After a Howards Schultz themed reading spree that included “Onward”, “Pour Your Heart Into It”, and “The Starbucks Experience” I felt inspired to create an ongoing case study of Starbucks.
One interesting thing about the culture of Starbucks is that they originally succeeded thanks to an amazing culture, than sadly went off the path, as many of us Starbucks junkies have experienced over the last couple of years.
I had a chat about the culture of Starbucks with a former Starbucks employee. She summarized the decline of the once strong Starbucks culture through one, all to common, example. She said “All the pieces for a great culture were present. We all were told exactly how to live the company values. However, management failed to live by example, so quickly each employee started to deviate from the desired culture and create sub-cultures based on each branch managers behaviors.”
I should point out that this former employee worked at Starbucks during the time without Howard Schultz at the helm, and Howard admits and addresses their cultural misalignment in “Onward”.
I recommend reading “Pour Your Heart Into It” and “Onward” back to back to truly get an understand of Howard and the vision for Starbucks.
A Summary of “The Starbucks Experience”
Starbucks has become a top global brand by adhering to the following five key principles
- “Make it your own” – Customize the experience.
- “Everything matters” – Focus on every aspect of the job. Never ever lose your focus on your customer’s experience and point of view.
- “Surprise and delight” – Do the unexpected to make buying a cup of coffee enjoyable.
- “Embrace resistance” – Learn from your mistakes.
- “Leave your mark” – Do your job so that your customers remember you.
The Partner Ethos
Two aspects of Starbucks’ corporate culture are central to its success:
- Employees are partners – Starbucks calls its employees “partners” and encourages them to become involved in the company, and to contribute ideas about building the business and improving the product.
- Leaders transmit the culture – Managers are responsible for relaying Starbucks’ culture directly to employees.
Partners receive extensive training in the company’s products and service standards, including how to greet customers and shape their stores’ atmosphere. Starbucks spends more on worker training than on advertising – and the expense pays off in terms of employee retention and customer satisfaction.
Principle One: “Make It Your Own”
Starbucks founder Howard Schultz is often quoted as saying that he is not in a coffee business, but in a people business that serves coffee. Starbucks distributes a company pamphlet called the Green Apron Book, which emphasizes these five principles:
- “Be welcoming” – One barista said she keeps note cards on her customers including information about the drinks they like, their families and even the names of their pets.
- “Be genuine” – Partners must be active listeners and good observers. Noticing that a new customer looked as though she was about to cry, a barista offered her a toffee nut latte, “Because who doesn’t like that?” The next day she received a thank you note and flowers from the customer, who said the barista’s kindness was literally a lifesaver.
- “Be considerate” – On the corporate level, this means instituting environmentally friendly policies such as using wind energy, reducing carbon dioxide emissions and contributing to clean water projects globally. Partners join community projects, such as tree planting.
- “Be knowledgeable” – Partners learn about coffee through tastings, internal publications and classes. The store gives each one a pound of coffee every week to ensure that they use the product they sell. Some partners become “Coffee Masters” by completing a three-month program of special training and testing.
- “Be involved” – When the staff at one store realized that they had many deaf customers, they decided to take lessons in American Sign Language. At other stores, employees have suggested redesigns that improve the work flow.
Principle Two: “Everything Matters”
Retail businesses rise or fall on the details. Therefore, Starbucks focuses on every aspect of its business, including image, employee concerns, product quality, customer experiences and the company’s reputation.
In 1991, Starbucks created an in-house architecture group to design its stores. This unit oversees lighting, furniture, fixtures, artwork, music, aromas, colors, the menu boards and the shapes of the counters. The company has different designs to suit different locations, depending on traffic patterns and other requirements: Some are sleek and modern, while others match the local architecture. Starbucks uses store design to build its brand. One enthusiastic customer claims, “Starbucks could very well operate without even selling coffee. They could charge an entrance fee and offer nothing else but a room and mellow Bob Marley music softly playing in the background, and people would still come.”
Cleanliness is a large part of the customer experience, and all Starbucks stores post cleanliness checklists and follow certain cleaning routines. At least one worker must come out from behind the counter every 10 minutes to check the environment, a requirement that one barista said she particularly liked: “It gives us a chance…to make sure everything is clean and orderly, and we become more involved with our customers.”
