BRNO UNIVERSITY OF TECHNOLOGY

VYSOKÉ UČ ENÍ TECHNICKÉ V BRNĚ

FACULTY OF BUSINESS AND MANAGEMENT

FAKULTA PODNIKATELSKÁ

SEMESTRAL ASSIGNMENT - STRATEGIC

DEVELOPMENT OF A COMPANY BRAND
SEMETRÁ LNÍ ZADÁ NÍ - STRATEGICKÝ ROZVOJ ZNAČ KY SPOLEČ NOSTI

AUTHORS Viliam Igor Babela (219534)

AUTOŘ I PRÁ CE Emre Yesikultuk (246763)

SUPERVISOR doc. Ing. Robert Zich Ph.D.

VEDOUCÍ PRÁ CE

BRNO 2022/2023
Affidavit of Originality

This is to certify that the content of the submitted document is my own work. I declare that
the citations of the sources used are complete, that I have not infringed upon any copyright
(pursuant to Act. No. 121/2000 Coll.).

In Brno, 28.04.2023

Bc. Viliam Igor Babela

Bsc. Emre Yesikultuk

Table of Contents

Table of Contents
INTRODUCTION .................................................................................................................................4
PROBLEM DEFINITION ....................................................................................................................4
IDEA DEFINITION ..............................................................................................................................5
METHODOLOGY ................................................................................................................................6
RESEARCH ...........................................................................................................................................8
STARBUCKS AS A COMPANY...................................................................................................................8
DATA DRIVEN ANALYSIS OF STARBUCKS OPERATIONAL/FINANCIAL PERFORMANCE, AND CUSTOMER
PERCEPTION..............................................................................................................................................9
BRAND IMAGE ........................................................................................................................................13
BRAND POSITIONING .............................................................................................................................15
BRAND IDENTITY ...................................................................................................................................16
BRAND PERSONALITY ............................................................................................................................20
BRAND COMMUNICATION......................................................................................................................20
EXTERNAL FACTORS ............................................................................................................................22
CURRENT TRENDS AND MARKET RESEARCH ........................................................................................23
CONSUMER BEHAVIOUR.........................................................................................................................24
COMPETITIVE LANDSCAPE .....................................................................................................................28
SUMMARY OF RESEARCH OUTPUTS ........................................................................................30
SWOT ANALYSIS .................................................................................................................................32
PROPOSAL FOR BRAND DEVELOPMENT FRAMEWORK ....................................................34
BRAND STRATEGY VISION ...................................................................................................................34
DEFINITION OF MARKET FOR THE NEW BRAND:...............................................................................34
MARKET SIZE .........................................................................................................................................34
OPPORTUNITIES TO CAPITALISE ON REMOTE WORK TRENDS ...............................................................35
TARGET AUDIENCE ................................................................................................................................37
COMPETITIVE LANDSCAPE.....................................................................................................................38
CHOICE FOR A STRATEGIC IDENTITY OPTION...................................................................................40
POSITIONING ..........................................................................................................................................40
PERSONALITY.........................................................................................................................................40
COMMUNICATION ..................................................................................................................................41
TACTICAL DECISIONS (4P/4C) ............................................................................................................42
4P’S ........................................................................................................................................................42
4C'S ........................................................................................................................................................43
EVALUATION OF BRAND CONCEPT FROM THE VIEW OF COMPETITORS AND POTENTIAL
CUSTOMERS ..........................................................................................................................................44
COMPETITORS ........................................................................................................................................44
CUSTOMERS ...........................................................................................................................................45
ADDITIONAL PROPOSAL IDEAS ...........................................................................................................46
BRAND EXTENSION ................................................................................................................................46
BRAND MONITORING AND ADAPTATION...............................................................................................46
PROPOSAL FOR BRAND IDENTITY PRISM.............................................................................................47
CONCLUSION ....................................................................................................................................48
LIST OF REFERENCES ....................................................................................................................49
LIST OF CHARTS ..............................................................................................................................51
LIST OF PICTURES ..........................................................................................................................53
LIST OF TABLES ...............................................................................................................................54
Introduction
Starbucks is a global Café chain that has become synonymous with comfort, convenience,
and community. Starbucks stores are often crowded with people working, studying, or
socializing. However, this also means it can create a noisy and distracting environment for
some types of customers who require calm and serene environment for work or study.
In the last few years, there has been a growing demand for quiet spaces where people can
work or study without being interrupted by undesirable noise. This has led to the
development of several "noiseless" cafes and co-working spaces.
Starbucks has an opportunity to extend its brand image by offering a professional noiseless
section within its cafes worldwide as it currently does in certain locations in China and Japan.
This should appeal to customers who are looking for a quiet place to work or study, while
still providing the familiar Starbucks experience.

Problem Definition
We believe that Starbucks currently suffers from the decrease in quality of customer
experience, mainly because of the noisy and at times also unwelcoming nature of its café ‘s
The problem that this paper will address is how Starbucks can extend its brand image to
accommodate a professional noiseless section within its cafes. In the following idea
definition part of this paper, we will explore the following questions:

• What are the potential benefits of offering a professional noiseless section in

Starbucks cafes?
• How can Starbucks create a professional noiseless section that is both inviting and
functional?
• How can Starbucks market the professional noiseless section to its customers?

The paper will argue that offering a professional noiseless section would be a valuable
addition to Starbucks cafes. It would appeal to a growing customer segment, and it would
help to strengthen Starbucks' brand image as a company that is committed to providing a
welcoming and comfortable environment for all of its customers. The main objective of this
research paper is to propose a cohesive branding strategy for Starbucks to accommodate
noise-free professional sections within its cafés.
Idea Definition
The idea of a professional noiseless section in Starbucks cafes is a simple one. It would be a
designated area in the cafe where customers could work or study without being interrupted by
noise. The section would be equipped with soundproofing materials, comfortable seating, free
Wi-Fi, and power outlets.
We believe that there are several potential benefits to offering a professional noiseless section
in Starbucks cafes.

