Despite flops, Starbucks isn't ready to give up on promoting movies

"Akeelah" and "Arctic Tale" were disappointments, but Starbucks is taking another shot at trying to get people into theaters. Executives at Paramount say they'll work with Starbucks to market the screen adaptation of the bestselling novel "The Kite Runner," to be released in November. CORPORATE CONFIDENCE OR ARROGANCE?: When Starbucks announced its entry into movie marketing last year, it said it could serve as a "very effective model for the studios." (Los Angeles Times)

Comments

[Pat Nerr]

umm yeah... since that iTunes thing isn;t working out and all... Starbucks is probably a better place to get movies...

[PissedOffBarista]

HAHAHAHAHA. Sbux. STICK WITH YOUR WIFE. You know? That poor darling so long forgotten? Coffee? Remember her?

[baroosta]

I think there's one reason why people aren't buying ANY of the Starbucks marketed DVDs - you can buy the same DVDs at Target, Wal-Mart, Best Buy, etc. for $5-$10 less than what we sell them for at Starbucks.

Sure, people are willing to pay more for their customized latte, but something like a DVD they just want the best bargain.

Personally, I was going to buy Happy Feet, but even with my employee discount tacked on to the $19.99 price tag, it's still not as cheap as the same DVD at other stores.

[Andrew]

I don't think that your starbucks customer is shopping around at wal-mart. starbucks has excess capacity, why not sell dvds, cds, baseball cards, etc?

[Pat Nerr]

and maybe furniture too... Oh wait... they tried that.

[DT]

all the ancillary revenue streams only serve to draw the focus away from COFFEE. And coffee is the place where SBUX used to have the greatest competitive advantage.

But that was all in the past.

That's one of the things that really pushed me away. I don't want to have to stock DVD's and sell DVD's and push movies, etc. That's not why I ever signed on to work at Starbucks.

[Rebecca Fox]

I stopped in Starbucks this morning and noticed that the Pumpkin Spice Latte is back on the menu already. Anyone happen to know the nutritional info for this piece of heaven?

[Kat]

"I don't think that your starbucks customer is shopping around at wal-mart. starbucks has excess capacity, why not sell dvds, cds, baseball cards, etc?"

Maybe not, but they are at Best Buy, Target, and a few other of the more upscale type stores, and generally movies and music are going to be cheaper there. Heck, the local Target has a Starbucks in it, all you have to do is walk over a few aisles to pick up whatever Starbucks is carrying, plus maybe something else because those stores have a variety that Starbucks doesn't.

[T]

Promoting a movie might be fine if STBX actually promoted a movie worth watching.

[Pat Nerr]

adding more products to more stores is apparently the new business model. One day soon you'll see what not taking care of coffee and the people will do to Starbucks.

Howard Behar used to say "we're in the people business serving coffee" How true is that statement these days.

Promote Yourself to Someone Else's Customer

Akeelah and the Bee was a terrible movie. So there's that to factor in as well, I don't think Starbucks should take all the blame.

[Grebby]

This is the fatal flaw with many public companies. The shareholders demand growth by any means necessary, and they especially love "synergies." Meanwhile, all the customers really want is a cup of coffee.

[Mithel]

Not to mention those movies are marketed but not sold in venues outside the US. No DVDs for Canada, eh? Whatever will I get my polar bear for Christmas...

[ErosLane]

Trying to determine if THE KITE RUNNER will be popular with audiences or not is like trying to decide if Michael Vick is guilty or not.

Puh-leeze.

Wow. Promoting KITE RUNNER. That's really going out on a limb there Starbucks.

[DT]

I agree Pat. I shudder to think what would happen if I went into any of the stores along my route everyday and asked the kids behind the counter to french press me a cup of the new promo coffee and tell me about it.