Clean restrooms are particularly important to Starbucks; said one customer from New York City, where public restrooms are rare: “Trust me, no matter what the music, the flavor of the day or the wireless availability, Starbucks’ success is all thanks to the free and clean toilets.”
Starbucks pays attention to packaging. When the company noticed that customers often asked for double cups so they could carry their coffee without burning their fingers, it spent two years developing an environmentally friendly cup sleeve out of recycled paper. The company also introduced a takeout cup that uses recycled materials.
Furthermore, Starbucks discovered a way to package coffee so it still tastes fresh for up to six weeks. This both reduced waste and enabled the company to ship its coffee around the world.
Principle Three: “Surprise and Delight”
People love surprises. When the Rueckheim brothers introduced Cracker Jack candy- covered popcorn at the World’s Columbian Exposition in Chicago in the late 1800s, the snack was reasonably popular. But sales skyrocketed when they advertised that every box held a secret prize. Psychologists note that predictability provides security and safety, but the unexpected reduces boredom. People in today’s culture have developed an appetite for the exceptional and the spectacular. Many companies try to avoid surprising their customers, but Starbucks uses surprises to build customer and employee loyalty.
For example, the company shipped its ice cream to 6,000 locations by Federal Express to celebrate National Ice Cream Month. Since Starbucks ice cream is sold only in supermarkets, being able to get it for free at Starbucks stores was a novel treat. Starbucks has given away books by poets who live in coffee-producing areas. In some places, Starbucks stores post signs noting which products are kosher, while in others it displays the work of local artists – depending on what the community responds to and needs.
Principle Four: “Embrace Resistance”
You can’t please everyone. Starbucks copes with criticism and problems by addressing mistakes and working to prevent them from happening again. It takes responsibility for lapses in quality control and makes changes when necessary. The company worked closely with some of its critics to develop coffee-buying guidelines that call for good working conditions for farmers and that minimize pollution. Because it buys so much coffee, Starbucks has become a global force and must concern itself with conditions in the developing countries that produce coffee.
Because they are on the front lines, Starbucks store managers are the first to hear most criticism. For example, the first Starbucks store in Beijing, China, was the target of significant public opposition. Within a few months, government officials wanted to revoke its lease. After a series of meetings, the manager altered the store configuration to allow more people to sit down to drink their coffee, rather than ordering drinks to go. (In the U.S. 80% of Starbucks customers order drinks for take-out.) To emphasize its community involvement, the company donated $5 million to a Chinese educational fund.
Principle Five: “Leave Your Mark”
To carry out its stated principles of social responsibility and community involvement, Starbucks requires managers to have transparent dealings with vendors, open communication with partners and high standards for product providers. Corporate policies mandate environmentalism, volunteerism, and philanthropy. The company’s mission statement says it will be an innovative change agent and that it will develop flexible solutions to problems. It acknowledges the importance of meeting its fiscal responsibilities and treating its employees well.
As a socially responsible company, Starbucks uses a triple bottom line: Its annual report measures social and environmental impact as well as financial results. The senior vice president of corporate social responsibility works with the board and the company’s foundation to find ways to contribute to the communities where its stores are located.
Meanwhile, Starbucks’ philanthropic activities contribute to its low turnover rate. Studies have found that employee morale is three times higher in companies that have a high level of community involvement. Employees who work together on charitable projects build team spirit, and deepen their connections to their communities, to each other and to Starbucks.
Founded in 1971 in Seattle, Starbucks has undergone some of the most well-known brand redesigns in history. Selling some of the most popular and beloved coffee in the world can put tremendous pressure on a brand to maintain a certain image. Their logo, presence, and branding have met the challenges well and helped create one of the most recognizable brands in the world.
Starbucks has a nautical theme running throughout its name, branding, and logo. It is named after Starbuck, the first mate in Moby Dick. The founders originally intended on naming the coffeehouse “Pequod”, after Ahab’s whaleship. Can you imagine a Pequod on every street corner or picking up the Pequod house blend every morning? Doesn’t have quite the same ring to it.
