The future of Starbucks

The Future of Starbucks F Jordan, R Musselbrook, T Kelham, J Du Heaume

Starbucks in 2025 F Jordan, R Musselbrook, T Kelham, J Du Heaume

Starbucks in 2025 The contents contained within this document discuss Starbucks Coffee, looking in-depth at contextual issues surrounding the company. Along the way, Starbucks is de-constructed and a full understanding of its market placement, brand DNA, public perception and future trends documented.

The use of various tools in this deconstruction has allowed Starbucks to be distilled, their brand values and ethos understood and continuing on from this, the definition of what Starbucks is defined. For it is a lot more than ‘Just Coffee’.

Analysis of current and future trends, well-being, social, technological and environmental issues has allowed for a future Starbucks in 2025 to be envisioned.

The bringing together of divided community and the re-construction of social wellbeing is where Starbucks will be aiming in the future.

Contents Starbucks - The History Starbucks Ethos............................................................................................................................................................1-2 Glocalisation........................................................................................................................................................................3 Starbucks Timeline....................................................................................................................................................4-5 Starbucks Range........................................................................................................................................................ .6-7 Well-being........................................................................................................................................................................8-9

Starbucks - The Brand SWOT Analysis..........................................................................................................................................................12-13 Starbucks Brand Pyramid........................................................................................................................................14 Starbucks Positioning.................................................................................................................................................15 Stakeholder Map............................................................................................................................................................16 Starbucks Brand Doughnut....................................................................................................................................17 PEST Analysis.............................................................................................................................................................18-19 Starbucks Ethics.....................................................................................................................................................20-21 Starbucks giving back............................................................................................................................... ..........22-23 Starbucks (RED).....................................................................................................................................................24-25 Advertising Strategy...........................................................................................................................................26-27 De-Branded Outlets...........................................................................................................................................28-29 Opportunity Venn Diagram..................................................................................................................................30

Starbucks - Meaning to the people Personas......................................................................................................................................................................34-39 Starbucks Persona Summary.............................................................................................................................40 Starbucks Perception ........................................................................................................................................41-42

Starbucks Evolution STEVE Analysis...................................................................................... ................................................................46-47 CommunityIdentification..............................................................................................................................48-49 Effect on Starbucks...................................................................................................................................................50

Starbucks in 2025 Starbucks Recognition......................................................................................................................................54-55 Swatches.............................................................................................................................................................................56 Materials.......................................................................................................................................................................57-58 Starbucks Clarification.............................................................................................................................................59 Starbucks Future SWOT..................................................................................................................................60-61 Starbucks Direction....................................................................................................................................................62 Adcepts.......................................................................................................................................................................64-69

Starbucks to us Fred’s views.......................................................................................................................................................................72 Tom’s views........................................................................................................................................................................73 Rob’s views.........................................................................................................................................................................74 James’s views....................................................................................................................................................................75

References & Appendix References. .............................................................................................................................................................78-80 Appendix.....................................................................................................................................................................81-83

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STARBUCKS HISTORY 11

Starbucks Ethos Starbucks was founded in 1971 by Jerry Baldwin, Zev Siegel and Gordon Bowker on the west coast of America, in Seattle, Washington. With the first store only becoming a success in 1982 when spotted and joined by Howard Schultz (at the time Starbucks had been buying many of the Hammarplast Swedish drip coffee makers he was selling). With Schultz on board as Marketing Director, Starbucks began to grow rapidly becoming the US and now the worlds leading retailer in speciality coffee.

Founded with the mission statement to ‘inspire and nurture the human spirit ­- one person, one cup, and one neighbourhood at a time’ along with the phrase the ‘third place’ (referring to Starbucks being a ‘safe house’ after your own home and work) Starbucks has never looked back in its rise to the top.

During its rise, Starbucks has had to encounter much criticism and increased competition from other coffee outlets and even fast food restaurants. However, this has not hindered their domination. With over 16,000 world-wide stores, 11,000 of which are in the US, Starbucks sells over 4 million cups of coffee a day in America alone. As of October 21st 2009, with the new addition of Sweden, Starbucks operates in 50 countries worldwide and turns over £1.53 billion annually, and that is expected to grow.

Starbucks is attractive to a broad range of people. From Businessmen, Families, Friends and even single people who just want to relax, Starbucks caters for all. It is a place where anybody is welcomed and a familiar place, perhaps, in unfamiliar territory.

However, over recent years Starbucks has attracted a lot of negative media attention. Although Fairtrade, (as of November 2008) this has been overlooked by many people. People have been claiming Starbucks have become fair-trade as they feel they have to, and that equality is no longer what they are about. Their employees have questioned the way they have been treated and even environmental activists have targeted Starbucks. Accusations have been made of Starbucks monopolising the market and having anti-competitive practices.

So, despite all of the awards they have won (Business in the community Big Tick for excellence ‘05 & ‘06), the Fairtrade policies that they practice and the workplace they provide (named as one of the top 10 best workplaces in the UK by the great place to work institute) is currently perceived by most members of the public as a coffee chain that has ‘sold-out’ and forgotten their roots in their stampede to be at the top of the ladder.

Starbucks Ethos

1

Ethos Continued In 2025, people over the age of 60 will make up 50% of the Uk’s population (Future Trends, ‘09) and with the current growth at an all time high it is crucial that Starbucks do not forget the well-being of their customer. Starbucks could tap back into the minds of consumers by simply going back to the ethos set out by them when they began. ‘The third place’. Give back to society a sense of safety, familiarity and belonging as they did when they were formed. Target specific communities in a new way and really get to grips with helping out local people.

Starbucks Ethos

2

‘Glocalisation’ ‘The way in which ideas and structures that circulate globally are adapted and changed by local realities’ (Richard Tiplady, ‘World of Difference’, 2003) Glocalisation is a portmanteau formed from ‘Local’ and ‘Globalisation’. Globalisation is the on-going process by which regional economies, societies, and cultures have become integrated through a globe-spanning network of communication and exchange. (wikipedia, ’09) Starbucks being the world leader in the coffee distributing industry (Starbucks, ‘09) has meant it has become a company heavy involved in globalisation. Each Starbucks cafe around the world offers relatively the same drinks, atmosphere and familiarity.

If you were to walk into a Starbucks in London or Shanghai, they would both have fundamental values that are easily identifiable.

The idea of glocalisation is important for the future of Starbucks. Now Starbucks has such a presence and familiarity in people’s lives, the consumer no longer wants to gain the same experience as everyone else. The company has lost its ‘uniqueness’ and in a way, it has ‘sold-out’. Recapturing this ‘uniqueness’ and embodying the different needs of different cultures is one Starbucks must endeavour to pursue.

‘Glocalisation’

3

Company Timeline Starbucks opens its first Howard Schultz joins Schultz’s Il Giornale location in Seattle’s Pike Starbucks as director acquires Starbucks assets of retail and operations and becomes Starbucks Place Market. marketing.

Corporation.

Starbucks = 1 1971

2002 Starbucks = 5,886 Starbucks becomes a fairtrade company. Free Wifi is introduced in stores.

Starbucks = 3

2004 Starbucks = 8,337 Extends Partnership from 1999 with Conservation international for $2.5 milllion loan to fund coffee farmers access to affordable credit. Opens stores in Paris.

timeline

4

Starbucks = 17 1987

2008 Starbucks = 14,756 Starbucks closes 600 poorly performing US stores with 300 more closures planned. 900 Stores are planned to be open internationally.

Starbucks is traded on Nasdaq under ‘SBUX’

With 676 US outlets Starbucks opens locations in Japan, Hawaii and Singapore and becomes international.

Starbucks = 165 1992

Starbucks = 1,105 1996

2009 Starbucks = 16,120 With the addition of Sweden on 21st Oct 2009 Starbucks is now in 50 countries worldwide. Expected to close under performing stores in UK between ‘09 and ‘13. Launch of debranded stores in NY to shake corporate image.

Starbucks.com Launched.

60 retail outlets opened in UK. Begins work with Johnson Development Corp, to bring Starbucks to under-served, Urban US. Starbucks = 1,886 1998

2025 Starbucks = unknown Starbucks is now an integral part of peoples lives. They have gone back to their roots. No longer do they just produce Coffee, they produce products that enable a sense of well-being amongst the community. Getting people together and having a good time, creating a relaxed atmosphere and welcoming everybody.

Their mission statement is no longer over-looked and everybody feels ‘at home’ when coming into contact with anything Starbucks

timeline

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Starbucks Range Starbucks source their coffee beans from all over the globe. Issues arise with this relating to Fairtrade and carbon footprints . Starbucks offer both in-store coffee and specialist coffee (in 453g bags) for customers to purchase and enjoy in the comfort of their own home (Starbucks ‘09).

Many of their blends are seasonal and therefore are only available at certain times of the year; this creates added interest and increased sales due to the blends limited availability. For example the, Thanks Giving Blend is only available for a few weeks before and after the Holiday. The Anniversary Blend, Gazebo Blend®, Rwanda Blend, Sulawesi Kalosi are seasonal due to their crops harvest times and yields.

Latin America

Africa/Arabia

• • • • • •

Bella Vista F. W Tres Rios™ Costa Rica Breakfast Blend Guatemala Antigua Guatemala Casi Cielo® House Blend (Also Available in Decaf)

• • • • •

Starbucks (RED) Whole Bean Coffee Gazebo Blend® Rwanda Blend Kenya Blend Ethiopia Sidamo™

Speciality Coffee Roasts

Asia/Pacific

• • •

• • •

Espresso Roast French Roast Pike Place Roast™

Anniversary Blend Sulawesi Kalosi Sumatra (Also Available in Decaf)

Multi-Region Blends

• • •

Starbucks Range

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Starbucks® Thanks Giving Blend Café Estima Blend ® Café Verona®

Starbucks Product Range As a coffee house, it is unsurprising that Starbucks produces a wide range of brewed coffee products. It provides a Frapuccino and Tazo tea range that are registered Trademarks, various cakes, pastries, sandwiches and paninnis are also offered.

