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How Starbucks Became the Apple of Coffee

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If you owned stock in Starbucks and Apple, you'd be sitting on a 1000% return on your investment over the last 7 years.

The phenomenal rise of these two companies is the result of clear focus on their brand marketing strategy, one which required a conscious split from traditional BRANDING based advertising, to marketing fit for the 21st century: BRAND EXPERIENCE.

In this presentation, we'll look at the success story from the Starbucks side: a case study of how Starbucks became a loved brand like Apple and the 5 factors that underpin its class-leading marketing strategy.

Published in: Business, Marketing
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How Starbucks Became the Apple of Coffee

  1. How Starbucks Became the Apple of Coffee
  2. Build a Brand Worth Talking About GRAHAMDBROWN
  3. GRAHAMDBROWN.COM3 Featuring   Case  Studies   from  my   Brand   Leadership   Manual http://www.GrahamDBrown.com/Manual  
  4. GRAHAMDBROWN.COM Starbucks & Apple What have these two brands got in common?
  5. GRAHAMDBROWN.COM …they share class leading growth
  6. GRAHAMDBROWN.COM Let’s talk about How… The 5 Factors that created an 
 Apple-style Brand Experience
  7. GRAHAMDBROWN.COM In this Presentation 1. Brand Experience 2. Brand Love 3. Customer Experience 4. Shared Experience 5. Social Space
  8. GRAHAMDBROWN.COM How they think different… What  Starbucks  &  Apple  do.. What  the  Rest  does… Brand Experience Brand Management Brand Love Brand Like Customer Experience Campaigns Shared Experience Shared Content Social Space Social Media
  9. GRAHAMDBROWN.COM9 And  as  a  bonus  to   Slideshare  users,  if  you   want  to  access  my   walkthrough video     of  this  presentation,     click the link  
 in  the  next  slide
  10. GRAHAMDBROWN.COM CLICK HERE to ACCESS this FREE explainer video giving you background insights and analysis for this presentation
  11. GRAHAMDBROWN.COM #1  BRAND
 EXPERIENCE   (not  branding)
  12. GRAHAMDBROWN.COM Starbucks & Apple Both companies understand Branding doesn’t build brands
  13. GRAHAMDBROWN.COM Starbucks: minimum advertising this  is  a  chart  of   annual  ad  spend
  14. GRAHAMDBROWN.COM Brand Experience a fundamentally different approach to marketing…
  15. GRAHAMDBROWN.COM15
  16. GRAHAMDBROWN.COM This is notthe Starbucks brand Branding  is  dead   and  Starbucks   knows  it
  17. GRAHAMDBROWN.COM This is the Starbucks Brand
  18. GRAHAMDBROWN.COM Brand Experience The Experience is the Brand
  19. GRAHAMDBROWN.COM PEOPLE METRICS 85 of brand happens in daily  interacBon (tweets, status updates, content shares, conversations between customers, between customers and employees) PEOPLE CULTUREMETRICS Brand     Experience CULTURE % The Starbucks Brand Experience
  20. GRAHAMDBROWN.COM #2  BRAND  LOVE   (not  brand  likes)
  21. GRAHAMDBROWN.COM21
  22. GRAHAMDBROWN.COM Share the love don’t forget to 
 hit the LIKE button so other Slideshare users can discover this too
  23. GRAHAMDBROWN.COM “the most powerful and enduring brands are built from the heart.” Howard Schultz, CEO Starbucks
  24. GRAHAMDBROWN.COM EMOTION vs LOGIC don’t fall in love with the product, fall in love with what the product does for them
  25. GRAHAMDBROWN.COM25 look at the Apple marketing philosophy Empathy:   understand their needs   better  than  any   other  company
  26. GRAHAMDBROWN.COM This is not coffee…
  27. GRAHAMDBROWN.COM fall in love with what your product does for them…
  28. GRAHAMDBROWN.COM #3  CUSTOMER
 EXPERIENCE   (not  campaigns)
  29. GRAHAMDBROWN.COM APPLE IS A RETAIL CO. 62% of Apple’s US employees work for Apple Stores
  30. GRAHAMDBROWN.COM
  31. GRAHAMDBROWN.COM BRAND HAPPENS You can’t control the brand conversation, but you can create a space for people to explore and interact with it in a positive way
  32. GRAHAMDBROWN.COM
  33. GRAHAMDBROWN.COM EVOLVE THE EXPERIENCE Create a feedback loop and use technology to evolve that experience every day
