Starbucks' brand strategy

Author: Yiran Jin

Positioning strategy

Starbuck's positioning is the best coffee and becoming the "third place "---the good place for social network except office and home. In Starbucks, customers can taste the best coffee and experience the special romance. Starbucks can meet the customer's need of pursuing the fashion and social status.

 

The nature of brand's products

Experience

Starbucks' Kano model

Authors: Valérie C. & Anne-Laure N.

The least we can say is that Starbucks has a strong personality: this map shows its consumers that the brand does not leave indifferent! Because the company has founded its entire strategy on the customer experience, they are the basis of brand identity. The typical consumer likes of Starbucks brand, it is surprised and attached to it. But it has not as followers: it is also hated and many groups on Facebook show that consumers are very disappointed assets and do not hesitate to express their hatred. Look at the Kano model of Starbucks, which shows a map of its consumers:

Brand equity of Starbucks

Brand awareness: Starbucks has already entered into 35 countries since 8 years ago; Starbucks opened the first overseas shop in Tokyo. Now, Starbucks is opened and increased 3 or 4 shops in average each day in the world.

Brand acceptance:There is unique business model and the harmonious team atmosphere in Starbucks to meet the customers need.

Brand association:Combination between coffee and culture

Brand Loyalty: Starbucks combine their social activities and coffee culture to achieve the emotional connection with customers and strength customers loyalty



Author: Yiran Jin

The feeling experience strategy of Starbucks brand

Author: Yi Ran J.

The sense of taste：

100% Arabica coffee bean. Starbucks provide the best quality of coffee bean and develop new varieties of coffee bean & Brewing method.

Smell:

"Starbucks" provides the strong smell of coffee.When people enter or just pass through the Starbucks, they can smell the incomparable aroma.

Vision:

The design and pictures are related to the coffee and build elegant and classical atmosphere.
Hearing：

"Starbucks "has their own music and their music is related to the coffee.
Touch:

"Starbucks" allow customers to touch the coffee beans and some appliances related to the coffee.

This feeling strategy makes customers only contact with "Starbucks" coffee when they enter to "Starbucks " coffee shop.

From the portrait of Starbucks brand to the portrait of a customer

Author: Anna N.

Interesting fact is when we try to match brand personality with the brand target audience, we can see that the Starbucks customer has really changed during the last years. Who was a typical Starbucks customer since a long time? This person should have certainly love coffee, even be addicted to coffee. It means he probably should have had an active life rhythm, as he needed something to cheer up and probably on a regular basis. He probably should have got enough money. He probably perceived himself as a person with a good taste and style and a certain knowledge of his needs, which means in the environment he mostly appreciated the style and personal attitude in service. If we have asked this person, with what type of personality Starbucks associates to you, he would definitely answer: the same as me. In spite of the fact that Starbucks is still associated with something stylish, the “style” of the customer has changed itself, transforming from something “luxury” to something more “clerk” or “hipster”. However, over 70% of respondents agreed to some extend that Starbucks is the best among competitors, but still across different countries Starbucks is now more associated with such low price segment competitors like McDonald’s or Dunkin Donuts, which also confirms the mentioned switch in the consumers’ mind. This switch may also explain the decline in the percentage of people, considering Starbucks to be a part of their lifestyle and visiting Starbucks following the “call of the heart” (graph 1, 2 & 3).

Graph 1: If you visit Starbucks on the regular bases, what is your main motivation?

Graph 2: How often do you visit Starbucks?

Graph 3: Remember your last visit to Starbucks. Why you choose it among other cafes?

Graph 4: Thinking about Starbucks brand values, choose 3 from the list that you appreciate most of all?

The survey results show that nowadays Starbucks for the customer is not about a tribute to fashion, like it was before, but more about practical benefits, like coffee taste and convenience of the café location (graph 4). 

Taking into account the above results we will not be surprised, why among the points of improvement the most of the respondents (30%) mentioned “reducing the prices” variant – if the brand is not considered as luxury anymore people are not willing to pay more. So what can be the reason of such a change in the consumers’ mind since the last years? Does it mean that today the customer, who remembers the Starbucks being a “cool place to go” and “cool cup to carry” just got more mature, with higher incomes and higher expectations? Or may be because today less and less people from the so called early adapters would like to be associated with “clerk” or “hipster”? And does these trends mean that Starbucks today should rely more on occasional customers rather then those, who are really addicted to the brand, and focus more on the new generation of young people and stake on the mass market rather then keeping to it’s selectivity? Still this is a rather common life circle for the majority of brands from being something special to being something cool, but already usual. And in most of the cases the brand doesn’t need to fight against changes in the consumers’ minds, but to follow the wave and move along with these changes, adapting its marketing strategy to them.We already can notice that Starbucks is adequately reacting to changes on the target market, for example, developing some loyalty programmes on the facebook platform, reaching the younger audience by this, as well as planning to open the “healthy food” points to respond to the needs of a more mature audience. So Starbucks still keeps its strong positions and strong brand perception. And moreover, it still gives a pleasant experience and makes people feel different. But may be just different (=other) people. And what do you think?

Brand as a person: who is Starbuscks?