Potential Benefits of Offering a Professional Noiseless Section in Starbucks Cafes

There are a number of benefits to offering a professional noiseless section in Starbucks cafes.
These benefits include:

• Attracting a new customer segment: There is a growing demand for quiet spaces
where people can work or study without being interrupted by noise. By offering a
professional noiseless section, Starbucks can attract this growing customer segment.

• Improving customer satisfaction: Customers who are looking for a quiet place to
work or study will be more satisfied with their experience at Starbucks if the company
offers a professional noiseless section.

• Boosting sales: Customers who are more satisfied with their experience at Starbucks
are more likely to return and spend more money. Offering a professional noiseless
section could lead to increased sales for Starbucks also through attracting new, more
affluent type of customer with larger disposable income who will spend more time at
the café’s and therefore spend more on food and beverages.

Creating a Professional Noiseless Section That is Both Inviting and Functional

In order to be successful, we believe that the professional noiseless section in a Starbucks
Café’s needs to be both inviting and functional. The section should be designed in a way that
is conducive to work or study, but it should also be welcoming and comfortable.
Some of the things that Starbucks can do to create a professional noiseless section that is both
inviting and functional include:

• Use soundproofing materials: Soundproofing materials can help to reduce noise

levels in the section, making it a quieter and more peaceful place to work or study.

• Provide comfortable seating: The section should have comfortable seating options,
such as chairs and tables, that are conducive to working or studying.

• Offer free fast Wi-Fi : Free Wi-Fi is a must-have for any professional noiseless
section. This will allow customers to work or study online without having to worry
about using their own data. Starbucks could also capitalize on this by offering
dedicated high-speed internet connection to professional customers on a subscription
basis.
 • Provide power outlets: Power outlets are a necessity for a professional noiseless
section. This will allow customers to charge their laptops and other devices while they
are working or studying. It is important to increase the quantity of power outlets in the
professional section compared to the regular café section as it is expected there will be
higher demand for power outlets from professional customers than casual customers
due to professional customers need of more devices.

Marketing the Professional Noiseless Section to Customers

In order to attract customers to the professional noiseless section, Starbucks needs to market
it effectively. The company can do this by:

• Including information about the section on its website and social media
channels. This will help to raise awareness of the section and make it easier for
customers to find it. Given the Starbucks’s strong digital presence it shouldn’t be an
issue to promote this innovation.

• Providing a visible bold signage in its stores that directs customers to the
section. This will help to ensure that customers are aware of the section and know
where to find it.

• Offering discounts or promotions for customers who use the section. This can be a
bit tricky as it is not desirable outcome for Starbucks to encourage non
studying/working customers to flock into the noiseless section and therefore make the
section crowded which would defy its purpose therefore it has to be done in a certain
fashion. We believe that introducing an optional subscription model for the noiseless
section which would provide a greater value for recurring customers by offering both
seasonal and permanent discounts to the subscription holders will encourage the right
type of customers to try the section and see how it benefits them.

Methodology
To accomplish our objective to propose a cohesive branding strategy for noiseless-
professional sections within Starbucks cafés, this paper employs a structured methodology
consisting of two main parts: the analytical part and the proposals’ part.
The analytical part focuses on assessing the current state of the company's internal and
external environment. This analysis provides essential data that serves as the foundation for
the subsequent phase of the project.
Within this project context, the analytical findings form the basis for the proposals section,
which offers actionable solutions for the company's rebranding strategy. By leveraging
relevant analytical tools, the proposals section provides valuable insights and
recommendations to address identified issues and enhance the company's branding. Thus, the
proposals section plays a vital role by translating analytical insights into practical solutions.
To develop this document, following data processing methods were employed:

Data Collection

Thorough analysis was conducted on qualitative & quantitative data gathered from a
variety of online secondary sources, such as industry reports, news articles, and
surveys, compiling and observing information relevant to our case.

Data Analysis

Synthesis was used throughout the document processing to generate fresh insights by
combining different pieces of information.
Analysis methods were applied to deconstruct the current branding concept into
smaller components, identify key challenges, and detect patterns and trends.

Data Visualization

Graphics, such as charts, graphs, and diagrams, were utilized to present complex
information in a more accessible manner.

These visual tools simplified the material, making it easier for readers to understand
the identified problems, suggested solutions, and potential connections to the
branding.

Strategy Development

The findings of the research compiled in the summary of research outputs sections
were used to conduct SWOT analysis in order to identify the company's strengths,
weaknesses, opportunities, and threats, enabling the development of a strategy that
capitalizes on these insights.
The summary of research outputs and SWOT analysis were used a basis for a
proposals of Brand Development Framework and Brand Identity Prism

In conclusion, this project adhered to a comprehensive methodology to achieve its propose

objective. The methodology facilitated a thorough analysis of the company's internal and
external environment and led to the proposal of actionable solutions for developing a
comprehensive branding strategy.
Research

Starbucks as a company
Research Question: How is Starbucks currently positioned in terms of financial &
operational performance, customer perception, brand positioning/identity/personality and
communication?

Starbucks Corporation, founded in 1971 in Seattle, Washington, is a global coffeehouse chain

with over 30,000 locations worldwide. It has gained recognition for its commitment to quality
coffee, sustainable practices, and creating a welcoming atmosphere for customers (1). The
company sources premium coffee beans, roasts them to perfection, and offers a diverse range
of beverages to cater to various preferences (2). Starbucks is known for its ethical initiatives,
such as the Coffee and Farmer Equity (C.A.F.E.) Practices program, which supports coffee-
growing communities and promotes environmental sustainability (3). Through its iconic
mermaid logo, Starbucks has become synonymous with coffee culture and the concept of a
"third place" for social gatherings (1). Additionally, Starbucks is dedicated to making a
positive social impact through education, diversity, and inclusion initiatives (4). Its strong
brand identity and unwavering commitment to excellence continue to shape the coffee
industry and inspire communities worldwide (1).
Starbucks has a strong presence on social media, As of 2022, Starbucks has 36M+ likes
on Facebook, 17M+ followers on Instagram, 11M+ followers on Twitter, and 360K+
subscribers on YouTube (29). The company also has a strong online presence, with its
website receiving over 16.84M Clicks in March of 2023 (26). Starbucks can use these
channels to promote its noiseless sections to its target market.
Data driven analysis of Starbucks operational/financial performance, and
customer perception

From the chart below we can see that the net revenue of Starbucks has increased in 2022
compared to the previous 2 years which were defined by the Covid-19 pandemic and even
surpassed the pre-pandemic levels of 2019 which signifies a great interest of customers to
spend their time at Starbucks café’s. Although Starbuck’s product offering also consists of
goods like a readymade coffee in a plastic bottles or energy drinks sold by third party retailers
such as grocery stores or gas stations, from the chart below, and mainly from the sharp drop
in revenue in 2020, we can see that the company is still mostly reliant on customers visiting
their cafés in person.

