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BRAND AUDIT
Starbucks
History
Starbucks was
founded in Seattle,
Washington in 1971.
Founded by three
partners who were
students together in
university of san
Francisco
The company took
the name "Starbucks"
as a reference to one
of the characters
from the famous
novel, "Moby Dick“
It used a roasting
technique of coffee
beans for making
coffee
They opened a little
shop in Pike place to
sell high quality
coffee beans and
equipment
It became a publicly
traded company in
1990s after
expanding
throughout the US.
Starbucks in India
In January 2011, Starbucks
Corporation and Tata
Coffee announced plans to
begin
opening Starbucks locations
in India.
In January 2012 Starbucks
finally announced a 50:50
joint venture with Tata
Global Beverages, called Tata
Starbucks Ltd
On 19 October 2012,
Starbucks opened its first
store in India, measuring
4500 sq ft in Elphinstone
Building, Mumbai
As of April 2016 starbucks
has 84 outlets in India across
7 cities.
STARBUCKS PRODUCTS IN INDIA
They sell different types
of coffee beans like
India Estates
Blend(Medium Roast)
which is cultivated in
Karnataka in harmony
with nature, the lush and
layered coffee captivates
from first sip.
They have iced and hot
products like iced caffe
latte, caramel macchiato.
They have other various
offerings in desserts as
well like java chip
muffin, Blueberry
Muffin and Chocolate
Raspberry Cake.
Other Indian style
product offerings such as
Tandoori Paneer Roll,
Elaichi Mawa Croissant
and Murg Tikka Panini
are there to suit Indian
customers specially
BRAND ELEMENTS
LOGO
Current Logo of Starbucks
Evolution of Logo of Starbucks
BRAND ELEMENTS
LOGO
Starbucks Dropped the brand name from their logo in 2011
• There were very few changes in 2011 logo.
• The Starbucks Mermaid a.k.a Siren was enlarged to make
the coffee mug more appealing.
• The name “starbucks” was dropped to bring it in line with
brands like Apple McDonalds whose logo makes an
impact.
BRAND ELEMENTS
PACKAGING
Problem With Starbucks Packaging in 2005
“Serving millions of hot beverages in paper cups that potentially could
have a considerable environmental impact”
A decade of work with
its cup and paper fiber
suppliers to find a
solution to this problem
Incorporate 10-percent
post-consumer fiber into
hot beverage paper
cups.
lowered the company’s
use of tree fiber by
more than five million
pounds annually
BRAND ELEMENTS
PACKAGING
Sustainable packaging Strategy
The company aims to
ensure 100 percent of its
cups are reusable or
recyclable by 2016
Starbucks is collaborating with municipalities,
raw material suppliers, cup manufacturers,
retail and beverage businesses, recyclers,
NGOs, and academic experts.
Also encourages its
customers to help reduce
cup waste
global marketing
campaign to increase
tumbler use
BRAND ELEMENTS
PACKAGING
Starbucks coffee packs have a distinctive new look……. Why?
To better reflect the
artistry that goes into
each coffee
To bring their individual
stories to life.
They took special care to make every
package unique while maintaining
consistency. They made it simpler to identify
our Blonde, Medium and Dark roasts, then
plotted exactly where each coffee lives on
their roast spectrum
With story, roast and tasting notes
prominently displayed, they enable you to
easily identify the characteristics of
customer’s favorites.
BRAND ELEMENTS
SLOGANS
BRAND ELEMENTS
SLOGANS
The Starbucks slogans are
meant to create a look
12
• Gloria Jeans Coffee
• The Coffee Bean & Tea Leaf
Restaurant and Café
• Georgia Coffee
• Dunkin' Donuts
• Mc Café
• Barista
• Café Coffee Day
• Indian Coffee House (ICH)
• Costa Coffee
• Brewberrys Café
• Café Mocha
Major Competitors in India
Competitor Analysis
Competitors Analysis - News
• Costa Coffee: Costa has released a hashtag on social media encouraging the use of
spreading the holiday cheer #MerryChristmasToMe The company has released a 12
days of Christmas Advent Calendar, packed with competitions, price draws, games and
special offers on the run up to Christmas. They also released their holiday treats and
beverages such as the the Gingerbread and Cream Latte and the Brie, Bacon, and
Cranberry Panini.
