BRAND MANAGEMENT.

Starbucks.

KISHMAL NAQVI.
F2017-137.
 Starbucks.

 Marketing Communication Material:

Starbucks communication strategy applies through publicity, advertising, launch offers, using

media, sales promotion, social sponsorship, public relation and expenditure. These are the

important to get close to the customers. These are the source to pull customers to make a final

decision to buy the product. These activities are followed by the Starbucks to build the

existence in the market place.

 Starbucks Brand Philosophy:

Since its founding days in the early 1990s, Starbucks has strived to build its brand identity by

offering customers a relaxing and enjoyable experience. From the very beginning, the

experiential aspect of the brand has been consistently and effectively implemented in all its

stores across the world. In addition, Starbucks has also built its brand on things that tend to be

out of the box, by consistently defying conventional wisdom.

When companies were aggressively advertising, Starbucks decided not to advertise. When

cost cutting was the dominant paradigm of the industry, Starbucks chose to emphasize non-

routine procedures to create excitement among the baristas instead of streamlining procedures

to minimize cost. Unlike most other companies, Starbucks made its employees its partners,

by offering them stock options and health insurance. In 2014, it announced that it would pay

for its US employees to complete an online bachelor’s degree at Arizona State University.

Although the pros and cons of this employee benefit and Starbucks’ motivation behind the

offer were widely debated, it again defined the organisation’s intent to go against the norms.
Starbucks’ approach towards gathering customer insight is also quite unique and different

compared to multi-million dollar marketing research budgets utilised by global organisations.

Going against rigorous and complex customer surveys, Starbucks chose casual and informal

chats with customers to capture overall mood, understand experience with the store and

gather valuable feedback. It is not that Starbucks does not conduct quantitative market

research. It has in fact successfully used research findings to shape its market entry strategies

in many countries. The key aspect to highlight here is the fact that the organisation does not

have a rigid, compartmentalized view of understanding customers. These clever and

innovative ways of understanding its customers has enabled Starbucks to build an iconic

global brand that has resonated with customers across the world for almost 50 years now.

By offering a pleasurable and relaxing customer experience, Starbucks has been successful in

focusing the customers’ attention on the quality of the experience, the enjoyable memories

that can be woven together in its stores and not on the pricing of its products. An interesting

piece of research conducted in 2013 using neuroscience research techniques in Germany

suggested that customers would be willing to pay more for a Starbucks coffee, if the brand

decides to charge it. Because neuroscience research looks at changes in brain activity when

exposed to brands and price points, the results were considered more believable than

traditional market research. The real-world evidence of this power in the mind for the brand

is the popularity level it enjoys even though the pricing is higher than many of its

competitors.

The Starbucks mission statement reads as “To inspire and nurture the human spirit – one

person, one cup and one neighborhood at a time”. In his book Onward, former Starbucks

President and CEO Howard Schultz says, “Success is not sustainable if it is defined by how

big you become. Large numbers that once captivated me – 40,000 stores – are not what

matter. The only number that matters is ‘one’. One cup. One customer. One partner. One
experience at a time”. The company operates with a strong sense of attention towards details,

and replicating a consistent customer experience across all its stores and its products is a

critical focus area. In February 2008, it closed more than 7,000 stores across the United States

for “Espresso Excellence Training”, where it worked with around 135,000 baristas to enable

them to pour a perfect espresso shot and steamed milk properly.

In addition, another pillar of Starbucks’ brand philosophy is to be a responsible and socially

ethical company. This includes responsible purchasing practices, including supporting farmer

loans and forest conservation programs; as well as creating opportunities through education,

training and employment. Starbucks also initiates many programs to reduce its environmental

footprint through energy and water conservation, recycling and green construction.

