Plus: Apple preps for potential new CEO; Domino’s thrives with cost-conscious rebrand.
For years, it was a ritual: At the beginning of your “Tarjay” run, you stop and get a little treat from the convenient in-store Starbucks. You’d sip your iced latte while you browsed for patterned dresses or trendy holiday décor.
But now both businesses are fighting to return to their glory days.
Target has seen major declines as it missed the mark on merchandising and alienated some customers with a retreat on DEI. Meanwhile, Starbucks became synonymous with expensive drive-thrus, not leisurely enjoyment. Both are contending with a clientele stretched thin by rising prices and economic uncertainty.
The long-time partners are hoping to recapture some of the magic with an exclusive holiday drink available only at Target Starbucks, CNN reports. The Frozen Hot Chocolate Peppermint Frappuccino, which starts at $5.95 for a grande, is the first holiday collab between the two brands. And the intent is clear: Give shoppers a reason to come into Target during the holiday season. In a statement, Target was explicit that the drink is the “perfect companion for holiday shopping runs.”
Why it matters: While these brands have both taken missteps in recent years, they also both have a huge amount of equity and rosy memories. Teaming up for a special holiday offering benefits both organizations. Obviously Starbucks gets the cash from the drink and Target gets the foot traffic into stores, which hopefully will turn into revenue for them, too. But more than that, it’s a PR opportunity to remind shoppers what they love about both brands.
Both Target and Starbucks fall into the beloved Millennial/Gen Z category of “a little treat.” Had a tough day at work? Bombed a test? Feeling the winter blues? You deserve a little treat. A fancy coffee and a new scrunchie are just the thing.
But over time, Starbucks and Target have lost that little treat shine. Too expensive to be little, too monotonous to be a treat. By collaborating on a limited-time offering that draws people into stores for a specific reason during the critical holiday season, these organizations are trying to do more than get a one-time drink purchase. They’re trying to reclaim their power positioning at the king and queen of little treats.
This one step alone won’t be enough. But it’s a start.
Editor’s Top Reads:
- A massive change may be coming to Apple soon. Rumors are swirling that Tim Cook could step down as CEO as early as next year. Cook, who just turned 65, has helmed the tech giant since Steve Jobs stepped down in 2011. But whatever happens, we can expect an orderly and expected transition. Two years ago, Cook said that, “We’re a company that believes in working on succession plans, so we have very detailed succession plans.” The next leader is expected to be an internal pick, just as Cook was. “My job is to prepare several people for the ability to succeed, and I really want the person to come from within Apple. So that’s my role, is to make sure there’s several for the board to pick from,” he said in 2023. While you may not work for Apple and have a clear slate of internal candidates vying for the CEO role, it’s always good to have those succession plans sharp. Whether it’s an expected succession or one necessitated by illness, accident of malfeasance, this is a good reminder to keep those plans sharp, up-to-date and ready to go. The last year’s intense CEO turnover demonstrates why it’s needed.
- We’ve got lots of branding news today. Next up is Domino’s. The stalwart pizza chain is facing the same economic woes as every B2C company and has responded with a rebrand and a laser focus on price and value. Their visual update is slick and modern, leaning into the game that inspired its name and elevating it beyond its more retro, ‘90s vibes. Black boxes are reserved for premium offerings, like stuffed-crust pizza. But more importantly, Dominio’s [SP] is keeping their promotions and messaging relevant to the cost-conscious consumer, with deals like a $9.99 any topping pizza. Chief Financial Officer Sandeep Reddy said the brand intentionally keeps the competition “on its toes” by announcing its limited-time deals at unexpected times. So far, the results are paying off: total sales are up 6.2% YOY in the last three months with same-store sales up 5.2%, the Wall Street Journal reports. Domino’s rebrand shows that while pricing is important today, it isn’t the only critical factor. By investing in a rebrand with cooler-looking boxes and focusing on destabilizing competition with creative rollouts, they can stand out as more than just a budget chain, but one people want to patronize, even when economic circumstances improve.
- Let’s move to the other end of the economic spectrum for our next branding piece: luxury dog care products. Lil Luv Dog positions itself as a “beauty brand for dogs.” Think muted packaging, a clean design aesthetic and an emphasis on sustainability. The brand openly draws inspiration from Goop, the Gwenyth Paltrow beauty giant. They use language like “clean” to describe their ingredients and are safe enough that humans could use their products, like dry shampoo, should they choose to. And it’s not just the packaging that sets the brand apart, it’s also where they choose to sell: Think trendy, human-focused boutiques over PetSmart. The lesson here isn’t about price, it’s about drawing inspiration from other business sectors. Lil Luv Dog focused on its consumer: fashionistas who care about the environment and just love their dogs. The same things that matter when purchasing items for themselves matter for their best friends. By carrying over lessons from adjacent industries, they’re finding success in unexpected ways.
Allison Carter is editorial director of PR Daily and Ragan.com. Follow her on LinkedIn.
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