[Pat Nerr]

DT: You are so right. I can remember brewing presses of coffee for customers who wanted a different coffee of the day. I think I'll try to order one tomorrow on my way to work... then I'll write about it... it'll be fun

Hey! I resent that...some of us still know how to do that!

Of course, the last time a customer wanted Breakfast blend I offered to make a press or suggested our House (the current Mild offering). She chose the press after I let her know it would take five minutes. She was fine with that.

However, after about two and a half minutes of standing at the counter and huffing, she asked for a cup of whatever. I was very confused. Oh well, the press for that day part was now ready. :-)

[DT]

anon: some of you do, I don't doubt that. But the number is dwindling.

and if I want to go in and get a press of one of the new promo coffees and have someone talk about it...realistically what do you think the odds are I'd find someone who could actually tell me more than what's written on the side of the bag?

[20secondshotguy]

Are the numbers of folks who can talk about coffee dwindling?

I'm not sure that's true. In the early 90s when I was a barista, there was always one or two folks in a store that really knew coffee. That's similar to what you find in terms of coffee masters today, I think.

There were folks then who didn't know coffee or want to--which we always thought was odd--but if they loved people, we were glad to have them on the team. Some folks back then might refuse to hire someone who didn't drink coffee, some still do.

The big difference today is the breath of product today compared to then. Now, you can look at that and say we've diluted the brand and/or lost focus. Or you can say we've been able to explore what it means to be a people company that serves coffee. It is what we are. Behar was right. It's not a bad thing either (in itself).

I like to think of our journey as moving from the 8 crayola box in the early 90's to the 16 and 64. We're trying to figure out what the right colors are that go in our box, yes. We may even have been trying for 96 (my son has a ziploc of crayons like that). But there are few kids who would turn down the box of 64 in favor of the basic 8 as good as they are.

I saw a great experience today in one of our DT stores in western pa. The partner helped a customer make a good choice between the new coffees. Plain ordinary language, nothing fancy, more than just the bag. Passion. Knowledge. A partner in the people business serving coffee.

[Darleen]

20secondshotguy -
Your posts are always so upbeat, I love the passion you have and I'm sure it is recognized everyday by your customers. What a great attitude you have! Thank you for starting my day off with a smile. I have meetings all day and this is just what I needed to get me off with a smile!!!

[asmgirl]

Could it be that the subject matter of the films and books Starbucks has partnered up with are the reason why they aren't doing well? Akeela and Arctic Tale both have a bit of a social commentary, which is fine, and even a good thing, but I can't believe that anybody honestly thought either one of them would be blockbusters. If we wanted to make a ton of money in entertainment, we should pick movies that have a broad and general appeal rather than those that seem to have a limited and limiting audience. The books have fallen into the same category. They are social commentary wrapped up in expensive covers. The funny thing is (at least where I am) it's the affluent people who let their humongous SUVs idle while they run in for coffee who come in, not the eco friendly socially conscious people. They tend towards the indies. If we want to make money, we market to our customers. If we want stock to sit on our shelves forever and kill our P&Ls and stock prices, let's keep doing stuff that doesn't work.

[ex-sbuxmanager]

Yeah asmgirl, you're right. Sbux should market big blockbusters. Maybe they can come up with a little package to sell for kids that comes with a kids sized drink, a pastry and toy figurine of the main character. They could call it a "happy meal" or "kids club meal". It will be awesome.

[ExtraFoamy]

I like that we are getting behind music and film, and I like that we don't just go out throwing our logo on anything that sells, but rather how it relates to our core values. We get to make money as well as share our passion and continue to find other outlets of our our mission statement...

p.s. anyone else heard this rumor about a future sbux movie with (supposedly) tom hanks; "how starbucks saved my life"???

[Antof9]

I don't think that your starbucks customer is shopping around at wal-mart. starbucks has excess capacity, why not sell dvds, cds, baseball cards, etc?

