Brand evolution can be defined as an uninterrupted process of creating value and improving customers’ experience to achieve higher satisfaction. The brand may become irrelevant owing to several factors (economic crisis, competition, low-quality management, lack of resources, etc.), however, to stay afloat, a company may attempt to adapt to the new environment. This requires not only a willingness to change but also a careful plan covering both short- and long-term objectives of brand evolution as well as steps that should be taken to achieve them (De Chernatony, 2010). A company must learn how to exceed the customer’s expectations and predict needs before they emerge. Thus, if the brand loses its popularity, it is necessary to review not only its logo, advertisement, or design. Tools and methods have to be applied to change the behavior of the brand that would allow making service decisions that put the customer in the center of brand experience (Jones & Robinson, 2012).
Starbucks rates among the top organizations that have undergone drastic brand redesigns. The company had to meet a lot of challenges to maintain its image and create a unique identity that would appeal to potential customers worldwide. Since it was opened, Starbucks has constantly refreshed its logo and cup design trying to improve the core image (a green pattern with siren adorning cups, packages, website, and stores) in such a way that it remains recognizable. Starbucks reasonably decided to stop the evolution of the logo into a multi-color clutter – it could be connected with a lot of expenses and is harder to memorize. In 2011, the company came out with a refreshed identity, branding, and traditional logo with the removed outer strip and the brand name (Michelli, 2006).
However, brand evolution is not restricted to redesign. As it was mentioned above, evolution is based on increasing customer satisfaction. Thus, the company adhered to the following plan to achieve success (Jones & Robinson, 2012):
- become an unquestionable authority in the coffee market;
- give more inspiration to partners;
- ensure the loyalty of the company’s customers;
- increase the number of coffee shops across the world;
- become environmentally-conscious;
- invest in innovative growth platforms;
- develop an effective economic model.
The major objective was to involve and inspire the company’s “partners”, i.e. employees. The corporate culture had to be reformed to increase job satisfaction and ensure commitment. More than $30 million were spent on conferences and training. As a result, all the employees working over 20 hours a week received additional health benefits. New technologies were introduced for facilitating the work of baristas. The high variety of Starbucks ‘ coffee blends, pastries, and coffee-related accessories has made the procedure of coffee-making more flexible and complex, which allows meeting the customer’s needs (Michelli, 2006).
Other transformations included: investment into social media, production restructuring, supply chain improvements, global expansion, etc. All these changes made the company’s share price increase tenfold by 2016. At present, Starbucks is entering the world of tea in cooperation with Teavana. The business plan for the years to come also features some innovations including the improvement and expansion of digital payment systems that already allow customers to pay with their smartphones. The company is planning to win new markets and introduce new incentives for its employees. The major performance objectives for future evolution include (Loeb, 2013):
- increasing the speed of service as it affects both profitability and the quality of food and drinks;
- improving the quality, which is important to stay competitive;
- introducing quality assessments and customer surveys;
- achieving consistency as the market is unstable;
- providing higher flexibility in the menu;
- minimizing costs by reducing supplier expenses and wastes.
References
De Chernatony, L. (2010). Creating powerful brands. Abingdon-on-Thames, UK: Routledge.
Jones, P., & Robinson, P. (2012). Operations management. Oxford, UK: Oxford University Press.
Loeb, W. (2013). Starbucks: Global coffee giant has new growth plans. Forbes January, 31, 13-34.
Michelli, J. A. (2006). Starbucks experience. New York, NY: Tata McGraw-Hill Education.