Chart 1Net Revenue of Starbucks ( Source : 5)

This is supported by the chart below as well, where we see that the sales of beverages
contributed the most to Starbuck’s revenue together with sales of food, by the percentages we
can also assume that the packaged and single-serve coffees and „others” have been merged as
for reporting in 2020.

Chart 2 Revenue distribution of Starbucks ( Source : 5)

From the chart below we can see that the Customer Satisfaction index score of Starbucks in
US has decreased significantly in 2022. This can be perceived as a result of more and more
customers flocking to the café’s due to easing restrictions in an aftermath of the Covid
pandemic which resulted in noisier and more crowded environment and therefore a decrease
in overall customer experience.

Chart 3 US Customer Statisfaction index scores of Starbucks ( Source : 5)

This however didn’t have much effect on the pace with which Starbucks is opening its new
stores as per the chart below we can see that the number of Starbucks stores has been
increasing gradually for the past two decades and did not decrease even during the covid
pandemic.

Chart 4 Number of Starbucks stores worldwide ( Source : 5)

Contrary to the revenue chart, according to the chart below, the net income of Starbucks has
decreased in the period from 2021-2022. When comparing the net income chart with the
customer satisfaction index, a similar trend can be observed in the 2019-2022 period on both
charts, which begs the question whether these two metrics can be in some way correlated.
This can be perceived in a way that the customers are spending more, as per the revenue
chart, however on lower margin goods, as per the customer satisfaction index it is possible
that less satisfied customers opt in for less expensive products rather than premium priced
ones with higher margins. There is also a possibility that the decrease in both net & operating
income stems mainly from increased cost of inputs as per the general socio-economic
situation in the world after the 2022 invasion of Ukraine which resulted in increase in price of
key inputs such as energy, grain and mainly the increased cost of transportation due to higher
fuel prices. The decrease in net / operating income can also be contributed to the fact that
Starbucks increased its number of stores in 2021-2022 period more sharply than in the
previous periods. All this considered, and as we will see in the following brand image section
the decrease in net / operating income is likely also connected to a great surge of Starbuck’s
advertising spending in 2022 compared to 2021.

Chart 5 Net income of Starbucks ( Source : 5)

Same situation can be observed in the chart below which depicts the operating income of
Starbucks, although the decrease from 2021-2022 is smaller than in the case of the net
income.

Chart 6 Operating income of Starbucks ( Source : 5)

As the chart below indicates, Starbucks is hedging itself against potential adversary
conditions in its home country and capitalizing on its worldwide popularity by increasing the
share of its international stores within its total store-count. As per 2022 the ratio of
International/US Starbucks stores is at its highest since 2005.

Chart 7 Number of international and US-based Starbucks stores ( Source : 5)

Brand Image
As per the brand image, Starbucks is arguably the most famous coffee brand in the world, as
per the 2022 consumer survey in US , results of which we can see in the chart below ,
Starbucks is the most popular coffee brand with 39,4% of US customers stating it is their
favourite coffee brand.

Chart 8 Popularity of coffee chains (Source : 5)

In line with the previous chart demonstrating the popularity of Starbucks, the chart below
indicates that as much as 92% of US customers are aware of the brand and it is popular with
36% of the respondents. 33% of respondents stated that they use the brand regularly and 29%
responded that they are loyal customers of Starbucks, moreover 23% stated that they
regularly hear about Starbucks as per word in mouth marketing or “buzz”.

Chart 9 Starbucks brand awareness , usage , popularity , loyalty and buzz among customers ( Source : 5)
As per the chart below, we can see that Starbucks has significantly increased its adverting in
spending, likely causing the decrease in net / operating income which we observed earlier in
the paper.

Chart 10 Starbucks advertising spending worldwide ( Source : 5)

It is no secret that Starbucks values its brand greatly and therefore spends a lot on its
marketing effort and as a result as per the chart below it is the most valuable restaurant brand
in the world at the moment with a brand value of almost 53.432 Billion $USD surpassing
even more foods focused giants such as McDonalds’ or KFC by a wide margin. The table
below also indicates that Starbucks is currently the only brand on the list with AAA rating.

Table 1 Restaurants ranking by brand value ( Source : 6)

Brand Positioning

Commitment to Quality Coffee

Starbucks has built its brand around a commitment to providing high-quality coffee to its
customers. It sources premium coffee beans from around the world and has established
relationships with coffee farmers to ensure sustainable practices and ethical sourcing. By
focusing on quality, Starbucks positions itself as a purveyor of premium coffee,
distinguishing it from competitors that may prioritize convenience or lower price points.

Welcoming Atmosphere
Starbucks has created a distinct ambiance in its cafes that sets it apart from other coffee
chains. Its stores are designed to provide a welcoming and comfortable environment for
customers to relax, socialize, or work. The concept of a "third place," beyond home and
work, has become synonymous with Starbucks. This positioning appeals to customers
seeking a place to gather, connect, or find solace in a bustling urban environment.

Ethical Initiatives
Starbucks has positioned itself as a socially responsible brand by implementing various
ethical initiatives. One prominent program is the C.A.F.E. Practices, which supports coffee-
growing communities, promotes fair trade, and fosters environmental sustainability. These
initiatives align with the values of socially conscious consumers, allowing Starbucks to
differentiate itself as a brand that is committed to making a positive social impact.

Innovative Product Offerings

Starbucks continuously introduces new and innovative product offerings to cater to evolving
customer preferences. Its diverse menu includes a wide range of coffee beverages, tea, bakery
items, and food options that appeal to different tastes and dietary preferences. By staying at
the forefront of culinary trends and offering unique products, Starbucks positions itself as a
brand that provides both familiarity and innovation to its customers.

