STARBUCKS: BUILDING A GLOBAL BRAND STARBUCKS: BUILDING A GLOBAL BRAND _________________________________________________ A Thesis Presented to the Faculty in Communication and Leadership Studies School of Professional Studies Gonzaga University __________________________________________________ Under the Supervision of Dr. John S. Caputo Under the Mentorship of Professor Giovanni Caputo __________________________________________________ In Partial Fulfillment Of the Requirements for the Degree Master of Arts in Communication and Leadership Studies ____________________________________________________ By Jessica Lorraine Silva May 2015 We the undersigned, certify that this thesis has been approved and that it is adequate in scope and methodology for the degree Master of Arts in Communication and Leadership Studies. STARBUCKS: BUILDING A GLOBAL BRAND STARBUCKS: BUILDING A GLOBAL BRAND Acknowledgements I would like to offer a sincere thank you to the professors of the Gonzaga University Communication and Leadership Studies MA program, especially Dr. John Caputo. Thank you for encouraging me to expand my educational horizons and for pushing me to broaden my abilities. I also wish to express gratitude toward my mentor, Professor Giovanni Caputo, for his patient and thoughtful guidance throughout the process of preparing and writing this thesis. Finally, thank you to my family and friends for enduring this process with me. I could not have done it without your support. STARBUCKS: BUILDING A GLOBAL BRAND ABSTRACT
Global brand positioning is an integral part of international marketing and branding. It requires
an effort to connect to local cultures and to focus strategies for diverse markets. To successfully
position itself internationally, an organization must develop a brand and product that offers
distinct value to the consumer in each unique marketplace. This thesis explores the global brand
positioning of Starbucks, an organization with continued international growth and success. The
study follows the philosophy of Martin Buber’s I-Thou relationship and takes the position that
communication is a dialogue. In the case of Starbucks, the organization’s brand helps create the
dialogue it has with consumers. This study is grounded in multiple theories, including cultural
adaptation theory as it relates to acculturation, global consumer culture and the theory of cultural
dimension. The study utilized a qualitative meta-analysis to determine concurrent themes in the
existing research. Throughout the study, several trends emerged including Starbucks’
development of a tailored third place and the glocalization of their stores and products. The
analysis shows a need for further research on global marketing and branding strategies to better
understand the benefits of incorporating culture.
Key Terms: brand, branding, globalization, global consumer culture, third place, glocalization
STARBUCKS: BUILDING A GLOBAL BRAND TABLE OF CONTENTS CHAPTER 1: INTRODUCTION Importance of the Study Statement of Purpose Definition of Terms Used Organization of Remaining Chapters CHAPTER 2: REVIEW OF LITERATURE Philosophical and Ethical Assumptions Theoretical Basis The Literature Rationale Research Questions CHAPTER 3: SCOPE AND METHODOLOGY The Scope of the Study Methodology Data Analysis Validity and Reliability Ethical Considerations CHAPTER 4: THE STUDY Previous Studies Emerging Trends Discussion CHAPTER 5: SUMMARIES AND CONCLUSIONS Limitations of the Study Further Study or Recommendations Conclusions REFERENCES 1 1 1 2 3 4 4 5 8 10 12 13 13 13 14 15 15 17 17 20 21 24 24 24 25 27
STARBUCKS: BUILDING A GLOBAL BRAND 1 CHAPTER ONE: INTRODUCTION
Introduction
Culture is a defining aspect of human interaction. It is the complex whole of an individual
that includes values, customs and beliefs. It is “manifested in social institutions, thought patterns
and the meaning and importance attached to material objects” (Lee, 1993, p.383). Cultural
values, beliefs and desires vary across the globe. Just as individuals cross international boarders
and adapt to social constructs and traditions, when entering the international market, an
organization also needs to adopt elements of the host culture into their brand positioning.
