starbucks brandz report

for Hill & Knowlton

1

What is BRANDZ?BRANDZ™ is the most in-depth and actionable study of brands ever undertaken.

Covers over 50 000+ of the world’s biggest & key local brandsCovers over 50,000+ of the world’s biggest & key local brands, including corporate and product onesIt is based on Millward Brown’s successful BrandDynamics™ system, a predictive tool that evaluates brand strength and li k it t f t h i k t hlinks it to future changes in market share.

First conducted in 1998, expanded every year since

Over 1,000,000 interviews to date , ,Conducted in Argentina, Australia, Belgium, Brazil, Canada, Chile, China, Czech Republic, Denmark, France, Germany, Greece, Hong Kong, India, Ireland, Italy, Japan, Korea, Malaysia Mexico Netherlands Poland South Africa SpainMalaysia, Mexico, Netherlands, Poland, South Africa, Spain, Sweden, Switzerland, Taiwan, Thailand, UK and USAnalysis conducted across more than 250 product and service categories

USA

Coffee Houses

2006

Starbucks

2006

18 September 2008p

Sample:

450, Visit coffee houses nowadays, 18-65 years.

Date of fieldwork:

November 2006

5 Key Concepts from BRANZ

Compare your brand’s health with benchmark brands - BRANDZ™ Map™

Quantify the relationship your consumers have with your brand. We know strong brands build deeper relationships - BRANDZ Pyramid™strong brands build deeper relationships - BRANDZ Pyramid

Identify your brand’s relative strengths and weaknesses - BRANDZSignature™

Quantify your brand’s vitality and potential, and predict likely change in your market share - BRANDZ Voltage™

Id tif b d’ lit fil BRANDZ Ch t Z ™Identify your brand’s personality profile - BRANDZ CharacterZ ™

…and so diagnose what will help drive more effective marketing/PR programmes.

First step in understanding your brand

The BRANDZ™ map – your brand’s position in the categoryg y

6

The BRANDZ™ Map+14

™ Strong EquityGrowing Equity

0Volta

ge (large strong brands)(small stronger &/or‘interesting’ brands)

0V

Little Equity( ll k b d )

Declining Equity(l k b d )

-8-50 -40 -30 -20 -10 0 10 20 30 40 +50

P

(small weak or new brands) (large weaker brands)

Presence

Well known, well loved with a large core following. Talked about in everyday life and part of the cultural

fabric of the country. Requires constant reinvestment in i d d i d b f h d

Relatively well known but definitely not a brand which is

Relatively unknown but with a strong following amongst a core group. Can become an Olympic brand if it can

14

Olympic

its product and image and must be aware of the dangers that may result from being seen as a fashion statement

Well known, well

definitely not a brand which is suitable for a mass audience. Likely to be too expensive for

most. Small group of passionate users Has

an Olympic brand if it can increase familiarity and

relevance amongst a wider group without alienating its

core But could also

™

y p

Classic

loved with a relatively large core following. Good but not great. Can retain its status

passionate users. Has difficulty widening its

franchise without alienating its core users. And must beware

of pricing too high and

core. But could also continue to develop

amongst a loyal group and become a strong aspirational brand

0Volta

ge

Defender

ClassicLittle Tiger

by constant reinvestment in its product and image. Even with a large

of pricing too high and becoming irrelevant to current

and potential usersA good balance between product

performance and price - but no real

aspirational brand

0V

Clean Slate Fading StarWeak

Little known to most

injection of marketing spend this may not become a talked

about Olympic brand

performance and price but no real product based or emotionally rooted

advantaged

-8-50 -40 -30 -20 -10 0 10 20 30 40 50

Presence

Little known to most consumers. The brands

relevance and advantages not at all established. In some cases a corporate

A brand perceived as having little to offer - but

still well known enough for

Previously known to and liked by all. Still relevant to a mass audience but hasPresencesome cases a corporate

brand not well known to consumers/ not previously

marketed to consumers

still well known enough for many to decide they don’t

like it

a mass audience, but has lost appeal and has little product or image based

advantage

Intuitive life-cycle?