As Starbucks has a following of loyal customers, they have produced a range of products, to allow you to bring a piece of Starbucks into your home, or out on the go.

From branded mugs and cafetieres for your home to tumblers that save you 25p and let you take your beverage out, whilst keeping it warm. This helps bring Starbucks out of the shop, making it a bigger part in people’s lives. It can also act as a form of advertisement as when people are out and about drinking from their Starbucks branded tumbler, others will be able to see the logo and may be able to relate to the brand in a different way.

Starbucks is not known for its product range. People generally only visit there for coffee. Around the holiday seasons of Thanksgiving and Christmas, Starbucks offer special gift boxes, that encorporate some of the products, like a mug or flask, with their coffee., but this is their only venture, aside from coffee.

Starbucks Product Range

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Well- Being Everything around us has been designed. Products embody certain attributes that make us, as humans feel certain ways. Physical and mental well-being is very important to us and it is something we look to maintain every day. The way we think enables us to choose the right products we think are right. Everybody has different views on what they do or do not like about a product and usually there are a variety of similar products in the world to chose from. So why do we select certain ones?

There are obvious reasons to pick some products over another. Its price, its purpose etc. However, going deeper than that, most people choose a product because of the pleasure it will give them. These pleasures are commonly split into 4 categories and the majority of people who select a certain product subliminally make choices under each topic. Each is explained with how it relates to Starbucks.

Physiological Pleasure Physiological pleasure relates to how our senses perceive an object. Its touch, sound, taste etc. In terms of Starbucks, their outlets and coffee appeal very much to the senses. The aroma it puts out along with the taste of the coffee is what attracts the consumer on a subconscious level. The fact that there may be multiple Starbucks on every high-street, means they have gained a reputation of ‘over-doing’ it. The fact remains that each store appeals greatly to the senses of any passer by.

Sociological Pleasure Sociological pleasure refers to how human societies function and how we enjoy the environment we live in. Starbucks was founded on the idea of being a sociable place to meet away from home and work. If you like, the ‘21st Century Pub’ or as I have heard described ‘real-life facebook’. It fulfils its brand fundamentals very well. However, its ‘flooding of the market’ is increasing its uncertainty amongst people.

Independent Coffee houses are becoming more popular as their smaller numbers creates a more personable atmosphere. “Responses [to products] are closely linked with a persons sense of image and self-identity” (Human Factors in design, Current practice and Future Trends. pg221). This sociological pleasure is one that Starbucks started out as having, but is one that has some-what been lost along the way due to its increasing size.

Well- Being

8

Psychological Pleasure Psychological pleasure, is the pleasure taken by people on the surface of a product.

Their perception of it, based on however the individual has judged it, to be either good or bad. People tend to judge things on aesthetics, usability and price first. Then moving on to look at things such as durability and other aspects.

For Starbucks, the psychological pleasure that people gain is from the experience.

The outlets lay-out and atmosphere, friendliness of Baristas and the people drinking there all offer psychological reassurance to the consumer. The Coffee also comes in the same cup and presented in the same way, regardless of where in the world you are. The whole experience of Starbucks is set up to induce a sense of re-assurance and belonging.

Once again though, due to the size of the corporation, people are now drifting away from the idea that Starbucks is a re-assuring place. It is now beginning to be viewed as a place that just wants you in and out of the door, purely to make money. Products for the future of Starbucks have to re-introduce this idea of reassurance and belonging.

Ideological Pleasure Ideological pleasure refers to the perception of everyday things. This is perhaps the most understated of the 4, but no less important. A persons initial thought on something tends to be the one they stick with. A great example is PC Vs Mac. Mac have really over-taken PC, as the must have computer, just based on peoples negative perception of Windows and the different take Mac has on the way it is presented. The same can be said of Starbucks. When founded in Seattle, it was a very popular place to be seen in. Now, it is just an ‘everyday occurrence’. Peoples perceptions of it have changed, and the idea of buying a standard coffee, and having the same experience as everybody else is not an appealing one.

This has not stopped Starbucks becoming a worldwide corporation, but it has led to the closure of stores in the US, and the introduction of ‘de-branded’ stores , to try and shake the publics negative perception. The future needs to be aimed at re-instating peoples individuality and really making a company at the forefront of Globalisation, become more ‘Glocalised’. Offering back a sense of local well-being.

Well- Being

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STARBUCKS BRAND 11

SWOT Analysis This SWOT analysis, looks at the various aspects Starbucks must take into account about their business, to further their development.

Strengths • Stores are generally located in high-visibilty and high-traffic locations.

(Starbucks Fiscal Annual Report 2008 p.9) • Stores in 44 Countries (Company fact sheet Feb 2008) • Comfortable, welcoming environment.

• 9,217 company operated stores worldwide. (Starbucks Fiscal Annual Report 2008 p.9) • 7,463 licensed stores worldwide (Starbucks Corporation Fiscal Annual Report 2008 p.9) • Employs 176,000 people worldwide. (Starbucks Fiscal Annual Report 2008 p.14) • Suppliers of Fairtrade coffee as of 2002.

• Diverse Coffee Range.

• Aggressive Market Strategy. Becoming global leaders.

• Named one of the top 10 best workplaces in UK (Great place to work institute) • Starbucks VIA ready Brew named most innovative product this year. (Allegra Strategies)

Weaknesses • Closing over 600 stores in the US in by the end of 2009 due to under performance. (Starbucks Fiscal Annual Report 2008 p.29) • Starbucks has no real ‘edge’ over other coffee houses.

• Re-structuring Australian business by closing 61 stores and focusing on 23 remaining. (Starbucks Fiscal Annual Report 2008 p.29) • Aggressive Market Strategy leading to over-saturation and poor public perception.

• Regarded by some as the ‘McDonalds’ of coffee houses.

• High-street take-over leading to blanding out of local culture and diversity.

• Size of company leads to easy public criticism.

SWOT Analysis

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Opportunities • Of the 176,000 employed world-wide only 33,000 are employed outside of the US. Expansion opportunity. (Starbucks Fiscal Annual Report 2008 p.14) • Outside of U.S most people drink instant coffee. $20 billion market with no Starbucks presence (Business Week Behind Starbucks’ Instant Coffee Rollout) • Room for ‘Cafe Culture’ development within the UK. • Opportunities to branch into delivery sector.

• Opportunities to re-connect with the community and shake the corporate image that has become attached to them.

Threats • Experiencing increased direct competition from competitors in quick-service restaurant sector. (Starbucks Fiscal Annual Report 2008 p.13) • Costa coffee achieved the UK’s strongest growth in 2008 and is the leader in chained coffee shops rising from £229 million in 2007 to £349 million in 2008.

(Cafes/bars - GMID - Global Market Data Base).

• Saturation of coffee market has lead to loss of Starbucks ‘Fashionable’ status.

SWOT Analysis

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Starbucks Brand Pyramid “It’s the romance of the coffee experience, the feeling of warmth and community people get in Starbucks stores.” CEO Howard Schultz.

Starbucks Identity

When talking about Starbucks, people mostly identify the brand as just coffee. This is where Starbucks started out, and is the top of the pyramid. It is the main focal point for the company. Starbucks is one of the world strongest brands and having a strong DNA means that it taps into the 4 senses, which cause people to become indulgent and interested, thus leading to its success.

Core Attributes

Starbucks Values

Starbucks DNA

Coffee

The third place Familiar

Quality

Connections

Ethical

Homely Uniform Community Focused Educated Environment Social Relaxed

Meeting Place

Lunch Break

Social Environment

Convenience

Business Meetings

Patisserie

.

This initial idea of the coffee outlet was for people to meet, its popularity has seen other values grow and create the brand. When people visit a Starbucks, they associate it as being a homely, social place to meet and enjoy each others company. It are these core vales and attributes which make Starbucks what it is today.

Brand Pyramid

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Starbucks Market Positioning “Consumers don’t truly believe there’s a huge difference between products, [which is why brands must] establish emotional ties [with their customers through] the Starbucks Experience.” Scott Bradbury Starbucks Vice President of Marketing taken from (No Logo, Naomi Klein. Pg.20). Here Bradbury recognises the finer details in making the brand stand-out and help it to be in the position it is.

Low Perceived Quality

Low Price

High Price

High Perceived Quality

This Starbucks market positioning diagram allows for a quick over-view of the market in which the company operates. Starbucks in its height of popularity would have sat closer to the high perceived quality end of the scale. However in recent years it has moved down and people believe the brand has less meaning because of it market dominance. (Data taken from results of questionnaire 2; see appendix) Market Positioning

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Stakeholder Map Starbucks is the world’s leading roaster and retailer of specialty coffee (Starbucks Annual report ‘08 pg.7) because of this they often bear the brunt of criticism from the media and other coffee manufacturers. This Stakeholder map examines further the people who really have a say in the running of Starbucks, and what level of acknowledgement Starbucks give them.

Owners

Infl uence at Starbucks Coff ee High Low

Customer Coffee Farmers

Investors

Managers Activists Media

R&D Suppliers

Manufacturers

Offices

Distributors Employees

Low High Interest in Starbucks Coffee Starbucks has both internal and external factors that allow for influence over the company. The most influential Internal ones being the executives and fellows, along with managers of different sectors.

However in recent times, external factors have been the more important. Activists for Fairtrade and employee demonstrations for better pay have led to Starbucks having to listen and take on board what they think on how to run the business. Coffee Farmers have a large influence in the company, with no Coffee there is no Starbucks.

The customer, however has perhaps the largest external say. With disappointed customers Starbucks has recently been falling behind. This need to be addressed in the future, and is a key player in their success.

