Comprehensive Brand Audit: Starbucks and Consumer Brand Equity

This report provides a comprehensive brand audit of Starbucks, focusing on consumer-based brand equity. It identifies major challenges faced by Starbucks, such as declining profits, slow brand evolution, and a narrow branding approach. The report analyzes Starbucks' brand positioning, brand identity, brand elements (image, differentiation, communication), and brand strategy. It also examines secondary associations and evaluates Starbucks' consumer-based brand equity model, including salience, performance, imagery, feelings, judgments, and resonance. The report concludes with recommendations to address the identified challenges and enhance Starbucks' brand equity. Desklib is a platform where students can find similar solved assignments and study resources.

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Brand audit
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Executive summary
The aim of this report is to discuss about the different factors in the consumer based brand
equity. This includes the brand communication, brand strategy, brand positioning and brand
identity. All these factors are being discussed from the perspective of Starbucks along with the
discussion of their impacts on the consumer based brand equity. In addition, this report also
identified a few major challenges being faced by Starbucks, which can be solved with the help of
effective branding strategies.

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Table of Contents
Introduction......................................................................................................................................3
Identification of the major challenges.........................................................................................4
Analysis of brand positioning of Starbucks.....................................................................................4
Analysis of brand identity of Starbucks...........................................................................................5
Analysis of brand elements..............................................................................................................7
Analysis of brand communication...................................................................................................8
Determination of the secondary associations..................................................................................9
Determination of brand strategy......................................................................................................9
Consumer based equity model of Starbucks....................................................................................9
Salience......................................................................................................................................10
Performance...............................................................................................................................11
Imagery......................................................................................................................................12
Feelings......................................................................................................................................13
Judgments..................................................................................................................................13
Resonance..................................................................................................................................14
Recommendations..........................................................................................................................14
Conclusion.....................................................................................................................................15
Reference.......................................................................................................................................17

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Introduction
Branding plays an important role for the contemporary business organizations in gaining
competitive advantages. This is due to the reason that branding helps the business organizations
in having more customer recall in the market and create a unique positioning element among the
competitors. In addition, it should also be noted that branding also helps the business
organizations in enhancing their business potentiality by means of relating with the customers
and enhancing the satisfaction level of the customers (Strebinger 2014). On the other hand, there
are few factors should be considered by the business organizations in initiating their branding
activities. In this case, the consumer based brand equity model is effective in determining the
different elements of the branding activities of organizations (Seo and Jang 2013).
Starbucks is one of the leading global organizations in the current time with having their
operation in number of countries around the world. They are known for their coffee and other
beverages. In addition, the logo of Starbucks is also one of the most known brands in the world
(Starbucks.com.sg 2018). This is further helping them in relating with the customers and entering
in the new markets. However, in the recent time, there are number of negative factors being
identified in regards to the branding activities of Starbucks. This is further leading to the
requirement of determining the brand elements of Starbucks.
This report will discuss about the major challenges being faced by Starbucks in the recent
time and which can be mitigated by proper branding strategies. In addition, this report will also
discuss each of the elements of consumer based brand equity model from the perspective of
Starbucks. This will help to understand the limitations with the current branding approach of
them. In accordance to these negative factors, a few recommended steps will also be discussed.

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Identification of the major challenges
 One of the major challenges being faced by Starbucks in the recent time is the lower
profits and revenue from their most potential markets. This is mainly due to the fact that
number of new entrants are performing better in the market and they are initiating
aggressive marketing and branding activities to stay ahead in the competition (Chua and
Banerjee 2013). Thus, the customer recall for Starbucks is getting reduced.
 Another major challenge identified for Starbucks is the lower extent evolution of the
branding of them. This is due to the fact the branding elements of them remain same from
their initial stage till now. On the other hand, the branding elements are continuously
evolving for the competitors of Starbucks. This is causing dilution of their brand value in
front of their competitors (Honack and Waikar 2017). This can also be mitigated with the
effective implementation of the consumer based brand equity model.
 Another challenge identified for Starbucks is narrower approach of branding. This refers
to the fact that in all these years of operation, branding of Starbucks is limited to the
coffee and a few other beverage offerings rather the expanding the brand with the change
in the trend of the market. For instance, some of their competitors are offerings breweries
for home purposes, while Starbucks is still aligned only with their café chains. This is
also restricting the evolution of their branding in front of growing competition.
Analysis of brand positioning of Starbucks
Brand positioning is the first element of the consumer based brand equity model. This
refers to the value propositions based on which a certain brand is positioned in the market.
Effectiveness of the brand positioning also helps in enhancing the competitiveness of the brand