 Logo Philosophy:

Inspired by Greek mythology, their famous green logo features a twin-tailed siren. Over

decades, the logo has been significantly streamlined from a black and white topless siren with

fully visible twin tail to a forest green logo where the siren’s hair cover her breasts and the

fish tail appears to be cropped . In a blog post published on Starbucks’ corporate website, the

author Steve M. (2011) clarifies that the siren will continue to be a part of the Starbucks logo.

The logo is described to be mysterious and seductive in appearance. The Starbucks logo

carries the connotation of being the company’s muse, a storyteller, a promise and the ‘true

welcoming face’ for Starbucks coffee lovers throughout the world (M, 2011). On the other

hand, a closer look reveals that the logo can be perceived rather disturbing. Although the

siren’s face appears kind, her tale seems to be luring sailors to their deaths (Gavin, 2013).

Following what Ahmed (2010) indicates, the consumer associates emotions with this

instantly recognizable logo. The logo acts as a visual stand-in for pleasure that comes from

consuming coffee (Ahmed, 2010). Taking into account Starbucks’ product placement in
movies , several busy mornings scenes where people are seen hurrying from one place to

another carrying white coffee cups with green mermaid logos have made the Starbucks logo

‘synonymous with upscale, urban chic’ (Jones, 2003).

 Advertising:

Print and media advertising represents the core of Starbucks marketing strategy and the

advertising attempts to associate Starbucks brand with the superior quality and pleasing

experience. Accordingly, messages communicated by Starbucks to the target customer

segment via print and media advertising include the following:

 “Beware of Cheater Coffee. It Comes with a Price”.

 “If Your Coffee Isn’t Perfect, We’ll Make It Over. If It’s Still Not Perfect Make Sure

You Are in a Starbucks”.

 “Starbucks or Nothing. Because Compromise Leaves Really Bad Aftertaste”.

Starbuck began to use social media and viral marketing much earlier than the majority of its

competitors with the positive implications on the volume of its sales. Starbucks large social

media campaign was launched back in 2009, when US-based customers were offered a free

pastry via social media if they purchased a drink before 10:30 am. The marketing initiative

announced via social media attracted about one million customers. The most recent and

efficient social media marketing campaigns launched by Starbucks include 

tweet @tweetacoffee, Blonde Roast, Pumpkin Latte, #TreatReceipt and others. Moreover,

social media is adapted by Starbucks as an effective communication channel with customers

to develop new products taking into account customer preferences and opinions.

 Sales Promotion:
Starbucks uses sales promotions element of the marketing communication mix in a regular

manner. Specifically, the coffee chain giant uses the following forms of sales promotion

techniques:

1. Loyalty Card:

My Starbucks Rewards customer loyalty program is an effective tool that plays an

instrumental role to implement most sales promotion initiatives in practice. The program

allows registered customers to “collect Stars and earn more rewards with every visit to

Starbucks”. The rewards include “buy one get one free” drinks, a complimentary slice of cake

in birthday month of customers with any handcrafted drink purchased, complimentary drink

customization and others. In the U.S. and Canada, effective April 2016, the company

modified its transaction-based loyalty program, My Starbucks Rewards® to aspend-based

program, Starbucks RewardsTM.

2. Point of Sales Material:

 Starbucks positions point of sales materials such as posters and display stands in effective

manners to show the customer the product is there.

3. Free Gifts:

The world’s largest coffee retailer promotes “Buy One Get One Free Every Friday” in

participating stores. Moreover, Starbucks is known to offer free gifts to mark specific

occasions. For example, to celebrate to celebrate the 13th birthday of its Pumpkin Spice Latte

in October 2016, the coffee chain was giving away free coffee to the first 1,300 customers

who walk into every Starbucks and say “Happy Birthday, Pumpkin Spice Latte.”

4. Seasonal Sales Promotion:

Holiday promotions and Starbucks Red Holiday Cup on a regular basis.

5. Social Sponsorship:

They contribute to charity, have a system to reduce and recycle waste and save

water, energy too.

6. Customer Engagement:

They take consumer feedback and customers share their experiences online, the

site is called my ideas.

