Source: Starbucks
Will turning Starbucks into Pokémon stops boost coffee sales?
Starbucks is launching “Pokémon Go Frappuccino” in a partnership with Niantic, the maker of the hit augmented reality game. The initiative will see more than 7,800 Starbucks locations in the U.S. turn into “PokeStops” or “Gyms” where players can collect free in-game items or engage in battles.
The deal supports the limited launch of Pokémon Go Frappuccino, a blend of Vanilla Bean Frappuccino with raspberry syrup, freeze-dried blackberries and whipped cream. Pokémon Go sends users on scavenger hunts to capture virtual characters in the real world with their smartphone cameras.
For Starbucks, the partnership promises to increase traffic and reach a younger audience.
Niantic is exploring new ways to monetize its game while reviving some buzz. When the game first launched in July, it broke the first-week downloads record in Apple’s App Store. It still ranks in the top 30 downloaded mobile games. The initiative with Starbucks marks Pokémon Go’s first partnership with a major U.S. chain.
“The physical locations component of the collaboration is important to us as we look for ways to use technology to encourage exploration, exercise and real world social interaction, and Starbucks’ footprint throughout the U.S. provides an awesome platform,” John Hanke, CEO of Niantic, said in a statement.
The free app has primarily made money by encouraging users to purchase digital perks. In its launch, many small businesses paid $10 for in-app Lures that attracted Pokémon and thereby players to their geographic locations.
A similar partnership earlier this year helped McDonald’s in Japan drive sales ahead 19 percent in its June quarter. Mobile operator Softbank also inked a Pokémon Go deal earlier this year and Sprint last week partnered on a “special Pokémon Go experience” in more than 10,500 of its locations.
Such corporate collaborations will be limited in the future to avoid diluting the adventure in the game. Niantic continues to add new characters, in-game events and story elements involving rare Pokémon to the game to keep players engaged.
- Discover the Pokémon GO Frappuccino at Starbucks – Starbucks
- Hello, Starbucks! – Niantic
- ‘Pokémon Go’ has sought partnerships with companies that have large retail-store footprints – The Wall Street Journal
- Starbucks is launching a ‘Pokemon Go Frappuccino’ as its stores become gym locations – CNBC
- ‘Pokémon Go’ is turning Starbucks stores into stops – USA Today
- ‘Pokémon Go’ promotion successes continue with Sprint marketing tie-in – Digital Trends
- Pokémon Go showcases potential of augmented reality in retail – RetailWire
Discussion Questions
DISCUSSION QUESTIONS: What do you think of Pokémon Go and similar augmented reality games as traffic drivers for retailers? What questions should retailers be asking themselves in exploring such deals?
Poll
BrainTrust
Mark Ryski
Founder, CEO & Author, HeadCount Corporation
Lee Kent
Principal, Your Retail Authority, LLC
There’s no reason why commercial entities shouldn’t create reasons for AR gamers to visit their establishments … but the frappuccino flavor should have been bubblegum.
Stupid brand move. If this supposed childish augmented reality is seen as a way to lift traffic then maybe Starbucks might want to open an ice cream section and toy/play area for kids. Sometimes it is best to let trends — like Pokemon — die quietly.
Brand equity and respect for the business name are a few reasons why this is one stupid move for Starbucks.
Ploys like Pokémon Go may drive some additional traffic, but I’m skeptical that it will improve conversion rates and ultimately sales. I applaud retailers for experimenting with new ways to drive traffic into their stores — store traffic remains the lifeblood of brick-and-mortar retailing, however, driving the wrong kind of traffic can be counter-productive. If the store gets overrun by Pokémon Go fans that are visiting the store as part of the game but are not inclined to purchase, this could distract staff and create a less desirable store experience for legitimate shoppers. I’d advise any retailer considering this approach to be careful of unintended consequences. Test and learn before rolling out.
Is anyone still playing Pokémon Go? I thought that craze had ended. In answer to the question, when a craze like that hits, jump on the band wagon and ride it! Plenty of retailers did just that and saw some profits. Naming a frappuccino after the game doesn’t seem to make sense though.
But that’s just my 2 cents. Ding me if you must.
Retailers that climbed on the Pokémon bandwagon early will have more success than those that waited. McDonald’s scored higher sales. I’m not sure that Starbucks will do the same. Pokémon Go is not as hot as it once was. By joining now, Starbucks will get some participation, but it also could be seen as dated. The Internet delivers success with the speed of light, but those comets can quickly fade.
It raises more questions to me than answers. Why would Starbucks need to bring so many more people to its locations who, if they don’t buy something, make the store look too packed and as if there are significant waits to purchase products? Are they trying to attract families with kids and, if so, aren’t caffeinated beverages a miss?
The age of gamers is increasing as games are a life-long entertainment option, not only a child’s pursuit. Retailers need to learn how to integrate the shopping experience with entertainment forms across devices and platforms to create better, more interesting experiences. More retailers should look at using games, augmented reality, and other entertainment-focused technologies to blur the lines between entertainment, travel, work, and shopping to engage and stay relevant.