Tuesday, August 16, 2005

Emotional Marketing – the Starbucks example

Starbucks is one of the strongest global brands around – without following the marketing text book.
Its complicated logo is not memorable, and most people will not be able to recreate it if you ask them to. They will describe it as “something green” “roundish” with a “person or something” in the middle. The slogan is not memorable either, and before you rack your brains, Starbucks doesn’t have one.
The packaging and collateral are nothing special and I challenge you to find an advertisement in any magazine. Starbucks does advertise, but uses emails as the preferred medium.
So what is the success factor of the Starbucks brand? The emotional experience of its consumers – they feel sophisticated and part of what many brand experts refer to as a "coffee house" community.
For the Starbucks community, coffee is not just a beverage, but it is a ritual, a habit, a treat, and a satisfying reward all rolled in one.
That’s the reason why Starbucks’ cup sizes are "grande" and "venti," not medium or large. Each cup of coffee is also freshly made by a "barista" at a separate counter and never behind a wall or out of sight from the customer. The Starbucks store has tables and chairs for congregating or reading and working. , and many have plush sofas and armchairs. Many Starbucks also have Internet connection for their customers’ convenience.
The Starbucks success formula works well around the world.
They only failed in one market: Israel.
Starbucks entered the Israeli market with a local partner (Delek). The emotional marketing concept of Starbucks failed. Israel has a strong coffee culture for more than 50 years. Therefore, the coffee market is saturated with strong and successful chains (Arcaffe, Kapulski, Coffeebean & Tealeaf) that serve a wide range of gourmet coffees. Starbuck’s French roast is not a favorite.
Starbucks was unable to distinguish itself from its competitors, except for its higher prices. In 2003, Starbucks decided to close its 6 outlets.

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