With an effective brand strategy, Starbucks is the highest-valued restaurant brand in the world and has more than 38,000 locations across the globe — 16,000 in the US. In 2024, the brand value totaled $60.7 billion, beating out McDonald’s, the 2nd leading brand, by more than $20 billion.
What started as a coffee roaster and equipment seller in 1971 has become a dynamic, industry-impacting global powerhouse. How did that happen?
It was no accident. The brand was built with strategy first — including a thoughtfully designed identity, carefully crafted plan to build awareness, effective incentives to encourage loyalty, and branded environments that deliver consistent, exceptional customer experiences.
Where the Starbucks Story Starts
You may already know the story of Starbucks’ beginnings, but let’s revisit it briefly. College friends Jerry Baldwin, Gordon Bowker, and Zev Siegl wanted to bring home to Seattle the high-quality coffee they’d fallen in love with in other parts of the world.
Using borrowed funds, they opened their first coffee store in their hometown in 1971. With a little help from Alfred Peet of Peet’s Coffee and Tea, the three started roasting their own beans. Within 10 years, they’d opened three more stores and begun positioning Starbucks as a go-to for fresh-roasted coffee.
Starbucks’ Hummingbird Effect
Then, one decision they made in 1982 became their Hummingbird Effect that rippled throughout the company and set it on course for global success. What was the decision? They hired Howard Schultz as Director of Marketing.
At the time, Schultz was a sales rep for Hammarplast, a company that made housewares and kitchen equipment. Starbucks caught Schultz’s attention when the company bought a large number of drip-coffee makers. He decided to drop in for a visit… and found a reason to stay.
A year later, when Starbucks sent Schultz to a conference in Italy, he came back enamored by the coffee culture he’d experienced in Milan. Schultz wanted to build Starbucks into a brand that cultivated that same culture.
The new vision clashed with the founders’ ideas, so in 1987, after parting ways and starting his own company, he came back again. This time, he bought Starbucks, and the brand transformation was underway. Soon, more than 100 locations had opened their doors.
Brand Strategy
With the change in leadership, the company’s brand strategy had completely changed. The founders had positioned Starbucks as a supplier of high-quality coffee and equipment. The first mission statement read: “Establish Starbucks as the premier purveyor of the finest coffee in the world while maintaining our uncompromising principles as we grow.”
When Schultz took the helm, he envisioned a place to fill the gap between work and home, now known as a “Third Place.” He saw a community and culture united by a love of coffee. In 2024, the brand’s mission statement expresses that clearly: “With every cup, with every conversation, with every community – we nurture the limitless possibilities of human connection.”
A successful brand starts with strategy — positioning, core values, customer insights, and brand voice.
Brand Identity
Brand identity makes strategy verbal, visual, and real. When the founders had started the search for a name, they wanted it to reflect their region and its ties to early coffee traders. They also wanted it to evoke an adventurous spirit. They looked to the classic tale of Moby Dick for inspiration and chose the name of first mate Starbuck.
Then, Terry Heckler, the artist who created the now iconic logo, opted to include the twin-tailed mermaid of Greek mythology who was known for seducing sailors with her song. Heckler said she was “the perfect metaphor for the siren song of coffee that lures us cupside.” Although the logo has evolved over time, the siren remains front and center.
“The Siren is our muse, the face of our brand. Her image and our strong wordmark are our most recognizable brand assets.” – Starbucks
Brand Awareness
Starbucks has spared no expense to build brand awareness. In the 2023 fiscal year, the company spent $500 million US on advertising. But that’s not all they’re doing to attract more coffee drinkers.
Starbucks excels at leveraging user-generated content with campaigns like the annual Red Cup event that invites customers to share photos of their red cups with hashtags like #StarbucksRedCup or #RedCupDay2024.Thoughtful teasers leading up to the release build excitement and encourage social media sharing.
In 2021, Starbucks teamed up with Taylor Swift to celebrate the release of her album Red (Taylor’s Version), offering a special drink inspired by the singer—“Taylor’s Latte.”
Campaigns like these continue increasing awareness for a brand that’s not showing any signs of slowing down.
Brand Loyalty
“Starbucks Rewards Program generates customer loyalty, increased revenue, and data for the company to create meaningful 1:1 relationships and personalized marketing efforts.” – Harvard Business Review
On November 14, 2024, a CBS News headline read, “It’s Starbucks Red Cup Day. Here’s what to know about the event.” Not only does the annual campaign increase brand awareness, but it also encourages loyalty. Anyone using the famed red cup will enjoy a discount on their orders.
They’ll also enjoy the satisfaction of partnering with the brand for a healthier planet. The company has committed to cutting waste by 50% by 2030, and the reusable cups appeal to those interested in being a part of that greater mission.
It’s easier to get more business from customers who already know, like, and trust you, and Starbucks is counting on that. By 2022, the company had 28.7 members in its loyalty program.
Branded Environments
Walk into a Starbucks anywhere in the world, and you know what to expect. The brand has been successful at creating consistency in their branded environments in every corner of the globe.
From airports to standalone brick-and-mortar stores to small counters tucked away in retail or grocery stores, you’ll recognize the iconic brand’s colors, logos, product packaging, and customer service.
But more than that, you’ll enjoy the experience of the “Third Place,” where you can relax and sip steaming flavored brews with family, friends, and colleagues.
Starbucks’ success stems from a well-executed strategy that includes every aspect of branding. Looking for similar success with your brand? Reach out to Hummingbird Creative Group.
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