The Core Product of K.I.S.S.

Okay, I know that I often take on the role of an armchair critic of the MBA mindset and perspective.

BUT… in the context of this Blog-Logue, I will give them credit for part of what they call the Key Product Benefit.

Yes, I know that I am passionate instead about a Brand’s EIP -- the Emotional Ignition Point of the Brand Experience -- and declare that the USP and Core Product Benefits are historic relics of the 1980s.

What part of the Core Product Benefits do I give them credit?

The first two words… Core Product.

In the current issue of Business Week, there are two articles side by side.

One is titled “What’s Eating McDonald’s” and the other is titled “The Steam At Starbucks.”

I actually like McDonalds. They have some good quick food that has both good flavor and spice and fills the tummy nice.

The article is all about how McDonald’s posted some great growth during 2006 through the end of last year. They added Lattes, restyled a number of the stores and reached out to touch the new Millennials entering the workforce.

However, McDonalds did some price hikes during 2008 to counter the soaring costs for core ingredients like meat and cheese. And as the article says…”McDonald’s like other fast-food chains out there, has kept its prices steady in an effort to maintain margins.”

In addition to McCafe Coffee, they also expanded their menu more.

So what’s happening now? Sales are stagnant and, in some cases, slipping downward.

Starbucks?

It’s summarized quickly in one word…Via (their new instant coffee).

There’s a Starbucks around the corner from my house. I truly was shocked the day I went in and saw large Point-of-Purchase displays of instant coffee.

There were posters in the store windows and the Baristas were wearing buttons promoting the stuff.

The Business Week article notes one Barista as saying “This is the most stressful promotion I have ever experienced, and I’ve been with the company for seven years.”

Apparently, there is an internal revolt taking place among the Starbucks Baristas, but customers are lashing out as well.

The article sites one customer as saying “Please no more Via sales pitches. It’s annoying and so completely out of line with Starbucks’ vibe.”

All I want to ask is what does instant coffee have to do with Howard Schultz’s concept of the “Third Place?”

The sales of Via are not posting at the levels predicted.

While challenging to management right now… it’s hard to feel much sympathy.

McDonald’s started with a key product: Simple hamburgers and French fries delivered fast at a cheap price.

Today, McDonald’s offers everything from breakfasts to salads to chicken dippers to burritos to healthy apple dippers.

What happened to the simple, cheap hamburgers and French fries?

Starbucks started with a key product: an alternative place to gather with family and friends, some good music and a nice warm cup of coffee.

Back in the days when we gathered around the kitchen table, did your mother showcase the instant coffee?

I don’t think so.

I could go on and on with the lines…

Build it and they will come!

Product extensions drive sales!

Hire more MBAs to drive brand sales!

But I won’t.

In simple terms, it’s all about the Core Product.

It’s all about defining the Emotional Ignition Point of the Brand Experience and taking on the management role of being the steward of that EIP.

According to Business Week, McDonald’s is planning to concentrate efforts in 2010 on reviving its Dollar Menu on its core product line.

As far as Starbucks is concerned, Business Week notes no 2010 strategy yet on how to deal with ticked off Baristas and confused customers.

Maybe Wall Street has to take on the parental role and financially redirect the new Starbuck’s MBA management to refocus around that “Third Place.”

Well with the holidays now upon us… perhaps its best to end this Blog-Logue with a simple hug and a K.I.S.S.

And to deliver it to the customers that today define the Core Product and the Emotional Ignition Point of the Brand that drives the success of the Brand Experience!