Stakeholder Map

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Starbucks Brand Doughnut Clarifying the Starbucks brand in the form of a ‘brand doughnut’ is essential. This ensures that the brand has been understood, before designing new products. The internal values of the company are looked at here, later on a context pyramid will show the influence of the brand on the consumer.

• • • • • •

t

E nv iro

Com mu

r ou vi

ion cat ni

c du

Be h

Generic.

Corporate.

Informative.

The sizing system of beverages is unusual and often misunderstood.Billboard advertising.

a

• • • •

Creates a sense of well-being.

Convenient.

Warm Relaxing Friendly Homely

ent nm

Pr o

• The worlds leading supplier & roaster of coffee beans.

• Strong logo and prominence on every high street.

• Variety of coffee flavours & drinks. Also sells snack food.

• Choice.

• Largest buyer of Fairtrade Coffee beans.

• Aggressive business strategy.

• Baristas always friendly.

• Environmentally responsible.

• Socially responsible.

Brand Doughnut

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PESTLE Analysis This PESTLE analysis contains a look at what is currently affecting both the world and Starbucks.

Political • As the market leader, Starbucks has an obligation to lead the way with regards to fairtrade and responsible sourcing of products.

• Adverse impacts due to negative publicity regarding the Company’s business practices or the health effects of consuming its products. (Starbucks Annual Report 2008).

• Some feel that Starbucks hold a monopoly, which is unfair for competition and brings negative public perception.

• As such a large employer (176000 worldwide in 2008) they have to be sure to abide by employment regulations in the different countries, for example minimum wage and tip portioning laws.

• Has environmental responsibilities with regards to the transport of coffee from the producing countries to consuming countries • Has to abide by different international laws with regard to food and health and safety practices (set by the FSA) • High impact of initiatives by competitors and increased competition. (Starbucks Annual Report 2008).

Economic • Susceptible to fluctuating coffee prices on wholesale markets due to external factors in coffee producing countries, for example civil unrest or crop damage e.g Columbia crop fail sent the price of coffee up. Daily Telegraph ‘09) • Has a responsibility to purchase Fairtrade coffee, which has a higher price. (Daily Telegraph ‘09) • As it has already taken the leading market share via saturating the market, its options for continued growth are reduced as it has exhausted this market strategy.

• Economies of scale give a benefit over the competition.

• The global downturn could have a negative effect on the demand for coffee, as it is more of a luxury item.

PESTLE Analysis

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PESTLE Analysis Continued Social • Has a responsibility to highlight health issues around coffee and sugary or creamy drinks.

• As they are so common, some feel that they are damaging local cultures and businesses making everywhere look and feel the same.

• As their main target market is younger people, with an ageing population demographic, they could be leaving out a large, important part of the population.

• Heatlh Pandemics could affect Starbucks in the future. The spreading of Swine Flu is a concern to everyone.

Technological • The large range of drinks means that each outlet requires a large range of technological equipment to meet the needs of each particular drink.

• Such a large company can pump a lot of money into Research and Development to bring a technological advantage over the competition.

• Machines can be bought in large batches, due to economies of scale, leading to lower unit prices.

Legislative • Starbucks has to stay in line with fairtrade policies.

• Equal treatment of staff is paramount.

• Maintaining IP on produce is essential.

Environmental • Fluctuations in sales across seasons may affect Starbucks. People may be more likely to use it as shelter in the winter, than they are in the summer.

• With it’s international businesses, adverse weather conditions could affect the company. Earthquake prone and areas of civil unrest in which Starbucks operate are most at risk.

• Different countries have different rules on what business are allowed to do. This could be of interest.

PESTLE Analysis

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Starbucks Ethics In 2002 Starbucks put Fairtrade coffee on their menu. This was the first step in what would later become a key part of their code of ethics and in 2008 the company stated that they were going to make a major commitment to Fairtrade by sourcing all their coffees sold in shops in the UK and Ireland from Fairtrade certified farms.

Since Starbucks partnered with Fairtrade they have developed and begun to implement their so called “Shared Planet” Campaign which they stated was their “Commitment to socially and environmentally responsible coffee buying” (Starbucks website 2009). In the campaign aims, Starbucks states that one their first steps is to make sure that by 2015 all the coffee sold in Starbucks bore the Fairtrade brand and all their cups are 100% recyclable; an aim that they are well on their way to achieving.

Although Starbucks wanted to show a genuine commitment to their “Shared Planet” scheme they were determined not to sacrifice the quality of their coffee for anything; and to ensure that Starbucks was able to achieve both of these aims they partnered with Cone in 2004.

Cone is a specialist in branding and Starbucks approached them to help develop their new plan and make sure that all parties involved got as much out of the scheme as possible. Under Cone’s guidance Starbucks drew up what is now known as the (C.A.F.E) Practices and also developed further steps to help influence other companies to share in their actions. One example of how Starbucks did this is by sending representatives to the coffee farms to “Starbucks certify” the farm; this was beneficial to the company and also beneficial to the workers as the certification meant that other coffee distributers would be attracted to buy from a farm that has approval from the largest coffee distributer in the world. To gain the certification the farm had to follow strict guidelines on how to treat its workers, these guidelines included housing, medical care, and a minimum wage.

Fairtrade

20

“Starbucks represents something beyond a cup of coffee.”

CEO Howard Schultz Starbucks has also started to sell 100% certified Fairtrade coffee in all its espresso based products. This work is in conjunction with C.A.F.E. Practices and echo’s the sentiment of Starbucks Shared Planet. Fairtrade is an organisation that, in a similar way to the Starbucks Shared Planet initiative, aims to “improve the position of producer organisations in the South and to help them achieve sustainable improvements for their members and their communities” (Fairtrade Foundation 2009). Starbucks is the worlds largest purchaser of Fairtrade coffee.

“Starbucks is really setting the pace for the coffee industry by using its global size for good. This move (Switching to 100% certified Fairtrade coffee in all its espresso based products) will expand the reach of Fairtrade and deepen its impact on tens of thousands of farmers who are at the very heart of the Fairtrade system. Farmers need Fairtrade now more than ever, and even though these are difficult economic times, people across the country are staying loyal to their ethical values and to Fairtrade. From today they can enjoy Fairtrade values over their favourite Starbucks coffee.” (Harriet Lamb, Executive Director of the Fairtrade Foundation UK) This paints a very positive picture of Starbucks and it comes from am extremely reputable source, yet many still see Starbucks as an unethically and unenvironmentally responsible corporation. This needs to change and can do so with the introduction of products to help blur the line between a corporate and friendly company.

Fairtrade

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Starbucks giving back It is important to look at what initiatives Starbucks currently have, and how they are planning for their own future. Understanding of where the brand currently is projected is crucial. The direction that the analysis is showing so far is that Starbucks needs to focus more on the local community in which it operates. It needs to pay specific attention to what happens out-side the store.

Viewing current projections will help further the understanding of the brand and make sure that a full long-term projection to 2025 is relevant and accurate.

Giving Back Starbucks is a brand that claims to have high standards with regards to “caring” for people; “We always figured that putting people before products just made good common sense. So far, it’s been working out for us. Our relationships with farmers yield the highest quality coffees. The connections we make in communities create a loyal following. And the support we provide our baristas pays off everyday.”

(Starbucks ‘09).

So why then, do so many people see Starbucks as a money grabbing corporate monster? It seems that any initiatives that they come up with are simply not enough to satisfy people, that they are not just paying lip service to their claimed values of treating farmers, baristas, and local communities with care and respect. One of the main issues is that feeling of how much money from the £2.65 cappuccino gets to the farmers and how much lines the pockets of smooth talking Starbucks business men.

This break down of the price of a Starbucks coffee shows that the coffee itself is the smallest component of the overall drinks price.

• Milk 6% • Coffee 2% • Labour 18% • Rent 13% • Admin 26% • Cup / sugar / lid e.t.c 4% • V.A.T. 15% • Profit 14% (Economics Help website) Starbucks Giving Back

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“With 2 billion cups drunk every day around the world, coffee is the second most widely traded commodity, after oil, with a total estimated value of $140 billion”. (Daily Telegraph Website) The coffee industry as a whole has a long history of giving a bad deal to producers, so is it Starbucks fault that the system of coffee trading has never had a fair economic distribution of profits? To the savvy modern day consumer, it seems that this massive market has completely forgotten about the people producing the coffee. Coffee growers have many problems as they are at the bottom of the chain when it comes to selling the product. The market is oversupplied and there is a lack of competition so it is virtually impossible for a farmer to get a decent price for his product.

When you take into account that coffee beans can change hands as many as 150 times, it seems that the last buyer (ie Starbucks) can take little of the blame for the situation of the producers. Still, as Starbucks reap the rewards of the coffee business, they are taking measures to use their power to lessen the inequalities of the coffee market. For example Starbucks are the biggest buyer of Fairtrade coffee taking 10% of the worlds Fairtrade coffee produce. They also have their own initiative called “Starbucks Shared Planet” which highlights “our commitment to doing business in ways that are good to people and the planet.” By 2015 they are aiming to have 100% of their coffee responsibly grown and ethically traded. (Starbucks website ‘09) They are well on the way, already having achieved 75%. They have invested $20 million into setting up a Small Farmer Sustainability Initiative which aims to give “smallscale farms greater access to capacity-building resources in the areas of agronomy, technical support, and capital investment. Offering cooperatives increased access to credit and quality improving resources will enable farmers to increase income, improve family livelihoods, and promote sustainable community development.”

(Tree Hugger Website) This is a huge step in giving the farmers the tools to help work towards a better future for themselves and their communities. It shows that Starbucks does consider the impact of its supply chain and tries to use its size to give something back to the people at the other end of the chain. Maybe they should advertise this fact more to sway some more public good will their way.

It can been seen from this that Starbucks intend on focusing their future on being 100% Fairtrade, along with this and their current initiative of de-branded stores, there is plenty of scope for community enrichment within brand products.