Consistent Visual Identity

Starbucks has developed a strong visual identity that is instantly recognizable. Its iconic
green logo, combined with consistent store design elements, creates a cohesive brand image
across all locations. This consistency in visual identity helps customers identify and connect
with the Starbucks brand, reinforcing its positioning as a trusted and familiar coffeehouse
chain.
Brand Identity

Starbucks' brand identity encompasses the visual, verbal, and experiential elements that
distinguish the company and create a consistent and recognizable image. In the following
chapter we will deal with particular components of Starbucks brand identity

Logo: Starbucks' iconic logo features a twin-tailed siren, which represents the allure of the
sea and reflects the company's connection to coffee. The green color is associated with
growth, freshness, and the environment.

Picture 1 Starbucks logo throughout the years ( Source : 7)

Visual Identity: Starbucks maintains a consistent visual identity across its stores, packaging,
and marketing materials. This includes the use of the green color palette, the logo placement,
and specific design elements that create a cohesive and recognizable look.

Picture 2 Starbucks visual identity ( Source : 8)

Store Design: Starbucks stores are designed to provide a warm and welcoming atmosphere.
The company incorporates comfortable seating areas, earthy tones, and natural materials
to create a cozy and relaxed environment for customers. The company also prides itself in
creating a state of the art unique stores in certain locations throughout the world as we can
see in the picture below.

Picture 3 Starbucks store design ( Source : 9)

Product Offerings: Starbucks offers a wide range of coffee beverages, teas, pastries, and
food items. The company emphasizes its commitment to quality, sourcing ethically and
promoting sustainable practices.

Picture 4 Starbucks product offering throughout the years ( Source : 10)

Employee Dress Code: Starbucks baristas wear distinct green aprons, which further
reinforce the company's brand identity and create a sense of professionalism and expertise.

Picture 5 Starbucks employee dress code ( Source : 11)

Social Responsibility: Starbucks has a strong emphasis on social responsibility and

sustainability. The company strives to ethically source its coffee, support farmers, reduce its
environmental impact and contribute positively to the communities in which it operates.

Overall, Starbucks' brand identity revolves around creating a premium coffee experience,
providing a comfortable and inviting environment, and showcasing its commitment to
quality, sustainability, and community engagement.
Brand Personality

Welcoming: Starbucks aims to create a warm and inviting atmosphere where customers feel
welcome and comfortable. The company strives to be a "third place" between home and
work, where people can relax, socialize, or work.

Innovative: Starbucks is known for its continuous innovation in terms of coffee offerings,
beverages, and store experiences. The company frequently introduces new flavours, seasonal
drinks, and unique menu items to cater to changing tastes and preferences.

Premium: Starbucks positions itself as a provider of high-quality coffee and premium

beverages. The company emphasizes its expertise in sourcing, roasting, and brewing coffee to
deliver a superior taste experience to its customers.

Authentic: Starbucks places value on authenticity and the origin of its coffee beans. The
company works directly with coffee farmers, promoting fair trade practices and sustainable
sourcing. This commitment to authenticity extends to its relationships with customers and
communities.

Passionate: Starbucks employees, known as partners, are encouraged to be passionate about

coffee, customer service, and the Starbucks brand. They strive to provide personalized
service and create a positive experience for each customer.

Socially Conscious: Starbucks emphasizes its commitment to social responsibility and

making a positive impact. The company supports various social and environmental
initiatives, such as promoting ethical sourcing, reducing waste, and investing in community
programs.

These brand personality traits contribute to the overall image of Starbucks as a reputable and
socially responsible coffeehouse chain that offers a premium coffee experience in a
welcoming and innovative environment.

Brand Communication

Integrated Marketing Communications

Starbucks adopts an integrated approach to its marketing communications, ensuring
consistency and synergy across multiple channels. This includes traditional marketing
channels such as television, print media, and outdoor advertising, as well as digital platforms
like social media, email marketing, and its official website. By utilizing a mix of both
traditional and digital channels, Starbucks ensures maximum reach and engagement with its
diverse customer base.

Storytelling and Emotional Appeal

Starbucks effectively utilizes storytelling as a key element of its brand communication
strategy. Through its marketing campaigns, Starbucks tells compelling stories that evoke
emotions and create a deeper connection with its audience. These stories often revolve around
the brand's commitment to quality, sustainability, and community engagement, appealing to
customers who value these values and are seeking a meaningful coffee experience.
Social Media Engagement
Starbucks leverages the power of social media platforms to engage with its customers and
create a sense of community. It maintains active profiles on popular platforms like Facebook,
Instagram, Twitter, and YouTube, where it shares updates, engages in conversations, and
showcases user-generated content. Starbucks encourages customers to share their experiences
using branded hashtags, further amplifying its brand reach and fostering user engagement.

Influencer Partnerships
Collaborating with influencers and brand ambassadors has become an integral part of
Starbucks' brand communication strategy. The brand strategically selects influencers who
align with its values and target audience to create authentic and relatable content. These
partnerships help extend the brand's reach, enhance brand awareness, and tap into new
customer segments.

Cause Marketing and Corporate Social Responsibility

Starbucks communicates its commitment to social responsibility through cause marketing
initiatives and corporate social responsibility (CSR) programs. For example, it actively
promotes its ethical sourcing practices, environmental sustainability efforts, and initiatives to
support local communities. By highlighting these initiatives in its brand communication,
Starbucks positions itself as a socially conscious brand, resonating with consumers who
prioritize sustainability and community impact.

