Strategic Brand Management

2. • Established in 1971 at Seattle, Washington
• Famous for its quality fresh-roasted coffee beans and stylish atmosphere.
• About 14,000 stores worldwide
• Product lines include : − beverages (coffee, Tazo tea, soda, juices) − pastries − whole coffee beans − coffee-related hardware and equipment − merchandise (mug, CDs)
Brand Inventory
Background

3. 1971 Starbucks Coffee, Tea, and Spice store (coffee bean roasting) opened in Seattle’s Pike Place Market. 1982 Howard Schultz joined Starbucks. 1984 Howard convinces the founders of Starbucks to test the coffeehouse concept. 1987 Il Giornale acquired Starbucks and changed the name into Starbucks Corporation. 1992 Starbucks decertified the union and made IPO. 1995 Starbucks Coffee International opens in Japan-Starbucks implemented ESOP. 1996 Starbucks’ began selling bottled Frappuccino.
Brand Inventory
Background

4. 1997 Establishes The Starbucks Foundation .
1998Starbucks acquired Tazo Tea. 1999 Acquired Hear Music, a San Francisco-based company
2001 Introduces ethical coffee-sourcing guidelines, Introduces the Starbucks Card. 2002 Enters into licensing agreements with national Fair Trade. 2003 Starbucks acquired Seattle’s Best Coffee
2006Launches the industry’s first paper containing post cup consumer recycled fiber.
2009 Launches Starbucks VIA Ready Brew Coffee 2010 Expands digital offerings for customers with free unlimited WiFi.
Brand Inventory
Background

5. Brand Audit Thailand

6. Brand Inventory
Background: Thailand
1998 - First launch at Central Chidlom - 3 Partners (Coffee Partners ltd., Starbucks Coffee ltd., Central Pattana Subsidiaries )
2000- Buy stocks back and become Starbucks Coffee (Thailand) ltd., co.
2002- Mr. Andrew Nathan from Starbucks Head Quarter become CEO at Starbucks Thailand
2006- Mr. Felix D. Michael takeover CEO position
Present- 169 branches, sold at 25,000 glasses per day

7. Brand Inventory
Mission
“ to inspire and nurture the human spirit one person, one cup, and one neighborhood at a time”

8. Brand Inventory
The Principles
Our Coffee
Our Partners
Has always been, and will always be, about quality
It’s not just a job, it’s our passion
Our Stores
Our Neighborhood
Our Shareholders
become a heaven, a break from the worries outside, a place where can meet with friends
a part of community, take responsibility to be good neighbors seriously
Starbucks success comes from the rewards of their shareholder

9. Beverage
Brewed Coffee
Espresso
• Latte
• Mocha
• Cappuccino
• Macchiato
• Americano
Frappucino Blended
• Coffee
• Cream
• Juice Drinks
Teas
• Brewed Tea
• Chai Tea
• Green Tea
• Tea Latte
Bottle RTD
Instant Drink
Our Product
Brand Inventory
Line Extensions

10. Brand Inventory
Category Extensions
Beverage
Food
• Cake
• Pastries
• Sandwiches
• Savories
• Yoghurt
Merchandise
• Cup
• Mug
• Tumbler
Equipment
• Coffee Press
• Coffee Brewer
Our Product
Accessories
• Reusable Tote Bag
• Teddy Bear

11. 8/26/2014
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Brand Inventory
1.Brand name
Brand Element
Pequod
Starbo
2. URLs
http://www.starbucks.co.th --> Global http://th.starbucks.co.th --> Thailand

12. 8/26/2014
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Brand Inventory
Brand Element
3. Logos and Symbols
Receive inspiration from Mermaid “ Siren ” in legend

13. 8/26/2014
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“Starbucks” not have Slogans since 2012 cause Starbucks is well know from logos but previously “Starbucks” had slogans…
Brand Inventory
Brand Element
4. Slogans
“Life happens over coffee”
Tag lines of Campaign
You & Starbucks
It’s bigger than coffee

14. 8/26/2014
14
•Paper beverage cup containing post-consumer recycled fiber
•Recycled paper bag.
Brand Inventory
Brand Element
5. Packaging

15. Brand Inventory
Designing Marketing Programs
Integrating Marketing
Experiential Marketing
Starbucks’ Marketing normally play with new experience and relationship with consumer
•Sense Marketing – play with 5 senses; Sight, Hearing, Taste, Touch, Smell