Starbucks Giving Back

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Starbucks (RED) As part of Starbucks “Shared Planet” scheme and their commitment to “doing business responsibly” Starbucks announced their pairing with RED in November 2008. RED is a charity organisation co founded by Bono and Bobby Shriver, which helps the efforts against AIDS, tuberculosis and malaria by giving money to “The Global Fund”. RED already works in partnership with companies such as Apple.Inc, Converse, American Express, Motorola, and Hallmark. Starbucks have announced their partnership in order to continue with their efforts to make sure they are contributing to making the health of the coffee producing countries better.

Whenever a patron buys a (RED) branded item or pays with a promotional (RED) card Starbucks makes a 5 cent donation to The Global Fund. To date Starbucks have generated the equivalent of seven million days worth of medicine. (RED ‘09) Currently this scheme is only available in American stores, but Starbucks aims to have (RED) items and cards in all its stores across Canada, the UK and Ireland by December 2010. (Starbucks ‘09).

Starbucks (RED)

24

Starbucks (RED) Continued “We have a deep partnership with coffee growing regions in Africa. We are proud to partner with our customers to contribute toward an AIDS-free Africa.” - Howard Schultz, 2008 Leadership Conference, New Orleans.

(Starbucks ‘09) Much like their Fairtrade efforts, people just simply do not realise the quality of such organisations. Starbucks being partnered with both (RED) is really helping to make a difference in the world. However the public (as surveyed) feel differently.

By looking at Starbucks current activity surrounding charities, politics and their ethical code, an oversight of the company can be viewed. Understanding Starbucks involvement in current trends must be noted. This information can help towards future product forecasting and development ,whilst still ensuring that the company remains on brand. (RED) is a organisation that looks to empower and create wellbeing in developing countries. This idea is where Starbucks want to be, and something their future products must embody.

Starbucks (RED)

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Starbucks Advertising In the 1980s and 1990s, Starbucks was the poster child of marketing. It had little to no advertising. It represented a haven from outside worries, a place to meet friends, and appealed to every generation. Back then they were not all about advertising strategy and global appeal. They were all about the experience. However, today there is a Starbucks on every corner, as well as mass market advertising which is simply putting people off.

Starbucks Coffee launched an advertising campaign in 2009, to promote their coffee and stores in a new light. The campaign displayed posters that had messages about their ethics and fair trade on the side of burlap sacks of coffee. It appears that Starbucks are trying to convey a sense of caring, however, critics have viewed this as too little to late.

The latest advertising campaign has been described as ‘the biggest marketing effort it has undertaken’ (Terry Davenport, chief marketing officer). He also added, ‘The competition is trying to just commoditise coffee and take it down a level where all coffees the same, and if coffees just coffee, you might as well buy the cheap stuff’.

Starbucks clearly do not feel this is the case for them and hence their latest advertising campaign is all about telling their story.

The company feels “coffee drinkers in the new generation see Starbucks as a commodity, having grown up with a store on every corner. All they know is Starbucks, the big company”(NY Times website). The new adverts seek to highlight the quality of their coffee. The full page adverts are very detailed and descried how Starbucks only use the best 3% of beans and how they provide health insurance for their parttime workers. Mr. Davenport said “Even if you cruise by and don’t stop to read every word, the net impression is “Wow Starbucks has a lot to say about coffee”.

From this it can be seen that Starbucks have recognised their actions, and are trying to change their image. The addition of promoting Fairtrade is their angle on doing this and as the report moves deeper, it will be decided what else they can produce.

Advertising

26

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De-Branded Outlets ‘The Starbucks brand has become stale and boring because it’s everywhere.

People think it has sold out. Its rebranding is an attempt to go back to its grungy roots.’ Darcy Willson-Rymer, Starbucks’ UK and Ireland managing director.

Starbucks have recently (as of 2009) opened up stores in Seattle, New York and London, that have been de-branded. The aim being that Starbucks have realised about their negative public perception and they wish to change it.

Renaming the stores with individuality that surrounds the local area. For example in Seattle the store is named 15th Avenue Coffee and Tea. Each new store is to have a lessened Starbucks feel, each is “inspired” by the coffee house.

The question is, are Starbucks doing this for the right reasons?. De-branding to create a ‘better’ image for itself only comes from the falling figures over that past few years. They are only looking to “de-brand” to increase sales again. If sales were still increasing, would they be so open to listen to how the consumer feels about certain brand aspects?.

Starbucks Same-Store Sales

Same Store Closures %

(Stores open for longer than 13 months)

10 8 6 4 2 0 -5

2005 2006 2007 2008 Year (Taken from Starbucks annual report ‘08) 2004

De-Branded Outlets

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De-Branded Outlets Continued “The trial stores use the address of the cafe in its branding, for example one is called 15th Street Coffee and Tea, while the products are also nonbranded. One of the stores will feature live music and poetry readings.”

Daily mail ‘09 This bid to “de-brand” is not one that is being easily accepted. Coffee owners and coffee drinkers recognise that the de-branded stores are just Starbucks in disguise.

“The Goliath is coming at me under a new name,” writes Dan Ollis, owner of Victrola Coffee Roasters in Seattle. The blatant re-design of the Starbucks brand is perhaps too big of a step. With negative values that the public perceive, trying to shake them off with such a big step is one that people are not ready to accept.

The new de-branded stores are already being coined “Stealth Starbucks” and people are not taking to the idea of complete branded re-invigoration.

This is Starbucks first real bid to go “glocal”, however people are set with the view that Starbucks is a globalized corporate business. Other ideas need to be implemented to tackle this.

De-Branded Outlets

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Opportunity Venn “Coffee will always be the core of what we do. So many companies have made mistakes by not sticking to their knitting and they start believing their own press. That’s not going to be us.” CEO Howard Schultz By looking at how the current Starbucks brand is viewed, opportunity for well-being products arise in many different areas. Looking at the demographic that already use Starbucks enhancing their existing experience as a customer is a possibility. However it is the people that do not frequently use Starbucks which should be addressed. The communities which are not exposed to the brand should be thought of and products should be made to invigorate peoples sense of life and well-being.

Starbucks already has a strong brand recall. It is now time for all market segments to perceive the brand recall according to market niches. In our case that of the local community and how they interact away from picking up a coffee at their ‘local’ Starbucks.

Position • • •

Maintaining “Third Place” scenario.

Evoking feelings.

Providing security.

Consumer Interests

Business Goals • • • •

Remain leader in Coffee sector.

Maintain customer satisfaction.

Products for the community.

Shake negative Public Perception.

• •

Promise • • • •

•

Aesthetically pleasing products.

High quality coffee & products.

Looking out for local community more.

Customer Satisfaction Reliable products Well-being satisfaction.

Easily accessible.

Opportunity Venn

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STARBUCKS PEOPLE 33

.I ecurity s d n a ort dger es comf e id i v m o amie Do J r a p .”

J e t a r u h ne t e fut me, is o ife in th r l o y f a d d n o yt bra in my da rbucks ‘The Sta to provide this 21 and Jessica , it s g t n n li a ib w os a. Has tw d in L d n rtin a y life... ents, Ma r a p h Everyda it ew le. s at hom y’ lifesty d n e r ‘t l • Live nie 15. be to fue ology to ar. income Stepha n e s t h y c n a e e r t r o a t f np yed lates endant o unemplo have the n o e t e s b a • Dep d h ol an since us and left scho veloped cial stat e o d s s a is h h • Has he on n which s himself owd. io e s s id a r p P a • chef, ticed he ‘in’ cr job as a ver prac l. e a o n r o part of t s o h f a c a h s g t in a ough he want to commit h n search perience while lt e A e b i. t s a k ex t graffi s not • H ting wor lly stree ver doe e ia c w e o p h s , comple e s peer r art, ssion fo encouraged by a p a s a r.

• H is often ver a yea o e r h , o y f ll g a illeg datin as been h e . h e o h im cr uise, w riend Lo lf ir g a s • Ha ... es faces ip. m a J t a lationsh s th e r m s t le n b e . r o Pr his pa cations ffecting a of qualifi n k e c e rest a b L siblings. has • m o ip r h f nt’ to the s e e d r r r u e a s h s iff l e ‘d r ia nc els p he is • Fina f 3 and fe n him, as o o ll d il o t h s c it iddle king s • Is m rhood ta to alway u e o r u b s h s ig e of pr gh ne area. eels alot • Rou f is h e h , in e f le li op ome of the pe s poor h a h d n ie ie’s girlfr 34 on.

• Jam cry ulder to be a sho

, 17 Dodger

What th is mean Person s to Jam • At h a ie .. . ome Jam ie feels like have a jo he b, and is the one gets in the way. H • Pres causing e feels h sure o friction he had w f being unemplo between e is to blame as he does ye hil his pare not nts. having q st at school. Alt d is causing Jam ualificat h e o s u t g o h los kn ions is ge • The tting him owing he is cle e the sense of w added p v e er enou d ressu own. causing gh to do ll-being Jamie to re from his girlf a job, no r o much • Hav t worry as iend having tro ing close u a b 1 f le 7 riend year old at home the com . is one t munity in s that understa hat is nd one of d which h iscomfo e curren him is very imp o rt. tly lives, the feeli rtant to him. Alt The me n hough in g of not aning of b e in g a S ccepted tarbuck • Star s to Jam is bucks is ie ..

