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October 05, 2005

Locationing is Advertising

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[Sixth in a series of posts on Starbucks Tribal Knowledge]


“Location, location, location” is the most well known mantra in the real estate game. Because of Starbucks, it is also becoming a well known mantra for savvy businesses to receive free advertising exposure.

Locationing is a real estate/marketing strategy where every retail location also serves as a billboard for a business. Everything about a store’s physical exterior, from the awning to the logo on the side of the building to the company name in lights, is, in essence, a billboard communicating the business to customers.

Starbucks locationing strategy is called Main & Main and the real estate department maximizes every opportunity to place Starbucks locations in the most highly visible and highly trafficked street corners ... just like advertisers do when selecting billboard sites.

Locationing also extends to triggering impulse purchases from customers.

Starbucks triggers impulse purchases from customers by locating stores near dry cleaners and video rental stores. Starbucks takes full advantage of the morning commute customer traffic generated from people dropping off clothes at the dry cleaners on their way to work. And, Starbucks positions itself to take advantage of attracting late afternoon customers picking up movies from video rental stores on their way home from work.

Location, location, location … it’s not just for real estate anymore. It’s also for marketing.

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» Starbucks Tribal Knowledge Part 6 – The Location is the Advertising from David V. Lorenzo
This post is from Part Six in Brand Autopsy’s series on what makes Starbucks great. Starbucks uses each location as an advertisement. Here is the money quote from John Moore’s post: “Starbucks locationing strategy is called Main Main and the [Read More]

Comments

Definately good to know. Now to find ways to apply it. :) I'll definatly have to blog about what I try with this idea. Thanks.
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