Orange22 Starbucks Project Part 01: Brand Strategy

OPPORTUNITY

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PRESENTATION 01_03.28.2008

ORANGE 22 DESIGN LAB LLC125 west 4th street studio 102

los Angeles ca 90013

213.972.9922 main

213.972.9923 fax

www.orange22.com

PROJECT RE-IGNITE

OBSERVATION DESIGN APPROACH NEXT STEPS ORANGE22 DESIGN LAB

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OVERVIEW

I. Observation

II. Design Approach

III. Next Step

1. What is the Starbucks experience?

2. How is Starbucks perceived?

3. How does the existing retail design support the Starbucks experience and brand character?

4. How do other retail stores create a community experience?

I. Observation


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INTRO

From our observations we strongly feel you can not be all things to all people with your current retail / environmental design approach. Who you are today goes against the ideal and fundamentals of “community”. You are simply too big.

You need to be perceived as smaller.

We will ask questions to see how your store brand aligns with your brand values. We believe the answers will have the power to create new “parameters” that will inform your design partners talents enabling them to radically transform the Starbucks User Experience into one that is more “community” centric and “authentic”.


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OBSERVATION

What is the Starbucks experience?

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OBSERVATION DESIGN APPROACH NEXT STEPS

AUTHENTIC

FUN

CONSIDERATE

TRANSFORMATIVE

CREATIVE

UPLIFTING

BRAND VALUE

What are people saying about Starbucks?

Mostly good...

“I love Starbucks and I’m not ashamed to admit it. Most mornings I can get in and out of there in less than 5 minutes. That’s because they know me. And they know my drink.”~metacafe.com

“The Baristas know me, they know my drink and whip it up fast.”~Baristaexhange.com

“Thank you for being everywhere! I know that whenever I want my cappuccino with the foam made just right, I can find a Starbucks wherever I am.”~starbucksgossip.com

People love BaristasYou have Brand Loyalty Convenient

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CUSTOMER PERCEPTIONS

What are people saying about Starbucks?

Some bad...

“Starbucks was the standard for a good cup of joe, that I loyally have gone out of my way to enjoy. Today I might as well pass them by. The coffee is burnt, or just awful and undrinkable.”~starbucks-coffee-love.blogspot

“Starbucks has replaced baristas with machines, has mass produced locations, and has compromised its ambiance with retail space. I’d just as soon support the smaller locally owned coffee houses.”~brandchannel.com

“You get the feeling they are really helping farmers when you see their advertising, but really less than 5 percent of Starbucks is fair trade.”~Baristaexhange.com

Too CorporateQuality has declined Fair Trade


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What do they think of your stores?

“Coffeehouses were once the workshops of poets, thinkers, underground literary cultures and performances. Starbucks violates this tradition with their corporate sameness.”~starbucksgossip.com

“Thanks to corporate chains, regional flair has all-but disappeared from the American landscape.”~Baristaexhange.com

“One town looks just like another these days. The same corporate logos/brands/identities float above doorways and streets.”~brandchannel.com

Not Locally RelevantCorporate Sameness Homogeneous

Starbucks in Souka, JapanStarbucks in Michigan, USA Starbucks in Paris, France


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How are other retail stores creating experience?


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OTHER RETAILERS

Whole Foods Fred Segal Apple

Whole Foods

Healthy•Organized•Abundance•Community•

Clean, Well Lit, Welcoming Environment•Graphics Create A Journey And Interest•Theatrical Lighting Showcases The Products•Low Displays And Open-Marketplace Style •Encourage Community Interaction

Architectural Emotional


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OTHER RETAILERS

Fred Segal

Sense Of Discovery•In The Now•Comfortable •Young•Cool•

Brand Application Across All Retailers•Strong Street Visual By Use Of Bold Colors•Unpretentious Materials And Design•Mall Floor Plan Made Boutique•Ample Parking W/ Valet•



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OTHER RETAILERS

Apple

Voyeuristic•Hip / Cool / Young•Comfortable •Advanced•Smart•

Clean Lines•Limited Materials / Color Pallet•Open / Transparent•Smart / Easily Up-Datable•Powerful•



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OTHER RETAILERS

Stumptown Groundwork McDonalds

Who are your competitors?