• Tim Horton’s: Tim Horton’s has also released a hashtag on social media encouraging
the spread of holiday cheer. The hashtag that is going around is #WarmWishes. The
company has released seasonal beverages and treats such as the holiday sugar cookie
and the Sugar Cookie Latte as well as a Candy Cane cappuccino and Candy Cane Hot
chocolate. Tim Horton’s also promotes its nutritional value items on its main web
page.
Competitor News:
• Dunkin Donuts plans to close 100 of their stores: Dunkin Brand announced that one of
its franchisees will be shutting down 100 of its stores in the next 15 months. Dunkin’ said a
spike in the cost of eggs due to the recent avian flu outbreak in the U.S. was a reason along
with concerns with the rise in minimum wage laws in cities across the country.
• Last month, New York became the first state to raise the minimum wage for fast-food
workers to $15 an hour. Despite these closures, the company rolled out its 2015 plan to have
410-440 new Dunkin stores throughout the U.S. to help build its coffee culture.
• Dunkin Donuts also unveiled a new delivery system that is set to begin in 2016 where a
customers donuts and coffee can be delivered right to their door.
• Dunkin Donuts perks up their loyalty battle with Starbucks: Starbucks has one of the
most successful loyalty programs going, and now its coffee competitor is attempting to
launch something similar.
Competitor News:
• The story of McCafe: When competing on price can fail. In America, the price of
McCafe drinks is actually hurting them. McCafe in the USA is seen as too cheap
and therefore “nasty.” Coffee seems to be a social signifier and for the same reason
one would not go to Wal-Mart to buy a suit, consumers just don’t want to visit a
McDonald's for their daily coffee.
• However, McCafe in Australia is thriving due to their well-developed market.
McCafe in America is guided to just “stick with it.” Eventually espresso drinks will
become a staple and not just a luxury. Then this will be McCafe’s chance to shine
again.
Starbucks Value-Chain Analysis
Choose a Local Partner
Consistency in store formatsMeasured Pace of Expansion
Opting for Realistic Pricing
India is a market where a failure to monitor bottom-line has
thrown many companies out of gear. In short, a top-line only
approach does not work here.
Since Starbucks has to choose new locations stringently in
line with its same-format approach, it has opted for a
measured pace of expansion. It is focusing on the financial
viability of each outlet, rather than going for an ambitious
expansion plan which might have resulted in repeated calls
for capital.
The TATA companies also offer scope for backward-
linkages. Its Indian partner produces the raw material
(coffee beans) in Karnataka. Given that India produces
coffee beans in only a few places, the other sourcing
option was importing the beans. But this would have hiked
input costs significantly.
Starbucks can leverage them for knowledge-sharing on
Indian real estate, area-specifics, and on tackling real
estate bureaucracies. This would help its own expansion
blueprint. It also gives scope for store-in-store sales.
This is based on market affordability and its own
positioning. Globally, Starbucks is priced at a level at which
it can be termed an ‘affordable luxury’.
Starbucks plans to have the same store format across India,
though the size can change based on economics. This is
how it operates globally. Starbucks has projected itself as a
place to have a likable ‘coffee-house’ experience.
Having the same format gives customers the comfort of
receiving the same ‘Starbucks’ ambience wherever they go
throughout the world creating customer pull, not to mention
economies of scale to the company with its suppliers.
Strategy In India
Starbucks Competitive Positioning
Comparative Analysis
Comparing Café Coffee Day & Starbucks
SUPPORTING MARKETING CAMPAIGNS
Loyalty Programs: A customer has an
incentive to load money onto their
starbucks card and earn points for every
purchase made at starbucks
Holiday promotions: Starbucks sells
coffee in specialized cups and mugs
during holiday seasons and has various
promotions like buy 1 get 1 during the
holiday season
They also keep happy hours during
certain times of the day to drive up
their sales
Corporate social responsibility is done
by starbucks by reducing use of
electricity and reduce the process of
roasting coffee.
