How Starbucks Developed Effective Brand Strategy: Build a Strong Brand Equity [Starbucks Case Study]
Even if you have never had coffee at Starbucks, you probably know how cult it is, and you've certainly seen the green logo with the white Siren more than once.
Starbucks has come a long way from a single coffee bean store to a sprawling nearly $90 billion business in the past 50 years. How they did it?
Well, I think that the answer lies in the brand strategy, which is a long-term plan focused on achieving specific goals that are related to business, customers, and competitors. Creating unique features of services translated into increased awareness and shaped an appropriate brand image, which allowed Starbucks to obtain the status of a market leader and gain a group of loyal customers.
All this means that Starbucks enjoys strong brand equity, which means:
“The commercial value that derives from consumer perception of the brand name of a particular product or service, rather than from the product or service itself” [source: Oxford Languages]
I invite you to read about how Starbucks due to its human-oriented brand strategy and mastery of UX and Service Design has become a leader in the industry, creating a sense of community with consumers. I will also tell you why Starbucks has more to do with theater than a coffee shop, and how the art of good storytelling works.
1. Human-centered approach
When you think about Starbucks and their customers, you probably think that they are simply going for coffee, but paradoxically, people at Starbucks think about coffee as the last thing. Longterm chairman and CEO of Starbucks, Howard Schultz developed what is commonly called service design these days, he focused primarily on the sum of impressions that consumers have as a result of contact with the use of a given service.
And it is worth recalling that the culture of drinking coffee in the USA in the 70s practically didn’t exist. We can say that Howard Schultz created America’s own social culture of drinking coffee.
Starbucks has built a huge advantage on the market, maximizing profits by selling not beverages, but relationships. They did it by evoking positive associations among buyers by creating a sense of community.
“While we are a coffee company at heart, Starbucks provides much more than the best cup of coffee. We offer a community gathering place where people come together to connect and discover new things.”
- Howard Schultz, many years' chairman and CEO of Starbucks
User-oriented services are what distinguished and made Starbucks stand out. It reminds me of Apple products in their prime when the user-oriented design was what distinguished and drove the Steve Jobs’ brand. Both Starbucks and Apple involve human intuition in the process of perception service or product.
It is worth noticing that Howard Schultz as a director of marketing before he bought Starbucks was responsible for developing people’s experiences, for example, he created special brochures for clients and introduced a system for employee training. These days it may seem nothing special, perhaps even a standard and duty of companies, but in the 1980s it made quite an impression.
Schultz knew like no other that the basis of a successful brand is people, both consumers, and employees, who complement each other. Therefore, he focused on the development of employees, knowing how much baristas have an impact on the entire service process. As for interesting facts, it can be added that Starbucks started to pay employees’ tuition fees.
“To inspire and nurture the human spirit - one person, one cup and one neighborhood at time” Starbucks’ statement and mission
This kind of "human spirit" is noticeable when you cross the threshold of the coffee shop. You are welcomed by a warm-hearted and friendly attitude. Smile, cinnamon spice, mood music, your name on the cup, people who work, laugh, study and celebrate make this place familiar to you, it can be your home, workplace, or school.
That’s why the main “product” of Starbucks is rather service and people than just coffee. This is where all the magic happens - in the consumer-oriented process itself. Service is focused on delivering the right impressions, emotions, and aura to the client. That's why I came up with the metaphor “Starbucks as a theater” where the main actors are the customers and the service process, and the coffee is just a stage prop.
The concept “Starbucks as a theater”, where magic moments happen is also developed in one of the most famous Starbucks’ ad campaigns from 2014 - “Meet Me at Starbucks”
2. The Art of Storytelling - “Meet Me at Starbucks” [ad campaing case study]
“We establish the value of buying product at Starbucks by our uncompromising quality and by building a personal relationship with each customer.” - Howard Schultz
Starbucks has started to build a sense of community with its customers by revealing values through the stories they tell. They noticed that a brand story is also a story that is told by people. So the main goal was to present a clear vision by storytelling that can reach the average citizen. This vision was to become part of the client's daily routine.
