Answer1

There are lots of key factors for Starbucks to build the brand successful. Those are described below: Transformation of Starbucks into a global brand. Starbucks not only cover North America, Latin America but also Europe and Middle East. By expanding their business, Starbucks capture a large number of customers and people got a chance to know about the brand easily. Partnerships : Starbucks implemented joint venture with Pepsi, Kraft, Dryers and Capital Records and licensing partnership with some other companies like United Airlines, ITT Sheraton and Host Marriot All of those companies have its own positive Brand Awareness and values. Incorporating finest Coffee beans & brewing equipment Starbucks only gives emphasis on quality whole bean coffee which is absolutely absent in other common coffee shop of America. Starbucks only purchases Arabica beans from carefully selected network. Offers competitive compensation and benefit packages To professionalize Starbucks, it offered competitive compensation and benefit

packages to target individuals at some of the countrys most successful and innovative corporation such as Nike, Deloitte and Touche and Macys. Introduction of Cafe Starbucks: To be on the top, Starbucks introduced its first full- fledged restaurant in Seattle and named it Caf Starbucks.in 1998. Availability of different types of products: Starbucks not only sells Coffee but it also developed supplementary products like Barista Aroma Thermal Coffeemaker which can remain the coffee fresh and hot for at least five hours.

Answer 2

The underlying factors for the Starbucks growth are the profoundly established core brand values.

The core brand values

Total quality management: Starbucks uncompromising quality management is proved to be the main factor towards their growth. Special coffee beans & brewing equipments: Passionate about ethically sourcing the finest coffee beans & roasting them with great care and brewing them with advanced machine. Lucrative store decoration: To introduce the brand to the greater number of people and give them third place feelings stores are esthetically decorated. Customer relationship: Promises of a perfectly made beverage, but their goes far beyond that to reinforce customer loyalty with coffee and baristas.

Sources of brand equity: (Awareness & Association)

Extensive store expansion: Ensuring successful expansion of stores in every part of the USA to purse the public awareness. Global partnerships: With the connection of the several large and small national corporation Starbucks build their brand equity. Peoples special beverage: Establishing the brand value to make customer feel as a home brand with special extension.i.e Frappuccino , DoublesSot Brand. Positive word of mouth: Sole emphasis on coffee quality turned into positive brand perception and positive word of mouth.

Answer 3

A foreground analysis have undertaken regarding Starbucks partnerships to identify the influential factors towards its brand value. The major findings from the partnerships as follows:

Host Marriott (1991) Increasing brand awareness: by exposing the brand to the greater number of potential customers at busy airports, hotel lobbies malls and convention centers. Location advantage: Broaden opportunity of Starbucks coffee to be brewed and served at concession stands in airports. Licensing shortcomings: less control over quality. Coffee brewed by concession employees not exactly the way Starbucks used to do as they lack proper knowledge of coffee. Situational constraints: Busy schedule in airports and ineffective customer service of the staffs wouldnt allow people to experience the essence of Starbucks coffee.

United Airlines (1996) Greater reach: Bigger scope of serving official Starbucks coffee to customers of

2,200 daily flights.14% of loyal customers first tried their coffee on United Airlines flight. Technical limitations: risk of sacrificing conventional flavor due to unavailability of appropriate brewing equipment. Flight attendants were unaware of coffees quality as for them passenger safely comes first.

PepsiCo, Inc (1997) Product innovation: Starbucks undertook product innovation of Frappuccino, a popular bottled cold coffee beverage extracted from Arabica beans. New market entrance: Made first step into the supermarkets & overtime, came up with a variety in Starbucks beverage including Tiazzi in 1998. Dryers ice cream Line Extension: Creation of six popular Starbucks coffee ice cream flavors marketed under Starbucks name added 54% increase in category sales.

Kraft Food Company Chanel management: Starbucks became a part of Krafts extensive distribution channel and was introduced as a super-premium brand.

Other Partnerships (Retail/Service)

Nordstrom, ITT/Sheraton, Westin, Holland America Cruise lines, Barnes & Nobles and Albertsons: Reinforcing brand awareness: an endeavor to build further brand awareness.

Other partnerships (small corporations)

Johnson Development Corporation: Local expansion & Positioning: Starbucks brought itself to inner city of America under the enterprise called Urban Coffee Opportunities. They opened three locations on West Coast and expanded to New York.

Alliance for Environmental Innovation (1996): Product innovation: Introduced a new less wasteful and environment friendly coffee cup wrapped by a cardboard sleeve.

Conservation International (1999): Product variety: Offered Shade Grown Mexican coffee in the stores.

TransFair USA: Product variety: Obtained and sold Fair Trade coffee in its stores and websites.

Garry Trudeau (1998): Product variety: Offered Doonesbury-themed products in Starbucks stores to subsidize the literacy programs across USA.

Salvation Army and UPS: Financial support: raised money to sponsor the Starbucks Holiday Angels program.

Things would have been done if we were in charge of Starbucks are:

Advertising and Promotion:

 Increase spending on advertising from 1% to 5% rather than depending only on positive word of mouth and opening stores everywhere.

Leveraging: Signing contract with more famous retailers and suppliers to be globally recognized. Acquiring partnership with already successful brands.

Market saturation: Achieving saturation in US domestic market and adjusting store locations for optimum profits as substantial brand value creates market attraction.

Employee training: During partnerships training employees of other company to minimize greater operational loss in future.

Diversification Targeting new market and diversifying product strategy will help to go global.

Brand Extension: Line or category extension such as T-shirt, tea, ice cream appealing to the young generation.