Starbucks marketing strategy makes a global brand presence look as easy as selling on the high street. But behind every success story is often a huge amount of research and work, and Starbucks is no exception. Their localisation team of this premium coffee brand makes a huge effort to research culture, history, and local tastes adapting as necessary whilst retaining that original first Starbucks store coffee experience. But how does the Starbucks brand manage to do this so successfully time and time again?
In this article, we will learn how Howard Schultz, the then chief executive officer, played a pivotal role in transforming Starbucks into a globally recognised chain in the coffee industry, conforming to local traditions and winning hearts and minds internationally. Get yourself a pumpkin spice latte and read on.
[ez-toc]
How Did Starbucks Gain A Global Presence?
There are 32,000 Starbucks stores worldwide, with stores in 80 countries. In the United States alone, Starbucks operates over 14,000 company-owned licensed stores (one of which is the largest Starbucks in the world), while in China, the number of Starbucks stores has surpassed 4,000. The coffee chain also boasts a strong presence in Japan, South Korea, and the United Kingdom. This global expansion was achieved using Starbucks’ unwavering commitment to providing speciality coffee that either starts your day or rejuvenates it, making it the first choice for dedicated coffee drinkers.
But whilst Starbucks coffee is undoubtedly a high-quality product and a draw in itself, this alone would never be enough to expand as fast as it did. So how did this coffee shop really become such a global brand?
Adapting To Local Tastes
The main secret behind the number of Starbucks stores worldwide is its ability to adapt to local tastes and preferences by adding region-specific menu choices.
For instance:
- Japan – In Japan, Starbucks offers the delightful Sakura Blossom Cream Frappuccino, a seasonal favourite that celebrates the cherry blossom season.
- India – In India, Starbucks has embraced local flavours with a range of spiced teas and coffee drinks, including the popular Masala Chai Tea Latte.
- France – Starbucks introduced the Viennese coffee and food line, featuring items such as red fruit cake, brioche and foie gras sandwiches.
Localising The Starbucks Store Experience
While the Starbucks logo remains a cultural icon and ensures brand consistency, Starbucks wanted all their locations outside of the USA to reflect the unique character of each market. In China, for example, Starbucks caters to cultural identity with stores that feature traditional Chinese architecture and design elements, creating a harmonious blend of modernity and tradition. This approach seeks to identify and show respect to the local populace, forming ties with local communities.
Starbucks Stores By Country
A rundown on the number of Starbucks stores per major country shows just how well Starbucks focuses on local culture to reinforce their brand identity, managing to create a lasting foothold and customer loyalty that rapidly adds to Starbucks’ revenue.
Starbucks has 18 design centres around the world. Each one works to understand what is considered normal design country by country, crafting a store that blends in with a calm, familiar atmosphere.
Japan Starbucks Stores
Starbucks follows traditional Japanese building design: low roofs and often with references to its national religion, Shintoism. To recreate this feel, Starbucks has partnered with local designers to identify the spirit of a city. In Fukuoka in Kyushu, Starbucks built a coffee shop with 2000 interlocking wood blocks, to give the impression of a forest to fit with the spirit of Shintoism, honouring nature, making an emotional connection, and enhancing the customer experience.
This is not just about great coffee. Japanese Starbucks also offers a selection of localised drinks and food. It introduced green tea ‘matcha’ (ground tea leaves), frappuccinos, and cookie crumble with white pudding; Asian consumers are accustomed to beverages with solids mixed in.
Initially, Starbucks launched with American foods which to Japanese tastes were oversized and too sweet. They’ve since begun using local bread for downsized sandwiches and reduced sweetness to match the relatively low-sugar diet that the Japanese enjoy. It’s the art of adapting to local tastes.
China Starbucks Locations
Starbucks opened its first store in China in 1999, but it followed a very different method than it did in Japan.
Due to successive food scandals, the Chinese were already quite trusting of foreign food and drink brands in 1999. Rather perversely, this meant that ‘localising,’ by branding itself within China as a Chinese coffee chain, would have potentially harmed Starbucks’s growth in the country.
China’s position as an emerging economy has created an aspirational class (like the one that existed in Europe around the turn of the 19th century). The Chinese bourgeoisie seek out consumables of status often connected to premium pricing. This worked in the coffee chains’ favour, allowing Starbucks to position themselves as an aspiration brand. So, Starbucks bumped coffee prices up to around $4 a cup, compared to around £2.30 in the UK.
After opening and maintaining a strong foothold, Starbucks nevertheless decided to begin to add to the cultural-themed store count in China. In one of China’s oldest cities, Xi’an, they hired famed Japanese architect Kengo Kuma to design the many-tiled, geometric exterior for the city’s shop. As well as traditional advertising, the marketing team promoted the Starbucks app on social media channels. The app is widely used for mobile purchases, driving in-store sales, and enhancing customer experience through technology. All these channels continue to promote Starbucks consistent branding.