16. Brand Inventory
Designing Marketing Programs
Integrating Marketing
Experiential Marketing Starbucks’ Marketing normally play with new experience and relationship with consumer
• Act Marketing– play with consumer action;
Starbucks with Star
Frappuccino Party: Green-White Style
Frappuccino Party:
Jump with Friends

17. Brand Inventory
Designing Marketing Programs
Integrating Marketing
Experiential Marketing Starbucks’ Marketing normally play with new experience and relationship with consumer
• Relate Marketing – play with feeling that want to involve with other.
Big Cleaning Day

18. Brand Inventory
Designing Marketing Programs
Relationship Marketing
Consumer Relation Management(CRM)
Starbucks Card
Face book
Instagram

19. Brand Inventory
Designing Marketing Programs
Relationship Marketing
Consumer Relation Management(CRM)
When you send somebody a Starbucks Card, it’s the gift that keeps on giving. Register that card, use it to pay and you start earning rewards – like free drinks and food – with the My Starbucks Rewards Program.
My Starbucks Rewards
12 cps FREE 1CUP ( 12 oz. ) Every 100 Baht get 1 Star point

20. Brand Inventory
Designing Marketing Programs
Relationship Marketing
Consumer Relation Management(CRM)
•Online and store surveys to measure customer satisfaction
•Employee satisfaction survey
•Number of Starbucks Cardholders: Customer reactivation
•Number of customer complaints
Critical Measurement

21. Brand Inventory
Designing Marketing Programs
Relationship Marketing
Corporate Social Responsibility (CSR)
• Coffee bean: Buy from Fair Trade Project under C.A.F.E (coffee and farmer Equity)

22. Brand Inventory
Designing Marketing Programs
Relationship Marketing
Corporate Social Responsibility (CSR)
• Branch: study the need of neighbor society and give hand to support

23. Brand Inventory
Designing Marketing Programs
Relationship Marketing
Corporate Social Responsibility (CSR)
• Environment: - Decrease to release CO2 by reduce the use of electricity - Reduce the process to roast coffee

24. Brand Inventory
Designing Marketing Programs
Relationship Marketing
Corporate Social Responsibility (CSR)
• Human Resource: - Believe that if the employee have positive attitude will affect to the success of the company

25. Brand Inventory
Designing Marketing Programs
Product Strategy
Perceived Quality
• Product differentiation– Customization(one to one)
Menu: a Venti, sugar-free, non-fat, vanilla soy, double shot, decaffinated, no foam, extra hot, Peppermint White Chocolate Peppermint Mocha with light whip, upside- down, 1 pump of peppermint, 1 and 3/8 pumps vanilla,180 degrees, heavy whip- cream, 3 ice cubes, 1/4 teaspoon Nutmeg sprinkled on top, with green sprinkles, lightly cinnamon dusted on, stirred, with no lid, double cupped, and a straw

26. Brand Inventory
Designing Marketing Programs
Pricing Strategy
The Right Customers and the Right Market
•Starbucks raises prices to maximize profits
•Insensitive price ,leaving a loyal, higher-income consumer base that perceives these coffee beverages as an affordable luxury.
•Starbucks uses price hikes to separate itself from the pack and reinforce the premium image of their brand and products
•Maintains a fairly inelastic demand curve and a small price increase can have a huge positive impact on their margins without decreasing demand

27. Brand Inventory
Designing Marketing Programs
Channel Strategy
Direct Channel
- interior design from concept of simplicity and durable - should affect environment the least
1.Heritage : reflect the trade that rooted in the first starbucks coffee shop in Seattle
From 2010 have 4 concepts

28. Brand Inventory
Designing Marketing Programs
Channel Strategy
Direct Channel
- interior design from concept of simplicity and durable - should affect environment the least
From 2010 have 4 concepts
2. Artisan : - reflect the industrial town in the past - Inspire from Modernism Age - simplicity design

29. Brand Inventory
Designing Marketing Programs
Channel Strategy
Direct Channel
- interior design from concept of simplicity and durable - should affect environment the least
From 2010 have 4 concepts
3. Regional Modern - Trend Setter - Comfortable, friendly, and socialable

30. Brand Inventory
Designing Marketing Programs
Channel Strategy
Direct Channel
- interior design from concept of simplicity and durable - should affect environment the least
From 2010 have 4 concepts
4. Concept: Unique environment by starbucks designer to find new innovation in coffee shop “Design Sandboxes”

31. Brand Inventory
Designing Marketing Programs
Marketing Communication
Communication Options
•No TVC or Prints ads
•Use word-of-mouth strategy
Face book
Instagram
Social Media
Website

33. 1-2 times per week- 34%
Take a way..- 32%
Drinking in coffee house -21%
Favorite Coffee House
Overview
Sources: Questionnaire 159 pax.