Employee Engagement and Brand Advocacy

Starbucks recognizes the importance of its employees as brand ambassadors and actively
engages them in its brand communication efforts. The brand focuses on internal
communication channels, training programs, and recognition to foster a sense of ownership
and brand advocacy among its employees. This empowers them to deliver an authentic and
consistent brand experience to customers, further strengthening the brand-customer
relationship.
External Factors
As consumer preferences and needs continue to evolve, it is crucial for Starbucks, as a
leading coffeehouse chain, to stay attuned to the changing landscape and adapt its offerings
accordingly.
This section will delve into recent market trends that highlight the growing demand for
designated third party work / study spaces beside one’s home or office. By examining
industry-wide practices and consumer behaviour, we can gain valuable insights into the
expectations and preferences of our potential customers.
Moreover, this section will discuss the impact of remote work and the rise of flexible work
arrangements on consumer behaviour, underscoring the importance of providing suitable
environments for remote workers, students, and individuals seeking a change of scenery.
Furthermore, we will explore the growing market of co-working spaces, which cater to
productivity-focused individuals. By examining these parallel sectors, we can gain valuable
insights and best practices that can be applied to the coffeehouse environment.
Additionally, this section will explore market surveys, to identify key preferences of our
potential customers.
By analysing the current trends in productivity-focused spaces, this research aims to provide
Starbucks with actionable insights and recommendations for incorporating noiseless sections
into its cafes. These insights will enable Starbucks to enhance its brand image, attract a
broader customer base, and create an optimal environment for individuals seeking quieter
spaces for work or study.
Through an exploration of industry trends and consumer behaviour, this section together with
the previous section analysing Starbucks internal environment will serve as a foundation for
the subsequent sections of the research paper, informing the development of strategies to
extend Starbucks' brand image and provide noiseless sections that meet the needs and
expectations of its customers in the evolving coffeehouse landscape.
Current Trends and Market Research

Research Question: What are the current trends influencing the state and perception of
remote working and coworking spaces?

According to a recent survey by Statista, 29% of global workers stated they expect to
work fully remotely while 36% of workers expect to work in hybrid fashion
combining office work with remote work.

Chart 11 Public opinion on the state of remote work 2022 ( Source : 12)

The growing market of coworking spaces. According to Statista the global

coworking space market size was valued at $6.9 billion in 2021 and is projected to
reach $24 billion by 2030. This growth is being driven by the increasing number of
people who work remotely, as well as the growing popularity of flexible workspaces.

Chart 12 Market size of global coworking space market in 2021 ( Source : 13)
 Coffee Shop Market size. The global coffee shop industry was valued at $165.7
billion in 2021 and is expected to grow to $229.9 billion by 2030, at a CAGR of
4.2%. This growth is being driven by a number of factors, including the increasing
popularity of coffee drinks, the growing middle class in developing countries, and the
increasing demand for convenience. (8)

Chart 13 Coffee shop market size worldwide ( Source : 14)

Consumer behaviour

As per the chart below depicting a 2018 survey, working from coffee shop is the 2nd
most favourite choice of working remotely, surpassed only by working directly from
home.

Chart 14 Typical workspaces outside of the main office ( Source : 15)

Benefits of working remotely. According to the chart below which depicts a 2022
survey of people who have worked remotely, the second most cited benefit of
working remotely is “the flexibility to choose my work location” which presents a
great opportunity for company like Starbucks to make its coffee shops even more
desirable places to work from than they are now.

Chart 15 Cited benefits of working remotely ( Source : 16)

Availability of remote work in US by annual income. From the chart below we can
see that full time remote work is more available for people in higher income groups,
which supports our idea of the noiseless professional section drawing in more affluent
customers and therefore increasing Starbucks revenue.

Chart 16 Availability of remote work in US by annual income ( Source : 17)

 Employees preference on work arrangements. From the chart below we can see
that both genders prefer hybrid style of work rather than fully remote or fully office
stationed.

Chart 17 Employees' preference on hybrid, remote work or office environments worldwide in 2022, by gender ( Source : 18)

Share of workers working onsite vs hybrid vs remote. While the share of fully
remote workers has decreased in the aftermath of the Covid-19 pandemic, we can see
on the chart below that the amount of workers working in hybrid fashion has been
increasing gradually throughout 2020-2022

Chart 18 Share of workers working onsite versus hybrid or remote in the United States from 2019 to 4th quarter 2022 (
Source : 19)
Coworking spaces have become a popular alternative to working from office or working
from home and from the chart below we can see that the number of people utilizing the
coworking spaces is projected to amount to almost 5 million in 2024. This is important to
consider as coworking spaces can present both a competition to the Starbucks noiseless
sections and an opportunity to draw these potential customers to the Starbucks coffee shops.

Chart 19 Number of people in coworking spaces worldwide ( Source : 20)

From the chart below , depicting a 2019 pre-pandemic survey we can see that globally 75%
of people consider flexible working conditions the new standard.

Chart 20 Share of people who consider flexible working to be the new normal in 2019, by country ( Source : 21)
 According to 2019 study by Statista, 70% of US Workers cited office noise and noise
in general as a source of distraction at work.

Chart 21 What People Find Distracting at Work ( Source : 22 )

Competitive landscape

Research Question: Who are Starbucks main competitors and how do they compare
in the terms of providing a quiet professional environment ?

Starbucks' main competitors include Costa Coffee, Café Nero, Pret a Manger ,
Peet's Coffee , The Coffee Bean & Tea Leaf, as well as independent coffee shops
and indirectly also companies offering coworking spaces . Some of these companies
also offer designated quiet zones, and a more relaxed atmosphere in one way or
another.

Costa Coffee is currently present in 41 countries globally, with almost 2,800 coffee
shops in the UK & Ireland and more than 1,100 globally. (23) Costa Coffee is a global
coffeehouse chain known for its diverse beverage options and welcoming atmosphere.
It emphasizes creating a comfortable environment for customers, including those who
wish to work or study. Some Costa Coffee locations offer designated areas with
quieter seating arrangements, power outlets, and free Wi-Fi, catering to the needs of
individuals seeking a productive ambiance.The company offers designated quiet
zones in many of its cafes in a partnership with My Work Booth (24)
 Caffè Nero Caffè Nero is another prominent competitor in the coffeehouse industry,
with a focus on premium coffee and a relaxed atmosphere. It provides an environment
conducive to work or study, with comfortable seating, ample table space, and a
relatively low noise level. Caffè Nero outlets are designed to offer a quieter
experience compared to some other coffee chains. The Nero Group operates over
1,000 stores across 10 countries.(28)

Pret A Manger Pret A Manger, although primarily known for its food offerings, also
serves a variety of coffee and other beverages. Some Pret A Manger locations have
dedicated spaces for customers to work or study, with comfortable seating, power
outlets, and a less noisy environment. The company aims to create an environment
that accommodates the needs of individuals seeking a productive setting.operates 442
stores in the UK and 558 stores internationally (25)The company offers noise-
canceling headphones to customers who want to work or study in a quiet
environment.

