Starbucks is launching an in-store music service allowing customers to browse and burn cds using HP tablet computers. They already have licensing agreements with most of the major record labels who love the idea of bridging the gap between the digital and physical distribution channels.
They took a commodity product, coffee, and through brand imagery, store culture engineering and long-term strategic planning, they have become a true and accepted lifestyle brand. When Starbucks stores first sold branded cds in conjunction with HearMusic, it made sense somehow. The CDs were the same songs being played over the cafe stereo; they were part of the environment. Then in-store Wi-Fi made sense: a way to facilitate PC use in the cafe. Now, unlike the attempts of many other brands, their move into in-store recording of customized entertainment is both credible and unsurprising. Gradually, over the years, they have trained consumers to take these steps with them. After all, the Starbucks brand is about sensory experience, it's about experimentation, it's about customization. The Starbucks consumer is a captive audience ready to accept new extensions and developments. They expect and respect these dynamic brand steps.
Fashion clothing brands create cultures around their lifestyle brands with enormous print media budgets to accompany the in-store POS. But with smart brand planning that informs every in-store detail, and slow, logical steps in their desired brand direction, Starbucks has won credibility as a lifestyle brand and has continued to find innovative ways to turn that lifestyle credibility into new revenue streams.
Businessweek article Starbucks press release announcing new VP of Starbucks Entertainment Seattle PI article HP press release