J . a m ie to on his ’s own, and vice. When his p ar • It is a get away place th from it a ents are arguing at he a ll. it is a pla is the pe ce he ca rfect pla nd his friends c n retrea an hang ce to me • Jam t out at. B et new f ie knows e r in ie g w nds. too you hat t confuse ng for th d when v o expect from a e pub, it isiting eit Starbuc k h s e a r n o d f ne the outle Jamie’s predict ts in his h ver feels uncom io fortable o n me town for Star • Jam or bucks in center. ie is now 2025 33, with children long ter . m partn • The er Louis y live on e he is n a counc ow sett • The il e s t a led and te and Ja y enjoy u has 2 m s ing the p es works well-bein r o as a man ducts th g and co ual labou at S mmunit • Jam rer. y ‘togeth tarbucks have c ie wishe reated. T erness’ w the com s that the area h hen usin he m g them. ey feel a sense o attractiv unity. Together lives in wasn’t so f e place t they hav m o live. e a willin is-treated. He h as gness to make th a strong bond e estate a more

35

Paige Turner

Personas Continued

dge t Ju ’ n o D

me!

Yea so this is me.........

My name is Paige Turner :) and Im a 22 year old graphic designer with not a lot of time on my hands!

My standard day tends to go like this......

9ish - Wake up (later than intended) skip breakfast and grab a coffee and muffin at starbucks 10.00- Start work in library......

10.30- Friends interupt work :( then back to work!

2.30 - Stop for 20mins to grab a sandwhich 5ish - Meet Friends at the Union 9.30 - Realise im still at the union!?! (and that I’ve drunk too much) 10.00- Get home make and eat dinner pronto!

10.30 - Work again....interupted by checking FB and Twitter 01.00 - Stop Work and Sleep My Activites Include: -

Working for my Final Graphics Degree Checking my Facebook and Twitter Photography Socialising with friends

36

Paige Turner Persona Overview

Feelings about Social Life, Studies and Life: - My social life gets in the way of my studies, however when I am socialisng I can never really relax as work is always hanging over me :( - Organisation is the key to successful studies and organised is something I’m not!!!

- I seem to have lost the will power to say no to seeing friends which is not good!

Starbucks in my life!

It’s something to rely on! Its the same barista, a perfect coffee, a great muffin and happy people (most of the time)

If starbucks could organise my life Im sure it would be much more productive....that way when I did socialise with friends I could relax knowing I have done enough work....

Starbucks 2025.....

Wow....I will be 38 scary! Maybe Starbucks could be making great coffee and making me great at organising my time! That way I could be on top of things and would be able to do more in the community.....

37

Keisha Lorraine Clockwork Clothing.

45 King Street St Helier JE4 2SG. My name name is Keisha and I would like to apply for the Graphic design job in your marketing department. decided that it is time to leave my current job to start fresh in a new h I have area of design. presently my job with Tsunami Axis furniture Ltd they have me constantly on the move and After 4 years I feel the time is right to slow down. My boyfriend and I have decided that we want to move to a slower, calmer environment as the fast pace commuting, coffee driven lifestyle we both currently lead is starting to really take its toll the pair of us. I feel I would work well in your company as I am outgoing and easy to talk to. In spa time I enjoy drawing and sketching in my local coffee shop; and my spare as a result I am brimming with idea’s that I would like to to show the world. I have a full sketch book of clothing ideas that I am enthusiastic for people to see and wear. I feel your company is best suited to my style and attitude.

Yours sincerely.

Keisha Lorraine.

38

Persona Overview: Keisha's Professional life : - Kiesha has been living a verya ru Lorra Keish shedine life for a number of year now and would like to m s ove away and slow her life do wn - She wants to get away . from the “commuting life Clockwork Clothing. style that she has been subjecting herse lf to and give more time 45 King Street to herself to relax.

St Helier - Needs to be very organi sed due to her busy job.

JE4 2SG. Keisha in her sp are for timthe apply e: Graphic design job in My name name is Keisha and i’d like to Lik es and to qualific my sk g etch and carries aations marketing dept. Attached is my CV showin sketch book. - personal activity – not communal -is there a wa experience. y of opening her art up to other people?

- Has a long term boyfrie nd th at sh e a in is fresh a liv start to job in g current with - Potential for totsleave have decided that it isprtime Ih oduc meamy ntwith for Tsunam pairs? i Axis furniture ltd job current my at as design of area new - Obviously nts a calm tly on the move. er life style, has chosen to and i am constan ting a busy jobwa they have me conduca move to Jersey Ch an ne l isl i e -p ot and en down tial formy prboyfrie oductsndmand After 4 years I feel the time is right to slow ad e fo r re lax ation. have decided to move to a slower calmer environment as the fast pace Kiesha lifestyle in 20we 25:both lead at the moment is starting commuting, coffee driven I would work well in your company both ishofa us. to really take its toll on- Ke waIsfeel give n the jo e ap plied coffee local forshop and has since been g an sketchingbinshmy enj enjoy as I am out going andprI om otdrawin ed to he ad of th e de sig book sketch n full a te have I am and idea’s with at ing brimm Cl am I ockwork Clothing Ltd. in my spare time.

- Kiesha is now known as wear.

Keisha Florentine after m siastic to have people see and of ideas that i’m enthhu arrying her boyfriend And they have 2 young children Andrew 8 and Oliver 12 - Keisha has lived in jerse yours faithfully y for a number of years an is settled well into the community with many close friends - Kiesha Still enjoys sittin g in coffee shops and sk etching in her note book, although no w she knows they have the potential to be on clothing world wide.

Keisha Lorraine.

- Keisha enjjoys relaxing with her family and usin g the Starbucks products as a group. She does work a lot thought being head of design and she feels the Starbucks products help her connect on a deeper level with her fam ily making good quality use of her free time.

39

Starbucks Persona Summary These personas highlight real problems that people are facing everyday. Stresses of everyday life, lack of opportunity and lack of organisation, these all are issues that need solving.

Jamie’s situation is not uncommon. Lack of quality education and little opportunity is something that more and more young people are facing. Every year qualifications seem to become diluted further, yet becoming all the more important. Lack of opportunity can lead to people in Jamie’s situation forming negative perceptions of authorities and their local community. Although bonds in the community they live in may be strong they are often based around negativity.

Paige’s life unfortunately is similar to many students. She is in higher education but has never really learnt how to manage her time. The lack of self control to say no to her friends when she has too much work to do means that she socialises instead. She can never fully relax because she has not done enough work. Many people, not just students, suffer from lack of organisation and time management; this results in them not reaching their potential.

Kiesha has had enough and is near giving up on her fast paced life in the city. She is prepared to move away from the community she lives in because of the stress of the commute. This is a problem that people face every day most of which don’t have the will to make such a change in their lives.

At present these problems mean very little to Starbucks. Even though it has been mentioned earlier that Starbucks is committing more time to communities, they are unaware of these problems that people are facing everyday. Perhaps by 2025 Starbucks will empathise with these problems and have a product range that help people deal with these issues and interact with their community.

Persona Summary

40

Starbucks public perception A Brand Pyramid has been produced to clarify the internal aspects that Starbucks and what they perceive their Identity and DNA to be. It is more important however, to look at what the public view of Starbucks is. Results from the questionnaire, suggest differences in certain areas.

The main changes came in the values and DNA sections. Whilst Starbucks believe in their DNA that the company sells quality, ethical produce, the public perceived the chain to be expensive, and made no reference to their quality or ethical codes. With regards to values, the polled public believed the chain to be too standard. Although retaining the attitude of a social environment, it was some-what over-whelmed by the amount of people who thought each store was too much like the next.

From this primary research, it can be reasoned that people are feeling that Starbucks no longer offers a unique experience. It must be realised that it is not the services that people do not like, but the uniformity at which they are offered. The size of Starbucks has lead to this change of peoples views.

Public Perception

41

Starbucks public perception Continued No mention of Starbucks being a place where the community can be united was mentioned by the public. This is something that the internal values of Starbucks state they provide. This is the main place for further development of the brand. If community can be the focus of Starbucks, then people will regain the trust in the brand that they once had, when it started out.

To clarify the difference in the external and internal perception of the brand, a brand pyramid has been produced, looking solely at what the consumer believes the brand to be about. This has been interpreted from answers given to the questionnaire when people were approached and asked to sum up the brand for them in one word.

Starbucks Identity

From the small amount of people surveyed, quite a negative attitude of Starbucks came across. Nobody seemed to really know why they didn’t like the brand, even though some of their words were not very kind, perhaps it is just because Starbucks has become ‘too big’ and people do not enjoy the availability of the experience.

People no longer feel they are ‘cool’ or ‘trendy’ due to Starbucks now being a mass market company.

Starbucks DNA

Coffee

Connections

Core Attributes

Starbucks Values

Expensive

Familiar

‘Samey’

Standard

Warmth Social Environment Social Relaxed

Meeting Place

Lunch Break

Friendly

Convenience

Business Meetings

Public Perception

42

Patisserie

43

44

STARBUCKS EVOLUTION 45

STEVE Analysis

A STEVE Analysis looks at the future trends of the world. Having knowledge of outside factors and issues, can lead to building a strong foundation for brand development.

Future brand development can be made, whilst mitigating the risks of failure, if modern trends are monitored and understood.

Social/Political • As world resources become depleted there could be an increase in political and social unrest.

• “A third of the world’s population is undernourished; on the other hand obesity increases in developed countries” (European Commission 2009) • China’s global political power increases reducing western influence on global markets and trends. “If current trends persist, by 2025 China will have the world’s second largest economy and will be a leading military power. It also could be the largest importer of natural resources and the biggest polluter.” (National Intelligence Council 2008) • “Child malnutrition is on the rise in Africa. By 2025 hunger could be a daily reality for nearly 42 million children” - Joachim von Braun, director general of IFPRI. • Unattractive economic conditions may lead to a large pool of unemployed frustrated and religiously educated young men that could be drawn into terrorist groups, causing damage to global trade and confidence. (E. Sloan 2008) • Due to increases in living conditions, medical availability and advances only 15% of deaths worldwide will be due to natural causes (WFS 2009). This will push the average life expectancy from 65 in 1995 up to 73 in 2025 (WHO 2009) Technological • Communication levels increased with better technology.

