Starbucks B.A. DECK

8/8/2019 Starbucks B.A. DECK

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STARB

UCK

S

BRAND

AUDIT



Company Analysis• Starbucks has been dedicated to building a

brand that was known for its quality, ethical

sourcing and its human connection• The Starbucks brand has been part of the

company since it began operations and has

been a unifying element throughout its

international expansion• Nielsen released figures showing that

Starbucks invested $43 million in marketing

in 2009 • In 1998, Kraft currently licensed the right to

sell Starbucks to grocery stores• This agreement brings together Starbucks’

expertise in sourcing, roasting, and

packaging and Kraft's extensive knowledge

of marketing, selling, and distributing



Market Analysis• Starbucks in 3

rd

in the market• Established brands dominate the roasted

coffee market• There has been year on year growth in

the roasted coffee market • Consumers are spending more on coffee

in grocery stores while reducing their

expenditures at coffeehouses• Established brands are diversifying their

varieties to compete more effectivelywith specialty brands



Brand Analysis• Starbucks brand aims to deliver high

quality coffee, that people truly enjoyexperiencing

• Starbucks is one of the largest online

brands in the world• Starbucks want to promote a greener,

more economically friendly brand image• “Green Project” – New York City

• Five print ad campaign that ran in the

New York Times in 2007• Starbucks has minimal advertising• Differentiation: quality, CSR &

relationship



Consumer Analysis• Bought by brand loyals and brand

switchers• Tend to be between the ages of 18 – 44

years old• Consumers drink Starbucks:

• To enjoy the taste, to give energy, for

enjoyment, for relaxation or to improveconcentration

• Excellent knowledge amongst consumers• Good brand attitude amongst consumers• Consumers behavior is good for brand

loyals, however could be improved for

brand switchers• Blogs portray consumers as everyday

people who enjoy having coffee



Competitor Analysis• Two main competitors

• Folgers – 53% market share• Maxwell House – 39% market share

• Competitors to watch for:• Steep & Brew• Cameron’s Coffee• Caribou Coffee• Dunkin’ Donuts

• Largest Competitor is Folgers• Owned by J.M. Smuckers• Currently diversifies the variety of coffee

they have on offer • Competitors’ main strength: affordable

pricing• Competitors’ main weakness: perceived

lower quality



STRATEGY



Key Fact• Increase the purchase frequency of

current users• The main message that Starbucks should

convey to consumers should aim to affectthe behavior of these users

• Key Fact: Increase the purchase

frequency of Starbucks amongst current

consumers, in particular those who like

Starbucks but switch between brands

regularly.



Target GroupsSource of Business:

Increase the purchase frequency of existing

users

• This can be achieved by encouraging

current brand switchers to chooseStarbucks coffee more often

• It will ensure that users continue to

purchase Starbucks and will allow them intime to penetrate the 45+ years of agemarket



PropositionProduct Differentiation

• Starbucks should portray the higher

quality of its coffee versus itscompetitors

• It should also portray the CRS

initiatives that purchasing

Starbucks helps support

Added Values • They should depict the feeling you

experience when drinkingStarbucks coffee

• The sensation you get whendrinking Starbucks

• The positive emotion you can have

from knowing you supported one of Starbucks CSR initiatives



Role of Advertising Modify AttitudesThe role of advertising here should be to

modify the attitudes of current brandswitchers. Starbucks need to communicate

how their coffee aligns with consumers’wants to help build relationships betweenthem and the brand. Knowing that thisbrand can fill their ‘want’, consumers aremore inclined to purchase it, over other

brands in their repertoire.

Starbucks B.A. DECK

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