SEATTLE – Today, Starbucks announced plans to accelerate the transformation of its store portfolio in the U.S. Brands must use delivery, drive-thru, and distance not as ways in which their customers can stay alive but as ways in which their customers can feel alive.Over the next 18 months, company to accelerate expansion of convenience-led formats such as Drive-Thru, mobile order only Starbucks Pickup and curbside pickup to meet changing customers behaviors. Brands must not let relationships go back to being mere transactions. The challenge is to keep the brand’s promised experience alive when defaulting to a marketing environment of delivery, drive-thru, and distance.
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The challenge is how to maintain these special, defining characteristics in the new remote environment. Strong brands define a brand character that reflects our personal values and personality. A brand addresses our emotional and social needs. Brands are built on more than features and functions. But, these tactics must stay true to the brand’s promises. Delivery, drive-thru, and distance may be profitable. In this topsy-turvy world, we have extreme personalization without the personal. And, of course, there is Amazon, the gold standard in arm’s length shopping. Nordstrom, in Chapter 11, now offers Contactless Curbside pickup for available items at your favorite store. Wal-Mart+ is now an Amazon Prime fighter, without some of the perks, but with a lower membership fee and gasoline discounts. Wal-Mart is upping the ante in web shopping with its Wal-Mart+. delivers your pet’s favorite foods and toys. Domino’s, already well-positioned for delivery before Covid-19, is now winning the pizza wars with its contactless delivery option. Carvana allows you to buy a car online and have it delivered to your door with zero human contact. Wired reports that e-book lending rose 52% versus the same time last year.
Distance e-book lending is also surging, like libraries, the heart of many communities, closed due to Covid-19. Once the purview of colleges, universities, and MOOCs (mass open online courses) such as Coursera, distance learning has now become the way many children are going to school.
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Telemedicine has become such a hit that Otezla, a drug for psoriasis, changed its advertising to having a woman showing her clear skin to her doctor on her computer screen. Telemedicine is thriving, as we are concerned with venturing out and into the doctor’s office, a place where actual sick people go. These cards provide customers with a touchless way to pay for goods by tapping the card on the point-of-sale terminal reader rather than swiping or inserting a card. This summer, CitiCard replaced old cards with a contactless payment feature similar to MasterCard and American Express. Starbucks used to be an actual place allowing us to belong to a relaxing, sensuous, communal coffee world where we could express our individuality every day with every purchase. Chipotle has created Chipotlanes while Starbucks, known for its experiential “third place” … “home, work, Starbucks,” is also focusing on drive-thru as the customer’s new, favorite way of getting their coffee. Restaurant News, an industry trade press, showed photographs of Burger King’s new store model with enhanced and expanded drive-thru lanes. According to a new survey by McKinsey & Co., the global consulting firm, “Many contactless services (e.g., buying online for pick-up in store, curbside pickup) have seen an increase during the crisis and consumer intent to continue these services range from 40%-65%.” Burger King, Starbucks, and Chipotle are maximizing drive-thru’s.
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