• Internet opens up information across the globe for all to see, and with internet access becoming faster, more reliable and available it will be up to government to innovate and empower itself to assure the cyber safety of its citizens and nations. (EIF 2009) • New online communities will be common place and the government will have to find out what its role is in a time where a plethora of information is available to anyone at any time for any reason online. (EIF 2009) • Technological advances will mean manufacture can be more efficient leading to reduced costs of production.

STEVE Analysis

46

• Smart technology plays a large part in everyday life with almost every object in a consumer’s possession being both smart and networked. This will bring the general publics online lives to unprecedented levels, making the amount of online communication and societies a major part of peoples lives. (D Chiavetta 2007) • People growing up are of the facebook and twitter age. This social networking trend is set to continue, and must be remembered when designing for the future.

Economic • China’s economic power increases reducing western influence on global markets and trends. (National Intelligence Council 2008) • Labour costs rise, as workers in developing countries require better standards of living.

• Producing countries evolve into consuming companies.

• With a third of the UK’s population aged over 55 and the number of over 60’s overtaking the number of under 25’s, the effect of an ageing population could make it hard to maintain living standards due to a shrinking workforce (C Jeavans 2004).

Values • The number of single-person households will rise from 6.8million in 2006 to 10.9million in 2031 (office of national statistics). This could lead to community and family breakdown.

• People’s values change with respect to each other due to harder economic times and reduced resources between a larger population.

Environmental • Recycling becomes of extreme importance as governments try to reach ambitious targets. For example Wales is aiming for 70% of all household, commercial and construction waste to be recycled (A Roberts 2009) • A sea level rise of around 10cm (California Costal Commission 2001) causes major problems to millions as flooding becomes a risk to 2.75 billion people worldwide (ScienceDaily 2006) • With 70% of the worlds fresh water frozen in ice caps, if current consumption trends continue, 2 out of every 3 people on Earth will live with moderate or severe water shortages (UN Department of Public Information 2002) Steve Analysis

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Community Identification The most practical route for Starbucks to continue expansion, and produce a product line, is to tap into the market of well-being in the community. This is based on the analysis of the brand, the current strategies of de-branding outlets and the public perception as surveyed.

Understanding the future of community is now key in furthering the brand, if Starbucks are to propose enhancement of daily life in local UK communities. The general community structure is likely to change, for example the statistics that show divorce rate is continually falling, as less people are making the commitment to marriage. Figures shows that 4 in 10 people will be living alone in the next 20 years.

(Daily Telegraph ‘09).

The people directly affected by lack of community values, are those living in council estates. “There are three million council tenants across the UK and we’re demanding the government invests to improve all council house and estates.” (Alan Walter, chairman of Defend Council Housing BBC 2007).

As the current ‘Chavs’ who are in their teen years age, and the majority of ‘baby boomers’ also age, the separation of community in the future must be monitored closely. Products that keep people interacting and respecting each other, is a possibility for future brand development.

As these population pyramids show, there is a problem in the UK of an “ageing population”. This means that there are less young people to support the older generation and this also puts a strain on the countries services and finances as there are more retired folk not putting into the GDP but taking out through pensions. Due to the economic boom this older generation has quite substantial spending power and has a great effect on trade.

Community Identification

48

With relation to Starbucks, they must be mindful of the possibilities for expansion that this target market has. At the moment Starbucks is not really aimed at this older type of customer and would do well to make some efforts to make Starbucks more “pensioner accessible”. They are an ideal market to move into as they have a lot of spare time on their hands, enjoy a quiet yet social environment and have money that they are willing to spend.

In 2025 the “ageing population” trend has become even more pronounced. It may have come to a point where there are so many older people to support that financially the pensioners are less well off than they are today. This means Starbucks would need a new approach to keep its older customers coming in and giving their trade.

The way people communicate will have changed, for example the “facebook generation” will be in their 30’s, the older generation will be computer literate and have some online social activity while the new consumer generation of age 13-20 will likely have new innovative online social lives. Starbucks will have to keep up with these new methods of socialising to ensure that it does not get left behind. It will have to incorporate Starbucks as part of these new trends and try to devise a method of relating the Starbucks experience to them. As well as methods of socialising and communication, communities as a whole will have a very different demographic.

With such a high number of pensioners, they will be looking for activities to fill their days together. Perhaps we will end up with gangs of pensioners roaming the streets…

Community Identification

49

Effect on Starbucks When moving into the creation of products, Starbucks must consider all the current trends carefully. Looking first at the issues that have risen from the STEVE analysis, on-going issues in the world such a global warming, child obesity and continuing community diversion, move to the fore-front.

With the UK population being 87.5% White British, and the rest being of international origin (Census 2001), the products that Starbucks are to produce, must be of design to appeal and not cause offence to the wide variety of cultural backgrounds.

When diversifying from outlets out into the community, Starbucks must retain thought for these issues. Ensuring creation of products that do not compromise important ways of life is essential. Producing a product that is morally correct, and does not conflict current environmental trends is a necessity.

Looking specifically at community, manufacturing a product for the masses must not cause offence. It has been identified that the UK population is ageing, and this is going to be the biggest market of people to design for in the future. As the population grows older, teenagers now, that in 2025 will be around the age of 35, will find it increasing tough to support society. In 2025, the stress that people will be subject to, will be more than those who have gone before.

It is predicting these trends, and designing products that can help people with these up and coming issues, as well as enhance the brand of Starbucks that will make for a successful future.

Effect On Starbucks

50

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STARBUCKS IN 2025 53

Bold, Stainless steel design

Rounded, soft edges

Use of black high finish plastics

Combination of stainless steel, soft edges and black plastic

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Starbucks Recognition Now that future trends have been projected, in order to move forward and suggest Starbucks products, their current traits have to be established to ensure brand clarity and continuity.

Currently Starbucks uses a variety of products that have become easily recognisable as their own. This is reflected in the way the stores are presented; lots of dark wood tones next to stainless steel and glass display cases, and retro looking expresso machines.

To the left shows current products that have “Starbucksness”. This is what we have defined “Starbucksness” as : • • • • • • •

Bold Retro Warm tones Mixture of wood and stainless steel High finish black plastic Rounded edges Good grips

These aesthetic appearances coincide with the brand values. The use of bold, rounded design, is attractive and welcoming. The mixture of old and new, in the wood and stainless steel, creates a homely feel whilst maintaining modernism.

All of the products served, used to serve, sat on and sat at, create a homely feel, reflecting the “Third Place” that Starbucks was founded upon. Use of top of the range Ascaso machines reflect the reliability of the Starbucks brand.

Recognition of the Starbucks brand is also reflected in the language and font that is used by Starbucks. The FreightSans font, used for the logo, is now synonymous with the brand. The language that is used, Small, Tall, Grande, Verti for the drink sizes. The manner in which words are used on advertising slogans is easily recognisable.

Although all coffee houses have to have coffee machines etc, the products used at Starbucks are different, and have been carefully selected. It are these factors that need to be considered when producing a product for furthering the brand.

Starbucks Recognition

55

Starbucks Swatches When considering future products for Starbucks, their look and feel must be on brand. Specific materials and colours are used, so that the user instantly knows what brand they are dealing with.

Starbucks currently use a muted colour palette of greens, beiges and browns. Dark red has recently been added to bring Starbucks into line with the product (RED) campaign it is involved in. These colour combinations are deliberate, and evoke certain feelings from customers. The colours used are warm and create the feeling of comfort and enjoyment. Before Starbucks adopted these colours they were already semiotically linked with coffee; Starbucks knew that by using these colours coffee would be permanently linked to their brand.

Through seductive colour theory Starbucks have been able to associate themselves with different emotions, something that is necessary for well-being products in 2025.

Starbucks Green : Pantone colour 342 C Starbucks Beige: Pantone colour 4675 C Starbucks Brown 1 : Pantone colour 4645 C Starbucks Brown 2 : Pantone colour 4635 C Starbucks Red 1 : Pantone colour 1805 C Starbucks Red 2 : Pantone colour 1815 C

Starbucks Swatches

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Starbucks Materials Starbucks store design has been changed in conjunction with their brand imagery.

The changes are mainly to make the stores as energy efficient as possible by the use of new types of insulation, energy reclamation and energy efficient lighting.

Starbucks has attempted to reclaim some of its original “cool, relaxed ethos of its first branches in Seattle 38 years ago” (Times Business Section ’09) in both their branded and de-branded outlets by using darker varnished woods in its in stores. It extends its environmental store design further with the use of more subtle materials such as wicker baskets to display products in.

By choosing its materials carefully Starbucks can make sure that it gives the right signals to its customers, an example of this is the use of light woods, such as pine for their table tops and banisters. They also build the panels for their counters out of chip board. This is because soft woods like these are easily and quickly replaced and the impact on the environment minimal. The use of wicker baskets implies that Starbucks not only has fresh produce but cares about the materials that get thrown away. However, using darker hard woods in its coffee tables gives the stores a certain “kudos” that is reminiscent of old style American coffee shops.

Starbucks Materials

57

Starbucks Materials Continued Starbucks’ focus on materials extends beyond the way they build their outlets, right down to the disposable cups. After pairing with the Environmental Defence Fund (EDF), Starbucks researched and changed the materials used in its outlets to reduce the amount of waste that they produced. Starbucks once used to serve their customers by “double cupping” to prevent burns or damage to its customers hands.

Whilst this saved any customer discomfort it also doubled the amount of paper waste that Starbucks produced.

To combat this the company introduced a corrugated card sleeve in 1997. The sleeve itself is made from unbleached Paper fibres meaning that the effect on the environment is greatly reduced. They have effectively halved the amount of bleached paper fibres entering landfill sites; unbleached paper fibre is also much kinder to the ozone because as it degrades it doesn’t release as much C02 into the air.

In March 2006 the company introduced a cup made from 10% reclaimed material further reducing their environmental costs this was described as “a first for the industry” (EDF website) as before this reclaimed material had not been used in direct contact with food and drink. As of 2005 up to 5000 Starbucks outlets were using the new eco-friendly paper cups, representing a significant reduction in Starbucks waste.