Importance of the Study
Brand image and identity are crucial components for brand positioning in the global market (Goppel & Omonigho Mrabure, 2013). A brand’s success is measured by sales and influence; however, sales and influence are not determined by the brand, but rather by public perception (Boyle, 2007). Perceptions vary based on the collective cultures found in the host country (Gotsi, et al. 2011). Organizations must be knowledgeable about the beliefs and norms in their targeted international markets (Brecic et al, 2013). Understanding these key factors will help shape how the international market perceives the brand and whether or not the public will embrace it (Gotsi et al, 2013). Statement of Purpose This thesis explores the importance of incorporating cultural elements into brand positioning through a qualitative meta-­‐analysis of Starbucks’ global brand. The study aims to understand how Starbucks, as a global brand, accommodates a multicultural audience while honoring their brand and the values of culturally diverse markets and whether elements of culture are ignored or implemented in the organization’s global brand STARBUCKS: BUILDING A GLOBAL BRAND 2 positioning. This research is intended to provide organizations interested in expanding into the global marketplace an informed understanding of the benefits and implications of infusing cultural elements into branding initiatives through the analysis of a well-­‐
established global brand. Definition of Terms Used Throughout the following chapters several terms related to this study are introduced. Each is defined below. 1. Brand: A known identity of a company in terms of what products and services they offer. A name, term, design, symbol or any other feature that identifies a good or service. A brand is created and influenced by people, visuals, culture, style, perception, words and messages. 2. Branding: The identity of a product or service. 3. Globalization: The interconnections between societies, cultures and individuals worldwide. 4. Global Consumer Culture: A complex structure that comprises cultural similarities and differences with global and local meanings. A set of consumption –related symbols and behaviors that are commonly understood but not necessarily shared by consumers and business around the world. 5. Third Place: A social surrounding that exists between the formality and seriousness of the work sphere and the privacy and familial intimacy of the domestic sphere. 6. Glocalization: The adaption of a product or service to appeal and identify locally or culturally within the region it is sold. STARBUCKS: BUILDING A GLOBAL BRAND 3 Organization of Remaining Chapters This thesis is organized into five chapters. The first chapter introduces the topic and discusses the importance and relevance of the study. Chapter Two explores the philosophical assumptions, theoretical framework, reviews the literature related to the topic and states the research questions that frame the study. Chapter Three explains the scope of the study, the methodology selected and the ethical considerations of the research. Chapter Four reports the results of the study, discusses emerging trends within the research and aligns the trends and findings to the research questions. The final chapter reflects on the limitations of the study, suggestions for further research and a summary and conclusion of the study. STARBUCKS: BUILDING A GLOBAL BRAND 4 CHAPTER TWO: REVIEW OF THE LITERATURE
Philosophical Assumptions
Culture is learned; it allows individuals to adapt to their natural and social environments.
Engaging in the local culture offers an outlet for an organization to create a dialogue with
consumers. Martin Buber’s philosophy of the I-Thou relationship views communication as
dialogue. The morally and ethically correct I- Thou relationship can only be created through
dialogue. Dialogue is synonymous with ethical communication, in that it forms the connection or
relationship between people that allows them to help each other become more human, through
self-disclosure, vulnerability, and affirmation of the other (Buber, 1958). Yoshikawa (1977)
asserts that meaningful dialogue between cultures is critical. Engaging in dialogue creates
authentic experiences. Much as dialogue is an important factor in creating a person-to-person
relationship, it is also necessary for building a consumer relationship. Dialogue allows a story to
unfold. In the world of marketing and advertising, a brand has the power to tell an organization’s
story.
Baxter (2006) states that the formula for growth and change is through the difference
each party (person, consumer or organization) brings to the dialogue. As cited in Baxter (2006),
Mikhail Bakhtin views dialogue as a “simultaneous differentiation from, yet fusion with another”
(p.101). Bakhtin states dialogue helps create new meaning out of previously established
meanings between two communicators. In the context of international expansion and marketing
efforts, an organization is bringing a new product or concept to the conversation. This product
may not successfully create dialogue within the new market if it completely overlooks the
established cultural values, beliefs and desires of the host culture.
STARBUCKS: BUILDING A GLOBAL BRAND 5 This study assumes that creating a dialogue between an organization and the consumer is
constructed through an organization’s brand. The research presented aims to assert the
importance of incorporating the values of the native culture into the brand’s positioning in the
new market. The results of this study will provide further insight into the marketing positioning
of a company that has continued success in the international market, contribute to the body of
information on international marketing and provide a foundation for further research on
intercultural communication as it relates to successful global advertising.
Theoretical Basis
Globalization and the development of a world economy is increasing the need for
international marketing efforts. Organizations are becoming more aware of the need to be
culturally conscious in their efforts to expand and communicate in the international market.
Effective communication – and in turn, marketing – requires an understanding of the dynamics
and impact of culture. This study explores the importance of cultural understanding through the
lens of several theories. The first is cultural adaptation theory, specifically as it relates to
acculturation.
Acculturation describes the “changes in attitudes, values and behaviors of members of
one cultural group toward the norms of another cultural group” (Lee, 1993, p.381). It details the
nature of cultural change as a process of “human action and reaction, adjustment and
readjustment” (Lee, 1993, p.383). Acculturation includes adopting aspects of both the subjective
and objective culture of another (cultural) group. Subjective culture includes nonmaterial
elements such as norms, beliefs, laws and values; objective incorporates the material aspects like
food, tools and other material products.
STARBUCKS: BUILDING A GLOBAL BRAND 6 Akaka and Alden (2010) posit evidence supporting the validity of acculturation to global
consumer culture. They describe global consumer culture (GCC) as a “set of consumptionrelated symbols and behaviors that are commonly understood but not necessarily shared by
consumers and businesses around the world” (p.38). Global consumer culture is a complex
structure that comprises cultural similarities and differences and global and local meanings. It is
constantly evolving (Akaka & Alden, 2010). Marketing internationally is critical to global
consumer culture as it plays a key role in “communicating and reflecting cultural symbols in a
given culture” (Akaka & Alden, 2010, p.39).