14

Olympic

™

y p

Classic

0Volta

ge

Defender

ClassicLittle Tiger

0V


-8-50 -40 -30 -20 -10 0 10 20 30 40 50

PresencePresence

Building on and maintaining success

• Reinforce what has made you strong

• Demonstrate leadershipp

• Preserve strength of offering / basics

Classic/OlympicClassic/Olympic Little TigerLittle TigerSpecialistSpecialisty py pbrandsbrands

ggbrandsbrands

ppbrandsbrands

Monitor trends closely to Project proposition ith claritPrice / niche stat s is keMonitor trends closely to avoid stagnation

Project proposition with clarity

Challenge leadership of others

Accelerate trial & drive basics

Price / niche status is keypart of equity

Accelerate trial & drive basics

Initiating recovery & growthRe address the fundamentals•Re-address the fundamentals

•Establish meaning and clarity

•Build momentum

Fading StarsFading Stars

D ’t fi ht h it f fi d i

DefendersDefenders

Di ti ti l it d d

WeakWeak Clean SlateClean Slate

Don’t fight heritage - re-focus or find new spinInnovation may be needed

Distinctive clarity neededMake noise to establish momentum

brandsbrands Clean SlateClean Slate

Exploit loyalists or re-launchEstablish and project new meaning

Build basicsEncourage trialEstablish and project new meaning Encourage trial

Where do ‘Olympic’ brands go?

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Olympic 53%

™

y p

Classic6% 38%

0Volta

ge

Defender

ClassicLittle Tiger

3%

0V


-8-50 -40 -30 -20 -10 0 10 20 30 40 50

PresencePresenceSource: Brandz 1998 -2001

Where do ‘Classics’ go?

14

Olympic

™

y p

Classic 34%

17%

5%2%

0Volta

ge

Defender

ClassicLittle Tiger

34%

39%

2%

0V

Clean Slate Fading StarWeak3%

-8-50 -40 -30 -20 -10 0 10 20 30 40 50


Where do ‘Little Tigers’ go?

14

Olympic

™

y p

Classic41%10%

3%

0Volta

ge

Defender

ClassicLittle Tiger

41%

33%0V

Clean Slate Fading StarWeak7%4%

3%-8

-50 -40 -30 -20 -10 0 10 20 30 40 50

Presence

3%

PresenceSource: Brandz 1998 -2001

Where do ‘Specialists’ go?

14

Olympic

™

y p

Classic3%

10%51%

0Volta

ge

Defender

ClassicLittle Tiger

10%

21%0V

Clean Slate Fading StarWeak8% 7% 1%

-8-50 -40 -30 -20 -10 0 10 20 30 40 50


Where do ‘Defenders’ go?

14

Olympic

™

y p

Classic

1%

0Volta

ge

Defender

ClassicLittle Tiger 8%

5%6%

44%0V

Clean Slate Fading StarWeak14%15%

5%

-8-50 -40 -30 -20 -10 0 10 20 30 40 50


Where do ‘Fading Stars’ go?

14

Olympic

™

y p

Classic

0Volta

ge

Defender

ClassicLittle Tiger

31%<1%

0V

Clean Slate Fading StarWeak 58%9%

-8-50 -40 -30 -20 -10 0 10 20 30 40 50

Presence

1%


Where do ‘Weaks’ go?

14

Olympic

™

y p

Classic

0Volta

ge

Defender

ClassicLittle Tiger 5%

2%0V


47% 13%

27%5%

-8-50 -40 -30 -20 -10 0 10 20 30 40 50

Presence

47%


Where do ‘Clean Slates’ go?

14

Olympic

™

y p

Classic

0Volta

ge

Defender

ClassicLittle Tiger

2%

9%0V


5%

-8-50 -40 -30 -20 -10 0 10 20 30 40 50

Presence

76%5%


The BRANDZ™ Map – Some PR Action Examples14

Actions:S

PR Action: Actions:R f h

PR Action:S hi

™ Strong EquityGrowing EquityStay small and

special

Grow bigger ith t l i

Build advocates,

ambassadors

RefreshRe-inventReinforce

Sponsorship New alliances

Loyalty programmes

0Volta

ge

without losing strength Guerrilla

marketing0V

Little Equity Declining EquityActions:Get known

PR Action:Shout above your weight,

stunts, celebs,

Actions:Re-focusRedefine

Reposition

PR Action:Relaunch

RecruitmentNew

-8-50 -40 -30 -20 -10 0 10 20 30 40 50

P

controversy etc

pendorsers

Presence

….so where is your brand?

