Losing Faith in Humanity III
Here is a shining example, although there are many, of how advertising and positioning dominates the minds of simple consumers. When I first started going to the UofM there was a Starbucks on the corner of 15th and Whatever. Right in the middle of "dinkytown." Two years later this Starbucks closed, guess what opened in it's place? A Caribou Coffee.
Now logically this makes no sense. Obviously if Starbucks didn't do well enough to stay open, why the heck would Caribou? Maybe you are thinking, perhaps Caribou bought Starbucks out of this location. But I don't think thats possible, I see no reason why Starbucks would give up a profitable location to Caribou for any amount of money that Caribou could reasonably offer. If it is not a profitable location why the heck would Caribou want it anyway?
Here is the reason this is happening, and why Caribou will do very well here. The UofM is a very liberal campus, where students hate the infamous "corporation." There are at least three other coffee shops within walking distance to this Starbucks location and independent minded students would rather go to one of those shops than help Starbucks out. Caribou on the other hand, even though it's product and service is exactly the same as Starbucks, has positioned itself to be the anti-corporate coffee shop. This is far from true for anyone that has every worked at Caribou, because it's just as corporate as Starbucks.
Is this a shining example of brilliant positioning in action or a testament to the gullible stupidity of people? I think you know what I think.
Now logically this makes no sense. Obviously if Starbucks didn't do well enough to stay open, why the heck would Caribou? Maybe you are thinking, perhaps Caribou bought Starbucks out of this location. But I don't think thats possible, I see no reason why Starbucks would give up a profitable location to Caribou for any amount of money that Caribou could reasonably offer. If it is not a profitable location why the heck would Caribou want it anyway?
Here is the reason this is happening, and why Caribou will do very well here. The UofM is a very liberal campus, where students hate the infamous "corporation." There are at least three other coffee shops within walking distance to this Starbucks location and independent minded students would rather go to one of those shops than help Starbucks out. Caribou on the other hand, even though it's product and service is exactly the same as Starbucks, has positioned itself to be the anti-corporate coffee shop. This is far from true for anyone that has every worked at Caribou, because it's just as corporate as Starbucks.
Is this a shining example of brilliant positioning in action or a testament to the gullible stupidity of people? I think you know what I think.


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