Essays on Brand Marketing and Equity at Starbucks Case Study

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The paper "Brand Marketing and Equity at Starbucks" is a wonderful example of a case study on marketing. Starbucks has established a strong geographical presence globally and maintained a market share of more than 36.7 percent in the U. S. market. CBBE model can be applied to assess the progress that Starbucks has achieved in building its brand and examine whether the company has achieved success regarding efforts to build a strong brand. It is established that Starbucks has managed to maintain a competitive advantage through successful brand equity. While brand salience is a significant initial step in the construction of brand equity, it is not particularly adequate.

Starbucks has leveraged secondary associations to achieve brand salience or awareness. However, it should improve brand performance to improve consumers’ experiences when consuming a brand. This will ensure that they do not consider the price, yet also provide the company with an opportunity to achieve product diversification away from the advantages of aesthetic and locations appeal. Starbucks should also introduce a new product portfolio that can be targeted for developing and emerging markets, where premium prices have not been very effective.

Additionally, it should also execute corporate social responsibility as part of its tactic in building its reputation in developing countries. 2. Introduction Starbucks Corporation is a leading American company that markets and retails of specialty coffee. Established in 1971 in Seattle, the company currently operates in more than 75 countries globally, where it operates more than 25,000 shops (Hoovers 2017). The key product mix comprises handcrafted and roasted premium priced coffees along with other beverages. In the third quarter of 2013, the company’ s total estimated revenue amounted to $14.89 billion.

Starbucks is usually considered a go-to place when people can socialize and work while drinking coffee. This concept is consistent with Starbuck’ s marketing approach, as the company seeks to create a relaxing atmosphere where consumers can stop between work and home. The concept has been greatly successful and is attributed to a rise in revenue to $18.5 billion in 2015 from that of 2013 (Hawley 2015). Apart from coffee products, the company also sells a range of tea products. It has also licensed their trademarks using other channels like grocery, licensed stores, along with many other foodservice accounts.

The company has also vigorously marketed its products mix in combination with other brand names found in its range of enterprises like Teavana, La Boulangem Starbucks VIA, Tazo, Starbucks Refreshers, Verismo, and Evolution Fresh. The key competitors include McDonald's Corporation, Nestlé , and Dunkin' Brands Group (Hoovers 2017). It mainly operates in the retail coffee industry, which has been experiencing significant retardation since 2009 as a result of the 2009-2010 economic crisis and a gradual shift in consumer tastes, as consumers are today spending less on luxuries like eating out and choose to buy low-priced items rather than high-priced coffee drinks because of attenuation of budgets following an economic slump.

Currently, the company has established a strong geographical presence globally and maintained a market share of more than 36.7 percent in the U. S. market. It is also one of the most recognized brands globally and has served to leverage its brand equity through franchising and licensing its brand logo and merchandising flagship products (Hawley 2015; Saad, 2015).



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