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national Brand Audit
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clicking here 1. Executive Summary
2. Global Presence
4. Brand Strategy
5. Sub-brands
6.Target Segments
7. Brand Positioning
8.Product Development
9. Packaging
10.Distribution
11.Pricing
13.Brand Awareness
16. Sources
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ve Summary
resence
of the Brand
trategy
nds
egments
ositioning
Development
ng
ution
ting Communication
Awareness
Image
Equity
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BEST GLOBAL B
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90 85
91 New
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93 New
94 100
95 New
96 90
97 New
98 New
99 New
100 New
*indicates brands that did not appear in the previous yea
BEST GLOBAL BRANDS
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2009
Change in
Country of Sector Brand Brand
Origin Value
Value
($m)
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United States Beverages 68,734 3%
United States Computer Services 60,211 2%
United States Computer Software 56,647 -4%
United States Diversified 47,777 -10%
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Your Bra
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STARBUCKS
Instructio
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Executive Summary:
The Starbucks story is a fascinating story that begins
a local retail store focused solely on selling coffee an
when Howard Schultz, the present Chairman and CE
The sparked a complete change in the philosopy and
remains intact today.
Since the beginning Starbucks was established by an
reinventing the status quo. Starbucks has grown to
stores in 50 countries. Since inception it has remain
exceptional ability to grow and expand into new ma
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inating story that begins with its humble beginnings in 1970's as
olely on selling coffee and coffee equipment. It wasn’t until 1987
resent Chairman and CEO of Starbucks acquired the company.
nge in the philosopy and perspective of the business that
Global Presence:
The Starbucks business model and iconic brand is well positioned to
expands into new markets it has remained true to its original philoso
Starbucks operates 16,000 locations in 50 countries. The company p
such as Russia and India while maintaining a mirror image of its US o
China, for example has become a fascinating story for Starbucks. The
500 stores in China. Starbucks market research reveals that there are
interested in western and iconic products. Starbucks has realized tha
enhance the experience. Starbucks is working on maintaining a long
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nd is well positioned to remain a leader in the coffee industry. As Starbucks
ue to its original philosophy and continued to develop its brand. Today,
untries. The company plans to develop partners in and other parts of the world
mirror image of its US operations. Back
story for Starbucks. The first store opened in 1999. Today, there is close to
ch reveals that there are about 200 million young people of 1.3B in China
tarbucks has realized that offering amenities such as WIFI, digital music, TV will
ng on maintaining a long term presence in China with an enduring brand.
dation that fosters several initiatives aimed to supporting the community such
meone buys a bottle of Ethos® Water, 5 cents is contributed to the Ethos®
stance to areas that suffer from lack of water or poor water quality. Starbucks
ams will silence recent criticism and increasing the value of its brand.
3. History of t
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oing the company Howard Schultz presented an idea to the
nce the coffee experience by offering a warm welcoming place to
prung when the company sent him to Milan, Italy, to attend an
ow. Having experienced first-hand how the "baristas" in Italy made
n that this could be a valuable concept in the US. He was primarly Back
ouse atmosphere in Italy and intrigued by the comfort and
its customers. Most importantly he observed how most espresso
ommunity gathering place. Each one had its own unique character,
o performed with flair and exhibited a camaraderie with the
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people business, serving coffee. The brand strategy reflects this
anaged to different its business by creating a unique coffee experience,
rving its employees and its community.
nuinely interested in cultures beyond the US, proudly displaying its Back
—Sumatra, Kenya, Guatemala, Costa Rica, Ethiopia, speaks for an
While anti-American anger has prevailed over the last few years,
t roots will always remain American but acknowledges its global
came from countries outside the US. In particular, trips that Schultz
nsured that the American is fused with the Italian to create the essence
he Italian culture is evident in the product names such as "frappaccino",
international locations, Starbucks tends to serve the same coffee but
sts. In some cases it has began to serve tea. It is custom in China to
s has preserved this custom and incorporated into its menu.
orts come short as the public continues to view their strategy as over
mpetitors' leases, intentionally operating at a loss.