Research within this study also incorporates Hofstede’s theory of cultural dimension.
Hofstede (1980) provides a framework for understanding intercultural communication. Within
the theory of cultural dimension, Hofstede offers a distinction between values and cultures. He
defines values as “a tendency to prefer certain states of affairs over others” (1980, p.19) and
culture as an influence on “a person’s response to the world around them” (p.24).
Hofstede (1980) notes that cultural differences are based on whether an individual comes
from a collectivist or individualistic culture. This theory provides organizations and marketers
the framework to understand how consumers vary in their values, beliefs and desires as a
culture’s orientation to individualism or collectivism greatly impacts its values and beliefs
(Hofstede, 1980).
An individualistic culture places high value on freedom of thought and expression and
independence. A collectivist culture values cooperation and conformity and decisions in the best
interest of the group (Hofstede, 1980). It is important for organizations expanding into a new
market to understand where the culture falls on the individual-collective scale, as it will directly
STARBUCKS: BUILDING A GLOBAL BRAND 7 impact the perception the culture has on the organization’s brand as it emerges in the
marketplace.
Martin Roth (1995) referenced Hofstede’s work as it related to global brand strategies.
Roth asserts a brand looking to break into an international market “must be designed to
appropriately position the product for the targeted market segments” (p.164). He further states
that an organization expanding into a new market should “explore how cultural and
socioeconomic characteristics affect the performance of the brand” (p.164).
Roth focused his research based on Hofstede’s work on cross-cultural value systems.
According to Roth (1995), Hofstede identified three aspects of culture that can be related to
consumer needs and branding: power distance, uncertainty avoidance and individualism. A
culture high in power distance emphasizes wealth and prestige and conforms to the
socioeconomic class they are in (rich, poor) or aspire to be in (Roth, 1995). Cultures with
uncertainty avoidance seek stability and predictability and often avoid change (Roth, 1995).
Individualistic describes a culture that values personal and individual time, freedom and
experiences.
Roth (1995) further explained that social brands were better suited for cultures with a
higher level of power distance because consumers placed a higher value on status and affiliation;
he found functional brand images connected best to cultures with uncertainty avoidance because
they were consistent and did not promote much risk; and finally, Roth’s research indicated
individualistic cultures responded to sensory brands that showcased “variety, novelty and
individual gratification” (1995, p.166).
STARBUCKS: BUILDING A GLOBAL BRAND The Literature
Globalization is defined as “the rapidly developing process of complex interconnections
between societies, cultures and individuals worldwide” (Maynard & Tian, 2004, p.287). In an
organizational setting, globalization often references a company’s strategic expansion into an
international market. For an organization, marketing their brand is a driving factor in the
advancement of globalization. For many organizations an innovative brand helps solidify their
product in consumers’ minds – a tagline, logo, design or feature that sets their brand or product
apart from others (Badal, Melewar & Small, 2006).
A brand’s identity is a unique aggregation of what its organization does – its mission, its
personality and its promise to consumers (Goppel & Omonigho Mrabure, 2013). Branding is an
integral branch of business; it is competitive in nature and all organizations must work to
differentiate their product – and brand – from their competitors (Goppel & Omonigho Mrabure,
2013). A brand can have multiple meanings and may be associated with diverse groups of
people, including cultures (Akaka & Alden, 2010). “Communicating a clearly defined brand
image enables consumers to identify the needs satisfied by the brand” (Roth, 1995, p.163).
A solid and strategic brand identity can enhance an organization’s position, performance
and its ability to expand globally (Goppel & Omonigho Mrabure, 2013; Roth, 1995). “The
strongest brands insulate themselves against competitors by having distinctive identities that
connect meaningfully with their target markets” (Brecic et al., 2013).
Melewar and Saunders (1999) conducted research on the influence of an international
standardization of corporate visual identity. In terms of their research, corporate visual identity
(CVI) is an element of brand identity; it is “the name, slogan and graphics (logotype and/or
symbol), typography and color” that represent the brand (p.583).
8 STARBUCKS: BUILDING A GLOBAL BRAND 9 Brecic et al. (2013), Melewar and Saunders (1999) and Roth (1995) posit that brand identity and
image are essential to expanding into the global market. Melewar and Saunders (1999) suggest
that corporate visual identity is a part of brand identity that “multinational enterprises can use to
project their quality, prestige and style to stakeholders” (p.583). In contrast to rapidly changing
products and promotions, Melewar and Saunders (1999) further assert that an organization’s
brand and CVI can endure time as an “expression of the values and mission of a company”
(p.584). Positioning a brand as global through communications, using message elements such as
brand name, logo, visuals and themes creates perceived brand globalness (PBG) and a perception
of brand superiority (Steenkamp, Batra & Alden, 2003).
According to Gotsi, Lopez and Andriopoulos (2011), “brand identities can influence
country images and vice versa, and the way in which they influence each other is unlikely to be
fixed across international borders as consumers vary” based on their collective cultures (p.278).