Sense marketing is done when they play
with 5 senses; sight, hearing, taste,
touch and smell
BRAND IDENTITY PRISM
BRAND MATRA
Emotional
Modifier
Descriptive
Modifier
Brand
Functions
Starbucks gives the
richest possible
sensory experience
while drinking
coffee
Position themselves
as being more than
just coffee
A unique and warm
“third place” for
their customers to
go outside home
and office
Starbucks is known
for it’s best in class
coffee
“It’s not just coffee,
it’s Starbucks”
BRAND AWARENESS & ATTITUDE
Logo identifiable by
people, even without the
name – high brand equity
in the market
With the company’s great
marketing strategies, free Wi-
Fi, comfy and relaxing store
layouts and top notch coffee,
its no wonder why this
company has built such a
great reputation.
Every time you walk into
a Starbucks, you know
you will be greeted with a
smile and a friendly
attitude
Every Starbucks has a
similar feel, and your
drink order will taste the
same whether you are in
New York or Spain
The training of the staff, provide a superior experience
that the Starbucks client base has come to expect
BRAND APPEAL
Personalized service
Customer intimacy and
human touch
Great quality products
served in clean and
convenient stores
Coffee shops are
located in convenient &
strategic locations
Served in a special and
intimate ambience
according to each
customer’s taste
Contemporary design
that is consistent with
its advertising and décor
Focuses on social
networking in
cultivating a youthful
image
Introduced sugary,
whipped cream topping
drinks and steamed milk
with focus on teenagers
Flexible changes to the
orders and memorizing
of the favorite orders
for its customers
Nikita Nath
IDEAS COMING TO LIFE
ASSOCIATIONS WITH STARBUCKS
Positive Feelings of Respondents Negative Feelings of Respondents
DEMOGRAPHICS
Working
Professionals
Young
College
Graduates
Middle Age
Group Family
People
College
Students
BRAND FUNNEL
Attributes
Functions
Rewards
Values
Personality
Sophistication Good Coffee on the run Customer
Intimacy
Convenient
Ambience
Human Spirit Place to meet
and move on
Premium style and elegance
Relaxation Genuine Delightful Quality
Courteous
Warm
Respectful
Sincere
Open
CBBE Model
CBBE Model

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Brand audit starbucks-brand mgt-evl-ii

  • 2. History Starbucks was founded in Seattle, Washington in 1971. Founded by three partners who were students together in university of san Francisco The company took the name "Starbucks" as a reference to one of the characters from the famous novel, "Moby Dick“ It used a roasting technique of coffee beans for making coffee They opened a little shop in Pike place to sell high quality coffee beans and equipment It became a publicly traded company in 1990s after expanding throughout the US.
  • 3. Starbucks in India In January 2011, Starbucks Corporation and Tata Coffee announced plans to begin opening Starbucks locations in India. In January 2012 Starbucks finally announced a 50:50 joint venture with Tata Global Beverages, called Tata Starbucks Ltd On 19 October 2012, Starbucks opened its first store in India, measuring 4500 sq ft in Elphinstone Building, Mumbai As of April 2016 starbucks has 84 outlets in India across 7 cities.
  • 4. STARBUCKS PRODUCTS IN INDIA They sell different types of coffee beans like India Estates Blend(Medium Roast) which is cultivated in Karnataka in harmony with nature, the lush and layered coffee captivates from first sip. They have iced and hot products like iced caffe latte, caramel macchiato. They have other various offerings in desserts as well like java chip muffin, Blueberry Muffin and Chocolate Raspberry Cake. Other Indian style product offerings such as Tandoori Paneer Roll, Elaichi Mawa Croissant and Murg Tikka Panini are there to suit Indian customers specially
  • 5. BRAND ELEMENTS LOGO Current Logo of Starbucks Evolution of Logo of Starbucks
  • 6. BRAND ELEMENTS LOGO Starbucks Dropped the brand name from their logo in 2011 • There were very few changes in 2011 logo. • The Starbucks Mermaid a.k.a Siren was enlarged to make the coffee mug more appealing. • The name “starbucks” was dropped to bring it in line with brands like Apple McDonalds whose logo makes an impact.
