Wednesday, September 26, 2007

Starbuck's Empire



I love that every other store in this mall is a Starbucks, and when Bart walks out of the piercing store, he is now carrying a Starbucks cup because it too has been transformed into a Starbucks. However this video forces me to ask "Is Starbucks taking over?!?!"

It is true that Starbucks are beginning to pop up everywhere. As of August 2007 there were 10, 295 stores located in all 50 States (including DC) and 4, 101 stores globally throughout 41 countries (according to the their Company Factsheet). So this makes a grand total of 14, 396 store open since Starbucks was founded in 1971 in Seattle's Pike Place Market. It is not the growth of Starbucks store that disturbs me, but the growth of Starbucks into new markets that scares me.

The natural market for expansion would be movement into the music industry since this adds to the atmosphere that is unique to Starbucks, and they have been very successful in this business venture. In March 2004 Starbucks unveiled their first in store music experience, in Santa Monica, CA, which you can record your own cd's. Also in October 2006 ITunes and Starbucks announced the itunes store will carry Starbucks music so that you can have the experience at home (itunes deal).

Beginning in April 2006, Starbucks baristas began wearing lanyards and playing music advertising the film "Akeeleh and the Bee." This was their first movie ad promotion, and unfortunately not their last (Arctic Tale). Both these movies did not do well in theaters and "Akeeleh" barely broke even in sales. I can understand the partnerships or promotions that Starbucks participates in with cd lables, artists, books and even in store sales of dvd's but I do not believe the film industry is a good area for Starbucks to pursue (LosAngelesTimes).

My main questions for everyone reading this is what makes Starbucks credible in this new market? People come to the store for coffee! I understand you may buy a book or cd when you are there because it fits with the "theme/atmosphere" of a coffeehouse, but what is going to drive you to a theater to see a film?!? I see grocery coffee beans, coffee machines, food, music, even books in Starbucks future but I do not see films being a lucrative venture for them. Afterall would you highly value a movie recommendation from a coffee bean expert?

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