There are several factors that influence how a brand is perceived through international borders.
Kapferer (2012) relates consumer ethnocentrism and consumer animosity to international
perception; and Melewar and Saunders (1999) consider the impact of language as a barrier.
Shimp and Sharma (1987) define consumer ethnocentricity as “the beliefs held by consumers
about the appropriateness, indeed morality, of purchasing foreign-made products” (p.278); it is a
well-established bias among consumers in favor of local, homegrown products (Akaka & Alden,
2010).
Brand foreignness may have negative connotations; but, in some instances, it may also
“signal comparatively higher product quality, status, and symbolize a desirable lifestyle” (Brecic
et al., 2013, p.278). Studies show consumers may prefer global brands because they are
associated with higher prestige (Kapferer, 1997). This prestige is influenced by the brand’s
STARBUCKS: BUILDING A GLOBAL BRAND 10 relative scarcity and higher price compared to local brands (Batra, et al., 2000). Global brands
may also signify cosmopolitanism (Thompson & Tambyah, 1999). Some consumers buy global
brands “to enhance their self-image as being cosmopolitan, sophisticated and modern” (Akaka &
Alden, 2010, p. 55). Global brands are known to purposely promote a foreign image when
marketing in transitional economies (Akaka & Alden, 2010). “This is to enhance the desirability
of these brands among local consumers who tend to associate foreignness with higher perceived
quality and social status given the brands' higher price, relative scarcity and higher prestige”
(Akaka & Alden, 2010, p. 46).
According to Brecic et al. (1998), consumer animosity is “remnants of antipathy related
to previous or ongoing military, political or economic events” (p.278). Consumer animosity can
lead to boycotting services or goods of a specific brand. Language also has a great deal of
influence in international marketing and has been argued as both a benefit and detriment to the
success of a brand. Melewar and Saunders (1999) state that language is the “primary
manifestation of culture as a factor” in brand image within an international context; dependent
upon how it is used (p.587).
Friedrich (2002) conducted a study on English being used within global advertising and
concluded that the use of English in marketing and advertising was associated with prestige. He
noted that English words were often accepted into local jargon and that using English provided
the organization more words to work with and to be creative with combinations (both English
and non-English words).
Rationale
Success in a new market requires an organization to first build a brand that has a broad
understanding of the country’s people, their needs and unique characteristics (Liu, 2002).
STARBUCKS: BUILDING A GLOBAL BRAND 11 Globalization offers two standard approaches: local and international. Some organizations create
one standardized marketing mix to be used across the global market while others spend time
building a campaign specialized and unique to the new market (Roth, 1995). A standardized
approach often yields cost-saving benefits for the organization (Roth, 1995), but advertising that
is catered to the values of a native culture is more effective for an emerging product (or brand) in
a foreign market (Pae, Samiee, & Tai, 2001).
Marketing is perhaps the most “efficient and successful contemporary practitioners of a
skill that no one can afford to ignore; namely the ability to move fluently between the local and
the global, as well as between the concrete and the abstract” (Akaka & Alden, 2010, p.40). Due
to its ability to transfer, share and contribute to the creation of cultural meanings, marketing –
particularly for global or foreign brands – often establishes a “cultural paradox that questions
what is represented in an advertisement: the culture of the consumers or that of the company”
(Akaka & Alden, 2010, p.40). What is considered ‘global’ in any given culture is done relative to
what is considered ‘local’ (Tobin, 1992).
Local culture remains “a central influence on consumer behavior and individual identity”
(Steenkamp, 2003, p.55). Steenkamp (2003) suggests there is evidence that many consumers
prefer a brand with an attempt at local connections. This study aims to understand the importance
of incorporating the elements of a native culture into a brand’s positioning in a new market
through an analysis of a brand that is successfully growing within the global market: Starbucks.
Research Question
International marketing is an important component for any organization expanding into
the global market. While extensive research has been conducted on brand image in specific
regions, limited research has been done on a cross-cultural level. This study seeks to increase the
STARBUCKS: BUILDING A GLOBAL BRAND 12 understanding and body of research on international marketing by analyzing Starbucks and its
strategy in the international market. With the examination, this study will focus its analysis on
Starbucks brand as it is integrated into individualistic and collectivist cultures. The goal of the
research is to provide a better understanding of how Starbucks advertises at a multicultural level
and the differences implemented between cultures. The study will concentrate on the following
research question:
(RQ1) How does Starbucks accommodate the complexities of a multicultural audience
while honoring their brand and the values of the new market?
(RQ2) Are elements of culture ignored or implemented in Starbucks’ branding
strategies?
The following chapter will discuss the specific methods used to evaluate the data and answer the
research questions.
