Wednesday, June 2, 2010

Starbucks headed to South Africa

Yes ladies, gents and extreme coffee addicts. The infamous coffee franchise, Starbucks is headed to SA just in time for the 2010 Soccer World Cup. You may have noticed this brand on various movies, sitcoms and featurettes with the central character often wielding a cup of Starbucks coffee highlighted by the brown branded jacket (to prevent burning). Starbucks rules the roost when it comes to a decent cup of coffee, especially if you want a french roasted latte! However, at the Starbucks in 7th Avenue Manhattan, I noticed a few things that can be problematic for the South African initiative:
  • There was literally no place to sit
  • Out of the minimal number of tables, only a few were spotless
  • Considerable lack of hot food, primarily packaged, possibly for the "on the go" worker
  • Condiments such as napkins, sweeteners were not made available
These may be critical factors to the success of the infamous Coffee franchise. So how would they adapt to SA conditions? No doubt, as an active Marketer, I know that the South African market is one of the toughest environments to break into especially with a whole array of competitors waiting in line to take you down.! Here's what they will need to do in order to survive in South Africa. Post world cup strategy: The Starbucks braintrust needs to realise that by having it in a couple hotels in South Africa isn't gonna do them any good in the long run. Yes, the positive is that they will generate mass sales considering that rest of the World is visiting SA for the World Cup for one month. But what happens when they leave? Will hotel dwellers be just as tempted to go to Starbucks post world cup? Also is the hotel a destination venue. A good example of a destination hotel venue is the Southern Sun in Newlands, Cape Town. This particular hotel has a successful Indian restaurant known as "Bihari's". Also, parents have a tendency of taking their children to get autographs signed by the visiting Proteas and Springboks. However, although successful the potential of taking it a level further at a hotel is very slim. Starbucks needs to go to places which exemplify "Pop Culture". The malls in SA, such as Canal Walk, Gateway and Menlyn Park is a great start. They should consider a sit down style Starbucks cafe's in the bigger malls. Alternatively the smaller variety in the least frequented malls. Another suggestion is that they consider branching out in various universities throughout the country e.g. UCT, Stellenbosch, Rhodes, Wits e.t.c Why you ask? Well for starters, there is a brand familiarity with the current generation at SA universities with various film orientated media encompassing a Starbucks item e.g. Maid of honour featured Patrick Dempsey being the inventor of the Starbucks coffee jacket. At the moment, Starbucks will be available in select Southern Sun Hotels and Tsogo Sun Casinos in Johannesburg, Cape Town and Durban Campaigns: Viral campaign via YouTube or a mailer will do wonders for them. Could feature them emerging in SA. For instance, "breaking the reigns campaign!" Advert could feature a woman going to a bland coffee shop in noi background after she notices the starbucks packaging in a bin she pulls the chains from her legs leading to the dull coffee shop and head for the Starbucks. An alternative reality game could be an idea! Call it "Drown conformity" by shifting a couple blocks in a pathway u can ensure the city is filled with delightful coffee of some sort. Final thoughts: I am relieved that a decent coffee franchise hits SA. Not many franchises in SA possess a diverse menu and often fail to reignite interest from the consumer public. Also, Starbucks made add that element of funk, most SA coffee franchises have been lacking!

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