Virtual Class taught by Professor Doug Bowman at Emory University's Goizueta Business School

1. How Starbucks Became a Global Brand
Presented by Prof Doug Bowman
2/5/2014

2. Chat Participants
Angela Bostick 04MBA (Moderator) – Associate Dean of Marketing
and Communications
Doug Bowman – Professor of Marketing, McGreevy Term Chair and
Senior Associate Dean for External Relations

3. Why are strong brands like
Starbucks so successful?

4. Draw three images that come to mind
when you think of ‘Starbucks’ …

5. Premium Product
(Premium Price)
Store
Environment
Service
Philosophy

6. Starbucks’ Customer Experience
How does Starbucks
deliver a Premium
Product?
Historic Target Customer:
What are the key
elements of the Store
Environment?
Q: What is her life like?
Describe Starbucks’
Service Philosophy
• Often female, ages 25-44
• White collar, educated, affluent

7. Designing the Branded Customer Experience
Brand
Value
Proposition
Target
Customer
Behaviors
Tendency to linger;
ritualistic consumption;
looking to self-indulge
Perceptions
+
Best coffee;
classy; upscale;
a “third place”

8. Three Important Questions
1. What are you
selling?
2. What are you really
selling?
3. What are you really,
really selling?

9. Three Important Questions
1. What are you
selling?
1. Who are your
customers?
2. What are you really
selling?
2. What are you
selling?
3. What are you really,
really selling?
3. Why should they
buy?

10. Two Major Points of Inflection for Starbucks
#1: Early-mid 2000’s
• Change growth model from
opening more stores to growing
same-store sales
image: starbucks.com/career-center/professional-services-careers
image: starbucks.com/career-center/retail-positions

11. How Does Satisfaction Change Over time?
Change in
Customer Satisfaction
Perf = Exp
Perf > Exp
Perf < Exp
Performance - Expectations

12. Two Major Points of Inflection for Starbucks
#1: Early-mid 2000’s
• Change growth model from
opening more stores to growing
same-store sales
image: starbucks.com/career-center/professional-services-careers
#2: Late 2000’s
• Recession leads to declining
sales and poor performing stores
image: starbucks.com/career-center/retail-positions

13. Interview with Howard Schultz
(http://www.youtube.com/watch?NR=1&v=ed-Nuokx2so)

14. Interview with Howard Schultz:
‘Focus on people, both employees and customers’
• Renew our level of personal responsibility and accountability
• First thing when you enter a store ... Find someone, one of our
people who is doing something right and acknowledge it as
soon as I can
• You didn’t mention the coffee … At the essence of Starbucks is
the humanity of the experience
• We had to put the customer in every single meeting we were in
youtube.com/watch?NR=1&v=ed-Nuokx2so

15. Top Box(es) Matter … A LOT
Loyalty
How likely is it that you would recommend
[your company] to a friend or colleague?
http://www.netpromoter.com/why-net-promoter/know/
1
5
Satisfaction rating
10

16. Deliver Your Brand with Every Interaction

17. Why are Strong Brands Like Starbucks
So Successful?
• Tight linkage between the brand value proposition
and the wants/needs of the target customer
• Innovation: important even in seemingly mature
product and service categories
• Principled leadership: values of the company reflects
how it does business

18. Background Info
Professor Douglas Bowman:
• PhD, University of Pennsylvania
• 15 year Professor of Marketing at Goizueta
• Also serves as Senior Associate Dean for External Relations, and CoDirector – Emory Marketing Analytics Center
• Teaches product and brand management and Syndicated Data Analysis
• Past winner:
– Emory’s highest teaching honor, the Emory Williams Award (2013)
– Marc F. Adler Prize for Excellence in Teaching (2004), which honors teaching quality,
course innovation and real-world problem solving.
• Accomplished researcher in the quantitative aspects of marketing, with a
substantive focus in the areas of marketing strategy and customer
relationship management