34. Service
Value
Image
Social Involvement
Negative
Coffee & Tea
Beverage
Quality
Food
Candy
Nuts
Merchandise
Premium
Good taste
Fresh
Fruit Juice
Hot
Frappe
Iced
Instant
Chocolate
Bakery
Gift items
Books
Music
Friendly
Privilege
Relax
Warm
Ready To Drink
Flashy
Waste
High calories
Coffee & Farmer equity
Grounds for your garden
Luxury affordable
Premium
Classic
Pricing
Experience
Third place
Association Network

35. Modern Lifestyle
Social improvement
Affordable
Stylish
Enjoys Life
Trendy
Wealthy
Brand Personality
Sources: Questionnaire 159 pax.

36. Salience
Performance
Imagery
Judgment
Feeling
Resonance
Moderate Brand Resonance
Salience
• High recognition : Coffee/Environment/Premium
• Well known brand
Judgment
• Credibility: Global brand/ Barista
• Quality: Premium brand (Product/Service/Image)
Resonance
•Strong Brand recognition but easy to switch
•High attachment: long relationships but do not buy frequency
• Active engagement: depend on activity
Performance
• Uniqueness: Design/Material
• Varity product
• Customize
• Best Service: Friendly/Consideration
• Third Place: Feel like home/Relax
Feeling
• Security: Standard
• Social approval
• Self-Respect
Imagery
• Brand Personality - Modern lifestyle/Trendy - Working age - Stylish - Wealthy
•Brand History: Successful
•Reach to urban lifestyle: Office area/Department Store

37. 0
20
40
60
80
100
120
Starbucks
Au Bon Pain
Amazon
True Coffee
Tom'n Tom
67%
42%
28%
28%
33%
Salience
• High recognition : Coffee/Environment/Premium
• Well known brand
Favorite Coffee premium- 67%
No.1
Sources: Questionnaire 159 pax.

38. Salience
• High recognition : Coffee/Environment/Premium
• Well known brand
ซื้อสินค้าหรือใช้บริการร้าน Starbucks
เคย 96%
ไม่เคย 4%
Sources: Questionnaire 159 pax.

39. 0
20
40
60
80
100
120
เครื่องดื่ม
เบเกอร์รี
แก้ว/กระบอกน้้า
เมล็ดกาแฟ
กาแฟกึ่งส้าเร็จรูป
28%
20%
22%
9%
7%
Salience
• High recognition : Coffee/Environment/Premium
• Well known brand
ผลิตภัณฑ์ที่เป็นที่รู้จักในร้าน Starbucks
Sources: Questionnaire 159 pax.

40. 0
20
40
60
80
100
120
คุณภาพและรสชาติ
ใกล้ที่พัก/ที่ท้างาน
ภาพลักษณ์ของร้าน
การบริการ
โปรโมชั่น
34%
13%
18%
13%
9%
Salience
• High recognition : Coffee/Environment/Premium
• Well known brand
เหตุผลที่เข้าใช้บริการร้าน Starbucks
Sources: Questionnaire 159 pax.

41. Imagery
• Brand Personality - Modern lifestyle/Trendy - Working age - Stylish - Wealthy
•Brand History: Successful
•Reach to urban lifestyle: Office area/Department Store
0
20
40
60
80
100
120
ห้างสรรพสินค้า
อาคารส้านักงาน
คอมมูนิตี้มอล
สภานที่เหมาะสมในการตั้งร้าน Starbucks
Sources: Questionnaire 159 pax.

