Starbucks' Retro Logo

Brown is certainly a color that communicates coffee. So, when you order a cup of the new Pike Place coffee at Starbucks this week, it doesn't seem out of place to see a special brown logo on the cup and paper sleeve. Except that, as everyone knows, Starbucks' iconic logo is green. So why change such a successful corporate symbol?

The image of the twin-tailed mermaid inside the brown medallion harkens back to the chain's 1971 beginnings. The logo has evolved over the years, going from brown to green in 1987. This is the second time in three years Starbucks has trotted out the brown mermaid, inspired by a Norse woodcut. Back in 2006, she was resurrected to mark the chain's 35th anniversary. This time, she is a messenger for Chairman Howard Schultz, who is trying to restore some of the goodwill and warm feelings for the brand that have gone by the wayside because of increasing coffee prices, machine-made lattes, and bad press.

Starbucks plans to use the logo on all its cups for about eight weeks. It will remain in ads and as the logo for Pike Place bags of coffee. The new blend, which will be available in every store, has been crafted for a smoother, cleaner finish than many of the rotating blends Starbucks has traditionally carried week to week. This was done to combat the chief criticism of the company's coffee by reviewers, including Consumer Reports, that it tastes "burned."

"Now that Howard Schultz is back at the helm, this is definitely a nostalgia effort and a strong push to get back to the core values of the company," says Rob Giampietro of New York design firm Giampietro + Smith, referring to the reintroduction of an old icon. The tagline below the cup's sleeve reads: "Roasting coffee since 1971." Starbucks spokesperson Bridget Baker says, "It's a good time to celebrate our heritage."

Giampietro compares the move with those of baseball teams that have their players don throwback uniforms. The retro nods are meant to enliven the mood of patrons who, even while enjoying a visit to the ballpark, may resent paying $100 or more for a family of three to see a nine-inning game. "Old logos can engender a brand's story and history, and spark or rekindle an emotional bond," says independent Los Angeles-based marketing consultant Dennis Keene.

Tapping a logo change to convey a corporate strategy is not a fresh idea. In 2000, then-Ford CEO Jacques Nasser took the Ford Blue Oval logo off the headquarters building in Dearborn, Mich., and replaced it with a script rendering of "The Ford Motor Co." that was also used in corporate advertising. The move was meant to convey that Ford (F) was not just blue-oval Ford products, but also Jaguars, Volvos, Land Rovers, and the myriad of other outfits Nasser was buying to diversify the company's interests. After Bill Ford took over as CEO in 2001, he embarked on a strategy meant to take Ford "back to the basics." He directed that the blue-oval Ford brand logo be rehung on the company's building to convey that the brand was the one that would carry the corporation back to health. Ford has continued to struggle financially, but under a new CEO, Alan Mulally, the company has embarked on a worldwide reemphasis of the Ford blue-oval brand. In the meantime, it has sold Jaguar, Land Rover, and Aston Martin. "The move was done so no one inside the company, especially, would have any doubt about what brand will lead our recovery," says Bill Ford, now chairman.

Is there a danger that, by rolling out the old logo once again, Starbucks might overplay the authenticity card? "There is never a danger in reminding your employees or your customers of your authenticity as long as you also keep moving forward in new, surprising ways that are relevant to people," says Brian Collins, principal of the New York-based strategic branding firm Collins:. "When it's done right-and consistently-it can be the smartest way to market an established brand."

It's unlikely that Starbucks would ever consider going brown for good. The color is muddy and almost makes the cup look like it came from another company altogether. "As a color it's so much less distinguished than the green, and the green conveys both a friendlier and more upscale image," says Giampietro. "And it's so Italian!" he adds, referring to Starbucks' inspiration for the color, the Italian flag.

But Starbucks' throwback logo is fodder for the bloggers: They're poking fun at Schultz's accommodation of conservative coffee drinkers. In the original logo, the twin-tailed Greek mermaid showed her navel and bare breasts. In 2006, when the logo was originally revived, the chain received complaints about the "decency" of the logo and, despite the chairman's well-known liberal politics, the lady grew long hair to cover her indecency. That's the version we have today. Italians would never have given in-or complained in the first place.

The infamous Heineken “bite” refers to the distinct aftertaste of the product. One could also make the argument that it refers to Heineken’s continued sales and revenue growth in the beverage market. I was recently fortunate enough to visit its original Heineken Brewery, which has now been converted into “The Heineken Experience” during a trip to the brand’s hometown — Amsterdam. After some fact-finding and personal experience, Heineken is clearly on top of its game. Sporting a fantastic business model that properly understood the power of crisp branding, they continue to expand their portfolio of beer and increase sales of staple brands, which interestingly enough, includes Amstel.

Heineken was founded in 1864 by the young and upcoming brewer Gerard Adriaan Heineken. Its key ingredient, developed 22 years later by a French apprentice of the famous chemist Louis Pasteur, is called “The Heineken A Yeast”, and is still the main yeast used in its current brewing process. The brewery, passed along family lines for the next 100 years, survived two world wars and prohibition in the United States, a key market for an organization that has always focused on exporting it’s product. After World War II, with many of the Netherlands major beer breweries closed due to extensive damage, Heineken and it’s rival Amstel emerged as the dominating brewers in the city.

