STARBUCKS CASE STUDY
Madison Richmond ARTS 224-004
CORPORATE OVERVIEW
1
BACKGROUND
“Back then, the company was a single store in Seattle’s historic Pike Place Market. From just a narrow storefront, Starbucks offered some of the world’s finest fresh-roasted whole bean coffees. The name, inspired by Moby Dick, evoked the romance of the high seas and the seafaring tradition of the early coffee traders. In 1981, Howard Schultz (Starbucks chairman and chief executive officer) had first walked into a Starbucks store. From his first cup of Sumatra, Howard was drawn into Starbucks and joined a year later” (www.starbucks.com).
MISSION
TARGET DEMOGRAPHICS
“Our mission to inspire and nurture the human spirit – one person, one cup, and one neighborhood at a time. Every day, we go to work hoping to do two things: share great coffee with our friends and help make the world a little better. It was true when the first Starbucks opened in 1971, and it’s just as true today” (www.starbucks.com).
According to Barbara Bean-Mellinger with Chron, the target market of Starbucks is most closely related to those that are high income or high spenders. Starbucks caters their items to those who are willing to throw down $10 for a drink and a snack. They also target their products towards people on-the-go, technology early adopters, and socially conscious consumers.
CORPORATE OVERVIEW
2 LOCAL COMPETITORS
UNIQUE SELLING POINTS
STRENGTHS & WEAKNESSES
There are so many different competitors that Starbucks is constantly trying to stay ahead of. The first two that comes to mind are Dunkin’ Donuts and McDonald’s. They both are in the same category of grab-and-go coffee. Dunkin’ is unique because of their wide range of other breakfast food, beverages and donuts. McDonald’s is a much cheaper option and tends to be a first choice for those that may want a meal other than breakfast. A local competitor of Starbucks in the Lynchburg area is Joe Beans. They are known for being a drive-thru only coffee shop. Joe Bean’s does offer various types of coffee and foods, but they are known for being a very simple but speedy coffee drive-thru.
Starbucks has many qualities that make them so unique. For example, Starbucks was one of the first coffee shops to create a card loyalty program, rewarding their customers for making purchases. Starbucks also creates a casual but professional atmosphere in all of their coffee shops, making them the perfect place for a study session or a work meeting. Starbucks is known for being everywhere. It seems like there is almost no where that you could travel without having the option to stop at a Starbucks. That is a huge advantage for Starbucks because when people go out of town, they know that they can automatically find a Starbucks when they need coffee. The biggest strength of Starbucks is the success of their branding. Everything about it is well-known, and easily identifiable. They have done a great job of creating a cohesive and aesthetically appealing branding package. Everyone cn recognize their logo, their cups, or even just their particular shade of green. One weakness, in my opinion, is the fact that Starbucks has gotten too involved in politics, religion and all controversial topics. In their quest to become as politically correct as possible, they have straight up disconnected themselves from those who disagree with the opinions of the franchise. They have been outspoken about the fact that they do not want any business from Christians, which I think was a very poor move on their part.
3
VISUAL AUDIT This ad is veryhelpful because it is drawing attention to the mobile app that Starbucks is so famous for using. It is well balanced, and includes type on the phone screen that gives the viewer a good idea of the benefits of using the app. Not only does it promote the app, but it also promotes purchasing their products and joining the loyalty program.
This ad is part of their fall ad campaign, introducing new fall drinks. They balanced the cup on the left side of the image with the leaves and text on the right side. The text includes a cute play on words with keywords like “sweater weather� to help the viewer begin to feel the emotions associated with fall. The use of fall colors gets the viewer in the mood for a fall beverage such as the one pictured.
This is a very aesthetically pleasing ad. The image is pretty and enjoyable to look at. The cups of coffee created depth while their straws create perfect alignment for the header of the image. The text is nicely balanced on either side of the cups. The choice of different typefaces works really well here. They also made sure to plug their mobile app in the fine print at the bottom.
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VISUAL AUDIT This DUNKIN’ ad is simple but effective. They included a nice play on words to show that they have new drinks on the menu, and they used the exclamation point on the cup to tie the beverage to the text with nice alignment. The colors and typefaces match the DUNKIN’ brand, creating a nice, cohesive ad.
McDonald’s created this billboard to take a direct jab at Starbucks. Starbucks is wellknown for their beverages being around $4. Many would say that is way too much for a coffee, some would say that’s nothing. McDonald’s is well-known for having cheap everything, so they used this ad to promote their coffee on the main idea that it is cheaper than its competitor. They also cluded the word “bucks” instead of “dollars” to make the viewer think of Starbucks first.
Joe Beans created this ad to get their brand out there. This ad encompasses most of the things that make Joe Bean’s iconic. The coffee bean in the car is their logo, showing that it is a coffee drive-thru. They included their two slogans or catch phrases: “Best Gind in the Burg” and “Exspress Espresso”. The first catchphrase lets the viewer know that they are considered some of the best coffee you can get in the Lynchburg area. The second one makes the audience aware that they can get their coffee on-the-go with quick service.
WORKS CITED
5
Bean-Mellinger, Barbara. “Who Is Starbucks’ Target Audience?”
Small Business - Chron.com, Chron.com, 5 Feb. 2019, smallbusiness.
chron.com/starbucks-target-audience-10553.html. “Company Information.” Starbucks Coffee Company, www.star bucks.com/about-us/company-information. Google Search, Google, www.google.com/search?q=dunkindonutsad. Google Search, Google, www.google.com/search?q=mcdonalds ad coffee. Google Search, Google, www.google.com/search?q=starbucks ads. Joe Beans, www.joebeans.coffee/. “Our Newexpression.” Starbucks Creative Expression, creative.starbucks.com