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How Starbucks Became a Global BrandPresented by Prof Doug Bowman
2/5/2014
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Chat Participants
Angela Bostick 04MBA (Moderator) – Associate Dean of Marketing and Communications
Doug Bowman – Professor of Marketing, McGreevy Term Chair and Senior Associate Dean for External Relations
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Why are strong brands like Starbucks so
successful?
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Draw three images that come to mind when you think of ‘Starbucks’ …
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Premium Product(Premium Price)
StoreEnvironment
ServicePhilosophy
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Starbucks’ Customer Experience
How does Starbucks deliver a Premium Product?
What are the key elements of the Store Environment?
Describe Starbucks’ Service Philosophy
Historic Target Customer:• Often female, ages 25-44• White collar, educated, affluent
Q: What is her life like?
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BrandValue
Proposition
TargetCustomer
Behaviors
Tendency to linger;ritualistic consumption;looking to self-indulge
Perceptions
Best coffee;classy; upscale;a “third place”
+
Designing the Branded Customer Experience
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Three Important Questions
1. What are you selling?
2. What are you really selling?
3. What are you really, really selling?
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Three Important Questions
1. What are you selling?
2. What are you really selling?
3. What are you really, really selling?
1. Who are your customers?
2. What are you selling?
3. Why should they buy?
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Two Major Points of Inflection for Starbucks
#1: Early-mid 2000’s• Change growth model from
opening more stores to growing same-store sales
image: starbucks.com/career-center/retail-positions
image: starbucks.com/career-center/professional-services-careers
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How Does Satisfaction Change Over time?
Change inCustomer Satisfaction
Performance - Expectations
Perf = Exp
Perf < ExpPerf > Exp
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Two Major Points of Inflection for Starbucks
#1: Early-mid 2000’s• Change growth model from
opening more stores to growing same-store sales
#2: Late 2000’s• Recession leads to declining
sales and poor performing stores
image: starbucks.com/career-center/retail-positions
image: starbucks.com/career-center/professional-services-careers
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Interview with Howard Schultz(http://www.youtube.com/watch?NR=1&v=ed-Nuokx2so)
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Interview with Howard Schultz:‘Focus on people, both employees and customers’
• Renew our level of personal responsibility and accountability
• First thing when you enter a store ... Find someone, one of our people who is doing something right and acknowledge it as soon as I can
• You didn’t mention the coffee … At the essence of Starbucks is the humanity of the experience
• We had to put the customer in every single meeting we were in
youtube.com/watch?NR=1&v=ed-Nuokx2so
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Top Box(es) Matter … A LOT
How likely is it that you would recommend [your company] to a friend or colleague?
1 5 10
Satisfaction rating
Loya
lty
http://www.netpromoter.com/why-net-promoter/know/
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Deliver Your Brand with Every Interaction
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Why are Strong Brands Like StarbucksSo Successful?
• Tight linkage between the brand value proposition and the wants/needs of the target customer
• Innovation: important even in seemingly mature product and service categories
• Principled leadership: values of the company reflects how it does business
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Background InfoProfessor Douglas Bowman: • PhD, University of Pennsylvania• 15 year Professor of Marketing at Goizueta• Also serves as Senior Associate Dean for External Relations, and Co-
Director – Emory Marketing Analytics Center • Teaches product and brand management and Syndicated Data Analysis • Past winner:
– Emory’s highest teaching honor, the Emory Williams Award (2013)– Marc F. Adler Prize for Excellence in Teaching (2004), which honors teaching quality,
course innovation and real-world problem solving.
• Accomplished researcher in the quantitative aspects of marketing, with a substantive focus in the areas of marketing strategy and customer relationship management