How Starbucks Became the Apple of Coffee

If you owned stock in Starbucks and Apple, you'd be sitting on a 1000% return on your investment over the last 7 years.

The phenomenal rise of these two companies is the result of clear focus on their brand marketing strategy, one which required a conscious split from traditional BRANDING based advertising, to marketing fit for the 21st century: BRAND EXPERIENCE.

In this presentation, we'll look at the success story from the Starbucks side: a case study of how Starbucks became a loved brand like Apple and the 5 factors that underpin its class-leading marketing strategy.

Published in: Business, Marketing

How Starbucks Became the Apple of Coffee from Graham Brown

Transcript

1. How Starbucks Became the Apple of Coffee
2. Build a Brand Worth Talking About GRAHAMDBROWN
3. GRAHAMDBROWN.COM3 Featuring Case Studies from my Brand Leadership Manual http://www.GrahamDBrown.com/Manual
4. GRAHAMDBROWN.COM Starbucks & Apple What have these two brands got in common?
5. GRAHAMDBROWN.COM …they share class leading growth
6. GRAHAMDBROWN.COM Let’s talk about How… The 5 Factors that created an   Apple-style Brand Experience
7. GRAHAMDBROWN.COM In this Presentation 1. Brand Experience 2. Brand Love 3. Customer Experience 4. Shared Experience 5. Social Space
8. GRAHAMDBROWN.COM How they think different… What Starbucks & Apple do.. What the Rest does… Brand Experience Brand Management Brand Love Brand Like Customer Experience Campaigns Shared Experience Shared Content Social Space Social Media
9. GRAHAMDBROWN.COM9 And as a bonus to Slideshare users, if you want to access my walkthrough video of this presentation, click the link   in the next slide
10. GRAHAMDBROWN.COM CLICK HERE to ACCESS this FREE explainer video giving you background insights and analysis for this presentation
11. GRAHAMDBROWN.COM #1 BRAND  EXPERIENCE (not branding)
12. GRAHAMDBROWN.COM Starbucks & Apple Both companies understand Branding doesn’t build brands
13. GRAHAMDBROWN.COM Starbucks: minimum advertising this is a chart of annual ad spend
14. GRAHAMDBROWN.COM Brand Experience a fundamentally different approach to marketing…
15. GRAHAMDBROWN.COM15
16. GRAHAMDBROWN.COM This is notthe Starbucks brand Branding is dead and Starbucks knows it
17. GRAHAMDBROWN.COM This is the Starbucks Brand
18. GRAHAMDBROWN.COM Brand Experience The Experience is the Brand
19. GRAHAMDBROWN.COM PEOPLE METRICS 85 of brand happens in daily interacBon (tweets, status updates, content shares, conversations between customers, between customers and employees) PEOPLE CULTUREMETRICS Brand Experience CULTURE % The Starbucks Brand Experience
20. GRAHAMDBROWN.COM #2 BRAND LOVE (not brand likes)
21. GRAHAMDBROWN.COM21
22. GRAHAMDBROWN.COM Share the love don’t forget to   hit the LIKE button so other Slideshare users can discover this too
23. GRAHAMDBROWN.COM “the most powerful and enduring brands are built from the heart.” Howard Schultz, CEO Starbucks
24. GRAHAMDBROWN.COM EMOTION vs LOGIC don’t fall in love with the product, fall in love with what the product does for them
25. GRAHAMDBROWN.COM25 look at the Apple marketing philosophy Empathy: understand their needs better than any other company
26. GRAHAMDBROWN.COM This is not coffee…
27. GRAHAMDBROWN.COM fall in love with what your product does for them…
28. GRAHAMDBROWN.COM #3 CUSTOMER  EXPERIENCE (not campaigns)
29. GRAHAMDBROWN.COM APPLE IS A RETAIL CO. 62% of Apple’s US employees work for Apple Stores
30. GRAHAMDBROWN.COM
31. GRAHAMDBROWN.COM BRAND HAPPENS You can’t control the brand conversation, but you can create a space for people to explore and interact with it in a positive way
32. GRAHAMDBROWN.COM
33. GRAHAMDBROWN.COM EVOLVE THE EXPERIENCE Create a feedback loop and use technology to evolve that experience every day