Peet's Coffee: Peet's Coffee is a specialty coffee chain that focuses on high-quality
beans and expertly crafted beverages. Many Peet's Coffee stores provide a relaxed and
quiet atmosphere, making them appealing to customers seeking a peaceful
environment for work or study. The company also offers free Wi-Fi to accommodate
productivity needs.

The Coffee Bean & Tea Leaf: The Coffee Bean & Tea Leaf is a global coffee and
tea chain with a reputation for its extensive selection of beverages. Some of their
stores provide separate areas or enclosed spaces that offer a quieter atmosphere for
customers who wish to work or study. These sections often have a lower noise level
and comfortable seating arrangements.

Independent coffee shops: Independent coffee shops also present competition to

Starbucks. These establishments often create a cozy and quiet ambiance, attracting
customers seeking a peaceful setting for work or study. Many independent coffee
shops pride themselves on personalized service, attention to detail, and a sense of
community, providing an alternative option for those desiring a noiseless
environment.

Co-working spaces: While not direct competitors in the traditional coffeehouse

sense, co-working spaces have gained popularity among remote workers, freelancers,
and students. These shared workspaces provide a noiseless environment specifically
tailored for productivity. They often offer amenities such as private work areas,
meeting rooms, and additional services like printing and scanning.
Summary of Research Outputs
Starbucks Corporation, founded in 1971 in Seattle, Washington, is a global coffeehouse chain
with over 30,000 locations worldwide. The company has a strong brand identity cantered
around its commitment to quality coffee, sustainable practices, and creating a welcoming
atmosphere for customers. Starbucks sources premium coffee beans, roasts them to
perfection, and offers a diverse range of beverages to cater to various preferences. It is known
for its ethical initiatives, such as the C.A.F.E. Practices program, which supports coffee-
growing communities and promotes environmental sustainability. Starbucks has become
synonymous with coffee culture and the concept of a "third place" for social gatherings. The
company is dedicated to making a positive social impact through education, diversity, and
inclusion initiatives. Despite the challenges posed by the COVID-19 pandemic, Starbucks has
seen an increase in net revenue in 2022, surpassing pre-pandemic levels. Most of its revenue
comes from customers visiting its cafes in person, indicating the importance of creating
appealing and conducive environments. Starbucks has a strong brand image, with high brand
awareness and customer loyalty. However, there has been a decrease in the Customer
Satisfaction Index in the United States, possibly due to increased crowding and noise in the
cafes. Starbucks continues to expand its store count globally, capitalizing on its international
popularity. The company's brand identity is characterized by its iconic logo, consistent visual
identity, store design, product offerings, employee dress code, and commitment to social
responsibility. Starbucks' brand personality is welcoming, innovative, premium, authentic,
passionate, and socially conscious, contributing to its reputation as a reputable and socially
responsible coffeehouse chain.

In terms of financial performance, Starbucks has experienced fluctuations in net income and
operating income. While there was a decrease in both metrics from 2021 to 2022, similar
trends were observed in the customer satisfaction index during the same period. This suggests
a possible correlation between customer satisfaction and spending behaviour. It is speculated
that customers may be opting for less expensive products rather than premium-priced ones
with higher margins, potentially affecting the company's profitability. Additionally, the
increase in input costs due to global socio-economic factors, such as the 2022 invasion of
Ukraine and rising fuel prices, may have impacted Starbucks' net and operating income.
Despite these challenges, Starbucks has remained committed to its expansion strategy. The
company has continued to open new stores globally, even during the COVID-19 pandemic.
Furthermore, Starbucks has increased its advertising spending significantly, likely
contributing to the decrease in net and operating income. The brand's strong emphasis on
marketing and brand value is evident from its position as the most valuable restaurant brand
in the world, surpassing competitors such as McDonald's and KFC.
Starbucks has also prioritized its international presence, aiming to diversify its store portfolio
and mitigate potential risks in its home country. The ratio of international to US-based
Starbucks stores reached its highest level in 2022 since 2005, indicating the company's
strategic focus on expanding its global footprint. The company's dedication to quality,
sustainability, and community engagement has contributed to its reputation as a leading
coffeehouse chain worldwide. Despite the challenges faced, Starbucks continues to innovate,
expand, and maintain its position as a beloved coffee brand.
The coffeehouse industry, valued at $165.7 billion in 2021 which is projected to reach $229.9
billion by 2030, growing at a CAGR of 4.2% is undergoing significant transformations as it
adapts to evolving work trends and changing customer preferences. A recent survey
conducted by Statista reveals that a considerable portion of the global workforce, around
29%, expects to transition to full remote work, while 36% anticipate adopting a hybrid work
model that combines office work with remote work. This shift towards remote work has
spurred the growth of the coworking space market, which is projected to reach a valuation of
$24 billion by 2030.In this dynamic and competitive landscape, Starbucks, a renowned
coffeehouse chain, operating 30,000 stores in urban areas where demand for quiet places to
work or study is high, is exploring opportunities to extend its brand image by incorporating
noiseless sections designed for work or study within its cafes. The target market for these
sections primarily includes students, professionals, and business travellers who seek a quiet
and conducive environment to enhance their productivity and focus. Notably, research
indicates that working from a coffee shop is the second most popular choice for remote work,
surpassed only by working from home, as evidenced by a survey conducted in 2018.
Understanding and catering to customer preferences is paramount in developing noiseless
sections that effectively meet the needs of Starbucks' target audience. Customer feedback and
preferences demonstrate that the flexibility to choose a work location is highly valued,
providing Starbucks with an opportunity to create even more desirable workspaces within its
coffee shops. The availability of remote work is also influenced by income levels, with
higher-income groups having more opportunities for remote work. This insight suggests that
noiseless professional sections within Starbucks cafes could potentially attract more affluent
customers, leading to increased revenue for the company. Additionally, it is worth noting that
both genders show a preference for a hybrid work style, combining remote work with office-
based work, rather than fully remote or fully office-based arrangements.
When examining the competitive landscape, it becomes evident that Starbucks faces
competition from various coffeehouse chains and establishments that cater to customers
seeking quieter environments for work or study. Costa Coffee, for example, has partnered
with My Work Booth to offer designated quiet zones, ensuring a comfortable environment for
individuals who wish to work or study. Similarly, Caffe Nero has positioned itself as a
coffeehouse chain with a relaxed atmosphere and lower noise levels compared to its
counterparts, providing customers with a conducive setting for focused work. Pret A Manger,
known for its food offerings, has also recognized the importance of accommodating
individuals seeking a productive setting and offers a less noisy environment for customers
working or studying. Other competitors such as Peet's Coffee and The Coffee Bean & Tea
Leaf also provide quiet and welcoming atmospheres for work or study, allowing customers to
enjoy a peaceful environment while sipping their coffee. Independent coffee shops have also
positioned themselves as attractive alternatives, emphasizing personalized service, attention
to detail, and a sense of community, thereby drawing customers seeking a calm and
welcoming environment . Furthermore, co-working spaces have gained popularity among
remote workers, freelancers, and students, offering professional environments tailored
specifically for productivity.
By comprehensively understanding the current trends and competitive landscape in the
coffeehouse industry, Starbucks can strategically position itself to accommodate the demands
of individuals seeking noiseless professional sections within its cafes. This enables the
company to enhance its brand image, attract a broader customer base, and create an optimal
environment for work or study. Through careful consideration of customer preferences,
market trends, and competitive offerings, Starbucks can ensure that its noiseless sections
meet the expectations of its target audience, providing a satisfying and productive experience
for customers seeking a quieter ambiance