42. Performance
• Uniqueness: Design/Material
• Varity product
• Customize
• Best Service: Friendly/Consideration
• Third Place: Feel like home/Relax
0
20
40
60
80
100
120
เครื่อมดื่มคุณภาพ
สินค้าอื่นๆ
พนักงานบริการ
บรรยากาศภายในร้าน
ราคาต่อคุณภาพ
มาก 46%
มาก 39%
มาก 45%
มากที่สุด 47%
ปานกลาง 40%
ความพึงพอใจด้านสินค้าและบริการร้าน Starbucks
Sources: Questionnaire 159 pax.

43. Judgment
• Credibility: Global brand/ Barista
• Quality: Premium brand (Product/Service/Image)
0
20
40
60
80
100
120
คุณภาพบริการที่ดี
ความช้านาญด้านกาแฟ
ตราสินค้าน่าเชื่อถือ
ผู้บริโภคไว้วางใจ
ผู้บริโภคชื่นชอบ
มีการแนะน้าบอกต่อ
มาก 46%
มาก 53%
มาก 46%
มาก 53%
มาก 47%
ความพึงพอใจด้านการเปรียบเทียบกับร้านอื่น
มาก 54%
Sources: Questionnaire 159 pax.

44. 0
20
40
60
80
100
120
อบอุ่น
สนุกสนาน
ตื่นเต้น
ปลอดภัย
ยอมรับในสังคม
รู้สึกดีกับตัวเอง
ปานกลาง 41%
ปานกลาง 60%
ปานกลาง 58%
มาก 44%
มาก 50%
ความพึงพอใจด้านความรู้สึกที่ดีของลูกค้า
Feeling
• Security: Standard
• Social approval
• Self-Respect
มาก 45%
Sources: Questionnaire 159 pax.

45. Salience
Performance
Imagery
Judgment
Feeling
Resonance
Resonance
•Strong Brand recognition but easy to switch
•High attachment: long relationships but do not buy frequency
• Active engagement: depend on activity
Sources: Questionnaire 159 pax.

46. Salience
Performance
Imagery
Judgment
Feeling
Resonance
Moderate Brand Resonance
Salience
• High recognition : Coffee/Environment/Premium
• Well known brand
Judgment
• Credibility: Global brand/ Barista
• Quality: Premium brand (Product/Service/Image)
Resonance
•Strong Brand recognition but easy to switch
•High attachment: long relationships but do not buy frequency
• Active engagement: depend on activity
Performance
• Uniqueness: Design/Material
• Varity product
• Customize
• Best Service: Friendly/Consideration
• Third Place: Feel like home/Relax
Feeling
• Security: Standard
• Social approval
• Self-Respect
Imagery
• Brand Personality - Modern lifestyle/Trendy - Working age - Stylish - Wealthy
•Brand History: Successful
•Reach to urban lifestyle: Office area/Department Store

47. Brand Positioning
Frame of Reference Target Market :
•1st Target: Premium Coffee House User Age 25++,SES B, Greater BKK & Urban
•2nd Target: A group who find a place to hangout (meet people/study/Business discussion)
Nature of Competition : Premium coffee house Direct Competitor: Au Bon Pain, Tom’n Tom, Mc Café, Coffee World True Coffee, Black Canyon, Blue Cup, 94 Coffee, Amazon Embrace, D’Oro Indirect Competitor Mr.Bean coffee shop, Coffee Bean & Tea Leaf, FU.5 coffee Substitute good: Tea House: Whittard of Chelsea,Twinings, Salon De L Oriental, Harrods Tea Room

48. Brand Positioning
Tangible:
• Green & Earth Color
• Siren-Mermaid Logo
Intangible:
• Warmth
• Caring
• Sensory Experience

49. Brand Positioning
RTBs:
• Heavy training of Barista
• High quality coffee

50. Brand Positioning
POPs:
• Beverage and Foods
• Sitting zone

51. Brand Positioning
PODs:
• Experience
• Human Connection
• Third place

52. Competitive Analysis
PODs

53. Competitive Analysis
PODs

54. Brand Positioning
Brand Mantra:
Coffee-Drinking Sharing Lifestyle

55. Brand Tracking
•Product & Service tracking
•Thailand Tracking

56. Brand Tracking
Whom to Track
o Premium-Coffee shop User
•Quality 40 sample
•Quantity 159 sample

57. Brand Tracking

58. 1. More communication to target market group
oQuality of product and services
oPrivilege of Starbucks card 2. Create the buzz by using technology as other countries did to be Talk of the town