STARBUCKS: BUILDING A GLOBAL BRAND 13 CHAPTER THREE: SCOPE AND METHODOLOGY
The Scope of the Study
This study analyzed the international marketing strategies from a single, evolving and
successful international organization: Starbucks. Starbucks was selected due to the
organization’s continued expansion into global markets and its ability to incorporate local culture
into each expansion. Choosing one organization allowed the researcher a more detailed and
comprehensive approach to the analysis. For the analysis the researcher reviewed advertisements
and articles that demonstrated the cultural differences infused in Starbucks’ marketing and
branding tactics abroad. The research aims to understand the degree of variation within
Starbucks’ marketing between cultures. For the purpose of this study, three main aspects of
global consumer culture are explored and compared within Starbucks’ global initiatives: “the
experience of consumption – the consumer culture, the space of consumption – the third place
and the ways of consumption – the lifestyles” (Ling, 2012, p.120).
The Methodology of the Study
For this study, a qualitative meta-analysis was determined the most effective research
method to reveal synchronous themes in Starbucks’ international marketing and branding efforts.
A qualitative meta-analysis is a research “technique used to create an integrative review”
(Neuman, 2011, p.124). It involves gathering details from previous studies and articles and
synthesizing the results (Neuman, 2011). A qualitative meta-analysis incorporates an analysis of
published studies to examine trends or results in current research (Rubin, 2010). By combining
results found in scholarly journals and through research, “researchers can tell how much of an
effect a particular variable has” (Rubin, 2010, p. 214). In this study, a qualitative meta-analysis
allowed the researcher to analyze trends found within Starbucks’ international branding tactics
STARBUCKS: BUILDING A GLOBAL BRAND 14 and techniques. Through this method the researcher can draw conclusions on the consistency and
success of Starbucks’ initiatives employed at the global level.
Utilizing Academic Search Complete (EBSCO) Communication Source, Google Scholar
and several web-based search functions, studies, secondary source articles, case studies and
advertisements were discovered in support of the research. Narrowing the scope of the analysis
enabled themes to emerge within the literature and research. Such themes included Starbucks’
development of a “third place” as a way to culturally connect with consumers. This integrative
review seeks to present and summarize the current themes found in Starbucks’ global branding
and marketing initiatives and to provide a summary of information in support or dispute of RQ1
and 2.
Data Analysis
As mentioned, meta-analysis was the method selected to gather data in this study.
Neuman (2011) states a meta-analysis proceeds in five steps: “(1) Locate all potential studies on
a specific topic or research question. (2) Develop consistent criteria and screen studies for
relevance and/or quality. (3) Identify and record relevant information for each study. (4)
Synthesize and analyze the information into broad findings. (5) Draw summary conclusions
based on the findings” (p. 125). The data in this analysis was collected through studies, articles
and advertisements that related to Starbucks and its international marketing tactics. Articles
related to Starbucks, international branding, international marketing and global advertising were
also explored. Based on the five steps outlined by Neuman (2011), the data analysis of this study
included a narrow focus on Starbucks as the sole example of an international organization. It
reviewed Starbucks’ global marketing and branding tactics at a broad level to provide further
insight and understanding for RQ1 and RQ2.
STARBUCKS: BUILDING A GLOBAL BRAND 15 Specific criteria to measure the relevance and quality of the data gathered were developed
and included such terms as: Starbucks international and/or global marketing; Starbucks
international and/or global branding; Starbucks international and/or global advertising;
international and/or global marketing and/or advertising strategies; and global consumer culture.
Specific information that related to Starbucks’ global positioning and marketing strategies were
also searched
The data will be compiled through successive approximation, a process used to refine the
data and information collected (Neuman, 2011). This process will allow the research to note and
analyze common themes and trends within the data that support the presented research questions.
Validity and Reliability
The research presented in this study is limited to the concepts of Starbucks’ specific
branding and marketing strategies abroad; however, some elements of the data collected also
resonate on a broader level in the realm of international marketing. Following Neuman’s
constructs of a meta-analysis, the researcher was able to eliminate studies and articles that were
not relevant to the work at hand or the research questions, enhancing the study’s validity and
reliability.
Ethical Considerations
Within all aspects of research, ethical considerations are a necessary component of the
analysis. Rubin (2010) asserts “researchers need to be accurate, honest and precise when
conducting research and when discussing the meaning of their data” (p. 204). The ethical
considerations of this study do not include the implications of having participants. However, the
meta-analysis structure of this study and the use of studies and secondary sources could impact
the ethical considerations.
STARBUCKS: BUILDING A GLOBAL BRAND 16 Although the study is bound by these limitations, Neuman (2011) provides guidelines to
determine a quality source. Such guidelines include resources that provide information about the
author of the data, the location and other citation details. Within this study, the majority of data
collected was through EBSCO Communication Source, an online academic database that fulfills
these requirements. The secondary sources analyzed (advertisements, business articles) can all be
directly traced back to Starbucks as an organization. The research conducted in this study
ensures ethical standards and sources of information.
The following chapter will outline the results of the meta-analysis and evaluate the
findings of the study.