  • 7. BRAND ELEMENTS PACKAGING Problem With Starbucks Packaging in 2005 “Serving millions of hot beverages in paper cups that potentially could have a considerable environmental impact” A decade of work with its cup and paper fiber suppliers to find a solution to this problem Incorporate 10-percent post-consumer fiber into hot beverage paper cups. lowered the company’s use of tree fiber by more than five million pounds annually
  • 8. BRAND ELEMENTS PACKAGING Sustainable packaging Strategy The company aims to ensure 100 percent of its cups are reusable or recyclable by 2016 Starbucks is collaborating with municipalities, raw material suppliers, cup manufacturers, retail and beverage businesses, recyclers, NGOs, and academic experts. Also encourages its customers to help reduce cup waste global marketing campaign to increase tumbler use
  • 9. BRAND ELEMENTS PACKAGING Starbucks coffee packs have a distinctive new look……. Why? To better reflect the artistry that goes into each coffee To bring their individual stories to life. They took special care to make every package unique while maintaining consistency. They made it simpler to identify our Blonde, Medium and Dark roasts, then plotted exactly where each coffee lives on their roast spectrum With story, roast and tasting notes prominently displayed, they enable you to easily identify the characteristics of customer’s favorites.
  • 11. BRAND ELEMENTS SLOGANS The Starbucks slogans are meant to create a look
  • 12. 12 • Gloria Jeans Coffee • The Coffee Bean & Tea Leaf Restaurant and Café • Georgia Coffee • Dunkin' Donuts • Mc Café • Barista • Café Coffee Day • Indian Coffee House (ICH) • Costa Coffee • Brewberrys Café • Café Mocha Major Competitors in India Competitor Analysis
  • 13. Competitors Analysis - News • Costa Coffee: Costa has released a hashtag on social media encouraging the use of spreading the holiday cheer #MerryChristmasToMe The company has released a 12 days of Christmas Advent Calendar, packed with competitions, price draws, games and special offers on the run up to Christmas. They also released their holiday treats and beverages such as the the Gingerbread and Cream Latte and the Brie, Bacon, and Cranberry Panini. • Tim Horton’s: Tim Horton’s has also released a hashtag on social media encouraging the spread of holiday cheer. The hashtag that is going around is #WarmWishes. The company has released seasonal beverages and treats such as the holiday sugar cookie and the Sugar Cookie Latte as well as a Candy Cane cappuccino and Candy Cane Hot chocolate. Tim Horton’s also promotes its nutritional value items on its main web page.
  • 14. Competitor News: • Dunkin Donuts plans to close 100 of their stores: Dunkin Brand announced that one of its franchisees will be shutting down 100 of its stores in the next 15 months. Dunkin’ said a spike in the cost of eggs due to the recent avian flu outbreak in the U.S. was a reason along with concerns with the rise in minimum wage laws in cities across the country. • Last month, New York became the first state to raise the minimum wage for fast-food workers to $15 an hour. Despite these closures, the company rolled out its 2015 plan to have 410-440 new Dunkin stores throughout the U.S. to help build its coffee culture. • Dunkin Donuts also unveiled a new delivery system that is set to begin in 2016 where a customers donuts and coffee can be delivered right to their door. • Dunkin Donuts perks up their loyalty battle with Starbucks: Starbucks has one of the most successful loyalty programs going, and now its coffee competitor is attempting to launch something similar.
