November 9th, 2009

When Good Brands Go Brandless, Part I

If a product has any sort of defined presence in the marketplace, going “brandless” may seem impossible—or potentially foolish. Intrigued by the logo-less café that Starbucks opened in Seattle this summer, I set out to explore that and other intentional moves to drop, disassociate or reinvent a brand. In comparing these efforts to Muji—a brand built on being brandless (sort of)—I looked at what value there is in seeking symbiosis and adopting a long-term perspective when experimenting with a brand.

brand_muji1

Japanese retail store Muji was founded on principles of design minimalism and environmentally friendly practices. It has a “no-brand” policy, meaning you won’t see a name or logo on its wide variety of household and consumer goods (clothes, home furnishings, travel containers, etc.). Spending very little on traditional advertising, Muji’s success lies in word of mouth. The brand appeals to those drawn to clean aesthetics (read: design snobs). It is authentic in that its lack of a brand has become the brand.

On the other side of the Pacific, in Seattle, is 15th Avenue Coffee and Tea. Refurbished chairs, wine by the glass, treats from local bakeries…all the makings of an indie refuge. Though the wavy-haired goddess logo is nowhere to be found, its website says “Inspired by Starbucks”— roundabout speak for “owned by” the coffee giant. The atmosphere draws inspiration from the original Starbucks on Pike Place. But confusion as to why Starbucks buried the name prompted reactions that were skeptical, if not cynical. In opposition to the smattering of positive comments on the 15th Avenue blog, one particularly amped up individual said, “FRAUD!!!!!!!! FAKE!!!!!!!! PHONY!!!!!!!!!!!!!!!!” Somewhere Holden Caulfield is smiling.

brand_starbucks

Starbucks is the world’s largest coffeehouse chain. Backlash was to be expected, despite their embracing a local community. The café is a one-off…an experimentation with a specialty sub-brand. It’s an attempt to regain authenticity by better serving a local neighborhood and catering to customers disenchanted with the formulaic chain. Starbucks is certainly big enough to handle such an experiment and the accompanying criticism (despite increasing competition from lower-priced rivals, as this Huffington Post article notes.) Some found their behavior sneaky, but was it that different from when McDonald’s held majority ownership of Chipotle? Both are examples of fortune 500 players appealing to consumers seeking a different type of eating or dining experience.

Size notwithstanding, what distinguishes Muji from Starbucks is that its operations, product and marketing are inseparable. That’s why it doesn’t need to advertise. Few brands are so well aligned. So what value was gained in opening the 15th Avenue café? We don’t know just yet, but its store, product and marketing are at least on parallel tracks. I think it was wise to avoid the Starbucks logo. This is not an indie-looking Starbucks. It is a neighborhood coffee shop, one that supports and features local artists, musicians, poets…and even brings in tea masters to share their knowledge. Such behavior is supporting a new brand and vice versa. A second café is in the works.

And speaking of McDonald’s…

In Part II of this series, I’ll explore a logo-less move McDonald’s performed last year while introducing the Quarter Pounder to the Japanese market. Stay tuned.