brand management starbucks

History

Founded in 1971 in Seattle, USA

Started off as, “Starbucks Coffee, Tea and Spice”

Sold only whole-bean coffee and coffee brewing machine

Starbucks – 1980’s

Howard Schultz came on board

Changed the name from Starbucks Coffee, Tea and Spices to “Starbucks”

Reimaged the company from only selling coffee beans to a coffee house

90’s till now

Largest coffeehouse company in the world 20,366 stores in 61 countries The company is currently going through

expansion in Asian market Opened its first store in Mumbai, India

with plans of opening more than 15 more during the next two years

Signed MoA with its partners in Pakistan to open a store in Dolmen City by May 2013

Starbucks sells hot and cold drinks, coffee beans, salads, hot and cold sandwiches, sweets, snacks, etc.

The company also has an Entertainment division and Hear Music brand, which markets books, music and film.

Starbucks branded ice-cream and coffees are also sold at grocery stores

Social Responsibility

Launched Ethos water and the company donates most of its profits from it to help children get clean water

Paper-cup design Also ventured into renewal energy

Starbucks – The brand

73rd on 100 Best Companies to Work For By Fortune

Best Global Brands By Interbrand ranking: 88

The name was inspired by Starbuck, class American novel by Moby Dick

The logo includes a mermaid and the name of the company

Logo

Brand Elements

Connect

Discover

Respond

Strength of the Brand

Perfect Cup of Coffee

Third Place – Starbucks has always placed huge emphasis on creating the perfect third place for everyone to go to between their home and work

Customer Satisfaction through Service

Brand Attributes

Creating a Starbucks community – Long term relationships

Smart Partnerships – Working with the right people

Innovation – Constantly bringing in new products

Word of Mouth – Letting the high quality of their product and service speak for itself

Schultz made a number of trips to Italy in the 1980s which ensured that the American is fused with the Italian to create the essence of the brand and help the brand create a global appeal

Brand Identity

The personality of the brand is like that of a chameleon, allowing it to take on aspects of whatever the environment might be

Creating long-term relationships

Portrays itself as a fusion of European experience with its American lifestyle

Follows Global culture and the focus is on serving every customer

Positioning

Brand Positioning

Compelling Benefit – The Starbucks Experience

The company delivers what it promises through its values of maintaining high quality, excellent store environment and creating relationships between store staff and its customers

Target Audience ▪ Male and Female▪ SEC A and SEC B

Value

Quality is the first priority at Starbucks

It was the first one to bring premium European coffee experience to USA

The company values simplicity over technology

Starbucks believes in treating every employee as a partner and the most important ingredient of their coffees

Customer is the king!

Brand Equity

What do customers associate with Starbucks?

Premium Coffee

Consistently good customer service

A classy, neat and hygienic atmosphere with consistent store design that meets the 5 senses

Strength – Not just a coffee shop, a lifestyle

Key Drivers to Growth

Expanding core retail opportunity worldwide

Continuing to innovate Expanded customer base Creating long term relationships

between the customers and the brand

Increase order size, according to figures, the order size per customer at Starbucks has increased by 16% since 2008

Brand Strategies

Line Extension Brand Extension

Multi-Brands New Brands

Present NewProduct

Pre

sen

tN

ew

Brand Strategies

Branding strategy – contd.

Three types of Tea; Black Tea, Green Tea and Herbal Tea

Attracting customers who are not fond of coffee

Also one of their key moves in attracting Asian customers

The value of the sub-brand according to many is $ 1.4 billion

Starbucks Entertainment

Brand Architecture

It’s a combination of all three, monolithic, branded and endorsed

Some of the products are sold by the name Starbucks while some like Barista, Ethos and Tazo are promoted as brands in themselves

Non- Coffee related Business

Advantages:Increased brand awarenessImproved brand imageEnhanced parent brand

Disadvantages:Risk of losing the brand identityLosing the core value Confused customers

Core value of the brand

The Starbucks Experience

Comfortable setting to create positive and uplifting experience

Inviting store ambience

Unique warmth that sets apart from work and home

Customized beverage order

Emotional connection between barista and customers

Conversion of Experience to $$$ Most of Starbucks customers are not

price sensitive

Benefit of the strong brand

Lesser substitutes around the world mean less brand switching

Emphasis on quality gives it the advantage of playing with price

References

Internet