  34. GRAHAMDBROWN.COM Build a platform to create feedback MyStarbucksIdea  is  the   cornerstone  of  improving   their  experience
  35. GRAHAMDBROWN.COM Ask: how can we make this experience better? Thanks!
  36. GRAHAMDBROWN.COM
  37. GRAHAMDBROWN.COM Remove friction at every customer touchpoint Never  set  out  to   be  a  payments   player  but  to  fix   a  problem…
  38. GRAHAMDBROWN.COM
  39. GRAHAMDBROWN.COM DO WHAT’S NEEDED If Starbucks needs to become a tech company to deliver the best experience, Starbucks will become a tech company.
  40. GRAHAMDBROWN.COM
  41. GRAHAMDBROWN.COM "They're creating community hubs online, They take what they're really, really good at as a company — in terms of consumer experience and thinking about what consumer relationship is to the company and to the brand.”
 - Michael Schutzler, CEO of the Washington Technology Industry Association
  42. GRAHAMDBROWN.COM How Starbucks Became a Tech Company
  43. GRAHAMDBROWN.COM “The businesses that utilize technology to enhance their customers' experiences are going to be the big winners in the years to come. I'd definitely put Starbucks in that category.”
 - Kevin Johnson, COO President Starbucks
  44. GRAHAMDBROWN.COM #4  SHARED   EXPERIENCE   (not  shared  content)
  45. GRAHAMDBROWN.COM
  46. GRAHAMDBROWN.COM PEOPLE ARE SHARING Millions of photos tagged #starbucks across social media platforms…
  47. GRAHAMDBROWN.COM47 19 million photos 
 tagged #Starbucks on Instagram!!! Let’s  take  a  closer  look
  48. GRAHAMDBROWN.COM Starbucks  Dominates  Instagram  Shares Number of photos tagged on Instagram by brand name SOURCE: TOTALYOUTHRESEARCH BASED ON EMARKETER DATA STARBUCKS  IS  ONE  OF  THE  MOST  POPULAR  BRANDS  ON  INSTAGRAM   Nearest  big  brand  Apple  not  even  half  of  Starbucks  Earned  Media Pepsi Coke Apple Starbucks 19.1m 9.1m 5.2m 3.4m That’s  a  lot  of  people  sharing   Starbucks  experiences
  49. GRAHAMDBROWN.COM
  50. GRAHAMDBROWN.COM EARNED MEDIA Give customers the tools to tell their story…
  51. GRAHAMDBROWN.COM
  52. GRAHAMDBROWN.COM #5  SOCIAL  SPACE   (not  social  media)
  53. GRAHAMDBROWN.COM
  54. GRAHAMDBROWN.COM WE ARE SOCIAL BY DESIGN Modern technology overlooks the fact that we make decisions in their social context
  55. GRAHAMDBROWN.COM
  56. GRAHAMDBROWN.COM SHOPPING IS SOCIAL Nothing can replace the appeal of sharing a space, a conversation or an experience in the offline world
  57. GRAHAMDBROWN.COM
  58. GRAHAMDBROWN.COM
  59. GRAHAMDBROWN.COM GEN DISCONNECTED Don’t believe the hype: Millennial customers are the loneliest generation…
  60. GRAHAMDBROWN.COM Families are spending less time together % of families who make time for… family gets together every day family shops together every week family has annual vacation together 1991 2001 2011 It’s  not  just  families  but   society-­‐wide  we  have  less   social  contact  than  20  yrs  ago
  61. GRAHAMDBROWN.COM FRIENDS > “FRIENDS” Sure, they may have 1500 “friends” on Facebook, but they value the offline, analog interaction with 
 real-world Friends more than ever
  62. GRAHAMDBROWN.COM
  63. GRAHAMDBROWN.COM SOCIAL SPACE Starbucks is that
 “3rd Place”
  64. GRAHAMDBROWN.COM “A third placebetween work and home…” A  lot  of  what   people  share   about   #Starbucks  is   related  to  friends
  65. GRAHAMDBROWN.COM “In  an increasingly fractured society,   our  stores  offer  a  quiet   moment  to  gather  your   thoughts  and  center   yourself.”   -­‐  Howard  Schultz,  CEO
  66. Build a Brand Worth Talking About GRAHAMDBROWN
  67. GRAHAMDBROWN.COM …and by the way if this presentaBon  is   of  useful  to  you hit the LIKE buYon so other Slideshare users can discover it too
  68. GRAHAMDBROWN.COM Share the love don’t forget to 
 hit the LIKE button so other Slideshare users can discover this too
  69. GRAHAMDBROWN.COM69 Learn  how  to   market  like   Apple,   Starbucks   and  LEGO http://www.GrahamDBrown.com/Manual  
  70. GRAHAMDBROWN.COM CLICK HERE to ACCESS this FREE explainer video giving you background insights and analysis for this presentation

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