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as against their competitors. In case of Starbucks, two of the major positioning variables for
Starbucks are price level and experience. It is reported that Starbucks is operating in the premium
price level with having their products priced at higher price points (Wang, Lin and Kominek
2013). This is having both advantages as well as disadvantages for them. One of the major
advantages of premium pricing strategy of Starbucks is increased profitability even with having
limited sales volumes. In addition, initiation of premium pricing is also enabling them to
maintain their exclusive branding in the market.
On the other hand, the major disadvantage for premium pricing of Starbucks is limitation
in market and brand expansion. This is due to the reason that branding activities will be
successful enough in the market only if the market coverage of the brand is more. However, due
to the premium pricing of Starbucks, the targeted customer segments are less and probability of
expansion of the brand is also low. Another variable being followed by Starbucks in their brand
positioning is experience. Being operating in the premium and niche market segments, added
experiences are the one that will justify the higher price tag (Harith, Ting and Zakaria 2014). In
accordance to this theory, the brand tag line of Starbucks also states about something more to be
offered with their coffee. This includes the ambience of the stores, service quality and aspiration
value. The social status and symbol being offered by the brand of Starbucks to the customers is
distinctive and cannot be matched with that of their competitors.
Analysis of brand identity of Starbucks
Brand identity is one of most successful branding factors for Starbucks due to the reason
that logo of them is one of the most widely known logos in the world. In addition, the use of the
logo of Starbucks is more extensive compared to their brand name. For instance, logo of

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Starbucks is used in coffee cup and packaging materials rather than the brand name. According
to the consumer based brand equity, the more effective will be the brand identity among the
customers, the more will be the probability of the brand to have emotional connection with the
customers (Bookman and Martens 2014). In addition, positive branding activities will also
enable the brand to create a feeling and imagery among the target customers. In the case of
Starbucks, brand identity is helping them to have more recall value in the market. The brand logo
of them is quite relatable among the customers and any products can be pushed in the market
using the same logo. This will be further made possible with the fact that the brand identity of
Starbucks is related with social status, quality and experience.
There are some other major brand elements also being identified that are helping
Starbucks in enhancing their brand identity. Some of these brand elements are smell, colors,
artifacts, images, store ambience and service standard (Ajello and Dickinson 2014). There are
number of reports being published, where it is stated that a good number of customers are getting
attracted towards Starbucks just for their unique smell in the café. In addition, the soothing
music and colors used by them are also quite relatable with the mood of the target customers.
Starbucks extensively use the pale green color in their store designing and logos from the initial
stage of their operation. This helped them in creating the same image in the mind of the customer
and currently, the logo of Starbucks with its green color will be identified as Starbucks by the
customers. In addition, any coffee cups placed with having the same green color will also be
identified as Starbucks by the majority of the customers (Anselmsson,Vestman Bondesson and
Johansson 2014). Thus, it can be concluded that brand identity of Starbucks can be considered as
favorable and positive.

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The service quality of Starbucks is also maintained in same standard in the each and
every store of them across the world. This includes the behavior of the employees and store
ambience. Thus, maintenance of the same level and standard of service by Starbucks is helping
in having same brand identity among the customers from the initial stage (Arai, Ko and Ross
2014). In the current time, the customers are having the impression and idea about what service
standards can be expected from any Starbucks stores across the world.
Analysis of brand elements
Some of the major brand elements of Starbucks are brand image, brand differentiation
and brand communication. In terms of the brand image, Starbucks is one of the few global
brands in the world, which is having fewer instances of ethical business practices. Thus, they
have faced fewer instances where their brand image will get affected (Zhang 2015). In the
current time, brand image is one of the major determining factors for the business organizations
in operating in the market. Customers tend to opt for the brand that is having favorable and
positive brand image in the market and with which the mood of the target customers can get
matched. In accordance to this situation, Starbucks is maintaining their brand image by means of
more brand visibility and different types of endorsements. The average mood of the customers
coming to café will be more relaxing and casual (Sasmita and Mohd Suki 2015). In accordance
to this, Starbucks is having homely and friendly environment in all of their stores. On the other
hand, the extensive use of the logo and the brand name is helping Starbucks in creating better
visibility in the market.
In the case of consumer based brand equity, the major role of brand image is to
communicate to the customers about what the brand is all about. Thus, the positioning of the

