Making Business Decisions: How Will It Affect Your Brand?

We make decisions every day. Some are easy to make, others harder to make. When it comes to running a business or organization, decisions are made for a variety of reasons, and based on a variety of factors. Sometimes decisions are based on financial factors, others on personal factors, and some just on a whim. Granted, there are many valid reasons from which to make a decision, but what if I said that when it comes to the long-term success of your organization, there’s only one factor to consider.

The most important question you can ask when making decisions about your business or organization is to ask yourself: How will this decision affect my brand?


The Starbucks Example

Over the past several years Starbucks has risen not only to the pinnacle of the coffee industry, but has become one of the world’s most recognized and successful brands. It’s nothing short of amazing how a small company in Seattle selling cups of coffee could grow into a global juggernaut with thousands of stores, billions in sales, and unmatched brand loyalty.

But recently Starbucks has slid quite dramatically, closing hundreds of stores, laying off thousands of employees, and forcing the company’s founder Howard Schultz to reclaim the helm in an attempt to right the ship and steer the company back to global dominance. There are many factors that led to Starbucks’ “fall from grace”, but what’s more important is what the company has done since that fall.

Today Starbucks announced it’s newest product, Via, an instant coffee product Starbucks style. Mr. Schultz attempted to answer the “why” question that begs to be answered in an article at The Huffington Post, saying:

There are numerous logical reasons: the significant size of the instant coffee market ($17B globally); the increasing mobility of consumers (imagine a cup of Starbucks VIA Ready Brew on a mountaintop); and, regardless of our ubiquity, that customers continue to tell us they want more Starbucks, and more ways and opportunities to enjoy it.

He goes on to say that during these economic times that we find ourselves in, companies must adapt in order to succeed. Consumers are changing their habits and loyalties in an attempt to save money, therefore Starbucks must change and adapt to meet these needs. He’s right, to a certain extent. Yes, brands must adapt to meet the needs of their target audience only until further adaptation means going against the vision, goals, and character of the brand. If your target market forces you to go outside of your vision and brand ideas, then they are no longer your target audience.

While Via will likely taste better than it’s grocery-shelf counterparts (and will likely cost more as well), and while the product itself may meet these “adaptive needs”, I’m afraid Mr. Schultz has forgotten the most important factor: how will this instant coffee product affect the Starbucks brand?

When you think of Starbucks do you think “instant coffee”? Of course not. When I think of Starbucks I think of the relaxing atmosphere of its stores; the quality service of its employees (though this has degenerated of late); the visual aesthetics of its brand; and the quality and variety of its beverages. When I think of instant coffee, I think of the motor oil I drink when I’m camping out. Though I may be able to take this new instant coffee product “on a mountain top” as Mr. Schultz suggests, is it really beneficial for my mind’s eye picture of Starbucks to include pop-up tents, campfires, plaid shirts, and food in a can?

This is just one more decision by the Starbucks executives in a series of many that have neglected to consider the long-term brand effects. Remember Vivanno smoothies? Or morning oatmeal? Yep, same problem – I guess the subject of how these may or may not positively affect the Starbucks brand didn’t come up at board meetings.

I personally like Starbucks. I actually like their coffee. I like the atmosphere of their stores. And, despite the changes in the economy, I’ve actually continued to be a customer. But my goodness, does Starbucks actually think that their long lost customers who used to shell out $5 for a cup of coffee will all of a sudden return because they can now get instant?

So What’s the Point?

My point is this. Decisions can be made for a variety of factors – and in today’s economy the most pressing factor is likely financial. If you run a business, or have a leadership role in an organization, please don’t make the mistake that Starbucks, and many other organizations are making. Don’t neglect your brand. Remember, successful brand development is a long-term initiative. You don’t achieve success overnight. But you sure can negatively impact your brand with just a couple of boneheaded decisions that shift your focus, confuse your customers, and end up costing you more in the long run.

The most important factor you should consider when making decisions about your business or organization is how will this decision affect my brand. Will it positively affect my brand, or will it negatively impact my brand? If the answer is the latter, don’t do it. Even if it’s easier, or more cost effective, or what everyone’s telling you to do. You’ll end up regretting it, and will lose all of the ground you’ve worked so hard to win in your customer’s minds.

The successful brands over the long-term are those who stay consistent when times are good and when times are bad. If you’re tossed to and fro because you forget to consider how decisions will affect your brand, you’ll end up capsizing. Remember, the most important aspect of your business is your brand – don’t neglect the most important thing.

About the Author: Jason VanLue is a brand consultant and user experience designer who lives in Orlando, FL. He is the Founder and Principal of FiveSeven Studios, a small interactive design and brand consultancy that helps small businesses and organizations grow their brands. Learn more about FiveSeven Studios.

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