STARBUCKS: BUILDING A GLOBAL BRAND 17 Chapter Four: The Study
Previous Studies
Understanding the global marketplace is a necessity for emerging international
organizations. Previous scholarship has been devoted to uncovering the successful steps to
implementing a global brand or product. Research has also focused on the marketing and
branding strategies employed to break into a new global market. Such research has included
analyzing a specific organization or brand. Although the amount of literature is limited,
Starbucks has become a brand of focus in recent years due to its growing international success.
Previous studies explore how Starbucks has achieved its global status through the development
of its brand.
Aiello and Dickinson (2014) reveal that Starbucks makes a concerted effort to
incorporate elements of the local community (and culture) into the development of their stores.
Since 2009, the design of Starbucks’ stores has been at the forefront of its global branding
strategies (Aiello & Dickinson, 2014). Through design, the organization strives to create a
globally consistent aesthetic with specific elements that are reflective of the culture and local
communities the stores are located in. Starbucks has created a standardization of brand quality
and practice, but they “source materials and employ craftsman with cultural and lifestyle
principles” relevant to the community (Aiello & Dickinson, 2014, p. 306). Through a visual
analysis of stores in Starbucks’ birthplace of Seattle and the European and Asian market, Aiello
and Dickinson (2014) conclude Starbucks relies heavily on their stores as a branding strategy and
strives for the stores to become a true reflection of the neighborhood.
Starbucks’ use of design and its infusion of local culture has been criticized as only a
surface-level connection to community (Thompson and Arsel, 2004). Aiello and Dickinson
STARBUCKS: BUILDING A GLOBAL BRAND 18 (2011) recognize such criticism, but contend through their research that Starbucks’ stores are not
“rudimentary sketches of the local that are ‘plugged’ into a standard format” (p.317). They assert
instead, that Starbucks creates a “vision of the actual culture and community” that they weave
into the development of their stores (p.317).
Aiello and Dickinson (2011), Talpau and Doscor (2011) and Lin (2012) all note that
although while in recent years Starbucks has turned to traditional marketing strategies (print
advertisements, television commercials, etc.), that much of its global success is attributed to the
localized branding of its products and stores. Talpau and Doscor (2011) assert that companies
must continuously adjust to market needs and changes and that global organizations also need to
meet customers’ cultural preferences in their international locations.
Lin (2012) explored the Starbucks brand in Taiwan as it relates to global consumer
culture to gain understanding into how an international brand, like Starbucks, can achieve global
status without high levels of traditional media. Lin (2012) suggests that Starbucks makes their
products and services meaningful to new markets by understanding what is important to
individuals in each unique marketplace. Within Lin’s (2012) research, three aspects of global
consumer culture exist in the dynamic brand-building process Starbucks has employed abroad
and particularly within the area of study. The three aspects include the experience of
consumption (the consumer culture), the space of the consumption (the third place) and the ways
of consumption (the lifestyles). These three aspects are relevant to Starbucks in Taiwan because
coffee consumption includes behavior, experience and space (Lin, 2012). Frequency of visit, the
space of consumption, the lifestyles and consumer demographics were topics explored through
questionnaires with a five-point scale. Interviews were used to confirm the validity of the
questionnaire responses with 400 Starbucks users in Taiwan.
STARBUCKS: BUILDING A GLOBAL BRAND 19 Through the analysis, Lin (2012) concedes that Starbucks’ use of place – creating
comfortable and familiar surroundings – and a prestigious reputation persuade new consumers to
try their products. The findings also indicate that coffee is not the only element of Starbucks
being consumed, but also the space and atmosphere inside the stores. The theoretical construct
and the data collected serve as a foundation for further study, at a larger scale (Lin, 2012).
The importance of culture and community in Starbucks’ branding is re-emphasized by
Wang (2012). Starbucks’ cultural influence extends beyond the confines of its brand and
product; it has propelled into an entire experience. In her article, Wang (2012) explores
contributing factors to Starbucks’ success in China – a predominantly collectivist and tea
drinking culture – and how it is reflective of Starbucks’ global status.
Through market research, Starbucks found that as the Chinese middle class emerged
there was an opportunity to introduce the Western coffee experience (Wang, 2012). Starbucks
focused their efforts not just on coffee but the experience of meeting at Starbucks. When entering
the Chinese market, Starbucks did not focus its efforts solely on positioning itself as a coffee
retailer; instead, it worked to capitalize on the tea-drinking culture of Chinese consumers by
introducing beverages using local ingredients (Wang, 2012). While Starbucks does offer a
variety of global products (The Fruppucino, the Latte, etc.), they also offer a highly localized
menu of beverages and treats that are tailored to the cultural market (Wang, 2012). It is critical
for Starbucks to adapt their business to local markets, so Starbucks creates a unique blend of
flavors through consumer taste profiles for each of their unique markets (Wang, 2012).
Although Starbucks has successfully connected local culture through store design and
creating local flavor, for a truly unique cultural (or local) experience local business often
outweigh the coffee powerhouse. According to Wang (2012), Lin (2012) Talpau and Boscor
STARBUCKS: BUILDING A GLOBAL BRAND 20 (2011) and Aiello and Dickinson (2014), Starbucks acknowledges this by creating an experience
and a unique new place for consumers to convene.
