STARBUCKS

The Evolution of a Brand Identity Image

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

• COFFEE • Green, mermaid logo

• Expensive • International
• Frappuccino (trademarked) • Seattle

THIS IS BRAND IMAGE

 1970 1980 1990

• 1971 - Starbucks • 1982 - Howard • 1991 -Starbucks

opens first store Schultz joins expands beyond
in Seattle’s Pike Starbucks as Seattle, first to
Place Market. director of retail the rest of the
The name operations and United States,
Starbucks was in marketing. then the entire
honor of Starbucks begins world. It also
Starbuck, the providing coffee becomes a
coffee-loving first to fine publically traded
mate in Herman restaurants and company.
Melville's Moby espresso bars.
Dick.
 THE BEGINNING OF A SUCCESSFUL BRAND:
WHAT STARBUCKS DID RIGHT
• 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

“Starbucks has been hailed, acknowledged, and

praised again and again for its excellence in
branding and marketing” – DEBBIE MILLMAN
 TRANSFORMATION OF A LOGO

1971 1987 1992 2011

Coffee beans Espresso Starbucks 40 years marks
were being sold in beverages becomes a the next
Seattle’s Pike were added to publically traded chapter which
Place Market the menu company 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
 ADVERTISING

• 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
 GLOBALIZATION & SIZE
• 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
 STOCK MARKET
• 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
 CUSTOMER LOYALTY
• 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
 WHAT DOES IT TAKE TO ACHIEVE
A SUCCESSFUL BRAND IMAGE?

• 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
 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