BRANDZ™ Map

….and what about your competitors?

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BRANDZ™ Map

Targeting - who are you strong or weak amongst?

26

BRANDZ™ Map

SSecond step in understanding your brand

The BRANDZ™ pyramid – quantify the relationship your consumers have with your brand and then y ycompare to other brands in the category

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The BRANDZ™ pyramid describes a consumers journey to loyalty

Bonding

Wh t i it d i d f ?

Can anything else beat it?

Performance

Advantage

Is it satisfactory?

What is it admired for?

Relevance

Performance

Does it cater for me?

Is it satisfactory?

Presence Do I know about it?


I th b d

Do you have an opinion Have you

Is the brand top of mind?

about it?experiencedit?

Presence


Is it in the i h iW ld I

Does it suit m needs?

right price bracket?

Would I want to be seen

using it?

Relevance

my needs?using it?

Presence


Can it deliver?

Performance

Can it deliver?

Relevance

Performance

Presence


Does it appeal to you more than y

others?

Advantage

Performance

Presence

Relevance

Presence


BondingHow many other brands do you feel

Is it best on what matters in this category?Advantage

brands do you feel the same about?

this category?

Relevance

Performance

Presence

Relevance

The Competitive Set - Pyramids

The BRANDZ™ pyramid describes a consumers journey to loyalty - The PR Connectionsjourney to loyalty The PR Connections

Loyalty programmes/ clubs customer

BondingLoyalty programmes/ clubs, customer awards, ‘best of breed’ activities, rewards

Case study/ testimonials, 3rd party advocate programmes partnership marketing

P f

Advantageprogrammes, partnership marketing

Product reviews, education/ training, trade marketing, validation (experts), sampling/ t i l

Relevance

Performance trial

Endorsements, lifestyle/ sports marketing, hobbyist programmes, niche-targeted

Presence

Relevanceactivity

Product launches, sponsorships, trade shows, exhibitions, alternative/ lateral , ,distribution, co-operative activity

Third step in understanding your brand

The BRANDZ™ signature – your brand’s strengths and weaknesses compared to other g pbrands in the category

37

The BRANDZ™ Signature actually identifies a brand’s strengths and weaknessesg

relative to the other brands in the category

It shows how well you are doing, relative to the category as a whole, in moving people up

each level of the pyramid and connectingeach level of the pyramid and connecting with them

BRANDZ™ Pyramid and Signature (vs. Competitors)

The Competitive Set – Brand Signatures

Di i h I tDiagnosis - why am I strong or weak at particular levels and how can I strengthen?how can I strengthen?

41

What does the BRANDZ™ signature mean for my brand?my brand?

Weak at presence

No one knows about the

Strong at presence

Already a very well known brand. Establish

presence and brand promise

brand compared with competitors. Need to

ensure that what k b tconsumers know about

our promise is relevant and motivating

Diagnosis of Presence

What does the BRANDZ™ signature mean for my brand?

Weak at relevance Strong at relevance

This brand isn’t relevant to many consumers –

either because of appeal

Relevant to the majority this brand has no

problems with emotional or price

pappeal or pricing.

Generally a mass market brand

Diagnosis of Relevance (amongst those for whom the brand fails to be relevant)


Weak at performance Strong at performance

The brand isn’t performing well. The

performance area needs

If a brand performs well use the opportunity to

grow market share to be fixed and communicated

gthrough trial building

campaigns and communicate this

strength to consumers

Diagnosis of Performance (amongst those for whom the brand fails to perform)


Strong at advantage/ bonding

Weak at advantage/ bonding

Strong at the important top layers of the pyramid

- the objective is to

New news about the brand is likely to be

needed to prompt re-maintain this by targeting those loyal to the brand.

