Using marketing based around local events can be a good way to endear the local population to a brand by using local events to build a common connection. Of course, it can also go very, very wrong. Coffee giant Starbucks (SBUX) just saw how badly it can go wrong, and fired its South Korean CEO over it. Investors seemed pleased, and gave Starbucks shares a fractional boost in Wednesday afternoon’s trading.
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Basically, Starbucks South Korea launched a line of new tumblers, which was fairly standard stuff for Starbucks. But the South Korean operation made the mistake of referring to the tumbler launch as “Tank Day.” That by itself may not have been such a problem, but it turns out that Starbucks’ Tank Day went live on the same day as a terrifying event involving actual tanks from 46 years prior.
Back in 1980, South Korea engaged in a brutal suppression of pro-democracy forces, using tanks and heavy armor to disperse the protesters. This ended in an outright massacre in the city of Gwangju, and having those images even tangentially invoked to sell coffee containers was not at all welcome. South Koreans bought mugs and tumblers, oh yes, but promptly smashed them with hammers. They also deleted the Starbucks app in substantial numbers. This led to a public apology from Starbucks and the firing of Son Jeong-hyun, the South Korean CEO.
Miffy Merch
Meanwhile, a merchandising effort that has absolutely nothing to do with democratization in South Korea and everything to do with an adorable cartoon bunny launched at Starbucks. Starbucks has new limited edition merchandise featuring Miffy the Rabbit.
The rabbit from Dick Bruna’s line of picture books will hit mugs, cold cups and tumblers alike, and should be on shelves now. Miffy will also adorn gift cards and various plushies, among other things. However, even this simple and sweet line of merch is having some issues, as reports suggest some places are having a hard time keeping the items in stock, or even getting them out to the customers to begin with. Some even wonder if Miffy will be the next Bearista.
Is Starbucks Stock a Good Buy?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on SBUX stock based on 17 Buys, 11 Holds, and one Sell assigned in the past three months, as indicated by the graphic below. After a 28.2% rally in its share price over the past year, the average SBUX price target of $110.88 per share implies 3.62% upside potential.