5. Sub-bra
- Tazo Tea
- Starbucks DoubleShot
- VIA instant coffee
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brand called "15th Ave E Coffee & Tea.” This is part of
ide “un-branding campaign. The driving forces are the
monopolization of the coffee business and driving out the
houses.
Back
as acquired when Starbucks baught the business in 2003.
wing brands:
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young college students, however now as it has matured and
end income coffee drinker. Starbucks is among the highest priced
ered a "luxury" coffee maker.
of adults around the ages of 18 to 35, who can spend time sipping
er tasks. Back
7. Brand Pos
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ositioning by continuously catering to its customers. They position
heir target markets needs. This includes serving as a quick and
g (about 80% of their business). Most recently they have
st McDonald's by also offering Drive-Thru windows at selected
Back
ed product serves their customer base that is not able to visit a
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or new product development and creativity. However, they remain
that their innovation may falter over time. For example, several years
the magazine business and quickly failed. Before the frappaccino,
onated drink that also failed. Howard Schultz, Starbucks CEO claims Back
epreneurial spirit still lives in the fabric of the company. While many
credits the spirit of the company to create huge commercial
rbucks has redefined the coffee drink turning coffee into creations
uct development labs outfitted with coffee experts from around the
invest in product development. In 2009, Starbucks spent $6.9
and development.
ntinues to innovate. For example, Starbucks has identified its WiFi
housands of locations, Starbucks owns a network that can be
o roll out new internet based products in stores ranging from online
e.
9. Packag
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ores will begin to be constructed as LEED-certified, reducing the
2006, Starbucks introduced a paper cup that contained 10 percent
r, and last year it switched from the standard PET cold cups to
ich use significantly less plastic and reduce greenhouse gas
ring by 45 percent. Starbucks also intend to have 100 percent of its Back
major
10. Distrib
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trategy, Starbucks intends to seize opportunities to move beyond
s profi table global consumer products group allows them to reach
ces that will allow them to grow the business at an accelerated pace
ains a big opportunity in the evolution of their distribution
sing variety of offerings in the grocery channel. Back
oduct mix by offering new licensing agreements for its products
panies. Generally, the main purpose of creating the licensing
tribution and production methods of Starbucks products. The
ompany to produce and distribute bottled Starbucks products in
stores is an excellent example of this type of licensing agreement.
11. Prici
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ee brand has positioned itself as a high-end spectrum among
ly, the company succeeds in persuading nearly 40 million people
. Starbucks pricing strategy has come to questions recently.
cks has decided to increase its product's prices. U.S. based stores
up and ground coffee was raised by 50 cents per pound or an Back
yields a %56% profit margin on all products. Company officials
ecessary to cover operating expenses (i.e. labor and fuel costs).
12. Marketing Com
Marketing Communication Menu
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Back
13. Brand Aw
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derstanding their customers and developing tools (in-store surveys,
ure customer satisfactions. They focus on serving the customer and
and wants that are unfulfilled. Consumers know they can count on
offee. They bring the brand to the consumers by offering stores in
eating a strong presence. Starbucks has a high recognition for Back
ee, its always going to taste the same whether you are in the U.S. or
14. Brand I
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bally relevant brand. They are considered accessible and
they manage the supply chain so well that they are never out
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expansion has caused the company to lose brand equity. While
gs and negative consumer reviews are only an indicator of the loss
s in the poor performance of the company. The same store sales,
the company is experience challenging times. It takes years to
ortunately it could easily be lost with one or a few blunders. For Back
alls has had a significant impact on it's brand equity. Similary,
ave not added value to its brand.
16. Sour
1. starbucks.com
2. B2Brandebate.com
3. Interbrand.com
4. Starbucks annual report fiscal year 2009
16. Sources Menu
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