Remember what made the

needed to prompt reappraisal. Don’t fight any

heritage that may exist for the brand - exploit Remember what made the

brand successful.with new spin on existing attributes

Diagnosis of Advantage(Which factors contribute to Advantage? Rank importance of factor shown in

brackets next to each statement)brackets next to each statement)

Summary of what drives Bonding

Affinity I like the brandAppeals moreHigher opinion

Want to be seen usingWould recommendEasy to use

Meets needs

Challenge Growing popularS tti t dChallenge Setting trends

Difference Differente e ce

Fame Top of mind awarenessMost popularFame Most popular

Price Better pricece

Summary of what drives Bonding

Fourth step – assessing the vitality andFourth step – assessing the vitality and future market share potential of the brand

Brand voltage

52

What does the Voltage mean?g

A high voltage score has potential to gainshare from its own marketing actions andshare from its own marketing actions and resist the actions of competitors to maintain sharemaintain share.

A low voltage brand can still grow, but will have to work harder to stand still, and over time be more vulnerable from the actions of other brands

A proven link between Voltage and Changes in Market Share

Less than More thanVoltage

Probability - 2.5 - 2.5 to +2.5 +2.5

of Share Increasing next year

16%23%

61%y

Probability of Share 52% 14%

23%

10%of Share Decreasingnext year

52% 14% %

Brand Voltages

fFifth step – what are the dominant personality traits of the brand

Brand character

56

How the key 10 characters are capturedHow the key 10 characters are captured

Seductress Hero JokerMaiden

SexyDesirable

AdventurousBrave

FunPlayful

InnocentKind

Friend

Friendly

Dreamer

IdealisticDifferent

Wise

Wise

King

In controlStraightforwardDifferent

CreativeTrustworthy Assertive

Mother Negative words used to determine RebelGenerous

Caring

gif the character is manifested

positively or negativelyHasty

ArrogantDishonest

Rebel

Rebellious

DishonestUncaring

The key 10 characters and their negative counterpartscounterparts

CHANGE

THE JOKER

THE FOOL

THE DREAMER

THE FANTASIST THE VAMPIRE

THE SEDUCTRESS

THE FOOL

WELL-BEING SUCCESS

THE REBEL

THE ANARCHIST

THE MAIDEN

THE WITCH

THE FRIEND

THE TRAITOR

THE MOTHER THE WISE

THE HERO

THE VILLAIN

THE KING

THE TYRANT

THE STEP-MOTHER

THE MOTHER THE WISE

THE CHARLATAN

SAFETY

CHARACTERZQualitative Framework forJoker Dreamer SeductressMaiden King

The Joker The DreamerThe Joker represents:

happiness, fun, humour, impulse

and positivity

The Dreamer represents:

charm, surprise,

imagination and openness

The Seductress represents: desire, attraction, mystery

and pleasure

The Maiden represents: kindness, humility, innocence and understanding

The King represents:

power, leadership,

strength and

Fool

p

Fantasist VampireWitch

justice

Tyrant

The Fool Th F t i t Th V irepresents:

immaturity, foolhardiness and lacking in

judgement

The Fantasist represents: unrealistic, irrational,

spontaneity and unconsidered

The Vampire represents:

manipulation, darkness, danger and falseness

The Witch represents: darkness, trickery,

vengeance, fear

The Tyrant represents: selfishness, obsession,

injustice, greed unconsidered g ,and

manipulationand arrogance

CHARACTERZQualitative Framework forMother Friend Hero Wise Rebel

The Mother represents: care,

protection, support,

abundance and

The Friend represents:

stability, closeness,

reliability and

The Hero represents:

admiration, hope, credibility,

popularity and

The Wise represents:

humility, credibility, admiration and

benefit

The Rebel represents: innovation, difference,

revolution and

Stepmother

love

Traitor

honesty

Villain

success

Charlatan Anarchist

conviction

The Step-Mother represents:

negligence, hate, emptiness and

disinterest

The Traitor represents: deception,

selfishness, falseness,

The Villain represents: envy,

narcissism, superficiality and self-centredness

The Charlatan represents:

evasiveness, immorality,

madness, fraud

The Anarchist represents: delinquency,

marginality and weakness,

abandonment and calculation

,and complexity

The brand’s dominant character

How is the brand characterised?

What is positive about the brand?

What is negative about the brand?

Summary – how Hill & Knowlton can help your brand to progress

BRANDZ™ learnings for Starbucks

Click to add text

Summary – how Hill & Knowlton can help your brand to progress

Potential PR response

BRANDZ™ learnings for Starbucks

Click to add textClick to add text

Thank-you

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starbucks brandz report

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