Case Study 1

What is the Starbucks brand?
A brand is not a company’s logo, or the product it sells. It resides inside the customer’s brain, it is their gut feeling about the company. Customers see Starbucks as an authentic coffee experience, that conveys the artistry of espresso making. It is a place where they can gather and talk over a great cup of coffee, away from work and home. Starbucks welcomes people and rewards them for coming with a layout that allows for both fast service and quiet moments. These are the things that customers think of when they think of Starbucks. This is what the brand is to the consumers.
How did Starbucks build such a successful brand?
There were many factors that went into the creation of such a successful brand. The store location was important; Starbucks spent time choosing the ideal places in cities to set up their stores. Locations that had a desirable demographic and that were easily accessible. The stores were later designed to reflect one of the four coffee making procedures: growing, roasting, brewing and aroma. These involved certain lighting schemes, color combinations and specific furniture. The design of stores was important in the creation of the brand because how the customer sees the store depends on what they see in the store.
What is Starbucks DSI?
On their website, Starbucks mentions “Putting people before products.” I believe this is their DSI. They form good relationships with coffee farmers, they make connections with customers in the community, and they provide support for their employees. It is through these people that they are able to make and sell great coffee.
What role has design aesthetic played in the rise of Starbucks?
How would you characterize Starbucks’ positioning? 

Starbuck’s positioning as a coffee seller is probably the highest possible. Their stores are everywhere, allowing for convenient access wherever you may be, especially with their drive-up service. There are a lot of other coffee shops out there who are attempting to rival Starbucks but none of them have come close. Starbuck’s move into supermarket products such as ice cream, canned drinks and their own coffee has taken them another step further, becoming the best of these supermarket products too.
How would you summarize their product and market development strategies? 
It seems as if Starbuck’s product development reflects the needs and wants of their customers. They came out with compilation CDs due to customer requests. The artwork on their products also reflects the people in that particular city – with peach-shaped mugs in Atlanta and Statue of Liberty artwork in New York. Customers want cold drinks, tea drinks, low fat drinks, and Starbucks delivers. Not without proper market testing first though. Starbucks makes sure to test each new product first before rolling it out into the rest of their stores. This is important in making sure that most of the general public only gets the best of the best.
Why has Starbucks encountered difficulties in recent years? 

There is a thought that maybe Starbucks is becoming too big for it’s own good. “Their level of saturation in some markets leaves community members feeling as though they have been invaded.”
 Howard Shultz himself says, "Stores no longer have the soul of the past and reflect a chain of stores vs. the warm feeling of a neighborhood store."
 Starbucks has run into a cost issue, where they are demanding a price that is no longer reasonable for something that isn’t “special” any longer. Most of the early Starbucks goers enjoyed spending a quiet time with their cup of coffee, now they are out numbered by the customers who want their coffee fast and easy. The introduction of many new products has led to longer waiting times, greater skill needed by baristas, and the loss of the “coffee purist” customers.
What recommendations would you make to Starbucks marketing executives to help them moving forward in terms of their use of design as brand?
I would say that Starbucks needs to make their stores special again. I like the idea of new designs reflecting the character of each store’s surrounding neighborhood. Though there may be an issue due to the vast number of stores, causing close stores to appear similar still.
 I believe they should try to return to their roots and concentrate their store designs on the coffee experience. Making a place that isn’t so overwhelming with products, but is inviting and comforting. They should stick with their current logo and outside store design as it has become recognizable and this has led to a lot of their success. However inside their design should be warm and inviting and speak to the kinds of people who come there. With stores in a busy city center reflecting the urban life and stores out in peaceful suburbs catering to the quieter lifestyle.