They saw the power in rituals and habits, that's why Starbucks presented itself as "third place", thus wanting to fit into the daily ritual of the client, whose life, in a way, consists of habits and rush between home and work.
Starbucks wanted to be the third place, next to home and work, that would become a permanent fixture in the landscapes of millions of people, which was perfectly presented in the ad campaign with the main slogan - "Meet me at Starbucks”. This third place was supposed to be a quiet space, free from the rush of everyday life, where people spend a large part of their day.
The campaign was shot in one day in 28 countries, demonstrating the universal values of Starbucks, independent of culture and age. In the promotional video, we can see different age groups: an elderly couple, a pregnant woman, children, teenagers with skateboards, middle-aged relatives, and all this in different countries and cultures.
What is also common in addition to universal values are important personal moments that take place in Starbucks’ cafes around the world. Thus, we can see again how much emphasis the brand puts on the psychological factor.
The brand wants to build a permanent relationship with the client and become a place, or as I have previously described it, a theater in which people celebrate their everyday lives. Thus, Starbucks creates a magical place where extraordinary and worth remembering moments happen, contrary to the predictable, routine life.
3. Understanding the principles of good service design
As I previously mentioned, Howard Schultz had a very good understanding of service design and knew how it affects the brand's relationship with the consumers.
Starbucks’ methodology that supports the design of new and optimization of existing services - all in a user-oriented approach meets the most important conditions of good service design that are:
Human-Centered
Collaborative
Iterative
Holistic
Firstly, as I mentioned at the beginning, the most important thing is the experience of people and the preservation of the human spirit. In the case of Starbucks, it is achieved by appropriately shaping relations with employees - taking care of their development and with consumers - providing appropriate service. The fulfillment of the condition of being human-centered applies not only to customers but to all staff.
Secondly, representatives of various levels of the organization are involved in designing services, here it is worth mentioning that Starbucks places great emphasis on employee training and their comprehensive development, knowing how important it is from the perspective of maintaining the effectiveness of the entire service system.
Third, the whole process is repeatable and consists of a sequence of activities that end up with writing the customer's name on the mug. The whole process is supported by the friendly attitude of baristas.
The last condition for good service design is holistic, so this whole vision of Starbucks as a theater where everything contributes to building a lasting relationship with the client through stories and values. Moments that are worth remembering and magical in their way happen in the coffee shop, as the "Meet me at Starbucks" campaign talked about.
4. Purpose and Cohesion
“Mass advertising can help build brands, but authencity is what makes them last. If people believe they share values with a company, they will stay loyal to the brand. “ - Howard Schultz
To build a lasting relationship with customers, you need to be consistent and deliver a message that is aligned with your core values and fits to your consumers' experience. It's all about brand consistency, which means bringing the same core message to every interactions you have with consumers. Target audience knows what they are exposed to and it goes beyond the product itself.
Starbucks is clear with their vision and every interaction they have with customers. They're developing new styles, adapting to the changing circumstances, but it's always aligned with their core values. No matter what, they are consistent in delivering on their brand promise that spans the full spectrum, in both voice and design. “By consistently utilizing the Siren logo, an expanded palette of greens rooted in our iconic green apron and a constrained family of harmonious typefaces, we bring purpose and cohesion to every interaction customers have with our brand.” [source: creative.starbucks.com]
It’s worth noticing that Starbucks’s core elements of identity always keep customers’ experiences central to creative expression.
5. Brand Identity
I wanted to close the entire brand strategy with a quick summary of their identity, which in six artistic elements condenses their coherent vision and strengthens their relationships with customers. It supports my thesis that Starbucks has more in common with theater than an ordinary coffee shop.
a) Logos
The face of Starbucks is a Siren that is highly distinctive and besides the sign, she is also the Muse of the brand. Howard Schultz once said, "Starbucks is more than a cup of coffee," and that also applies to the logo itself. The Siren is more than just coffee, it implies the whole feeling of the brand, which is being good to the people.