Emerging Trends
The aforementioned studies stress the importance of Starbucks’ ability to incorporate
local culture into their global brand. Aiello and Dickinson (2014), Talpau and Doscor (2011),
Lin (2012), Thompson and Arsel (2004) and Wang (2012) all note the development of a “third
place” as a contributing factor to Starbucks’ status as a global organization. Starbucks has
transformed itself from a coffeehouse to a frequent meeting place for consumers to relax and
converse; it has become a third place besides home and work (Lin, 2012).
Third places exist between the formality and seriousness of the work sphere and the
privacy and familial intimacy of the domestic sphere…they are conducive to formal
conversations and casual friendships where patrons imbibe a comforting sense of
community, camaraderie and social engagement (Thompson & Arsel, 2004, p. 263.)
Starbucks has created a third place by creating a standardized commodity with its atmosphere.
This third place becomes a marketing mix tool for Starbucks to make their products easily
accessible and available to target customers and connect with local culture; the place itself is part
of the product (Lin, 2012).
Through an inviting interior, comfortable lounge areas and upbeat, pleasant music
Starbucks has developed standard elements of a third place to be carried throughout stores worldwide (Lin, 2012; Thompson and Arsel, 2004). Although Starbucks has set a precedent with a
standardization of quality and practice, they have also developed a localization in the
implementation and development of their stores and the third place (Lin, 2012; Aiello and
Dickinson, 2014; Wang, 2012).
Thompson and Arsel (2004) and Kjeldgaard and Ostberg (2007) explore glocalization as
a contributing factor to Starbucks’ international success. Glocalization suggests an intermingling
STARBUCKS: BUILDING A GLOBAL BRAND 21 of the global and the local (Kjeldgaard & Ostberg, 2007). Glocalization is described as the
adaptation of a product or service to appeal and identify locally or culturally within the region it
is sold; it is when a product is altered to meet the needs of or appeal to local consumers
(Kjeldgaard & Ostberg, 2007). The above research supports the idea of glocalization in
Starbucks’ global implementation. Starbucks demonstrates glocalization through the brand’s
creation of a third place and products reflective of the local culture. In Wang’s article (2012) she
demonstrates an example of Starbucks’ glocalization in China through the brands development
of an East meets West blend of flavors, including products tailored towards Chinese preferences
such as its black sesame green-tea cake roll (Beattie, 2012).
Discussion
The previous research indicates the practice of acculturation in Starbucks’ global
branding strategies through the creation of a third place and the glocalization of that place. The
development of a third place is Starbucks’ effort at incorporating and adopting elements of the
subjective culture. As outlined in Chapter Two, the subjective culture includes beliefs, customs,
norms and values. Based on the framework presented in Chapter Two of Hofstede’s theory of
cultural dimension, Starbucks develops a further understanding of how consumers vary in their
beliefs, values and desires based on their culture. Understanding this cultural dimension allows
Starbucks to appropriately position its products to various markets, creating a third place
environment that is reflective of its neighborhood and culture. For instance, in the Asian market
(such as China or Taiwan) – which identify as typically collectivist cultures – Starbucks develops
a third place environment that is more conducive to group social gathering – a trait that is
associated with collectivist cultures. Within the Asian market, Starbucks designs their stores with
fewer single and café style tables and opts for more large tables and lounge areas for group
STARBUCKS: BUILDING A GLOBAL BRAND 22 settings (Aiello & Dickinson, 2014). In France, however, Starbucks gears their store environment
towards the more individualistic culture. Individualistic cultures, like France, place high value on
personal and individual time (Roth, 1995). Recognizing the degree of difference between
cultures, Starbucks designs its French stores to have a more intimate setting with café style
seating and tables set for two (Alderman, 2012; Aiello & Dickinson, 2014).
Starbucks adopts elements of the objective culture through the glocalization of the
products available within varying marketplaces. In acculturation, the objective culture refers to
material elements of culture, such as food. As referenced in Wang’s (2012) article, Starbucks
creates products (beverages and treats) unique to each cultural market. Through the glocalization
of products and the third place atmosphere, Starbucks is creating a dialogue with the local culture
and consumer; meaningfully connecting with each target market. As written in the philosophical
assumptions in Chapter Two, dialogue allows an organization and consumer to share a story.
Starbucks uses its brand to help tell this story. The mission of the organization is to “inspire and
nurture the human spirit – one person, one cup and one neighborhood at a time” (Starbucks,
2015). The research outlined and analyzed in this study supports this mission and provides an
understanding of the RQs presented in Chapter Two.