At the brand’s core is the Starbucks siren. The bare-breasted, two-tailed mermaid, or siren, is intended to be as seductive as the coffee itself. It is based on an old sixteenth-century Norse woodcut.
The Challenges Faced
As the world’s largest roaster and retailer of specialty coffee, Starbucks has an impressive internal Global Creative team that worked with Lippincott to create the brand and brand redesigns we all know and love today.
According to the Lippincott case study, “Starbucks wanted the new logo and visual identity system to say as much about its future as it did about its past. Past the logo, they wanted a program that afforded them the freedom and flexibility to explore new product, regional and experience opportunities, while keeping them in step with their current and future customers.”
One of the ongoing challenges faced by the creative team includes finding a design and branding that will appeal to people worldwide. Operating in more than 55 countries, the international coffeehouse has a very broad clientele they need to appeal to.
To meet the challenge, Lippincott “developed visual approaches that would deliver on communicating the new positioning and character attributes, applied to a broad set of customer touch points for consideration. Each visual approach included direction for logo usage, pattern, graphic, typography, illustration, imagery, color, form, material, layout and language.”
They also “explored a broad range of graphic execution alternatives for the “Siren” symbol, as well as size and relationship alternatives for use with the “Starbucks (Coffee)” name.”
How the Logo and Packaging Have Evolved
In 1971, Starbucks began selling coffee beans in Seattle’s Pike Place Market. The original black and white logo focused on the mermaid and the fact that Starbucks sells more than coffee.
In 1986, Howard Schultz tried convincing Starbucks to add espresso drinks to the menu. They denied his idea, so he started his own company, called Il Giornale. Their original logo still serves as inspiration in Starbucks’ logo today.
In 1987, the original owners of Starbucks decided to sell and Schultz took the opportunity while he had the chance. He purchased Starbucks for $3.8 million and transformed it into his ideal image, what he had just begun at Il Giornale. With the addition of handcrafted espresso beverages and melding of the two companies, Starbucks unveiled a cleaner, crisper image. This updated logo and brand redesign more clearly resembles the original Il Giornale logo. The Starbucks siren remained, but was cleaned up, made more contemporary, and featured in front of a black background, allowing it to jump to the forefront. The color scheme was also changed from brown to something closer to Il Giornale’s green. The name also changed from “Starbucks Coffee, Tea, and Spices” to “Starbucks Coffee”.
In 1992, Starbucks decided to change the black outer strip of their logo to a green one, which began the change to a purely green color scheme. At this time, the text, font, and logo were also drastically changed. The mermaid was updated, cropped, and repositioned so that only above the navel is displayed.
In 2008, Starbucks attempted to take a leap into the future, but instead, fell further into the past. They inexplicably attempted to reimagine the original 1971 logo, possibly to appeal to the new hipster movement. The rebrand attempt failed with both designers and the public at large. The green logo, cups, and branding had become so familiar to the public that attempting a large, significant change like this was doomed from the start.
Where They’re At Today
In 2011, Starbucks introduced a new identity, branding, and logo, going back to their original green success. Now, the outer strip has been removed completely and there is no mention of “Starbucks” anywhere on the cup. This was an incredibly gutsy attempt, especially after the 2008 rebrand flop.
The new logo and packaging focuses instead on the Starbucks siren, bright green color palette, and playing with the size and location of the logo. For instance, the bags and merchandise often feature off-center application of the logo to mix up the otherwise clean, crisp packaging.
Today, the coffeehouse offers much more than just coffee. Their teas, handcrafted beverages, ice creams, fresh food, packaged goods, consumer products, and merchandise have amassed a multi-billion dollar empire.
Over the years, Starbucks has continually refreshed their logos and packaging design without losing their core image. The green color scheme, Starbucks siren, and branding have also carried over to their stores, website, online branding, gifts, and all other packaging. Maintaining a logo that features many distinct colors can be costly. Relying on green instead can still provide an eye-catching, colorful option without the clutter of various distinct colors. When a green and white logo is all you need to become instantly recognizable, you know you’ve created successful packaging.