STARBUCKS
The Evolution of a Brand Identity Image
WHAT THOUGHTS COME TO MIND WHEN
YOU HEAR THE WORD STARBUCKS?
• COFFEE
• Expensive
• Frappuccino (trademarked)
• 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.
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
Coffee beans
were being sold in
Seattle’s Pike
Place Market
1987
Espresso
beverages
were added to
the menu
1992
Starbucks
becomes a
publically traded
company
2011
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
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