RQ1 asked how Starbucks, as a global brand, accommodates the complexities of a
multicultural audience while honoring their brand and the values of the new market. While there
were no articles found that directly related to the scope of this study, consistent trends emerged
in relation to this question. Such trends included Starbucks adopting local flavors and aesthetics,
developing cultural taste profiles and creating an inviting and comfortable environment. Aiello
and Dickinson (2014), Lin (2012) and Wang (2012) emphasized store design was a leading
brand strategy for Starbucks. Lin (2012) and Wang (2012) explored this further, with their
STARBUCKS: BUILDING A GLOBAL BRAND 23 research indicating that Starbucks follows a standardization of quality and practices that adheres
to its brand standards while simultaneously embracing elements of the host culture creating a
third place environment.
The second research question (RQ2) posed in this study asked whether elements of
culture were ignored or implemented in Starbucks’ branding strategy. It is evident within all the
studies that both subjective and objective elements of the host culture play an important role in
Starbucks’ global branding strategy. Through extensive market research Starbucks gains an
understanding of each new (or potential) market (Aiello & Dickinson, 2014; Wang, 2012).
Conducting market research connects Starbucks to the values and beliefs of the host culture,
affording the organization the ability to appropriately connect their brand and stores to each
unique marketplace. Starbucks’ chief executive officer and chairman, Howard Schultz,
recognizes the importance of culture as a global brand stating, “We remain highly respectful of
the culture and traditions of the countries in which we do business. We recognize that our
success is not an entitlement, and we must continue to earn the trust and respect of customers
daily” (Starbucks, 2015). Through Starbucks’ efforts to create a third place environment and the
organization’s dedication to create authentic taste profiles unique to each individual market place
they are building trust among global consumers.
Overall, the findings support the theories and RQs outlined in Chapter Two, but the low
volume of research that directly connects to the scope of this thesis demonstrates the need for
further study. In the remaining chapter such limitations and areas for future research will be
explored.
STARBUCKS: BUILDING A GLOBAL BRAND 24 CHAPTER FIVE: SUMMARIES AND CONLUSIONS
Limitations of the Study
The purpose of this study was to explore the global branding strategies of Starbucks to
determine whether or not the coffee giant, as a successful global brand, incorporated elements of
culture into its branding strategies abroad. There were a variety of limitations within this study
and the most apparent was related to the narrowed scope of the study itself. The focus was
narrowed on one organization to make the study more manageable within the given time
constraints; however, the focus on Starbucks produced a limited amount of research and previous
studies. Although consistent trends emerged within the available research they were limited in
variation due to the lack of a wide body of research.
Due to the nature of this study and the amount of available literature, the results of this
study lack perspective. While some of the research within previous studies incorporated methods
involving interaction and questionnaires with Starbucks customers, the lack of available
literature also contributed to a lack of perspective – not featuring the human element of the
Starbucks global brand. How do global consumers perceive the brand’s attempts at incorporating
culture? How does this perspective vary between cultures?
Further Study or Recommendations
Further studies on Starbucks’ global branding strategies can answer the previously listed
questions. It is clear within the results of this study that Starbucks incorporates elements of
culture into its global branding strategy. The brand works to tailor its stores and products to each
individual market. Future research should incorporate the consumer perspective. Through
surveys, interviews, focus groups and questionnaires with the local consumers, information can
be discovered on how well the cultural initiatives employed by Starbucks abroad our perceived
STARBUCKS: BUILDING A GLOBAL BRAND 25 by the consumer within that market. Such research would explore the local success of Starbucks’
cultural infusion and could discover avenues for brands, like Starbucks, to further connect with
consumers through their brand and elements of local culture.
Another compelling area for future research includes a cross-comparison of multiple
international brands. Further research with various global organizations is necessary to develop a
broader understanding of if and how global companies rely on and incorporate culture into their
marketing and branding strategies. Studying the practices and strategies of multiple global
brands would provide a robust understanding of how culture can be used to identify and connect
with global consumers from a variety of cultural backgrounds.
Similarly, areas of further research should include studies on individual and multiple
global organizations across various diverse cultures (i.e. Japan versus Greece versus Iran, etc.).
Narrowing the focus on not just the brand, but also the positioning of the brand within a specific culture will showcase the variations implemented to create a brand or product that appeals to a diverse global audience. Conclusions
Global brand positioning is an important part of the international marketing process. It
requires an effort from an organization to connect with local cultures and focus on strategies for
diverse markets. To successfully position itself internationally, an organization must develop a
brand and product that offers distinct value to the consumer in each unique marketplace (Roth,
1995; Liu, 2002). The results in this study indicate that Starbucks connects to local culture
through the development of its stores and the glocalizaiton of products.
The goal of this thesis was to determine whether Starbucks, as a global organization,
incorporates culture into its global branding strategy and if so, how. The empirical evidence
STARBUCKS: BUILDING A GLOBAL BRAND 26 found in this study demonstrates that Starbucks uses culture as a means to communicate and
connect with consumers. The organization uses culture within its branding process to create a
dialogue and authenticity with the new market. Establishing an authentic dialogue with the
consumer builds a bridge of trust between the organization and its customers. Understanding the
importance and impact culture can have on branding strategies allows organizations (like
Starbucks) to cross various boarders, creating a global brand.
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