7. Integrated Content:

 The online content is integrated across all channels, facebook, twitter and email

letters which are consistent and paced at equal intervals. The email has good

information, not just brand promotions. They also reward consumer on occasions

with special offers.

The Starbucks branding and marketing strategy is seamless and very effective. They gave

created star bucks as the “third place” which is a place besides home and office where you

can hang out. They have created a place for community and place to hold a conversation. The

key reasons for effective marketing are as follows:

 Consistent branding: 

They have created a brand personality which stands out. You can see the brand logo

and storefront from far. The store presence is strong and visible. The strong branding
 is similar across the world. They have a cup with the logo which is highly visible and

you can easily understand the store is nearby. The logo visible on the highway serves

as a reminder that the coffee shop is nearby.

 Content is on the web: 

The web content is customized to the consumer. As a customer, I can immediately

check out my points, check my rewards and find an outlet nearby. The online videos

of customers and ordinary people convey a strong message.

 Alignment of the content on all channels: 

They have messages which are appropriately spaced out and visually created to

convey new products availability and provides interesting information about the

products available at star bucks. Their content is focused on information and

education, not promotion. They reward their regular customers. They have a strong

online presence on twitter and facebook but the content theme and message are the

same. They still send postcards to give gifts to special regular customers. It again

reinforces their care for the customer. The postcards have strong branding and act as a

reminder.

 Mobile app and great customer experience: 

They lead the way in creating a great mobile experience. You can view their content

on the go. Their app is loaded to make payments, reload funds on the card, and find

the store. You don’t need to carry your physical loyalty card anymore.

 Easy to share content:

Each communication encourages you to share the content with a friend. The best

factor is that the content can be shared at a click of a button. They also request you to

share the content. This keeps content moving and the customers engaged with the

brand.
  Gets customers involved: 

They have a special place to collect ideas. It’s a collaborative page called my ideas

where you can share your ideas and comment on other ideas. Starbucks provides

feedback to customers and tells them how their idea has been used.

Starbuck has seamlessly integrated their marketing strategy across all channels. They have

innovated and leaned to ensure that they are always accessible to the consumer. They can be

found easily and ready to serve their customers.

They have very explicitly and innovatively integrated all channels. They have a very strong

brand image and they have used it successfully to create a strong visibility. They have a

systematic process to remain in constant touch with the customer and remind them of their

presence online through online and offline channels.

Starbucks has become one of the most admired player in the world of marketing with product

placement as its most noticeable promotion techniques. The brand dominates the coffee

culture and has become a global corporate identity that sells more than coffee – it sells a

lifestyle. By integrating its marketing techniques with one of its most loyal stakeholders – its

customers, the brand can develop an even deeper connection with its consumers. A marketing

campaign prompting people to share their social issues on the Starbucks online platform, or

even mobile app, can help create a close network of people who care for their communities.

In addition to a marketing campaign, organizing local meetups and offline events will

encourage people to participate and use Starbucks as their ‘third place’. This attempt to

integrate with the lives of people will position Starbucks as a brand synonymous with solving

social issues by bringing people together. Thus, to follow through, our Integrated Marketing

Communications strategy involves creating content that encourages people to engage in

well. This marketing strategy will strive to make Starbucks consumers to ‘produsers’ by

repositioning itself as a brand that values emotional connection with its customers. Since the

Starbucks brand is already synonymous with premium coffee, it requires to focus on its

emotional connection with its consumers by introducing their own version of participatory

culture.

References:

1. http://prachipreaches.com/

2. ukessays.com

3. research-methodology.net/starbucks-marketing-communication-mix/

4. https://martinroll.com/resources/articles/strategy/secret-starbucks-brand-success/

5. https://myassignmenthelp.com/

6. Ahmed, S. 2010. Happy objects. In M. Gregg & G. J. Seigworth (Eds.), The affect
theory reader (pp. 29–51). Durham, NC: Duke University Press.
7.