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local branding

Illy Competes Against Starbucks With "Local" Branding

Posted by Stephanie Startz on November 5, 2009 12:42 PM

Italian coffee maker Illy is hoping Americans infatuated with coffee culture, but burned by Starbucks’ roast will pause for a taste of Italy.

Illy is increasing its profile in the United States through a stealth campaign in independent coffee shops, signing agreements with 28 independent cafes to exclusively brew the Italian roast, allowing Illy to intervene in order to assure quality control.

The coffee maker launched the program three years ago in Italy: "Artisti del Gusto," or Artists of Taste. In the US, Illy is currently found in high end grocery stores, restaurants and hotels. The new partnerships will raise the brand's profile as cafes adopt Illy-branded merchandise: espresso machines, artwork, ceramic mugs and red stand umbrellas.

The “Artists of Taste” program offers benefits to the cafes, and a chance to compete with local Starbucks shops. Café owners, like Sean Lupton-Smith, find value in offering Illy as a “consistent experience to our customers," and sees it as a "strong enough [brand] to stand up to the Starbucks around the corner.”Continue reading...

best global brands

Starbucks Offers iPhone App And "Local" Branding To Regain Its Footing

Posted by Stephanie Startz on September 24, 2009 04:51 PM

Will iPhone apps that help you find local stores or place mobile orders help the struggling Starbucks brand recover?

After 16 years of dominance, and escalating growth, the chain has encountered a drop in sales, a loss of control over brand identity, and been forced to shutter nearly 600 stores. Starbucks dropped five places, to 90, in Interbrand's Best Global Brands 2009 report, losing 16% of Brand Value amidst competition from McDonald's, Dunkin' Donuts and local coffee shops.

Despite these setbacks, the brand isn't throwing in the towel. The retailer has rallied since bottoming out in November 2008 (to their credit, it was a rough month all around), and worked to reposition. Two new iPhone applications are intended to augment the customer experience: The myStarbucks application allows customers to build and share drink recipes, find the nearest Starbucks, and look up nutritional information. 

But the real spark of ingenuity comes in the Starbucks Card Mobile application, which lets customers manage their Starbucks gift card, check and refill their balance, and make store purchases. A trial version in 16 locations offers customers the option to pay using their iPhone mobile devices. Continue reading...

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