The Evolution of a Brand Identity Image 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. Howard Schultz is now the CEO of Starbucks.

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 were being sold in Seattle’s Pike Place Market Espresso beverages were added to the menu Starbucks becomes a publically traded company 40 years marks the next chapter which includes a new logo Was switching to the new logo a good idea? Many don’t like the new logo. Poses another question: Is it a strong enough icon? We’ve seen a growing trend in simplification of logos. Green: Color of nature. Evokes a sense of health, serenity, and freshness. Deeper shades denote wealth or prestige. "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