34. GRAHAMDBROWN.COM Build a platform to create feedback MyStarbucksIdea is the cornerstone of improving their experience
35. GRAHAMDBROWN.COM Ask: how can we make this experience better? Thanks!
36. GRAHAMDBROWN.COM
37. GRAHAMDBROWN.COM Remove friction at every customer touchpoint Never set out to be a payments player but to fix a problem…
38. GRAHAMDBROWN.COM
39. GRAHAMDBROWN.COM DO WHAT’S NEEDED If Starbucks needs to become a tech company to deliver the best experience, Starbucks will become a tech company.
40. GRAHAMDBROWN.COM
41. GRAHAMDBROWN.COM "They're creating community hubs online, They take what they're really, really good at as a company — in terms of consumer experience and thinking about what consumer relationship is to the company and to the brand.”  - Michael Schutzler, CEO of the Washington Technology Industry Association
42. GRAHAMDBROWN.COM How Starbucks Became a Tech Company
43. GRAHAMDBROWN.COM “The businesses that utilize technology to enhance their customers' experiences are going to be the big winners in the years to come. I'd definitely put Starbucks in that category.”  - Kevin Johnson, COO President Starbucks
44. GRAHAMDBROWN.COM #4 SHARED EXPERIENCE (not shared content)
45. GRAHAMDBROWN.COM
46. GRAHAMDBROWN.COM PEOPLE ARE SHARING Millions of photos tagged #starbucks across social media platforms…
47. GRAHAMDBROWN.COM47 19 million photos   tagged #Starbucks on Instagram!!! Let’s take a closer look
48. GRAHAMDBROWN.COM Starbucks Dominates Instagram Shares Number of photos tagged on Instagram by brand name SOURCE: TOTALYOUTHRESEARCH BASED ON EMARKETER DATA STARBUCKS IS ONE OF THE MOST POPULAR BRANDS ON INSTAGRAM Nearest big brand Apple not even half of Starbucks Earned Media Pepsi Coke Apple Starbucks 19.1m 9.1m 5.2m 3.4m That’s a lot of people sharing Starbucks experiences
49. GRAHAMDBROWN.COM
50. GRAHAMDBROWN.COM EARNED MEDIA Give customers the tools to tell their story…
51. GRAHAMDBROWN.COM
52. GRAHAMDBROWN.COM #5 SOCIAL SPACE (not social media)
53. GRAHAMDBROWN.COM
54. GRAHAMDBROWN.COM WE ARE SOCIAL BY DESIGN Modern technology overlooks the fact that we make decisions in their social context
55. GRAHAMDBROWN.COM
56. GRAHAMDBROWN.COM SHOPPING IS SOCIAL Nothing can replace the appeal of sharing a space, a conversation or an experience in the offline world
57. GRAHAMDBROWN.COM
58. GRAHAMDBROWN.COM
59. GRAHAMDBROWN.COM GEN DISCONNECTED Don’t believe the hype: Millennial customers are the loneliest generation…
60. GRAHAMDBROWN.COM Families are spending less time together % of families who make time for… family gets together every day family shops together every week family has annual vacation together 1991 2001 2011 It’s not just families but society-‐wide we have less social contact than 20 yrs ago
61. GRAHAMDBROWN.COM FRIENDS > “FRIENDS” Sure, they may have 1500 “friends” on Facebook, but they value the offline, analog interaction with   real-world Friends more than ever
62. GRAHAMDBROWN.COM
63. GRAHAMDBROWN.COM SOCIAL SPACE Starbucks is that  “3rd Place”
64. GRAHAMDBROWN.COM “A third placebetween work and home…” A lot of what people share about #Starbucks is related to friends
65. GRAHAMDBROWN.COM “In an increasingly fractured society, our stores offer a quiet moment to gather your thoughts and center yourself.” -‐ Howard Schultz, CEO
66. Build a Brand Worth Talking About GRAHAMDBROWN
67. GRAHAMDBROWN.COM …and by the way if this presentaBon is of useful to you hit the LIKE buYon so other Slideshare users can discover it too
68. GRAHAMDBROWN.COM Share the love don’t forget to   hit the LIKE button so other Slideshare users can discover this too
69. GRAHAMDBROWN.COM69 Learn how to market like Apple, Starbucks and LEGO http://www.GrahamDBrown.com/Manual
70. GRAHAMDBROWN.COM CLICK HERE to ACCESS this FREE explainer video giving you background insights and analysis for this presentation

The world

Wednesday, May 13, 2015