Andrew, honey ... you're on crack. While the average Starbucks consumer might not be shopping at Walmart, they also don't want to buy their DVDs or CDs at a 5-or-more-dollar markup at Starbucks. They can buy them at Target, Best Buy, and a ton of other places for a lot less. And yes, even at Walmart. And baseball cards? Please. Those can be purchased with packs of bubble gum or the local comic shop.

I want Starbucks to take a step into the time machine and go back maybe 5-7 years. I think that's about right. Imagine walking into a Starbucks. There's a little bit of merchandise along the walls -- coffee cups, coffee machines, and bags of beans. Maybe some chocolate covered espresso beans. Surprisingly, it's all COFFEE-related! What a shock. There's a kind of hush in the place -- not an austere, library sort of hush, but a cool, coffee shop, people working, journalling, visiting, writing-the-next-great-novel sort of hush. The baristas are friendly and welcoming, whether they recognize you or not. They welcome you, but you don't feel rushed to choose your drink right away. You also don't trip over lots of baskets of Staraphernalia as you make your way to the counter or a comfy chair to wait for your friend (so you can order your drinks together). There's some funky music playing in the background, and that's about it. It's a place you want to be. It's welcoming and inviting, relaxing and warm. You *want* to stay there with your coffee. You *want* to meet friends there. *You* want to write the Next Great American Novel there!

Now fast-forward to today's Starby (the one you say -- HA! -- has "excess capacity). There's more merchandise to knock over than a Claire's Boutique. Baristas overworked, rushed and frazzled, because they have to deal with selling all that crap, and because the other customers in front of you got crabby navigating themselves to the front and yelled at the baristas, and so much random stuff is sold, it might as well be called Starbucks Gift Shoppe and Coffee, and if you actually want a drink, it's a shock, and no one even knows how to make those any more (no offense to the present baristas reading this). And there's stuff all over the walls -- signs and ads and all kinds of eye-distraction that is just way too busy, so it's no longer a soothing place for you to be. And you can't even think because just standing in a Starbucks for 5 minutes is like a sensory overload, and not in a good way.

Yeah sure, I hope they start selling baseball cards soon.

[Antof9]

oh yeah, and if they DID use that time machine I mentioned, I could get raspberry lattes again :)

[Pat Nerr]

p.s. anyone else heard this rumor about a future sbux movie with (supposedly) tom hanks; "how starbucks saved my life"???

Yes... it's supposedly about how the stock finally went up so he could make his money back on the DVD.

[Don]

Starbucks customer here.

"I don't think that your starbucks customer is shopping around at wal-mart. starbucks has excess capacity, why not sell dvds, cds, baseball cards, etc?"

No, I don't shop at Wal-Mart (thankfully fairly scarce in Boston) but I do shop at Best Buy and iTunes (DVDs and music, respectively.) I think having some music on hand is a good idea, especially if it's the music you play at the store. If you hear something you like, it's there to buy.

In general, however, the non-coffee stuff is just visual noise. I've never bought a non-food item in Starbucks, and I'm a pretty frequent customer.

What I don't understand is why Starbucks doesn't carry more of their spin-off food & drinks in their stores (like the ice cream, a greater variety of ground coffees, those energy drinks, whatever.) There'd be room if they cleared out the cups and mugs and other tchotchkes that no-one seems to buy.

What I'm saying is that when I enter a Starbucks, I am not shopping. I am buying coffee to drink, and that's a completely different mindset. I may buy a brownie/cookie/newspaper to go along with my coffee, but that's about it. Although if they carried the ice cream in-store, I'd pick that up, too. The Starbucks ice cream is seriously good.

[austin jacksonville]

if Starbucks is so environmentally conscious then why do ehty insist on adding more stores in already saturated areas and further causing trash form cups and plastic tops to be disposed of in landfill, or do they recysle all stores waste?

