STARBUCKSThe Evolution of a Brand Identity Image

• COFFEE• Expensive• Frappuccino (trademarked)

WHAT THOUGHTS COME TO MIND WHEN YOU HEAR THE WORD STARBUCKS?

• Green, mermaid logo• International• Seattle

THIS IS BRAND IMAGE

1970

• 1971 - Starbucks opens first store in Seattle’s Pike Place Market. The name Starbucks was in honor of Starbuck, the coffee-loving first mate in Herman Melville's Moby Dick.

1980

• 1982 - Howard Schultz joins Starbucks as director of retail operations and marketing. Starbucks begins providing coffee to fine restaurants and espresso bars.

1990

• 1991 -Starbucks expands beyond Seattle, first to the rest of the United States, then the entire world. It also becomes a publically traded company.

• Differentiation– Starbucks was not the only company in

the world to make great coffee; there were hundreds more.

– The true differentiator was creating a community, a “third place.”• Furniture, artwork, music• Make people want to buy the

experience

THE BEGINNING OF A SUCCESSFUL BRAND: WHAT STARBUCKS DID RIGHT

“Starbucks has been hailed, acknowledged, and praised again and again for its excellence in branding and marketing” – DEBBIE MILLMAN

TRANSFORMATION OF A LOGO

199219871971 2011Coffee beans

were being sold in Seattle’s Pike Place Market

Espresso beverages were added to the menu

Starbucks becomes a publically traded company

40 years marks the next chapter which includes a new logo

"A logo is almost like someone's face. If they change it, it’s almost like you don’t recognize the person anymore," – DR. LAURA OSWALD

• ZERO advertising costs– How is this possible?

• 3 factors – Only locates its

outlets on street corners in downtown areas • This actually

works as their advertising

– Globalization – Stock Market

ADVERTISING

• Business people travel everywhere and don't have the time or interest to explore other coffee houses in these places– Starbucks becomes a natural choice because of

familiarity• Once a person becomes a customer in New York, he will be a customer of any Starbucks elsewhere• 20,891 stores in 62 countries

GLOBALIZATION & SIZE

• Starbucks is listed on NASDAQ– Financing the company

• Strengthens the image of the brand and gains more fame

• Before it was listed, it was not widely recognized in the US and was only well-known on the West Coast

• Investment of $100,000 in 1992 would be worth over $10,000,000 today– 5,882 shares 188,224 shares (five 2-1 stock splits)  – April 2010, Starbucks started issuing cash dividends

STOCK MARKET

• Consistent product whether in Grand Forks, New York, or Paris

• Offer consumers what they love• Capture the consumer’s attention

– “Beverage entertainment”• Rewards Programs

– Coupons, gift cards, reward cards• Quality customer service

– Friendly, polite, prompt

CUSTOMER LOYALTY

• Differentiation – something that makes your product different and coveted compared to competitive companies

• Successful Design – the brand identity must stand out compared to the competitors

• Advertising – in order for the consumers to actually buy the product, they must be attracted to it or at least know of its existence

• Globalization & Size – not an essential factor, but this would indicate the success of a company

• Stock Market – being listed on the stock market creates more fame

• Customer Loyalty – keep the consumers coming back for more

WHAT DOES IT TAKE TO ACHIEVE A SUCCESSFUL BRAND IMAGE?

STARBUCKS: AN ILLUSTRATED FUTURE

About Starbucks - History of Starbucks. (n.d.). Retrieved from http://gr.starbucks.com/en-US/_About+Starbucks/History+of+Starbucks.htm

Chen, Z. (2009, May 24). Starbucks' road to success. Retrieved April 17, 2013, from http://www.globaltimes.cn/opinion/commentary/2009-05/432180.html

Karth, D. (2007, October 30). How Starbucks achieved its amazing success. Retrieved April 17, 2013, from http://www.helium.com/items/674277-Business-Issues

Kennon, J. (2012, October 8). A 20-year case study of an investment in the Starbucks IPO. Retrieved April 17, 2013, from http://www.joshuakennon.com/a-20-year-case-study-of-an-investment-in-the-starbucks-ipo/

Millman, D. (2011, October 10). How Starbucks transformed coffee from a commodity into a $4 splurge. Retrieved April 17, 2013, from http://www.fastcompany.com/1777409/how-starbucks-transformed-coffee-commodity-4-splurge Justine Gab