SlideShare a Scribd company logo
How Starbucks Became a Global Brand
Presented by Prof Doug Bowman
2/5/2014
Chat Participants

Angela Bostick 04MBA (Moderator) – Associate Dean of Marketing
and Communications
Doug Bowman – Professor of Marketing, McGreevy Term Chair and
Senior Associate Dean for External Relations
Why are strong brands like
Starbucks so successful?
Draw three images that come to mind
when you think of ‘Starbucks’ …
Premium Product
(Premium Price)

Store
Environment

Service
Philosophy
Starbucks’ Customer Experience
How does Starbucks
deliver a Premium
Product?

Historic Target Customer:

What are the key
elements of the Store
Environment?

Q: What is her life like?

Describe Starbucks’
Service Philosophy

• Often female, ages 25-44
• White collar, educated, affluent
Designing the Branded Customer Experience

Brand
Value
Proposition

Target
Customer

Behaviors
Tendency to linger;
ritualistic consumption;
looking to self-indulge

Perceptions

+

Best coffee;
classy; upscale;
a “third place”
Three Important Questions
1. What are you
selling?
2. What are you really
selling?
3. What are you really,
really selling?
Three Important Questions
1. What are you
selling?

1. Who are your
customers?

2. What are you really
selling?

2. What are you
selling?

3. What are you really,
really selling?

3. Why should they
buy?
Two Major Points of Inflection for Starbucks
#1: Early-mid 2000’s
• Change growth model from
opening more stores to growing
same-store sales

image: starbucks.com/career-center/professional-services-careers

image: starbucks.com/career-center/retail-positions
How Does Satisfaction Change Over time?
Change in
Customer Satisfaction

Perf = Exp

Perf > Exp
Perf < Exp

Performance - Expectations
Two Major Points of Inflection for Starbucks
#1: Early-mid 2000’s
• Change growth model from
opening more stores to growing
same-store sales

image: starbucks.com/career-center/professional-services-careers

#2: Late 2000’s
• Recession leads to declining
sales and poor performing stores
image: starbucks.com/career-center/retail-positions
Interview with Howard Schultz
(http://www.youtube.com/watch?NR=1&v=ed-Nuokx2so)
Interview with Howard Schultz:
‘Focus on people, both employees and customers’

• Renew our level of personal responsibility and accountability

• First thing when you enter a store ... Find someone, one of our
people who is doing something right and acknowledge it as
soon as I can
• You didn’t mention the coffee … At the essence of Starbucks is
the humanity of the experience
• We had to put the customer in every single meeting we were in

youtube.com/watch?NR=1&v=ed-Nuokx2so
Top Box(es) Matter … A LOT

Loyalty

How likely is it that you would recommend
[your company] to a friend or colleague?

http://www.netpromoter.com/why-net-promoter/know/

1

5
Satisfaction rating

10
Deliver Your Brand with Every Interaction
Why are Strong Brands Like Starbucks
So Successful?
• Tight linkage between the brand value proposition
and the wants/needs of the target customer
• Innovation: important even in seemingly mature
product and service categories
• Principled leadership: values of the company reflects
how it does business
Background Info
Professor Douglas Bowman:
• PhD, University of Pennsylvania
• 15 year Professor of Marketing at Goizueta
• Also serves as Senior Associate Dean for External Relations, and CoDirector – Emory Marketing Analytics Center
• Teaches product and brand management and Syndicated Data Analysis
• Past winner:
– Emory’s highest teaching honor, the Emory Williams Award (2013)
– Marc F. Adler Prize for Excellence in Teaching (2004), which honors teaching quality,
course innovation and real-world problem solving.

• Accomplished researcher in the quantitative aspects of marketing, with a
substantive focus in the areas of marketing strategy and customer
relationship management

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How Starbucks Became a Global Brand | Goizueta Business School

  • 1. How Starbucks Became a Global Brand Presented by Prof Doug Bowman 2/5/2014
  • 2. Chat Participants Angela Bostick 04MBA (Moderator) – Associate Dean of Marketing and Communications Doug Bowman – Professor of Marketing, McGreevy Term Chair and Senior Associate Dean for External Relations
  • 3. Why are strong brands like Starbucks so successful?
  • 4. Draw three images that come to mind when you think of ‘Starbucks’ …
  • 6. Starbucks’ Customer Experience How does Starbucks deliver a Premium Product? Historic Target Customer: What are the key elements of the Store Environment? Q: What is her life like? Describe Starbucks’ Service Philosophy • Often female, ages 25-44 • White collar, educated, affluent
  • 7. Designing the Branded Customer Experience Brand Value Proposition Target Customer Behaviors Tendency to linger; ritualistic consumption; looking to self-indulge Perceptions + Best coffee; classy; upscale; a “third place”
  • 8. Three Important Questions 1. What are you selling? 2. What are you really selling? 3. What are you really, really selling?
  • 9. Three Important Questions 1. What are you selling? 1. Who are your customers? 2. What are you really selling? 2. What are you selling? 3. What are you really, really selling? 3. Why should they buy?
  • 10. Two Major Points of Inflection for Starbucks #1: Early-mid 2000’s • Change growth model from opening more stores to growing same-store sales image: starbucks.com/career-center/professional-services-careers image: starbucks.com/career-center/retail-positions
  • 11. How Does Satisfaction Change Over time? Change in Customer Satisfaction Perf = Exp Perf > Exp Perf < Exp Performance - Expectations
  • 12. Two Major Points of Inflection for Starbucks #1: Early-mid 2000’s • Change growth model from opening more stores to growing same-store sales image: starbucks.com/career-center/professional-services-careers #2: Late 2000’s • Recession leads to declining sales and poor performing stores image: starbucks.com/career-center/retail-positions
  • 13. Interview with Howard Schultz (http://www.youtube.com/watch?NR=1&v=ed-Nuokx2so)
  • 14. Interview with Howard Schultz: ‘Focus on people, both employees and customers’ • Renew our level of personal responsibility and accountability • First thing when you enter a store ... Find someone, one of our people who is doing something right and acknowledge it as soon as I can • You didn’t mention the coffee … At the essence of Starbucks is the humanity of the experience • We had to put the customer in every single meeting we were in youtube.com/watch?NR=1&v=ed-Nuokx2so
  • 15. Top Box(es) Matter … A LOT Loyalty How likely is it that you would recommend [your company] to a friend or colleague? http://www.netpromoter.com/why-net-promoter/know/ 1 5 Satisfaction rating 10
  • 16. Deliver Your Brand with Every Interaction
  • 17. Why are Strong Brands Like Starbucks So Successful? • Tight linkage between the brand value proposition and the wants/needs of the target customer • Innovation: important even in seemingly mature product and service categories • Principled leadership: values of the company reflects how it does business
  • 18. Background Info Professor Douglas Bowman: • PhD, University of Pennsylvania • 15 year Professor of Marketing at Goizueta • Also serves as Senior Associate Dean for External Relations, and CoDirector – Emory Marketing Analytics Center • Teaches product and brand management and Syndicated Data Analysis • Past winner: – Emory’s highest teaching honor, the Emory Williams Award (2013) – Marc F. Adler Prize for Excellence in Teaching (2004), which honors teaching quality, course innovation and real-world problem solving. • Accomplished researcher in the quantitative aspects of marketing, with a substantive focus in the areas of marketing strategy and customer relationship management