Managing a High Growth Brand

Has it began to lose focus?

Has it grown too quickly?

Company History .

Brand Elements .

Logo Transition .

Starbucks Reinvented .QuickTimeΠand a TIFF (Uncompressed) decompressor are needed to see this picture.

Creating a Look .

Constant Reinvention Inves ng ahead of the growth curve Innovation .

Be Involved´ . Be Knowledgeable.Core Values ´Be Welcoming. Be Genuine. Be Considerate.

Growing The Brand .

Growing the Brand .

Growing the Brand ‡ Urban Coffee Opportunities ‡ Alliance with Conservation International ‡ Doonesbury themed products .

Maintaining the Growth ‡ Encouraging results ‡ Market expansion ‡ Acquisitions ‡ S&P 500. 1999 .


New Areas Starbuck¶s Cafe Starbuck¶s Joe .

Starbucks Missteps ‡ Internet Strategy Debacle ‡ Failed Acquisition Attempt : Williams-Sonoma ‡ Joe Faltered! .

Brand Identity Prism Informal/Comforting Culture Innovative yet familiar authentic coffee drinkers Personality Self-Image Physique All American. high quality coffee/products Reflection crème de la crème Relationship Providing a place for small talk. catching up and good coffee .

AAKER·S MODEL Responsible ‡ People ‡ Progressive and ‡ In-store Experience Socially responsible ‡ Innovation ‡ Product ‡ Environmental ‡ ³Personal Treat´ ‡ ³Third Place´ ‡ Atmosphere ‡ Service Core Identity Extended Identity Value Proposition .

CBBE Model ² Starbucks 1980·s ‡ Behavioral Loyalty Resonance ‡ Credibility /Trust ‡ Superior Quality ‡ Social Approval ‡ Self Respect ‡ Affectionate Judgments Feelings ‡ High Quality Coffee/Products ‡ Simplicity Performance Imagery ‡ Innovative ‡ crème de la crème ‡ Coffee Retail Chain Salience .

CBBE Model ² Starbucks 2000·s ‡ Behavioral Loyalty ‡ Sense of community ‡ Active Engagement Resonance ‡ Credibility / Trust ‡ Superior Quality ‡ Quality Service ‡ Comfort / Relaxed ‡ Homely ‡ Social Approval ‡ Self Respect ‡ Elegant ‡ Romantic ‡ Innovative ‡ crème de la crème Judgments Feelings ‡ High Quality Coffee / Products ‡ Availability ‡ Advanced technology ‡ Complete Coffee House ‡ Music(Entertainment) ‡ Films Performance Imagery Salience .


‡ Keys for success in building the brand:  Quality as top priority  Rejection of franchise model for complete control  ³Hub´ market strategy ± word of mouth publicity. image of convenience  Careful selection of partners based on similar philosophies ‡ Brand values:  Uncompromising commitment (³best of class´)  Personal involvement ( a ³Third Place´) ‡ Sources of equity:     Knowledge and dedication of employees Supplier relations for best quality beans Minimum dependence on direct advertising Presence in diverse segments via alliances .

packaged coffee beans surpassed expectations  Brave innovative steps to leverage star power to reach inner cities. Eg. FlavorLock bags  Shift from product to people oriented became core philosophy of mission statement  Ignored initial Wall Street reactions to internet expansion plans signaling to focus on core business  Slowed down on new markets in pursuit of diversification ‡ Partnerships:  Did a good job in conveying to partners Starbucks commitment to highest quality. alliance with environmental agencies to reduce wastage. engaged in joint training exercises  Foray into supermarket through Frappuccino. partnerships for charity efforts .‡ Growth strategy evaluated:  Innovation critical for geographical expansion.

Convenience. Diffrentiating feature. Enriches Starbucks Experience. ‡ Films .??? ‡ Credit Cards ‡ ‡ ‡ ‡ Value adittion. ‡ Music ‡ Enriches Experience. ‡ Means of Entertainment & Relaxation.

Caps ‡ Cups.Starbucks latest developments ‡ Merchandised Products ‡ T-Shirts. Water Bottles ‡ Cards and Calendar ‡ Starbucks Gift Set ‡ Coffee-laced beer .

Continue the Expansion strategy but without diluting the Starbucks experience. McDonalds¶ coffee won over Starbucks¶. In a Consumer Reports taste test. . Brand Dilution Reasons ‡ ‡ ‡ Loss of coffee aroma since the adoption of flavor-lock bags Focus in Outpacing Competition Diminished Service theatrics.Question 6? Recent Survey Results ‡ ‡ Starbucks edged out by Dunkin Donuts for first place as the best coffee house chain in the recently-released Customer Loyalty Survey.

??? ‡ Dunkin¶ Donuts gained in on speed. . consistency and lower prices (25% lower than Starbucks) ‡ Provided high quality coffee along with the experience as well as a constantly expanding product line ‡ First to target the blue-collared workers ‡ Mc Donald¶s also improvised on its coffee blender equipment and threatened to eat into Starbuck¶s share.

. ‡ The inviting enriching environment.??? ‡ Customers are ready to pay. it was ok. comfortable and accessible yet stylish and elegant. ‡ Aggressive expansion and diversification should be balanced with strengthening of the core values. didn¶t adversely affect the stock. etc. ‡ As long as the price rise can be suitably justified. Berlin. Frankfurt. in order to maintain the customer loyalty. ‡ In places like London. ‡ A 3% rise in prices in 2004. others with lower costs surged ahead. provided the Starbucks Experience is maintained.

Avinash (08FN-024) Brendan (08FN-028) Gaurav (08FN-034) Kamal (08FN-040) Manish (08FN-048) .

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