Starbucks Strategy
STARBUCKS: AN INTERNATIONAL PRODUCT BRANDING ANALYSIS
An internationally recognized brand with over 16,800 locations worldwide and is valued at $5.23 Billion as of 2005 (source: cafemakers.com/brand_recognition.html) Prepared by Florence L [Fashion Marketing Critic]
LOVE COFFEE.
Starbucks started its journey back in 1971, and has since grown to serve millions of sociable coffee-goers from around the world. With more than 16,800 locations across the globe as of 2009, Starbucks is still the dominant player in the field of upscale coffee houses for mainstream customers. You ask: “How can they be ‘upscale’ but cater to mainstream customers at the same time?” To make a comparison to the fashion industry, upscale brands does not mean that mainstream customers cannot afford it, it means the pricing is within reach, and the urge to purchase a Starbucks coffee over a Tim Horton’s cup of coffee is in the branding. Would a woman rather carry a Guess handbag over a Gucci one? Would men prefer a Toyota Corolla over a Maserati convertible? There is value to branding, and Starbucks’ brand value is worth $5.23 Billion.
HTTP://FASHIONMARKETINGCRITIC.COM
OVER THREE DECADES OF PRODUCT INNOVATION
To tell the entire story of Starbucks branding would be an endeavour that at least requires a thousand page novel, which I am not prepared to write at this point. This is why I am focusing on the product branding strategy that Starbucks has used in different geographical locations. It certainly shows that they understand the idea of “think globally, act locally”. There are four markets that I have selected: North America, China, Japan and Europe. I will cover different products, collector’s edition items that are tailored specifically for that market. Issues range from product innovations based on logistical considerations, branding considerations and adhering to cultural tastes.
WHY IS STARBUCKS CONSIDERED A FASHION BRAND?
Let’s face it. We buy Starbucks coffee because of the
An internationally recognized brand with over 16,800 locations worldwide and is valued at $5.23 Billion as of 2005 (source: cafemakers.com/brand_recognition.html) Prepared by Florence L [Fashion Marketing Critic]
LOVE COFFEE.
Starbucks started its journey back in 1971, and has since grown to serve millions of sociable coffee-goers from around the world. With more than 16,800 locations across the globe as of 2009, Starbucks is still the dominant player in the field of upscale coffee houses for mainstream customers. You ask: “How can they be ‘upscale’ but cater to mainstream customers at the same time?” To make a comparison to the fashion industry, upscale brands does not mean that mainstream customers cannot afford it, it means the pricing is within reach, and the urge to purchase a Starbucks coffee over a Tim Horton’s cup of coffee is in the branding. Would a woman rather carry a Guess handbag over a Gucci one? Would men prefer a Toyota Corolla over a Maserati convertible? There is value to branding, and Starbucks’ brand value is worth $5.23 Billion.
HTTP://FASHIONMARKETINGCRITIC.COM
OVER THREE DECADES OF PRODUCT INNOVATION
To tell the entire story of Starbucks branding would be an endeavour that at least requires a thousand page novel, which I am not prepared to write at this point. This is why I am focusing on the product branding strategy that Starbucks has used in different geographical locations. It certainly shows that they understand the idea of “think globally, act locally”. There are four markets that I have selected: North America, China, Japan and Europe. I will cover different products, collector’s edition items that are tailored specifically for that market. Issues range from product innovations based on logistical considerations, branding considerations and adhering to cultural tastes.
WHY IS STARBUCKS CONSIDERED A FASHION BRAND?
Let’s face it. We buy Starbucks coffee because of the