SWOT Analysis
Strengths

• Strong brand identity centered around quality coffee, sustainability, and a

welcoming atmosphere.

• Global presence with over 30,000 locations worldwide, capitalizing on its

international popularity.

• Commitment to ethical initiatives, such as the C.A.F.E. Practices program,

promoting environmental sustainability and supporting coffee-growing
communities.

• Strong brand image, high brand awareness, and customer loyalty.

• Dedicated to making a positive social impact through education, diversity, and

inclusion initiatives.

• Experienced an increase in net revenue in 2022, surpassing pre-pandemic

levels.

• Known for its iconic logo, consistent visual identity, and commitment to social
responsibility.

Weaknesses

• Decrease in the Customer Satisfaction Index in the United States, possibly due
to increased crowding and noise in cafes.

• Fluctuations in net income and operating income, potentially influenced by

customer spending behavior and increased input costs.

• Reliance on in-person visits to cafes for a significant portion of revenue,

making the creation of appealing environments crucial.
Opportunities

• Growing coffeehouse industry projected to reach $229.9 billion by 2030,

driven by evolving work trends and changing customer preferences.

• Expansion of noiseless sections within cafes to cater to the increasing demand

for quiet work or study environments.

• Targeting students, professionals, and business travelers seeking a conducive

environment for productivity and focus.

• Potential to attract more affluent customers, considering the association

between remote work opportunities and income levels.

• Flexibility to choose work locations highly valued by customers, offering

Starbucks an opportunity to create desirable workspaces.

• Opportunity to lure in customers of the growing coworking space market.

Threats

• Competition from coffeehouse chains and establishments offering quieter

environments for work or study, such as Costa Coffee, Caffe Nero, and Pret A
Manger.

• Competition from independent coffee shops emphasizing personalized service

and a sense of community.

• Co-working spaces gaining popularity among remote workers and students,

providing professional environments tailored for productivity.

By understanding these strengths, weaknesses, opportunities, and threats, Starbucks can

strategically position itself to capitalize on its brand image, attract a broader customer base,
and meet the demands of individuals seeking noiseless professional sections within its cafes.
This can contribute to enhancing the overall brand experience and maintaining Starbucks'
position as a leading coffeehouse chain.
Proposal for brand development framework

Brand Strategy Vision

Our vision for this Starbucks brand strategy rebrand is for Starbucks to not only be the
leading global coffeehouse chain that provides premium coffee but also to become the go to
place for students and professionals seeking a conducive work or study environment and
therefore be able to compete with rising popularity of coworking spaces and other dedicated
work / study facilities by incorporating noiseless, professional, sections within its cafes.
Starbucks will continue to maintain its commitment to sustainability, social responsibility,
and creating a welcoming atmosphere for all of its customers while providing a more serene,
peaceful and professional experience to customers whose lifestyle demands it. By offering
noiseless sections, Starbucks can differentiate itself and become the preferred choice for
individuals seeking a productive and peaceful workspace outside of traditional office or study
spaces.

Vision Statement: To be the global leader in providing premium coffee experiences and
creating optimal work and study environments within our cafes, revolutionizing the way
individuals work and enhancing productivity in a welcoming and sustainable atmosphere.

Mission Statement: Our mission is to passionately serve the finest coffee while providing a
peaceful and conducive environment for individuals seeking focused work or study spaces.
We are committed to delivering exceptional customer experiences, promoting sustainability,
and fostering a sense of community. Through continuous innovation and a dedication to
social responsibility, we strive to enrich the lives of our customers, partners, and the
communities we serve.

Definition of Market for the New Brand:

The market for Starbucks' new brand, featuring noiseless sections within its cafes, can be
defined based on a comprehensive analysis of the provided data and insights

Market Size

The market size for Starbucks' new brand, featuring noiseless sections within its cafes, can be
assessed by considering the global coffee shop industry and the coworking space market.

Coffee Shop Industry

As stated in the research section of this paper, the global coffee shop industry was valued at
$165.7 billion in 2021 and is expected to reach $229.9 billion by 2030, with a compound
annual growth rate (CAGR) of 4.2%. This growth is fuelled by several factors, including the
increasing popularity of coffee drinks, the expanding middle class in developing countries,
and the rising demand for convenience.
With Starbucks being one of the leading players in the coffee shop industry, it is well-
positioned to capitalize on this market growth. By introducing noiseless sections in its cafes,
Starbucks can attract a new, more affluent ,segment of customers who prioritize a quiet and
productive environment for work, study, or relaxation, further expanding its market share.

