How Starbucks Became a Global BrandPresented by Prof Doug Bowman

2/5/2014

Chat Participants

Angela Bostick 04MBA (Moderator) – Associate Dean of Marketing and Communications

Doug Bowman – Professor of Marketing, McGreevy Term Chair and Senior Associate Dean for External Relations

Why are strong brands like Starbucks so

successful?

Draw three images that come to mind when you think of ‘Starbucks’ …

Premium Product(Premium Price)

StoreEnvironment

ServicePhilosophy

Starbucks’ Customer Experience

How does Starbucks deliver a Premium Product?

What are the key elements of the Store Environment?

Describe Starbucks’ Service Philosophy

Historic Target Customer:• Often female, ages 25-44• White collar, educated, affluent

Q: What is her life like?

BrandValue

Proposition

TargetCustomer

Behaviors

Tendency to linger;ritualistic consumption;looking to self-indulge

Perceptions

Best coffee;classy; upscale;a “third place”

+

Designing the Branded Customer Experience

Three Important Questions

1. What are you selling?

2. What are you really selling?

3. What are you really, really selling?

Three Important Questions

1. What are you selling?

2. What are you really selling?

3. What are you really, really selling?

1. Who are your customers?

2. What are you selling?

3. Why should they buy?

Two Major Points of Inflection for Starbucks

#1: Early-mid 2000’s• Change growth model from

opening more stores to growing same-store sales

image: starbucks.com/career-center/retail-positions

image: starbucks.com/career-center/professional-services-careers

How Does Satisfaction Change Over time?

Change inCustomer Satisfaction

Performance - Expectations

Perf = Exp

Perf < ExpPerf > Exp

Two Major Points of Inflection for Starbucks

#1: Early-mid 2000’s• Change growth model from

opening more stores to growing same-store sales

#2: Late 2000’s• Recession leads to declining

sales and poor performing stores

image: starbucks.com/career-center/retail-positions

image: starbucks.com/career-center/professional-services-careers

Interview with Howard Schultz(http://www.youtube.com/watch?NR=1&v=ed-Nuokx2so)

Interview with Howard Schultz:‘Focus on people, both employees and customers’

• Renew our level of personal responsibility and accountability

• First thing when you enter a store ... Find someone, one of our people who is doing something right and acknowledge it as soon as I can

• You didn’t mention the coffee … At the essence of Starbucks is the humanity of the experience

• We had to put the customer in every single meeting we were in

youtube.com/watch?NR=1&v=ed-Nuokx2so

Top Box(es) Matter … A LOT

How likely is it that you would recommend [your company] to a friend or colleague?

1 5 10

Satisfaction rating

Loya

lty

http://www.netpromoter.com/why-net-promoter/know/

Deliver Your Brand with Every Interaction

Why are Strong Brands Like StarbucksSo Successful?

• Tight linkage between the brand value proposition and the wants/needs of the target customer

• Innovation: important even in seemingly mature product and service categories

• Principled leadership: values of the company reflects how it does business

Background InfoProfessor Douglas Bowman: • PhD, University of Pennsylvania• 15 year Professor of Marketing at Goizueta• Also serves as Senior Associate Dean for External Relations, and Co-

Director – Emory Marketing Analytics Center • Teaches product and brand management and Syndicated Data Analysis • Past winner:

– Emory’s highest teaching honor, the Emory Williams Award (2013)– Marc F. Adler Prize for Excellence in Teaching (2004), which honors teaching quality,

course innovation and real-world problem solving.

• Accomplished researcher in the quantitative aspects of marketing, with a substantive focus in the areas of marketing strategy and customer relationship management