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brand in the mindset of the customers will be highly dependent on their brand image. The more
will be the effectiveness of the brand image of Starbucks, the more will be their probability of
getting the favorable response from the side of the customers by means of judgment and feelings.
In the case of Starbucks, celebrity endorsements are also helping them to create the positive and
extended image among the customers (Malik et al. 2013). For instance, endorsement of
Starbucks by Oprah Winfrey in her talk show is helping them to have better visibility along with
relating their products with leisure culture of the target segment customers.
Analysis of brand communication
Brand communication is another major element of the branding activities. This refers to
the process of communicating and transmitting the brand knowledge to the target customers.
Thus, the more effective will be the process of brand communication, the more will be the
efficiency of the brand in enhancing the awareness in the market. Some of the major
characteristics of brand communication are identification of the target audience, determining the
goals, developing the subject matter and evaluation (Luxton, Reid and Mavondo 2015).
Identification of the target audiences is important due to the reason that communication
strategies and approaches are being designed according to the preference pattern of the target
customers. In the case of Starbucks, the brand communication is being initiated with the help of
social media and some other premium mediums. This is in relation to the taste and preference
pattern of their target customers. Determination of the goals is also important due to the reason
that brand communication can have different sets of objectives for different organizations. In the
case of Starbucks, their major objective of brand communication is to attract new customers
along with communicating with the existing customers regarding the changes in their product
strategy.

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Determination of the secondary associations
Secondary associations are one of the new elements in the branding activities and are
being extensively used by the contemporary business organizations. This refers to the process of
associating with another brand from different sector in co-creating a new value proposition for
the customers (Huang and Sarigollu 2014). In the consumer based brand equity, secondary
association helps in targeting larger section of the customers along with leveraging the
competencies of the partnered brand. Thus, the more will be the value proposition for the
customers, the more will be recall value for the brand.
Determination of brand strategy
Brand strategy is the most core element in the entire process of branding activities. This
refers to the process of initiating the particular approach in positioning and communicating the
brand in the market. It is important in the consumer based brand equity due to the reason that
brand strategy helps in effectively placing the brand in the market. Some of key elements of
brand strategy are advertisement media, content, target segment identification and pricing (Jones
and Bonevac 2013). Implementation of all these elements helps in having an ideal and proper
branding approach. Brand strategy will also determine the extent to which the customers will
relate to the brand and they will feel the product important in their consumption pattern.
Consumer based equity model of Starbucks
As stated by Çifci et al. (2016), the Keller’s brand equity model defines the consumer
based brand equity which evaluates the way the brand has been developed in order to shape a
strong image into the minds of the consumers. The stronger the equity of the brand, more will be
sales volume. The brand equity model defines the aspects which the consumers consider before

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purchasing a product or being associated with the brand. The figure below shows the areas in
which brad equity has been divided and consist of Salience, Performance, Imagery, Feelings,
Judgments and Resonance (Ekinci 2018). The model will be applied to identify the brand equity
of Starbucks and the image they want to create in the minds of the consumers.
Figure 1: Keller’s Brand Equity model
(Source: Keller 2016)
Salience
The mission of Starbucks is to stimulate and develop the spirit with human beings by
providing them with the best coffee experience. The name of the organization has been derived
from the chief mate on the whaling ship, named as Perquad. The design of the logo represents
the story and the brand name adequately (Christodoulides, Cadogan, and Veloutsou 2015). The
logo of the organization is a twin tailed mermaid which is the representation of a siren in Greek
methodology that guides the ships wrecked by the storm towards the coast of any island.
Similarly, the logo invites all the coffee lovers from all over the world for a blissful experience
of coffee. The company has developed a logo that effectively portrays the story of the company

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and the role they are willing to play in the lives of the consumers. The brand awareness of
Starbucks is quite high and the logo of the brand remained unchanged even after so many years
signifies the ability of the brand to stand out among the other companies in the market.
Figure 1: Starbuck’s logo
(Source: Starbucks Newsroom 2018)
Performance
The primary characteristics of Starbucks is to become a passionate gossipmongers of
premium quality coffee. The secondary characteristics of the company is providing other
complementary services such as good ambience, comfortable seating, appropriate music for
better atmosphere and free Wi-Fi. The efficiency of the company is that they have made
successful expansion in countries all over the world. The turnover of the company is quite
strong and is the market leader in their product segment (Bianchi, Pike and Lings 2014). The