Now that Starbucks has adopted these materials into its branding strategy, it must make sure in the future that it is consistent with them.

Key Identifiers : Eco-friendly, Recyclable, Soft light coloured woods (Pine, Beech), Hard dark coloured woods (oak, mahogany)

Starbucks materials

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Starbucks Clarification Clarification as to brand understanding, and key values that must be transferred, and embodied into Starbucks products.

Starbucks is Community

Starbucks is not isolation

Starbucks is Convenient

Starbucks is not Inconvenient

Starbucks is Warm & Homely

Starbucks is not cold

Starbucks is Familiar

Starbucks is not Unfamiliar

Starbucks Clarification

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Starbucks Future Swot Now that direction for development of Starbucks products has been aimed at the community. A SWOT analysis for the risks of this direction has been produced. This SWOT looks at how a new product will affect the company, and how it will build upon and add value to the current brand.

Strengths • Build upon existing strength of Starbucks in 2009.

• Develop levels of customer service and experience.

• Helped to have reduced the socioeconomic discrepancy between the developing world (Coffee farmers) and the Starbucks Corporation.

• New product range will help people interact with, and develop superior community values.

• Starbucks’ link with community will help to maintain and increase companies profile within its target audience.

• Starbucks’ provision for an older generation will help to entertain an ageing population.

Weaknesses • • • • •

New products could dilute current brand identity.

Prediction of social trends and communication styles are uncertain.

Starbucks could struggle to maintain its current levels of growth.

Negative public perception could get worse.

Cost of coffee beans could increase which could reduce levels of investment and innovation.

• If coffee bean production was to be reduced by climate change this could see either a reduction in profit levels or a cost increase past on to customers. This reliability upon the coffee market could reduce levels of investment.

Future SWOT

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Opportunities • Market saturation growth strategy needs to be reconsidered in order to maintain sales levels.

• Starbucks provision for an older generation will help to entertain an ageing population.

• Better global relations may increase corporate credibility.

• Potential partnership with other organisations such as Women’s Institute, YMCA, Help the Aged and Weight Watchers.

Threats • Lack of investment during a peak in business could lead to lack of funds for innovation if Starbucks’ sales drop.

• New products could be rejected as people could just see any new innovation as ‘brand slapping’.

• Current global economic situation could lead to pensioners having less disposable income; this could mean reduced sale of any Starbucks innovation aimed at this target group.

• Global warming could have an adverse effect on global coffee production levels.

• Recession continues longer than forecast.

• Starbucks may not be accepted into new markets.

• Current store layout and brand strength may be affected as resources get depleted, affecting brand and store continuity.

Future SWOT

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Starbucks Future Direction Moving the Starbucks brand, into a new market comes with some risks attached. The introduction of the brand into production of well-being goods, designed specifically for the different demographic of people that live in urban areas, must be carefully considered.

Starbucks have built their brand on mass market appeal, part of their ethos is to appeal to a wide variety of people. None more important than the melting pot of the UK market. Knowing that over 3 million people live in council estates in the UK and 2 million people are unemployed (Guardian 2009) , the future must ensure these people are not excluded.

In the future Starbucks will offer products to help deal with the feeling of social exclusion and bring back the sense of community. The ever increasing fast pace of life, means people have little time to relax and get together. This is something that can be related to any person in todays society. Organisation of time, and how people spend their time together is an area of interest. Products that really target specific community needs, and help build relationships and understanding amongst people.

Key Identifiers : Community, Safety, Relaxation, Organisation of time, Convenience, Familiarity, Different cultural backgrounds living in UK, Familiarity

Starbucks Future Direction

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Starbucks Adcepts Overleaf, the final pages show adcepts for the future of Starbucks market position.

These intend to illustrate the well-being market of community enhancing product Starbucks will occupy in 2025.

The adcepts are based around the 4 key words identifed through the research of current community expecations and predictions for peoples needs in 2025.

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Community Together Trust Familiarity

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Adcepts

Adcepts

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Adcepts

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Tom Kelham

Fred Jordan

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Rob Musselbrook

James Du Heaume

STARBUCKS TO US 71

Fred’s View on Starbucks

Moving forward, Starbucks are to create a sense of well-being amongst community.

Starbucks creates a unique experience of friendliness and familiarity and there is no reason for this not to exist in the people’s lives all the time, away from the store environment. Future involvement in the community would create products that help interaction and awareness amongst people. Products that rekindle love for each other and the environment in which people live in, opening new doors for get together.

Starbucks is to move in closer to people and offer them local specialties, giving back a sense of uniqueness amongst areas where it may other-wise not exist. The positive causes that Starbucks currently endorse, and the manner in which they do so, must be transferred and conveyed in future products.

Starbucks is all about ethical produce and are heavily involved in positive schemes to help people in developing countries earn a good living. This trait of giving back to the community there, is one that needs to be transferred to the UK. Key identifiers for future products would be ones in which user interaction, leading to community awareness and respect for each other are prominent. With increase in vandalism of local areas, products that help reduce the likely hood of this could be a possible avenue for development.

With guerrilla gardening in mind, Starbucks could create a product that allow people to quickly and easily shed light on an otherwise unsightly areas of land. This would bring the community together and get everyone involved with helping each other better the environment. In-turn this would create a sense of well-being amongst specific individuals as they are helping to replenish unsightly areas; and the community as the environment is improved for everyone. Starbucks main aim should be to make people proud to live together and grow up alongside each other in friendly, pleasurable surroundings.

Personal product aims : • Have the feeling of Starbucks creation.

• Help community interact. People must want to buy and use the product together.

• Improve surrounding environmental living conditions • Provoke feeling of happiness and satifaction. Give a sense of well-being.

• Provoke thought amongst users, as to community awareness.

• Be accessible to everyone.

• Be of a durable, lasting design.

Fred’s View

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Tom’s View on Starbucks I see Starbucks as a space where people come and have the means to do anything they wish. Starbucks provides the infrastructure and atmosphere while the customer can choose how they wish to use the space. By enabling a customer to sit comfortably alone and read a book, browse the internet and get some work done, have a business meeting or simply sit and have a chat with friends all in one area, one room and one corporation can have very different meanings to different people. The uniformity of outlets means that regular customers can go into any outlet and feel immediately at home and most importantly at ease in their surroundings.

I think this means that customers feel at ease with the brand as a whole and this is something that, in 2025, will be a large part of their success. The fact that people can relate to Starbucks and see is as a place of personal relaxation as well as social interaction means that the brand has the opportunity to develop this customer relationship to span out of the shop and into the community.

In the future I see Starbucks as a brand that provides the means to enable people to interact with each other not only inside their stores but out in the community as well. This will make people see Starbucks in a whole different light in a future where resources are more scarce, the environment is in a state of turmoil and everyone has less money due to an ageing population. When people see Starbucks out in communities using its size and power for good, they will see them as a group out there trying to help. By providing the means to allow communities to socialise, communicate or perform activities outside the store, Starbucks will have successfully have transferred their ethos of enabling people to do whatever they want, out into the world.

The products that I see Starbucks creating in the future will be based around wellfounded community events such as gardening projects, book clubs, mothers meetings and youth clubs. These events give Starbucks the opportunity to aid important parts of people’s lives and have a truly beneficial impact on their state of social well-being.

Tom’s View

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Rob’s View on Starbucks Had I not studied Starbucks I may never have found out that they originally intended to ‘Inspire and nurture the human spirit -one person, one cup, and one neighborhood at a time’. I feel that in the future, Starbucks need to return to this in order for them to grow and build upon their current success.

I think it is very difficult for a global corporation to provide a service that feels personal, as all neighborhoods and communities are different. I feel that Starbucks achieve this and should endeavor to do so in the future. People all seem to view Starbucks slightly differently. Whether it is a meeting place with friends, having time to yourself, meeting new people or even a business meeting, it has provided people with that ‘Third Place’ without them realising it. The ‘Third Place’ that Starbucks provides is a community, and one that works. Starbucks have created community once and will do so again, but this time within local neighborhoods.

For Starbucks to be a success in 2025, I believe they need to return to their roots of caring for human spirit and neighborhoods. They should build upon the friendly and inviting environments that their coffee shops currently provide so well. Starbucks could do this by creating products that help tackle problems people are facing and encourage people to care for and take pride in their local neighborhood.

The way in which people define community is very different. Increasingly it has become global cloud networking systems such as Facebook and Twitter that allow quick and easy communication between friends and colleagues. Starbucks could employ a similar system that enables social interaction within local communities.

Products could be created to help inform users what is happening within their neighborhood and allow people to interact using their own ‘local cloud community’.

As highlighted above all communities are different. The local cloud communities that Starbucks employ would be interactive and would enable each community to use it differently and as required.

The majority of people want to live in a safe, clean and happy environment. This is achievable through increased interaction and communication within communities.

The future of Starbucks will provide this.

Rob’s view

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James’s View on Starbucks I grew up in Jersey, the largest of the Channel Islands and as such I was not once exposed to a Starbucks until I came to study at university. I am living on fairly small budget whilst I’m at university and because of this I don’t generally buy from cafés or outlets such as Starbucks. I am not ashamed to admit that I was a Starbucks “hater” and I was totally taken in by bad press that Starbucks has had in the past.

The Starbucks mission statement is “To inspire and nurture the human spirit - One person, One cup, and One Neighbourhood at a time.” And I feel that they are well on their way to achieving two of their three goals to date. I feel that Starbucks has not addressed individuals enough yet and this would be a place for them to focus some attention towards in the future.

I think that Starbucks could build a “community of individuals” if they used their strong branding strategy to create a product that their customers can personalise.

This way Starbucks’ patrons would have a talking point that links them together even when they are not in a store. To help better illustrate my point I will use mobile phones as an example.