[Don]

ANTOF9 put it better than I did. Everything should be coffee related. I'm not a big fan of chocolate-covered espresso beans, but if I were, I'd probably buy them there (if that makes any sense.) I like your vision of Starbucks. Unfortunately, it bears no resemblance to any of the Starbucks around me.

As for writing...I write my books at home, but thanks for the invite nonetheless.

[Antof9]

LOL, Don -- I was just reading your comment and thinking I liked the way you put it :)

Succinct and accurate: I am not shopping is the BEST description of why all that stuff doesn't belong there.

And the only non-coffee things I've ever bought there are snickerdoodles (seriously good -- try 'em if you're in a store that has them) and a coffee cup from a pattern my sister liked but the stores near her didn't have.

[em]

I agree to the previous post...when I go to Starbucks I go in there with a one track mind, that being to satisfy the fix I have for coffee. I think I looked at the CDs once and that's because my drink took so long...

To me the thing about diversifying one's products is that you loose your edge. Why compete on a frontier that so many others already have a hold on? You end up losing focus. Not to mention that diversifying can have the tendency to affect one's credibility. For example, right now Wal-mart is trying to sell high end home audio (like best-buy) but they're having a hard time finding a market. Why? Because when you think of Walmart it has always been synonomous with "cheap" or "cheaper" and now they're finding themselves pigeon-holed when trying to up their caliber and clientle.

Similarly, most people honestly go into Starbucks for the prestige, some feeling of being in a higher echelon of coffee drinkers..having penguins plastered all over the place probably just doesn't have any appeal, and to me it looks kinda cheesy....

[Pat Nerr]

There's a simple way to handle music sales in the store that's way more progressive and environmentally friendly... Play the music... send them to iTunes or another online music service... CDs are not environmentally friendly and are outdated. Same with DVDs...

clear that 3 feet of space so the customer can see the barista

[misto-ree]

customers should send out comment cards about such things and see what kind of response they get. i don't think we are in the people business anymore - i think we are still trying to preach that and hope it comes true - Some days I feel like im in the coffee business selling milkshakes. (i like the frappuccinos - its just some days i don't feel like i work in a coffee shop anymore - and i came here to work in a coffee shop)
one of the guys at my store got cussed at yesterday because someone was mad about fall drinks being out! so it was hard to sell him the beans, muffin and pumpkin latte with a sandwich...
who would think a coffee job would be so stressful?

[HopkinsBella]

Em, your analysis is dead on. Although I find penguins are cute, and frankly a bit high-end in the bird kingdom with their "tuxedos".

But until penguins drink espresso, penguins and coffee have nothing to do with each other.

[InterstateBarista]

Reading these posts makes me want to just knock everything down in our store.

Seriously, I would love a lot less... well, crap in the store, so it would be not only easier to see and talk with the customer (depending on the angle at times), but so we would have room to put actual stock for things we need for the drinks.

[NWInvestor]

I wish they would provide better sandwhiches and food items. It is about coffee. I like the idea of selling the ice cream as well. I was in Starbucks a couple of weeks ago with a big display for the ice cream, and since it was a hot day, I thought "I'll get some, finally they are selling it in the store". Guess what, it was some B.S. display, no ice cream to buy or sample.

[NWInvestor]

So there is a Pete's that opened near me, and they seem to have the old Starbucks model. They have press coffee for sampling regularly, better, more expensive machinest for drip brew, and merchandise that is focused on coffee.

You think Pete's would be kicking SBUX but in a given area, but its not happening. I go the Pete's at different times of day, and its pretty quiet there. I go to Starbucks, and there is always a line. The branding power of Starbucks is still strong.

[asmgirl]

I wasn't saying that we should promote big movies, I was saying that we shouldn't be surprised when we don't see a huge success with films and books that don't appeal to mass audiences. I didn't realize that I needed to say out loud that I think we should emphasize quality in what we already do well since that is a recurring theme that I think we all agree with.

[20secondshotguy]

ANTOF9: I think you're vision of Starbucks reaches back not 5-7 years but more like 15. That's the pre-Frappuccino era.