  • 15. Competitor News: • The story of McCafe: When competing on price can fail. In America, the price of McCafe drinks is actually hurting them. McCafe in the USA is seen as too cheap and therefore “nasty.” Coffee seems to be a social signifier and for the same reason one would not go to Wal-Mart to buy a suit, consumers just don’t want to visit a McDonald's for their daily coffee. • However, McCafe in Australia is thriving due to their well-developed market. McCafe in America is guided to just “stick with it.” Eventually espresso drinks will become a staple and not just a luxury. Then this will be McCafe’s chance to shine again.
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  • 18. Choose a Local Partner Consistency in store formatsMeasured Pace of Expansion Opting for Realistic Pricing India is a market where a failure to monitor bottom-line has thrown many companies out of gear. In short, a top-line only approach does not work here. Since Starbucks has to choose new locations stringently in line with its same-format approach, it has opted for a measured pace of expansion. It is focusing on the financial viability of each outlet, rather than going for an ambitious expansion plan which might have resulted in repeated calls for capital. The TATA companies also offer scope for backward- linkages. Its Indian partner produces the raw material (coffee beans) in Karnataka. Given that India produces coffee beans in only a few places, the other sourcing option was importing the beans. But this would have hiked input costs significantly. Starbucks can leverage them for knowledge-sharing on Indian real estate, area-specifics, and on tackling real estate bureaucracies. This would help its own expansion blueprint. It also gives scope for store-in-store sales. This is based on market affordability and its own positioning. Globally, Starbucks is priced at a level at which it can be termed an ‘affordable luxury’. Starbucks plans to have the same store format across India, though the size can change based on economics. This is how it operates globally. Starbucks has projected itself as a place to have a likable ‘coffee-house’ experience. Having the same format gives customers the comfort of receiving the same ‘Starbucks’ ambience wherever they go throughout the world creating customer pull, not to mention economies of scale to the company with its suppliers. Strategy In India
  • 21. Comparing Café Coffee Day & Starbucks
  • 22. SUPPORTING MARKETING CAMPAIGNS Loyalty Programs: A customer has an incentive to load money onto their starbucks card and earn points for every purchase made at starbucks Holiday promotions: Starbucks sells coffee in specialized cups and mugs during holiday seasons and has various promotions like buy 1 get 1 during the holiday season They also keep happy hours during certain times of the day to drive up their sales Corporate social responsibility is done by starbucks by reducing use of electricity and reduce the process of roasting coffee. Sense marketing is done when they play with 5 senses; sight, hearing, taste, touch and smell
  • 24. BRAND MATRA Emotional Modifier Descriptive Modifier Brand Functions Starbucks gives the richest possible sensory experience while drinking coffee Position themselves as being more than just coffee A unique and warm “third place” for their customers to go outside home and office Starbucks is known for it’s best in class coffee “It’s not just coffee, it’s Starbucks”
  • 25. BRAND AWARENESS & ATTITUDE Logo identifiable by people, even without the name – high brand equity in the market With the company’s great marketing strategies, free Wi- Fi, comfy and relaxing store layouts and top notch coffee, its no wonder why this company has built such a great reputation. Every time you walk into a Starbucks, you know you will be greeted with a smile and a friendly attitude Every Starbucks has a similar feel, and your drink order will taste the same whether you are in New York or Spain The training of the staff, provide a superior experience that the Starbucks client base has come to expect
  • 26. BRAND APPEAL Personalized service Customer intimacy and human touch Great quality products served in clean and convenient stores Coffee shops are located in convenient & strategic locations Served in a special and intimate ambience according to each customer’s taste Contemporary design that is consistent with its advertising and décor Focuses on social networking in cultivating a youthful image Introduced sugary, whipped cream topping drinks and steamed milk with focus on teenagers Flexible changes to the orders and memorizing of the favorite orders for its customers
  • 28. ASSOCIATIONS WITH STARBUCKS Positive Feelings of Respondents Negative Feelings of Respondents
  • 30. BRAND FUNNEL Attributes Functions Rewards Values Personality Sophistication Good Coffee on the run Customer Intimacy Convenient Ambience Human Spirit Place to meet and move on Premium style and elegance Relaxation Genuine Delightful Quality Courteous Warm Respectful Sincere Open