However, their time in China hasn’t been without problems. Starbucks American cafe culture was all wrong for the Chinese, who would rarely go to a cafe alone. Market research showed that they would prefer to go in groups of up to 10 people, and this would strain western coffee stores built to accommodate single drinkers and two-person groups. Chinese stores were adapted so they could accommodate these larger numbers of people.
And who can forget the time Starbucks launched a store within the Forbidden City, which for 400 years remained ‘forbidden,’ and only recently opened up to tourists? Starbucks was originally invited to this cultural icon by curators at the city to explore ways the now-museum could earn money – but it didn’t sit well with Beijing who possibly felt it was a little too much like capitalist imperialism. It’s rather akin to someone building a Starbucks in Buckingham Palace after we had lost our monarchy.
The idea is to be aware of and respect culture and cultural sentiments, and Starbucks learned a valuable lesson here.
Saudi Arabia (Middle East)
When Starbucks launched in the Middle East it was met with immediate friction.
Because of the decency laws concerning women, the topless mermaid insignia was seen as pornographic, so they changed the iconic mermaid into a crown on waves instead.
Although this wasn’t technically a design choice, it mirrors its experience in the Forbidden City in China: indicating the importance of accurately calculating cultural demands. In Saudi Arabia , Starbucks controversially segregated its stores into male and ‘family’ sections for women, adhering to the local culture of Islamic societal norms.
Eventually, Starbucks began to offer a range of iced coffee products that found immense popularity within Saudi Arabia.
France And Europe
Unlike the Chinese, who see Starbucks as an aspirational brand, the French initially found Starbucks overpriced and of lower quality compared to their own cafe culture. It was sort of the inverse of what they had experienced on other continents.
Europeans were famously derisive of American excess, take-away culture, and overfamiliarity (for example, giving baristas name tags was thought to be insincere and overtly American). They left Starbucks well alone, and its European stores were underperforming.
Perhaps the crucible of Europe, an early challenge for Starbucks, strengthened its conviction in the importance of localisation. In France, it introduced the ‘Viennese’ coffee (essentially, coffee or hot chocolate with cream) as well as a food line more suited to continental, as opposed to British or American, tastes: red fruit cake, brioche, and foie gras sandwiches. In Britain, Starbucks has interpreted our tastes and added scones and bacon butties to the menu.
Starbucks has also refocused its energy on mirroring local styles and honouring European history. In Amsterdam, it built stores that supported local cultural scenes, for instance building a stage for poetry in a converted bank vault at Rembrandtplein (Apple have attempted something similar in London, Paris and Berlin, occupying Victorian buildings as well as the Louvre). Finally, they had customers coming into their shops.
The final piece of the strategy was franchising. Starbucks franchises out an increasing proportion of its stores in the UK, emulating the independent coffee stores which are appreciated in the Old World. Just over 60 per cent of Starbucks stores in the UK are franchises, compared to 41 per cent in the US.
Conclusion
The strength of the Starbucks expansion comes with having a heavily researched localisation team, especially breaking into the East Asian market where many other foreign brands have traditionally struggled.
Starbucks shows a keen sense of sympathy, heritage, and culture (for the most part), and fans abroad have spoken with their wallets. Using innovation in their marketing strategy, Starbucks has created a loyal customer base and turned coffee into a ‘must-have’ as well as a destination with buzz, promoting engagement not just with the coffee but with the brand.
Starbucks main goal endures, to have a place to relax at the start or middle of your day, whilst they use their incredible research team to seek out innovative methods integrated with the values of the country in question to create a positive impact. It shows there’s more to localisation than scouring data sheets and adding green tea flavouring to beverages. Also key to their success is some slick social media marketing. Starbucks really has created the perfect blend.
FAQ: How do Starbucks stores promote ethics?
The company’s mission is to “inspire and nurture the human spirit – one person, one cup, and one neighbourhood at a time.” To achieve this, Starbucks has implemented a range of initiatives aimed at reducing its environmental impact, with sustainable practices such as using renewable energy and sourcing coffee beans in an environmentally-friendly way.
FAQ: Where was the first Starbucks store outside of the USA?
On the 1st of March 1987, Starbucks opened its first store outside of the USA. Howard Schultz aimed to expand the company beyond Seattle into Vancouver, Canada. Alongside Starbucks co-founder, Gordon Bowker, his campaign envisioned creating Italian-style cafes, collaborating with Dave Olsen and identifying Vancouver as a suitable location. Olsen oversaw the setup, interviewed applicants, and installed equipment.
FAQ: What is a Starbucks Reserve Roastery?
Starbucks stores and reserve roasteries are two different brands. Whilst one offers coffee, the other offers a unique experience of immersive spaces dedicated to the journey of coffee from bean to cup. Each roastery features on-site roasting, interactive brewing methods, and exclusive beverages/food options.