Back then, you trimmed labor in the summer because that's when we were slow and some newer stores felt like what the NWINVESTOR found at Pete's recently.

Not that they were all that way. In places where we were established--as with Pete's today--we were hummin', though what busy meant then and busy means today are two different things entirely.

Here's a quick exercise that's quick only cause you're ballparking the numbers:

Last Weeks Sales
- chilled meals
- anything you sold that you warmed
- anything blended or shaken
- any espresso beverage hot or iced that isn't straight espresso, a cappuccino, a latte or mocha
- any add on sales of syrups besides almond, vanilla, hazelnut and raspberry
- any media
- any retail plush (bears and such)
- any other retail that isn't a tumbler or basic coffee mug (city and such)
- all packaged food at the register except small chocolates and one impulse item that's cheap and does well)
- any RTD cold beverage except the pelli, the odwalla and maybe one more line that does ok.
- the percentage of DT customers you think wouldn't come in if you weren't a DT store.
= your stores sales in 1993-4 at 2007 prices.

What do you come up with compared to your sales last week?
How many of your customers who came in last week would not have back then?

The exercise assumes coffee bean sales to be proportionally flat. We carry more kinds of pastry than we did then, though we didn't have frozen markets then (I don't think). The pastry was better, because local companies did it for us. Our retail is better now, quality wise overall.

It was a different world, but different isn't always better. It was a simpler business but that didn;t and doesn't correlate to more coffee knowledge or better service.

Most customers then and now considered our retail the way EM does. It's secondary and will probably never be a core driver. Pat's right about packaging, but who has that right, anywhere?

Darleen has spoken to our culture many times. The culture was the same then as it is now. The experience a customer had then came down to the people we hired and those who hired them. It's always been that way (and always will).

That's where ASMGIRL hits the nail on the head: "we should emphasize quality in what we already do well."

Absolutely. Amen sister.

Let's make the best of what we are today and work together to find the right crayons and colors for our Starbucks box.

[Darleen]

20secondshotguy ,
I've said it before but it bears repeating, you are a true role model. I love to read your posts, they are always so uplifting and enthusiastic. I would love to have the pleasure of working side by side with you. It would be an honor. I hope you are appreciated in every sense of the word by your team. You are the epitomy of LEGENDARY. You get an online BRAVO. Keep spreading your light, it will light many paths.

[20secondshotguy]

Darleen - Thanks for the kudos.

As for working together - we already do.

Hey - I heard a real Green Apron story today, passed along by a friend about a barista who upon hearing that a regular's child had been hospitalized, took the time to visit, bring a stuffed animal and say hello.

That's partner bringing the core purpose to life. If I'm getting a bravo then she gets an online Spirit of Starbucks.

Whoever you are. Thank you for reminding me why I'm here. You made my month!

[marg]

My husband and I stopped into a Starbucks in Seattle Monday morning and ordered two Americanos. The coffee was terrible--colored watered, not even hot. Not a good way to start a week. I started thinking about quality control and how the company keeps a handle on its coffee making and how it trains its employees. With so many outlets, even in grocery stores and gas stations, how does it keep control of its product and quality? Anyone else run into a nasty-tasting Starbucks?

Is anyone else getting tired of reading negative post after negative post from pat nerr? Every thing that comes out of this persons mouth is either a put down, a rude remark or some other derogatory comment about the company. We get it, you don't like starbucks. Reading your posts has become a chore for me. Other people at least post positive things, granted from time to time there are the negative posts, but all you do is bitch and moan about starbucks, it is getting old man. Get over starbucks, do whatever you need, but quit being such a whiny ass will you? At the very least have some balance. If the company is as bad as you make it out to be you wouldn't have stayed as long as you did. You are turning people off big time.

