Download - StarBucks In Detail
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
Pres
ent
New
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