In a bold move that has paid high dividends, Heineken eventually purchased it’s largest competitor, Amstel, solidifying Heineken as the #1 brewer in Holland and laying the framework for the business to become the 4th largest brewer in the world. Indeed, Heineken has grown the acquired Amstel brand into the #1 imported light beer in the United States and Heineken just completed a 2006 year that saw it’s flagship brands experience a 14% growth in revenue in the Americas. And you thought the days of Dutch imperialism were over! (political humor anyone? No?

The tour itself offered some key insights into the thought process of the organization. Everything was crafted with the brand at the forefront of the attention. The proud history of the brewery was carefully adapted for its modern marketing approach, and participants were encouraged to taste, explore and learn about its process in an entertaining atmosphere. Heineken even had an amusement park type ride that put you in a bottles perspective, taking you through the process in a unique and entertaining way. The tour included three Heineken brews and a souvenir at the end of the tour. The bar at the end of the tour was a scene of smiling tourist faces and immersed consumers. Clearly the tour had made a positive impression on its participants in a way that other marketing vehicles would struggle to accomplish over many months of hard work.

So from the very beginning, Heineken was off to a proper start. But it takes more than a single marketing pitch to make a long lasting impression. Heineken is excelling in other marketing vehicles where its competitors are not.

Of all it’s competitors, which namely include brews manufactured by InBev, SABMiller, Anheuser-Busch and Molson Coors Brewing Company, Heineken has certainly been the most innovative in creating superior branded packaging for their product line over the past decade. Its latest innovation, the 5.0 Liter Heineken DraughtKeg, essentially a miniature self-sufficient keg, has been a major hit with consumers. Demand for the product has enabled Heineken to triple its production of the design for 2007 and has undoubtedly increased brand awareness on store shelves across the globe.ii While I can not confirm this, I imagine that the Heineken Draught Keg could trace it’s origins to another innovative packaging design, The Heineken Keg Can, a wildly successful 12oz aluminum can that differentiates itself from its competitors on store shelves. Resembling a keg among bottles, a quick consumer glance most certainly influenced more than a few purchase decisions.

While the previous products almost certainly penetrated the minds of more than a few male drinkers, Heineken has also packaged products that appeal to the female demographic. It’s latest product — Heineken Premium Light, has a sleek, slender and sophisticated look. Heineken has seen significant market share since the products launch in the female demographic, and they intend to keep pushing down the pedal. According to their 2006 annual report, Heineken estimated that they would sell roughly 400,000 hectoliters during the year. Instead, they wound up with sales of an estimated 680,000 hectoliters – more than 70% above initial forecasts! ii

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Dear ________,

I write to you today because the smile on my face from this morning's Starbucks "Reduced Fat Turkey Bacon" sandwich is quickly eroding. I learned late last night about Mr. Schultz's initiative to axe all hot breakfast sandwiches from Starbucks coffee houses in a campaign to win back customers. Besides selling Coldplay albums out of your stores, this could be the biggest mistake of Mr. Schultz's illustrious business career.

I can honestly say that I had nightmares last night in fear that by this time next year, I will be unable to walk into my neighborhood Starbucks and smell the aroma of a plastic-wrapped, pre-made hot breakfast sandwich. No, they are not freshly prepared on a McGriddle, but they do offer a healthy alternative to the decadent desserts that are on display in all of your 10 billion stores and counting. In an increasingly health-conscious world, no one can deny the growing demand and popularity of a fiber-rich, protein packed hot breakfast sandwich. To be frank, the hot breakfast sandwich is the best thing going for Starbucks right now. Starbucks coffee, believe it or not, is a distant second, if not third (I do like those marble pound cakes on my sweet tooth days). Whether Mr. Schultz would like to admit it or not, Starbucks competes with Dunkin Donuts and McDonalds. Both competitors offer better coffee and breakfast sandwiches for a cheaper price, and yet, I and a million others still go to Starbucks. As a hot breakfast sandwich expert, I can honestly say that Rachel Ray and Ronald McDonald are laughing at this "get back to our roots" long-term strategy.

With hot breakfast sandwiches removed from the menu, Mr. Schultz can say goodbye to its biggest revenue generator, and watch his loyal shareholder base rotate into one big "egg mcmuffin and cheese." With a waning stock price already, I'd be willing to bet that the portfolio manager at Sand Capital Management (SBUX's top shareholder) probably choked on his hot breakfast sandwich last night when he learned of Mr. Schultz's initiative. I know this sounds like a joke, but I'm being very serious. Killing the hot breakfast sandwich is not courageous as Mr. Schultz deems - it is just plain dumb, and will result in the ultimate demise of this respected franchise.

Sincerely,
________________(Name Left Out for this Blog)

Later in Mr. Shultz’s announcement, he goes on to write that the sandwiches will be replaced with "a breakfast menu that delivers what our customers are asking for."

Go figure.