Starbucks raising its prices again -- will consumers care?

This post certainly isn't about marketing on a shoestring, but we can all learn another valuable branding lesson from Starbucks this week. Many of you have probably seen the news about Starbucks raising its prices on coffee drinks nearly a dime this week (as if they weren't pricey enough already). This follows a 5 cent increase less than 12 months ago. They blame higher dairy costs as well as higher gas prices, etc.

On first glance, a 14-cent increase doesn't seem like all that much. But consumers are also facing higher gas and food prices too. Now their getting squeezed even more. All things considered, it's a questionable move for a company facing increasing competition from other coffee shops and regular restaurants who are marketing their coffee differently and expanding the products. Even McDonald's is getting in on the coffee craze (a craze which many believe was created by Starbucks).

At the end of the day, I think Starbucks can still succeed in raising its prices. The main reason? They have built an extremely solid brand and have a clear identity associated with their products. This image has been so carefully crafted and cultivated over the past few years that competitors, especially have restaurants like McDonalds and Dunkin' Donuts, will have a tough time stealing customers away.

Does the Starbucks crowd really want to be associated with those brands? The shear number of Starbucks locations also makes it tough for copycat or similar competitors to gain much of a foothold, but this could change as Starbucks' expansion slows.

Nonetheless, the power of a great brand and a unique identity cannot be underestimated. That's not a stunning revelation, but the latest news about Starbucks is just a great example of how a brand can truly impact business.

The good news for us? Developing brand identity doesn't require an investment of millions. It all starts with a unique position and an effective message. Then it's all about supporting that identity and living the brand from top to bottom. That's easier said than done, but even millions of marketing dollars can't buy an identity if you don't have that foundation.