I don't know if, by using Web Analytics, I could prove that Starbucks Brand has become diluted (see the last part of this post) - but I can certainly tell you I don't go out of my way to go Starbucks anymore. I will still buy their French Roast coffee at a Barnes and Noble, because I know what I'm getting - I know exactly what it tastes like and I like it.

But I think a rumored letter by Starbucks chairman Howard Schultz (and I don't really know if this is a real letter or not - but I suspect it is) shows what happens to a well respected Brand when it tries to grow past what it's really about.

Gizmondo has a writeup on Starbucks Vending Machines today - Personally, I'd love one of the Starbucks Automated Coffee Machines at my painting studio and I might not even mind one at work too….

But…. it comes with a price - that pretty soon I don't think Starbucks is a place to go anymore - that it's "nothing special".   Maybe volume sales is a good thing from a Financial Investor perspective, but is it sustainable in the long run?

"….Starbucks has been on a downward slide for years quality-wise, exchanging solid product for McD's-style viral growth, ubiquity and speed. Since it's not enough that their subpar coffee is on every corner in NY, they've decided to invade every room too, with a new automated vending machine co-produced with Pepsi that churns out your favorite poorly crafted "roasted coffee, various lattes, and hot cocoa."

Gizmondo points out ….. it's not sustainable, long term - the Starbucks Brand has become "cheapened" because it's everywhere - it's not something you have to make much of a choice about - since there's now a Starbucks on almost every other block in Manhattan (at least, in certain areas).

Considering Starbucks overall presence pretty much everywhere I go - you'd think there's be a lot more traffic to their sites than some of Starbucks' main competitor's, but according to Attentionmeter.com, there's little difference between Starbucks and Gevalia and Dunkin Donut's is beginning to eat into Starbucks market.

Starbucks and Dunkin Donuts are even more overlapping with traffic patterns in the Quantcast Mash-up on Attentionmeter - meaning that Dunkin Donut's is beginning to take away customers from Starbucks.  And yet, the Brands were the Polar Opposites - Starbucks being a quality brand and Dunkin Donuts being… well… a Donut Shop.   Well now, to many people, Starbucks has become a higher priced Donut Shop. 

Starbucks ….. are you satisfied with your growth yet?  Made enough Investor's happy yet? Want to donate a Vending Machine to my studio at Brooklyn Artists Gym?  I love it but ….. if you keep it up, in 5 years I might be just as happy with a Dunkin Donuts Automated Vending Machine at my studio as yours. 

Everything comes with a price - there's always a price to be paid for explosive growth…. question is, can you have that growth and still maintain the Brand?  Yes, I'm told that's possible - but I think every decision you make has to be weighed against what you "can" do and what you "should" do to make your Brand stand out.

Hell… you can have a Starbucks machine in every office building, maybe in every office - but if you do that, get to that, will I bother to go into a Starbucks store anymore….probably not.

Starbucks: You know what I'd be really worried about?  Look at the charts  of Audience Composition from Quantcast between Starbucks, DunkinDonuts.com and gevalia.com compared with each other:

There's actually more "fandom", more "Addict" behavior around Dunkin Donuts than Starbucks!!!  In other words, Dunkin Donuts is moving up and Starbucks is moving down.

Now, the audiences really are still different - people who go into Dunkin Donuts are much more "price conscious" than those who go to Starbucks and Gevalia.  People who shop Starbucks probably would also go to Jamba Juice (which is no surprise, since Jamba Juice is copying Starbucks strategy but is still a young Brand).   Perhaps the next step is getting a Jamba Juice at a Starbucks….. hmm…. interesting, but not what you really want.

Which brings me to the end of this long, rambling post.  A lot of things you could do to increase the reach, frequency and retention of a Brand …….might not be the best things for long term growth …and I mean …long term … not some hot shot Wall Street Investor or Growth Fund - long term …. like 10-20 years. 

If you care about "Long Term Growth" you'll have to weigh what you "can do" with what you "should do" - and Web Analytics can help, by informing about relationships between buyer behavior and other websites they go, just as I showed you here with the Quantcast charts.