if it has to sacrifice some economic gains. For most businesses, profits come first. This is especially true for public companies, where there is tremendous pressure put on management by the shareholders to go for growth and profits. I think you can guess which path Starbucks chose.
Starbucks began as a place that wanted to be true to the coffee and the café experience. Now it boldly sells milkshakes, with whipped cream and caramel sauce.
To be honest, I like the graphics, the bright colors and the crisp audio of the spot. It has a sharp feel to it. The business school-trained part of me thinks it’s a fine ad, and I know that Frappuccinos have some of the best profit margins at Starbucks, so I understand the reasons for the campaign. At the end, however, watching this ad reminds me why Starbucks took the “Coffee” out of its new logo. How about you?
[Disclosure: Unruly Media, an advertising company, asked me to write an editorial about the ad. Feel free to pass it on to anyone you know in the UK]
Reader Comments (3)
Now to be fair, Will... The caramel sauce was on a COFFEE frappuccino.
I honestly don't know what to think about this. I think Starbucks has an excellent business model that, obviously, has succeeded quite well. Granted the coffee is what they were founded on and got them there in the first place (and for quite a long time) but there is only so much you can grow. Frappuccinos have been around, as far as I can recall, since the 1990's, they are not by any means something NEW for Starbucks. And they are, as you mentioned, a huge part of their profit margin. (You would be rich too if you could sell a cup of crushed ice, sugar and flavoring for $5 or more.) The non-coffee frappuccinos haven't been around quite as long, but I think they fit well with the Starbucks cafe atmosphere as not everyone is a coffee drinker.
My sister can't drink coffee, but she will go to Starbucks with me, your blog frequently notes whether or not a coffee shop is "kid friendly", Frappuccinos are (arguably) a better choice for parents who make their daily trip to Starbucks and feel the need to spoil their children with such luxuries as well. Without a coffee alternative, how much of the frappuccino market would go elsewhere for their iced beverage needs?
The ad itself - I found it was well done, short, spunky, attention grabbing, bright, got the point across and made me want a nice cold beverage. And it was clear who was advertising and what they were advertising. Have it your way.... oh wait, that was someone else who said that. Starbucks is making everything customizable - including your frap, with or without coffee and that they have adequately portrayed.
My first thought, however, was since WHEN does Starbucks do commercials? Or this type of advertising? Were they not founded on a word of mouth, reputation alone and convenience (one store for every 10,000 people) model? I thought the Starbucks logo in its self was all the advertising Starbucks needed. When did they start doing videos? Are they going to be paying millions for Superbowl ads next?
So.... my opinion, Will. Go Starbucks: we know you want to dominate the world and so far you have been pretty damn successful. If that means taking coffee out of your beverages (and logo) then so be it. Maybe they are just finally admitting to the fact that we all know their coffee isn't THAT great. Business strategy is why Starbucks is where Starbucks is today, not superb coffee.
I'm all in on the "Why?" end of things. It makes sense that Starbucks would want to sell as many of these items as possible. I also like the fact that they are trying a new tack - the personalized Frappuccino, although there is much argument these days that having too many choices actually makes consumers less happy. (See Barry Schwartz on the Paradox of Choice at TED Talks.)
Some things in particular stand out about this ad for me:
The first is the frenetic pace of the ad. I dislike it. It is this type of frenzied editing - in films, ads, and animation - that has caused movies like Star Wars to be called "boring" by scores of young people who expect scene changes every few seconds. It is why Americans call French films "too slow." It seems a grotesque and frantic attempt to shock the viewer into submission.
The second thing that strikes me is that although this ad is purported to be for consumers in the UK, all of the actors (or at least all of the accents) are American. This could be an attempt to go for the "exotic" - that same charm that strikes Americans when the name of a perfume is spelled in French or an English commentator reads us the news. But it struck me as a further invasion – (an extension of "American Imperialism") - on the quaint and dusty UK.
I was moved by the beautiful colors and sounds and people in the ad, but also by the milliseconds-long addition of images that had nothing to do with iced coffee drinks - the airplane propeller; the piñata; the squeaky dog that does a back flip. I like additions like these, but wonder why these images were included in this ad. Perhaps the propeller is there for its similarity to the blades of a blender; the piñata and the dog for their links to celebration. I thought it was a cool touch.
Finally, I must comment on the only image that disturbs me in this ad - the one of the boy filling his mouth with whipped cream. This type of gluttony is not uniquely American anymore, as more and more Europeans are becoming obese, but it strikes me as offensive and of the assumption that all of the viewers of this ad are insatiable, ravenous hogs. On the other hand, it could be that the advertisers are trying to turn their viewers into such starved consumers in order to get more of their product into their bellies. I understand that, but frankly, it just grosses me out.
Two great responses with lots of good points. Thanks for commenting--I really appreciate it!