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THE COMPETITION

Gourmet Coffee for the coffee connoisseur

Stumptown Coffee Roasters

Authentic•Hip / Cool / Young•Stark •Advanced•Clever•

Low-Tech Materials•Variety•Artful Displays•Space Well Defined To Educate The •Customer



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THE COMPETITION

Groundwork

Discovery•Excitement•Authentic•Hope•Considerate•

Textured Materials•Re-Purposed Elements•Combination Of “Old And New”•Layered Experience•Interactive•



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THE COMPETITION

McDonalds

Convenient•Variety•Clever•Fun•

Locally Relevant Exteriors•Café Adjacent To Store•Interior Space Is Spare•Visual Hierarchy•



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THE COMPETITION

We need to shift the perception of Starbucks from corporate to community. Let’s first understand how community relates to Los Angeles.

1. What is unique about LA and it’s people?

2. What are their usage patterns regarding coffee consumption?3. Who are the coffee drinkers in LA?

II. Design Approach


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SHIFTING PERCEPTIONS

What is the Los Angeles experience?

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Los Angeles is a Destination

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HISTORICAL

ENTERTAINING

EXCITING

Los Angeles Culture and Community

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DIVERSE

INSPIRING

UNIQUE

Los Angeles People

CASUALPLAYFUL

PLAYFUL

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ACTIVE

Usage Patterns Regarding Coffee Consumption

How many times will you visit this Starbucks?One Time (or) Multiple Times How long will you stay?5-10 min.

10-30 min.

30-1 hr. plus

Within these parameters, how do we deliver a better coffee experience?

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DEFINE OUR AUDIENCE

Visits - One TimeTime - 10 min - 1 hr. plus

Visits - MultipleTime - 10 min - 1 hr. plus

Visits - MultipleTime - 5-10 min.

THE LOCALTHE TOURISTS THE COMMUTER

We have identified 3 customer types

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DEFINE OUR AUDIENCE

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“LA draws 20-25 million tourists every year, catering to the unique desires of each one with unparalleled diversity and countless entertainment options.” -Los Angeles.com

The Tourists

Size Potential: Large •Possible Locations: Key tourist destinations •Brand Attributes / Value: The humanistic Starbucks, Global Relevance, •Mission, Comfort Our Goal: To design a space that teaches customers how coffee is made, where •it comes from and bring them behind the scenes to learn about how Starbucks was founded, why it was created and its long term vision and goals.

“We’ve been in LA for 5 days now. Yesterday we did Universal Studios and Hollywood today. We were both exhausted from all the walking and stopped into Starbucks to relax and rest our feet and we were pleasantly surprised. It’s very different from our Starbucks back home. This place feels like LA but in a good way. We were also able to orient ourselves and discover local points of interest.”

KEY ATTRIBUTESRichard & LouiseVisitors from East CoastAges: 55, 60Number of Visits: 1 Length of Stay: 30 min. - 1 hour

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Family with kids on vacation

Young couple sightseeing

LA Local with parents in town

Backpackers from Europe

Other Tourists

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“Los Angeles is made up of dozens of small communities with their own distinct cultural personalities, this City of Angels will forever be many things to many people.” -YahooTravel

The Local

Size Potential: Medium •Possible Locations: Residential Communities •Brand Attributes / Value: Comfort, Community, Local Relevance, Fun, •Reaffirmation Our Goal: To design a space that’s about the customer and their specific •neighborhood to have local relevance.

