Case Presentation: Starbucks ayushmaan_91@yahoo.

com
Abhinav Agarwal Aaditya Jhingan Sonam Singh Megha Gupta Hemant Tyagi Abhishek Sehgal

HISTORY AND FACTS

Started In 1971 in Seattle as a small coffee shop In 1982 Schultz joined in to make it a premium coffee chain By 2002 Starbucks became dominant with CAGR of upto 50% and over 20 million customers and 5000 stores Annualized growth of 25% since 1993. Currently 11,000 stores. Long-term growth planned is 30,000 stores. There are 5 new stores opening every day. They currently serve 40 million customers a week. Offers health insurance to all employees Currently $6.3 billion in annual sales Higher sales per square foot than McDonalds.

SOME INTERESTING FACTS

1. 2. 3. 4. 5.

There are over 87,000 drink combination possibilities The Starbucks name has literary inspiration Starbucks opens two or three new stores daily Theres a secret size not on the menu The posted hours arent exactly true

CBBE

SALIENCE

Starbucks is the most preferred brand by the Americans. If its coffee, its ought to be Starbucks. Made a reputation in customers mind as of a third place. Highly accessible as number of stores are in numerous places. Invented some specialized coffees like White chocolate mocha, toffee nut latte and caramel apple cider that developed the customers taste so that whenever customer think about that coffee Starbucks is the first place that strikes his mind.

BRAND PERFORMANCE

The product is at the heart of brand equity and is the primary influence of customers experience, other persons words and the companys communication to their customers. Quality 1st priority Premium European coffee experience to USA Consistently good customer service A classy, romantic atmosphere with consistent store design Value simplicity over technology Invested in innovation Considered employees as Partners Strength to be a lifestyle brand

Competition

Marketing strategy involved positioning Starbucks outlets as a place where customer can spend time other than home & work. To tackle competition included offerings such as wi-fi, handicapped access, complementary books and common areas for collaboration.

BRAND IMAGERY
Brand imagery is how people think about a brand rather than what they think the brand actually does. It refers to more intangible aspects of brand & deals with extrinsic properties of the brand. 1) User Profile It means the type of person or organization who uses the brand. Starbucks have different consumers from different spheres of life. They can be differentiated on the basis of Age, gender, income, marital status, attitude towards life etc 2) Purchase & Usage Situations Associations of a usage situation may be based on different considerations such as days, months, place , type of activity whether formal or informal. Starbucks is visited 7 days a week It provides a 3rd place to customers apart from their workplace & home 3) Personality & Value Personality traits associated with this brand are as follows : Honesty High quality coffee Excitement keeps on bringing new innovations Competence reliable, intelligent ,have an edge over other competitors like Costa Coffee, Coffee bean & tea Leaf Sophisticated has a upper class feel 4) History , Heritage & experience Starbucks journey has also gone through rough times but finally through its experiences it has stood out to be a winner and has carved a niche for itself in the minds of customers.

Perceived Quality

Brand Associations

Name Awareness

STARBUCKS BRAND EQUITY

Brand Loyalty& Brand Goodwill

Premium quality coffee Responsive, respectful service Affordable luxury Personal control & self expression Meaningful coffee experience Urbanity & Sociality Widely available

Provides value to the customers By enhancing : Processing of information Confidence in purchase decision Customer satisfaction

Provides value to the firm by Enhancing : Efficient marketing program Brand loyalty Price/Margins Competitive advantage

BRAND JUDGMENTS

1.Brand Quality:Highest quality and for meeting this standards they worked directly with the of coffee in different countries. 2.Brand Credibility a. Hand-crafted beverages, vast variety of products b. Loyal customers even visit store 18 times a month c. Customizing the drinks 3. Brand Consideration Best service and customer satisfaction 4.Brand Superiority Vast variety like toffee-nut latte ; rich brewed coffees ; premium teas and beverages and all beans Best service Well trained staff Customizing the drinks

growers

BRAND FEELINGS

Warmth feeling:- the atmosphere , the environment i.e lounging and layouts , the cleanliness.
Fun feeling:- enjoy others or by themselves Relaxation :- third place

Social approval and self respect :- fulfillment of their customized demands. Good conversations with the customers and not just limited to YES or NO.

RESONANCE
Loyalty Attachment Community Active Engagement

The Frappuccinos

THANK YOU