[Pat Nerr]

Not worth putting your name: I'm sure you're dead on. I don't think my suggestions for making a better company are that bad. I'm a shareholder only now... I can do that. It's "my" company and I'd like them to do better. They have done better.

Oh... and what are your credentials as a Starbucks person? I think you might try www.starbucks.com if you'd like to only read one person's opinion. It's safer for you... there will most likely be folks on both sides of the fence here...

[Kelley]

I love Starbucks. I work there, I am a shareholder and I am also a customer. I will agree that having so many "things" to do besides just coffee is difficult, and I would like to see a return to basics, but the basics are still there, and if people weren't buying the other stuff, Starbucks wouldn't sell it.

I would like to address quality control at grocery stores, airports, etc..., Those are not company stores. Those employees are not receiving the same training, the quality control isn't there, they aren't getting the same benefits as regular Starbuck's employees, and (most importantly in my opinion) THE WATER ISN'T FILTERED THE SAME WAY which makes all the difference in the world when coffee is pretty much FLAVORED WATER. And Frappuccinos are mostly ICE. So while I'm not knocking their employees, they're not the same baristas you find at a company store.

[latte for dinner]

patt nerr said :

Oh... and what are your credentials as a Starbucks person? I think you might try www.starbucks.com if you'd like to only read one person's opinion. It's safer for you... there will most likely be folks on both sides of the fence here...

Agreed there will be both sides. That's not what I was trying to say. My credentials? If you must know I am a partner, a shareholder and, a customer. Does that qualify me? My point (that you choose to ignore)is that the only posts you ever post are insults and degredations. You have become the anti starbucks. Try having some balance. I doubt I am the only person here who feels this way.

[Pat Nerr]

well, since we can both agree that there will be both sides of the coin here, it might be a good idea to just move past my posts.

I'm glad for folks that have/are having a good experience at Starbucks. My POV is that things have gone down the the wrong path with regards to how people are treated.

If you're insulted by someone having a poor experience at Starbucks (customer or partner) then I can't do anything for you. My experiences are my own. Not so positive or otherwise. FTR, I haven't attacked anyone personally... yet, you are attacking me. If you can cite a personal attack on a person, I'm happy to apolgize to them. Now let's move on... there are Spiced lattes and CD's to sell.

[short drip]

Starbucks was birthed of the "open door policy"
Open Forums
Partner View Surveys
Mission Review
Skip-level round tables
Etc.....

A company is fortunate to be able to receive feedback from all POV.

How often did Enron, World Com, Adelphia etc leverage those internal feedback mechanisms to maitain a healthy and balanced fiscal diet?

Pat Nerr knows what the principles of the company are and is giving newbies an opportunity to mentally challenge the status quo.

No one with the tenure that Pat Nerr has could ever be a sbux hater.

His big back deck, basement game room, maple floors, wet bar, crown molding and SS refriderator are all thanks to Starbucks.

Cheers!

[short drip]

Starbucks was birthed of the "open door policy"
Open Forums
Partner View Surveys
Mission Review
Skip-level round tables
Etc.....

A company is fortunate to be able to receive feedback from all POV.

How often did Enron, World Com, Adelphia etc leverage those internal feedback mechanisms to maitain a healthy and balanced fiscal diet?

Pat Nerr knows what the principles of the company are and is giving newbies an opportunity to mentally challenge the status quo.

No one with the tenure that Pat Nerr has could ever be a sbux hater.

His big back deck, basement game room, maple floors, wet bar, crown molding and SS refriderator are all thanks to Starbucks.

Cheers!

[Pat Nerr]

Thanks Short Drip... The back deck though was from the PT real estate job... my new home office though was Bean Stock. You also forgot the trips to Europe. To my credit, I've always brought HS back a "thank you" gift.

I'm not a SBUX hater**... for the record... I just know that they can do better... and they need to to make it another 35 years.

Now go sell some coffee, Papa needs a new laptop.

**Pat Nerr is a smartass however.