27.07.2020 Views

(International Library of Sociology) Celia Lury - Brands_ The Logos of the Global Economy-Routledge (2004)

Create successful ePaper yourself

Turn your PDF publications into a flip-book with our unique Google optimized e-Paper software.

of flexible specialisation (Harvey, 1990; Lash and Urry, 1994; Castells,

1996). These are processes in which production is flexibly organised for

specialised rather than mass production and decentralised through the

use of communication media and information technologies. These

changes mean that product differentiation in terms of function is less

and less often able to sustain competitive advantage (because it can be

imitated so quickly). At the same time, the production process is itself

more flexible, more able to adapt or flexibly respond to requirements

for new or differentiated products. But marketing played a key role in

the organisation of this flexibility, especially in so far as it contributes

to an active role for changing conceptions of the consumer. Marketing

not only provides the rationale for increasing the rate of product

differentiation (as markets are conceived to be dynamic), but also

provides the framework within which product differentiation occurs (as

markets are reconfigured in terms provided by marketing knowledge

about the consumer). The brand must thus be seen in the context of an

economy in which flexibility is a necessity, in which the dynamic

differentiation of products enables the management of change.

Starbucks: ‘There are no heroes…. What we’ve done is provide a

safe harbor’

One example of the commercial exploitation of the multi-dimensional

objectivity of the brand as it has developed in recent years is

Starbucks.3 In the postwar period, the market for coffee in the USA had

been dominated by three big companies: Nestlé, General Foods, and

Procter and Gamble. Together they controlled nearly 60 per cent of

roasted coffee and 80 per cent of instant coffee sales. However, coffee

consumption began to fall in the mid-1960s. By the late 1980s, about

half the US population over the age of 10 did not consume coffee at all,

and coffee consumption had fallen behind that of soft drinks. But over

the same period, a speciality coffee market began to develop, although

no one single company dominated the market. In this context, the aim

of the soon-to-be Starbucks CEO Howard Schulz was to transform

coffee from a commodity (‘something to be bagged and sent home with

the groceries’) into a branded offering that consumers associated with

(consistent) quality, service and community. In undertaking this

transformation, he sought to bring about a reorganisation of the market

corresponding to a shift from a commodity market to a brand market.

This involved the reframing of the market in terms of consumer

preferences as identified in marketing research. At this time, market

research in the United States identified an increasing preference for

‘natural foods’—that is, foods perceived to be less processed and more

nutritious; a rise in the acceptance of ‘ethnic’ foods; and a greater

emphasis on taste (in its full range of meanings) in consumer decision-

Hooray! Your file is uploaded and ready to be published.

Saved successfully!

Ooh no, something went wrong!