The appearance of the Siren is also more human than the typical representation of an animal. We can easily see a human face, which in a way makes the logo connect the two worlds: magical and human. The brand feeling is much more important than the product itself. The logo shows the same, it is not about the coffee itself, but it’s about sharing common values.
b) Colors
The main Starbucks’ color is highly recognizable green. It matches the main purpose of the brand as a place where you can express your true emotions and share your moments with close people. Mainly, because green is associated with serenity.
Starbucks use four types of green:
Starbucks green
Accent green
Light green
House green
The first two colors complement each other nicely when it comes to conveying serenity, while the next two colors fall into a shade of blue, associating them with the trust and credibility of a brand that is at the same time fresh, inventive, but also successful. And here it is also worth reminding that Starbucks is a brand famous for its ability to adapt to changing circumstances.
c) Voice
The main task of Starbucks’ is to meet the needs of customers, in the field of design they do it by removing unnecessary elements. They keep order and minimalism so that the message reaches the client straight away. It is a simple message, without unnecessary additions, in short, the essence.
Starbucks' voice is all about accuracy because every word that consumers interact with counts. Starbucks' voice is designed to help them find what they are looking for. Once again, the essence is what matters in terms of conveying the message.
d) Typography
Starbucks uses three main typefaces: Sodo Sans, Lander, and Pike. Each of them has its own task. Sodo Sans is a most versatile typeface, used for body copy, its function is informative and description-oriented.
Lander is serif typeface with characteristic flourish, which gives it a more artistic character, therefore it is perfect for accentuating moments. Its function is expressive and kind-of-emotional-oriented.
Pike is a typeface that is great for headlines and less informative content. It is the most impactful typeface. Its function is highlighting and wayfinding-oriented.
e) Illustrations
Illustrations are an important point in Starbucks identification, they are primarily used to show the brand that has its heritage in coffee and which it tries to promote in line with trends.
Starbucks has a very effective approach to creating illustrations. Their content always refers to a brand that has its tradition in coffee, while the technique of execution, which is often collages and textures, is aimed at conveying emotions in any way, not necessarily related to coffee.
Starbucks' illustrations can be divided into functional and expressive. The common point, however, is showing Starbucks as a brand whose roots go back to coffee and still cultivate this tradition, but the methods and techniques are freeform and change over time, in line with the trends.
f) Photography
Starbucks' photos are product-oriented and focused on customer-brand interactions. The photos are subtle and have a kind of feeling of pleasure that is achieved through light colors, lighting and unobtrusive compositions. It all makes the photos are authentic and relatable.
All photos form a coherent system that is adapted to modern technology, the photos are easily swapped which makes them impactful in social media.
You can notice that Starbucks developed two types of photography that go well with illustrations.
The first type is functional photos, i.e. product-oriented photos that are scalable and fit into a coherent system that is easily applicable on various media, e.g. social media. This type is represented by the photos at the top left and bottom right. The second type is expressive photos that fit nicely into more vivid illustrations such as “Papua New Guinea”. The composition and colors of these photos refer to expressive illustrations that I showed in the previous section.
Brand identity is what strengthens the brand's position and makes it powerful. You can read more about this topic in my article "The Power of Branding: 5 Rules of Successful Brand" when I went more in-depth and presented a couple of case studies.
Summary:
To develop a successful brand strategy prove your human-oriented approach in order to connect with consumer needs, for example, a sense of belonging and their emotions
Customers need to know what you stand for - show your values in order to create a loyal audience. It can be achieved through storytelling.
Use the principles of well-developed service design, orient the process on the human being, automate it, and approach it holistically, creating a whole set of experiences - just like in the “Starbucks Theater”.
Be consistent - align your message and core values with consumers’ experience. You have to be sure that the customer knows what to expect and why he comes to you. This can be achieved well by developing brand consistency.
Combine all the points into a well-designed brand identity that will ensure consistency and will be the culmination of the entire brand strategy system
It all makes that…
Starbucks is a story driven by people and values.
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