A look at StarBucks from Brand Management point of view

2.  Founded in 1971 in
Seattle, USA
 Started off as,
“Starbucks Coffee,
Tea and Spice”
 Sold only whole-
bean coffee and
coffee brewing
machine

3.  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

4.  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

5.  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

6.  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

8.  73rd on 100 Best Companies toWork 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

11.  Connect
 Discover
 Respond

12.  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

13.  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

14.  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

15.  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

17.  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
 TargetAudience
▪ Male and Female
▪ SEC A and SEC B

18.  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

21.  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

22.  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

23. Line Extension Brand Extension
Multi-Brands New Brands
Present New
Product
PresentNew

25. Three types ofTea; BlackTea, Green
Tea and HerbalTea
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

27.  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 andTazo are
promoted as brands in
themselves

28. Advantages:
Increased brand awareness
Improved brand image
Enhanced parent brand
Disadvantages:
Risk of losing the brand identity
Losing the core value
Confused customers

30.  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

31.  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

32.  Internet