“I write whenever inspiration strikes me, that can be at anytime day or night. I sometimes suffer from ‘cabin fever’ and I just need to get out and have some human interaction. That’s where Starbucks comes in, it’s like my second home and I can easily spend several hours there. I’ve made friends with the Barista’s, many of them are trying to break into the film industry just like me.“

KEY ATTRIBUTESJakeStudent & Aspiring WriterAge: 25Number of Visits: Daily/Weekend Length of Stay: 30 min. - 1 hour

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Other Locals

Santa Monica Local Highland Park Local Inglewood Local Torrance Local

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“At 29 minutes, Los Angeles has among the nation’s highest average commute times.” -US Census Bureau News

“LA invented the freeway”

The Commuter

Size Potential: Small •Possible Locations: Key commuter patterns •Brand Attributes / Value: Efficient, Powerful, Ah-ha moment, Discovery •Our Goal: To design a space that tells the SB story over many visits in short •bursts of 5 min intervals.

“I’m a busy guy and I don’t have time to wait in line. That’s why these smaller ‘Express’ Starbucks are so great. I can get in and get out quickly. It’s conveniently located on my way to work so now it’s become part of my daily routine.”

KEY ATTRIBUTESBarrySports AgentAges: 38Number of Visits: Daily/Weekday Length of Stay: 5-10 minutes

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Other Commuters

By Car - Silverlake to Santa Monica

By Blue Line - Long Beach to Downtown

By Car - Malibu to Hollywood

By Bus - Pasadena to Mid-Wilshire

Now that we have defined our customers:

1. What are their needs and expectations?

2. How do we satisfy them in the physical space?

3. How do we tell an authentic Starbucks story with the number of visits and length of stay that we have with our customer?


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TELL THE STARBUCKS STORY

Our Proposal:We would like to design 3 different spaces. Each space catering to the unique demands of our 3 Los Angeles customer profiles.

We define these 3 design directions as:

1. For the Tourists - Starbucks Signature 2. For the Locals - My Starbucks3. For the Commuters - Starbucks On The Go


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TELL THE STARBUCKS STORY

Touchpoint opportunitiesCustomer needs

Starbucks Signature

The Tourists

Create visceral & emotional experience via narrative story of ‘coffee’. Demonstrate coffee roasting

Wants to be able to tell stories back home about their trip

Map wall of the local area that highlights local landmarks & tells a story of that region of LA. Use an LA Creed statement

Orient where they are and local points of interest

Space should be warm comfortable & inviting. Smell of Coffee and cinnamon rolls trigger memories of home

Home away from home

Customers should be greeted by a hostess. Sense of place

Community “Great Table” that seats 8 or more

Interacting with other travellers

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Good sight lines for people watching and observation. Window locations are key

lounge type atmosphere with cushioned seating

Comfortable seating

Community wall featuring local culture and things to do

Curiosity about the local community

Kiosk or computer available for planning trips and checking email

Internet access

Coffee cup or Starbucks card that has a graphic reflecting the unique character of LA.

Podcasts with self-guided tours

Souvenir

Sightseeing

People watching

Starbucks Signature

The Tourists

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What is the ‘Signature’ experience?

TheatricalExcitingSurpriseNostalgicRomantic

•••••

Authentic/ VintageLayered/ TexturalInteractive/ EducationalDecoration & OrnamentationWood Floors

•••••


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Signature experienceSTARBUCKS SIGNATURE

Dramatic Lighting

Theatrical Displays

Authentic

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My Starbucks

Greeted with “Would you like your usual drink?” Starbucks card with RFID that recognizes drink history

Wants the same drink every time

Rewards club for consistent customers providing discounts and free drinks.

Wants to be treated special as a regular customer

Good sight lines for people watching and observation.

Needs to be amongst people to get out of the office.

Showcase other local aspiring artists with art exhibits, poetry readings & live musical performances

Creative inspiration

Community “Great Table” that seats 8 or more

Interacting with others

The Local

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My StarbucksTouchpoint opportunitiesCustomer needs

Provide ample table space. Shelving, niches, coat hooks etc. Flexible table arrangements

Space to spread out books and papers, an appropriate work space

Provide power ports for plug in laptop, blackberry, ipod etc.

Work on laptop, use blackberry, ipod etc.