Author: Anna N

Because brands are more than just a name and a logo, getting to precisely what people understand by a brand can be difficult, particularly once you are into the emotional content of the brand. One very common technique for assessing a brand is “personification” - imagining the brand is a person and then trying to describe that person. According to the recent survey, provided by the author of this article among the people from 23 to 35 in Russia, France, Belgium, UK, Georgia, China, Morocco and Germany, Starbucks brand has a very strong personality in the consumers’ mind. Being asked “Thinking of Starbucks as a person, what type of person is it?”, the respondents gave very specific and descriptive answers. However, they were different at some points, but still this variety of answers allows to make a very concrete “portrait” of a Starbucks brand. In terms of the gender half of the respondents said it is a male, 5% – female, the rest – no concrete gender. As for the age overwhelming majority mentioned that he is young, at the same time 20% marked the age of 30 or around it, 12% – below 30, 10% – within a scale from 20 to 40, 7% – more than 40.

Among the most popular characteristics prevailing were the positive ones:

1. Stylish / Modern / Trendy / Good looking / Elegant / Fashionable / Good taste
2. Smart
3. Active / Dynamic / Busy
4. Open-minded
5. Creative
6. Positive / humorous / funny
7. Communicative / friendly / social

Also we could meet such descriptions, like easygoing, cheerful, wealthy, polite, independent, free, rich, urban. However, rather negative descriptions could be met, like snobbish, greedy, superficial, a bit stupid. Some respondents gave really detailed and complete portraits of a Starbucks person:

«Guy,below 30, hipster, travels a lot, tends more to home parties than clubbing, can cook complicated dishes, single, has dog, able to paint»

«A smart bad guy around 35 who is perfectly aware of how to sell simple things like coffee for ridiculous prices to a shallow young ladies imagining themselves being Carrie Bradshaw»

«A male person in the 30ies from a fancy district of town and in love with himself»

«20-35, disregarding gender, this person has an iPhone or dreams about an iPhone or any other apple product, probably dreams to live in New York, has seen series "Friends" not once, probably most of seasons, likes yoga or light fitness, probably think about environment to "think modern" even if he/she doesn't care much. However, this person probably has good imagination, designer skills, good at communication - lives at twitter and facebook»

«20-45 employee, last year student, freelancer, expat, American, the one, who wants coffee and  sandwich quickly, the one, who likes cheesecakes for the atmosphere of Christmas and for wi-fi»

«Probably male; late 30s; audi-driver, likes modern neutral style, clean, non-threatening, relaxed but professional and proficient»

«40 years old man. Mean, but trying to look generous. Wears green scarf»

Why Starbucks is a strong brand?

People may love Starbucks or not, but there is no doubt that this brand has a very strong personality and a perception in the consumer’s mind. You can ask everyone, what is Starbucks and what associations it gives to you, and everyone will give the clear answer. Isn’t it an approval of a brand power? The question is, how a brand can build in consumers’ mind such a strong perception, and what are the main brand attributes, allowing the brand to become not only strong and known, but a part of a lifestyle?

 The obvious answer may be here that when the brand is associated not only with the product, but with a certain experience, this may be a key to success. Indeed, when we think about Starbucks, we imagine not only a good coffee taste, but also a pleasant time that we may spend in the Starbucks café, the pleasant service you we will get there, at last, the typical cup with a lid that is so pleasant to carry. These mean pleasant experience, and you will be glad to demonstrate to the others, that such kind of experience suites to your lifestyle. Because it will differentiate you from the one hand, and attribute to a certain community from another hand. And this particular feeling of “being different” plays a key role in the brand success. 

Author: Anna N

Logo and Identity

Author: Valérie C

The change of a logo necessarily implies a change of identity? This is what one might expect to believe face dissatisfaction with the recent change of the logo of the brand. We have already explained in a recent article what the change involve. The CEO, Howard Schultz, introduced that change by explaining it through a video. He argued the new logo respect traditions, reflect the will of Starbucks to go “beyond coffee” and its adaptation to a new world. 

Starbucks has changed its logo … for better or for worse??

Author: Valérie C.


New world, new logo

Spring 2011 was an important event for Starbucks that celebrated its 40th anniversary! At the occasion of that special event, the famous coffee company has chosen a controversial strategy: adopting a new logo! So, Starbucks put an end to the logo existing since 1992 to implement a new one.  The company renews it by removing the Starbucks name and keeping only green color and “the siren”.

 

Consumers fear changes?

Consumers didn’t welcome well that change. Indeed, the company has to face many criticisms from its customers on the web. “Ugly”, “Stupid” was some comments on the Facebook page of the company.

So, this “scandal” around logo change helps us to raise some issues about branding. How important is a logo for consumers? What challenges companies face by changing their visual identity?

Starbucks ’logo is the sign that allows consumers to identify the brand and indicate its value. In fact, the equity of the brand was directly linked to the logo, its awareness, the values and image it conveys. The choice of a siren, green colors and a clear name reflected the responsible and traditional positioning of Starbucks.

Now, we could almost say that Starbucks has become a kind of anonymous brand since the company’s name doesn’t appear anymore.

A few brands can remove their name from logos. Indeed, it implies a high recognition and notoriety. Nike and Apple are some examples, and their logos exist for years. However, Starbucks penetrated French market only in 2004, so quite recently!

It explains why consumers could be confused when they saw the logo! After about 6 months, Starbucks seems to be willing to keep this way, but others brands finally changed their mind.

In October 2010, Gap launched its new logo.  Consumers immediately reacted saying that it was terrible. Facing a quick spread of criticisms, they decided to withdraw it and keep the old one.

Companies take risk by changing the visual identity of a successful brand. Moreover, Internet increases the power of consumers since it allows them to quickly spread the word and create huge communities to express their opinion.

Anyway, Starbucks took risks but we hope its customers won’t blame it for that!