No two mobile phones are the same; from the moment a phone is taken from the box it becomes almost an extension of an individual, as it allows them to store all their contacts in a way that suits them and nowadays a variety of Medias personal to them such as music and photographs. Mobile phones can also act as status symbols and when two people find out they have the same model of phone it can open up a whole new connection between them. Human connection is key to our well being as everyone wants to feel like they are part of something larger than just their own life.

Starbucks already has a sense of community in store and their “third place” way of thinking has helped to make them the global giant they are today. I feel if Starbucks want to develop past their current brand identity they need to take a step back and return to their roots. I think the next step for Starbucks would be to take their “third place” feeling out into the world away from the Starbucks stores to become major part of people’s lives.

If Starbucks was to harness this way of thinking into a new product they could ultimately open up major new doors for customers and push their company into a whole new market, it would help people to feel part of a group and contribute to their overall well being. .

James’s View

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REFERENCES & APPENDIX 77

References All images property of google images and Flickr.com BBC Council houses http://news.bbc.co.uk/1/hi/uk/6294274.stm (Accessed Dec 1st) BBC BIg Lunch community coverage. (Accessed Nov 16th ‘09) http://news.bbc.co.uk/1/hi/uk/8157842.stm Chiavetta, D 2007, Top 12 Areas for Technology Innovation through 2025. http://changewaves.socialtechnologies.com/home/2007/11/20/top-12-areas-fortechnology-innovation-through-2025.html (Accessed Nov 29th) Chicago Tribune ‘09 Starbucks De-branded Stores http://archives.chicagotribune.com/2009/jul/17/business/chi-talk-stealthstarbucksjul17 (Accessed 16th Nov) Daily Mail ‘09 Starbucks De-branded stores http://www.dailymail.co.uk/news/article-1214487/Coffee-giant-Starbucks-goesroots-shed-boring-image-revamp-stores-amid-flagging-sales.html (Accessed 16th Nov) Daily Telegraph - Community Trends http://www.telegraph.co.uk/news/uknews/4977450/Four-in-ten-homes-will-be-occupied-by-someone-living-alone-in-20-years.html (Accessed 3rd Dec) Daily Telegraph - Fairtrade information http://www.telegraph.co.uk/foodanddrink/foodanddrinknews/5308713/Cup-of-coffee-goes-up-in-price-as-Columbia-crop-damaged.html) (Accessed Nov 29th) Daily Telegraph - Starbucks fires first shot in coffee war http://www.telegraph.co.uk/news/uknews/1568267/Starbucks-fires-first-shot-incoffee-war.html 16th Nov 2009) Environmental Defence Fund Website http://www.edf.org/page.cfm?tagID=2155 (Accessed 2nd December 2009) References

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EIF 2009 , The Digital World in 2025: Socio-Political Aspects. http://www.eifonline.org/en/fiches/news/09-04-14-socio-political-aspects-1.cfm (Accessed Nov 29th) Fairtrade (2008) http://www.treehugger.com/files/2009/04/starbucks-invests-in-fair-trade.php) (Accessed Nov 22nd) Fairtrade Website (2009) www.Fairtrade.org (Accessed 18th Nov) Gaurdian ‘09 (Unemployment article) http://www.guardian.co.uk/business/2009/jan/21/unemployment-jobsrecession(Accessed Nov 29th) Jordan, P. (1999), Human Factors in Product Design: Current Practice and Future Trends. Publishers, Taylor & Francis Klein, N (2000) No Logo, Famingo Publishers National Intelligence Council 2008, Global trends 2025: A Transformed World. http://www.acus.org/publication/global-trends-2025-transformed-world (Accessed Nov 29th) Population pyramids http://www.statistics.gov.uk/populationestimates/flash_pyramid/UK-pyramid/ pyramid6_30.html (Accessed Dec 1st) ScienceDaily 2006, Its 2025. Where Do Most People Live? http://www.sciencedaily.com/releases/2006/07/060718090608.htm (Accessed Nov 29th) Sloan, E. 2008, Terrorism in 2025: Likely Dimensions and Attributes. http://www.itac-ciem.gc.ca/pblctns/tc_prsnts/2007-3-eng.asp (Accessed Nov 29th) Starbucks Brand (2009) http://www.sausalitogroup.com/PDF/Starbuck%27s%20 Brand.pdf (Accessed Nov 16th) Starbucks CEO Howard Schulz: Quotations About Building a World Class Brand h t t p : / / re t a i l i n d u s t r y. a b o u t . co m / o d / f ro n t l i n e m a n a g e m e n t / a / starbucksceohowardschulzquotes.htm (Accessed 16th Nov) References

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Starbucks - Coffee Breakdown http://www.economicshelp.org/blog/economics/is-the-price-of-a-starbucks-a-ripoff/ (16th Nov 2009) Starbucks Company Background www.mhhe.com/business/management/thompson/11e/case/starbucks.html (Accessed Oct 28th) Starbucks Corporation (2009) www.starbucks.com (Accessed through-out) Starbucks Logo evolution http://brandautopsy.typepad.com/brandautopsy/2005/06/the_evolution_o.html [Accessed 03 December 2009] Starbucks Fairtrade (2009) http://www.greenmystyle.com/starbucks-goes-100-fairtrade-and-sponsors-greenmy-styles-london-fashion-week-coverage/ (Accessed Oct 1st Starbucks Trends (2008) http://trendsupdates.com/starbucks-don%E2%80%99t-dilute-the-image/ (Accessed Oct 1st) Tiplady, R (2009) Wal-mart A glocalised company http://www.towers.fr/essays/Wal-Mart%20a%20Glocalised%20company.pdf (Accessed Oct 28th) The World in 2025, Rising Asia and Socio-Ecological transition. http://www.docstoc.com/docs/13392636/THE-WORLD-IN-2025---future-trends-population-economic-development-international-trade (Accessed Nov 29th) Times Business section ‘09 http://business.timesonline.co.uk/tol/business/industry_sectors/retailing / article6907122.ece (Accessed 2nd December 2009] WHO 2009, 50 Facts: Global health situation and trends 1955-2025. http://www.who.int/whr/1998/media_centre/50facts/en/ (Accessed Nov 29th) WFS 2009, 20 Forecasts for 2010-2025. http://www.wfs.org/forecasts/index.html (Accessed Nov 29th) References

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Starbucks Questionnaire 1 Date of survey : Friday November 6th 2009 Time of Survey : 12-1pm Position : Outside chimes shopping centre.

Number of People Surveyed : 32 1) What is your preferred Coffee House?

Cafe nero Costa Coffee Starbucks Pret A Manger Coffee Republic 2) Why is your chosen house your favourite?

The Coffee The Atmosphere Staff Environmental Stance 3) What is your primanry reason for visiting your favourite coffee house?

Meeting Place Coffee Hit Break from world Meet new People 4) Rank these in order of size (Smallest to Largest) Tall Venti Grande Results 1) Cafe nero 8 Costa Coffee 4 Starbucks 12 Pret A Manger 6 Coffee Republic 2 2) The Coffee 20 The Atmosphere 10 Staff 1 Environmental Stance 1 3) Meeting Place 10 Coffee Hit 10 Break from world 6 Meet new People 6 4) Correct answer is Tall, Grande, Venti

People who answered correctly 10

People who answered incorrectly 22 Initial questionnaire undertaken to gain insight to how consumers feel about Coffee Market in general.

Questionnaire 2 undertaken to see how people feel specifically about Starbucks.

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Starbucks Questionnaire 2 This is a short questionnaire to get you thinking about Starbucks. Its brand values and what they mean to you. Thank you for your time in filling this in.

1. How regularly do you visit Starbucks? Please circle.

Every day

2-3 times a week

1 time a week+

1 time month

Never

2. How would you rate the quality of Starbucks Coffee? Please cross on the line.

Low Quality

High Quality

3. How much do you feel Starbucks being Fairtrade influences your decision to buy coffee in one of their outlets? Please cross on the line.

Low influence

High Influence

4. Describe in 1 word the feeling you get from sitting in a Starbucks outlet.

5. Place these 5 coffee outlets on the diagram (use their numbers).

1

2

3

4

Low Perceived Quality

High Perceived Quality

5 Starbucks Questionnaire

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Starbucks Questionnaire 2 Results Date of survey : Friday November 20th 2009 Time of Survey : 4.30-6.00pm Position : Between Uxbridge station and Starbucks Chimes location. Conducted to gain insight specifically to people views on Starbucks.

Number of People Surveyed : 26 How regularly do you visit Starbucks?

Every day 2 2-3 times a week 7 1 time a week 11 1 time month+ 4 Never 2 How would you rate the quality of Starbucks Coffee? Please cross on the line.

Low Quality 0% 3 Below Average = 25% 4 Average = 50% 8 Above Average = 75% 7 High Quality = 100% 4 How much do you feel Starbucks being Fairtrade influences your decision to buy coffee in one of their outlets? Please cross on the line.

Low Influence = 0% 12 Below Average = 25% 7 Average = 50% 4 Above Average = 75% 1 High Influence = 100% 2 Describe in 1 word the feeling you get from sitting in a Starbucks outlet.

Warmth x5, Convenient x4, Ripped off, Standard x3, Friendly x3, Clean x2, ‘Samey’, Accessible, Relaxing, Social x5 Place these 5 coffee outlets on the diagram (use their numbers).

McDonalds scored the lowest quality and price, next only to Pret A Manger.

Starbucks received 18 votes for High price, Low perceived quality.

Costa ranked highest most times in perceived quality with 13 votes.

Starbucks was ranked 3rd highest perceived quality with 4. Coffee Republic had 8 and Pret A Manger 1.

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“We are transitioning from a very retail centric view about the brand to a view that will allow us to say that Starbucks’ role is to provide uplifting “ Scott Bedbury, Senior Vice President of Marketing, Starbucks

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