Lounge type atmosphere with cushioned seating

Comfortable seating

Community wall featuring local events, job listing, musicians wanted etc.

Needs to know what is going on in the community

Wireless internet and ethernet ports

Provide newspapers, magazines & books free of charge

Access internet

Wants to know what is going on in the world

Serve coffee in ceramic cupsHome feeling

The Local

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What is the ‘My Starbucks’ experience?

Home/ ComfortWelcome/ Warm/ SoothingSafeSlow/ Laid-Back/ CasualFamiliarity

•••••

Lounge Space/ Home OfficeTactile & TexturalLived In & CozyNeutral/ Soft lightingGathering Space

•••••


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My Starbucks experienceMY STARBUCKS

Functional Cozy

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Starbucks On the GoTouchpoint opportunitiesCustomer needs

These Starbucks will be in heavily trafficked areas. Potential for smaller pop up stores like a newstand possibly

Convenience

Offer ‘express lane’ for drip coffee. Streamline the ordering process

In a hurry and doesn’t have time to wait in line

Reduce the number of menu items.

Already knows what he’s going to order

Provide standing drink rail and bar height tables. No lounge seating

Space to sit or stand to drink my coffee and eat my muffinThe Commuter

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Condiments can be an island fixture to allow multiple customers access at the same time from all sides

Don’t like to wait for other customers at the condiments table

Provide a single, simplified brand message that raises customers social awareness.

Wants to be informed, but very limited on time

Utilize prepaid Starbucks cards and RFID connected to charge cards to speed up transaction process

Would prefer to pay with card and not waste time with cash transactions

Merchandising, food and drink options will be limited to essential items. Streamline the customers experience

Don’t want to be overwhelmed with too many decisions


Starbucks On the Go

The Commuter

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What is the ‘On The Go’ Experience?

Speed/ Fast/ MotionImmediateEnergy/ High IntensityUnusual/ Unique/ CuriousExciting

•••••

Clean LinesLimited Materials/ Color PalletOpen/ TransparentSmart/ Easily Up-DatableTile Or Hard Flooring

•••••


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On The Go experienceON THE GO

Clean Lines Energy

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Key Opportunities for future locations and/or renovations.

Tourists Locals CommutersDisneyland•Hollywood Sign•Grauman’s Chinese Theater•The Queen Mary•La Brea Tar Pits•Sunset Boulevard•Griffith Park Observatory•Santa Monica Pier/Venice Beach/Sun•

Hollywood•Westwood•Santa Monica•Silverlake•Pasadena•Newport Beach•Burbank•Venice Beach•

Freeways (the 210, the 10, the 60, the •91, the 105, the 405, the 5, the 705, the 57, the 55)Major Streets (Hollywood Blvd., Sunset •Blvd., Santa Monica Blvd., Wilshire Blvd., Figuroa, La Brea, La Cienega, Western)Metro-Bus & Rail (Red Line, Gold Line, •Green Line, Blue Line, Orange Line)

This strategic approach builds upon your existing presence while enrichening it through a new layer of architectural expressions:

Starbucks Signature, My Starbucks & Starbucks On-The-Go

ExistingStarbucksDensity: 700+

On-The-GoDensity: Heavy

My StarbucksDensity: Medium

SignatureDensity: Lite


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SUMMARY


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MILESTONES

Conceptual Design - Definition of design/variables; design vignettes; integration of

messaging/strategy; including colors, materials, components, etc. Due 5.01.08;

Starbucks approval 5.05.08

5 Decks + PDF

Final Design - Finalization of design/variables; design vignettes; integration of

messaging/strategy; including, colors materials, components, etc. Due 6.02.08;

Starbucks approval 6.06.08

5 Decks + PDF

Final (Senior Management) Presentation (Seattle) - 6.16.08

8-10 Boards (24x36) + 10 Decks + PDF

1.

2.

3.

IV. Next Steps

Thank You

Dario AntonioniJames FeserLaura Evansand Team

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Documents

Orange22 Starbucks Project Part 01: Brand Strategy