Starbucks’ Brand Value Creation and Communication Report

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Introduction

Starbucks Coffee Company is the world’s top coffee retailer and industrial coffee bean roasting leader. Notably, Starbucks is a chain of coffee shops located primarily in downtown areas, business centers, and shopping malls, targeted at people with average and above-average incomes. This localization and focus allow the company to create a unique culture of consumption around the world. People visit Starbucks not only for good coffee but also for the special atmosphere. That is, the social factor – the opportunity for pleasant interactions- is essential for coffee shop customers. Thus, the company uses it to create a maximum of conditions, such as comfortable furniture, a friendly, unobtrusive interior, free access to the Internet, and a special layout of the premises. (Chuang, 2019). To remain popular, Starbucks actively applies marketing; for example, the company’s logo is known throughout the world. Therefore, the logotype is depicted on the coffee cups and all the products, contributing to brand recognition and expanding the customer base.

The Starbucks Coffee Company’s Brand

It is essential to note that a significant brand advantage, which also forms its value, is a high-quality coffee so that the target audience can justify buying it, as Starbucks refers to an upper-middle-class product. In order to increase brand value and awareness, Starbucks uses many channels to promote its development, from social media to television commercials and advertisements. The combination of marketing media gives their brand recognition and encourages customers to buy the already-known coffee. The company has a great way to reward its customers who purchase its products. The Starbucks Rewards program offers incentives to buy products with free in-store refills, free products (after a certain amount of money is spent), and additional in-store offers and discounts (Chuang, 2019). Also, Starbucks pays special attention to employee training because they are the ones who provide the experiences that make customers pay the inflated prices.

One can apply Keller’s theory, which deals with brand awareness, which includes logo recognition, information dissemination, and name memorability, together with the concept of Interbrand. That is, the financial value of the Starbucks brand can be calculated because of name recognition and its role in choosing coffee among competitive positions (Harjoto & Salas, 2017). Consequently, Keller’s theory about the popularity of the company among the bargaining audience is the basis for the successful business value according to the concept of Interbrand.

It is also crucial to pay attention to communication in marketing; this is both the message’s delivery channels, the communication itself, and the target audience’s reaction. The main objective of marketing communications is to stimulate the sale of goods or services. It is sometimes necessary to create demand first, especially when the product is new. Therefore, depending on what purpose the firm is pursuing, the type of communication should be determined; for Starbucks, the most popular type is advertising (Devia et al., 2018). This is because it informs about the product, praises its qualities, helps to choose, and stimulates demand. The business applies different types of advertising, such as TV, radio, Internet, and media. Thus, Starbucks uses advertising to create a value proposition and brand awareness so that potential customers can distinguish it from its competitors.

Conclusion

Thus, it can be pointed out that Starbucks’ attention to detail and constancy are the reasons why the trademark is so prosperous in its marketing efforts. Accordingly, its logo and brand are recognizable, and its delicious coffee supports people’s loyalty to high prices. At the same time, the firm’s presence on social media and in the press helps retain constant communication with customers and encourages new clients to try the product.

References

Chuang, H. J. (2019). Starbucks in the world. Journal of Business and Public Administration, 10(3), 99–110.

Devia, A. N, Aisjah, S., & Puspaningrum, A. (2018). The influence of brand experience and service quality to customer loyalty mediated by customer satisfaction in Starbucks coffee Malang. Management and Economics Journal, 2(2), 161–170.

Harjoto, M. A., & Salas, J. (2017). Strategic and institutional sustainability: Corporate social responsibility, brand value, and Interbrand listing. Journal of Product & Brand Management, 26(6), 545–558.

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