Coworking Space Market

The coworking space market has been experiencing significant growth due to the increasing
number of people working remotely and the popularity of flexible working arrangements.
According to our research, the global coworking space market was valued at $6.9 billion in
2021 and is projected to reach $24 billion by 2030.

This growth presents both competition and opportunities for Starbucks' noiseless sections.
Coworking spaces provide professional environments tailored explicitly for productivity. By
incorporating professional sections within its cafes, Starbucks can position itself as an
alternative option for individuals seeking a quiet workspace. This can attract customers who
might otherwise choose coworking spaces, thereby expanding Starbucks' market reach and
potentially increasing its customer base.
Considering the substantial market size of the coffee shop industry and the projected growth
of the coworking space market, Starbucks' professional sections have the potential to tap into
a significant market segment. By catering to the demand for quiet workspaces, Starbucks can
differentiate itself from competitors and further strengthen its position in the coffee shop
industry.

Opportunities to capitalise on Remote Work Trends

Remote work has become increasingly prevalent, driven by various factors such as
advancements in technology, changing work preferences, and the impact of the COVID-19
pandemic. The data provided highlights several remote work trends that are relevant to
Starbucks' new brand featuring noiseless sections

Global Remote Work Preferences

According to our research, 29% of global workers stated they expect to work fully remotely,
while 36% expect to work in a hybrid fashion combining office work with remote work. This
indicates a significant portion of the workforce seeking flexibility in their work arrangements.
Starbucks can leverage these remote work preferences by providing professional sections
within its cafes, creating an appealing environment for individuals who desire a productive
and comfortable space to work remotely. By offering a dedicated area with minimal
distractions, Starbucks can attract remote workers and cater to their needs, positioning itself
as a preferred choice for remote work settings.

Flexibility and Work Location Preferences

The survey data also reveals that one of the top benefits cited by remote workers is the
flexibility to choose their work location. This presents a great opportunity for Starbucks to
enhance its coffee shops as desirable places to work from, surpassing the experience of
working from home or other locations.
By incorporating professional sections, Starbucks can meet the demand for flexible
workspaces while providing a unique and comfortable atmosphere. This allows individuals to
enjoy the benefits of remote work while benefiting from the amenities and ambiance of a
Starbucks café. It can be particularly appealing to remote workers who seek a change of
scenery, a dedicated workspace, and the convenience of nearby amenities.

Preferred Workspaces

The chart on typical workspaces outside of the main office reveals that working from a coffee
shop is the second most preferred choice for remote work, surpassed only by working directly
from home. This indicates that Starbucks' noiseless sections can tap into the demand for
alternative workspaces, offering an attractive option for individuals seeking a change of
environment or avoiding distractions at home.

Availability of Remote Work by Income Groups

The data suggests that the availability of remote work tends to be higher in higher-income
groups. This aligns with the notion that the professional sections in Starbucks cafes can
attract more affluent customers. By providing an upscale environment with a focus on
productivity, Starbucks can cater to the preferences of higher-income individuals who value a
quiet and comfortable workspace.
This segment of the market is likely to appreciate the convenience and quality that Starbucks
offers, making the noiseless professional sections an attractive feature for these customers. It
presents an opportunity for Starbucks to increase its revenue by drawing in customers who
are willing to spend more on a premium experience.

Hybrid Work Preferences

The data indicates that both genders prefer a hybrid style of work, combining remote work
and office-based work, over fully remote or fully office-based arrangements. This highlights
the importance of creating spaces that cater to the needs of individuals who engage in hybrid
work models.
Starbucks' noiseless professional sections can serve as an ideal solution for individuals
seeking a balanced work environment. By providing a quiet workspace within its cafes,
Starbucks can accommodate the preferences of hybrid workers who value the flexibility to
choose where and how they work. This can drive increased foot traffic to Starbucks as a
preferred destination for those looking for a conducive space to focus and be productive.

By aligning with remote work trends, Starbucks can tap into a growing market of individuals
seeking flexibility, productivity, and comfort in their work settings. The incorporation of
professional sections within its cafes positions Starbucks as a brand that understands and
caters to the needs of remote workers, enhancing its competitiveness and expanding its
customer base.
Target Audience

Based on the remote work trends and preferences highlighted, the target audience for
Starbucks' noiseless professional sections can be profiled as follows

Demographics

Age: Primarily working-age adults, ranging from millennials to Generation X.

Gender: Both male and female, as the preference for hybrid work is observed across
genders.

Income: The target audience includes individuals from higher-income groups who
have the flexibility to work remotely and are willing to invest in a premium
coffeehouse experience.

Psychographics

Work Preferences: The target audience values flexibility in their work arrangements,
seeking the option to work remotely and choose their preferred work location.

Productivity and Focus: They prioritize a quiet and conducive work environment to
enhance their productivity and minimize distractions.

Quality and Comfort: They appreciate upscale settings and are willing to invest in
premium experiences that provide a comfortable and professional atmosphere.

Variety and Change of Environment: They seek alternative workspaces outside

their homes and traditional offices, desiring a change of scenery to boost creativity
and motivation.

Behaviours

Remote Work Adoption: The target audience actively embraces remote work, either
in a fully remote or hybrid fashion, and seeks spaces that support their work
preferences.

Coffee Shop Work Culture: They are familiar with and enjoy working from coffee
shops, recognizing the benefits of a relaxed atmosphere and the availability of
amenities.

Tech-savvy: They are comfortable using technology and rely on digital tools for
communication, collaboration, and productivity while working remotely.

Preference for Hybrid Work: They appreciate a work-life balance and prefer a
combination of remote and office-based work, seeking flexible spaces that cater to
their hybrid work style.
This target audience for Starbucks' noiseless professional sections comprises individuals who
value flexibility, productivity, and a premium coffeehouse experience. They are willing to
invest in a comfortable and professional environment outside their homes or traditional
offices to enhance their remote work experience. By catering to their preferences and creating
noiseless professional sections within its cafes, Starbucks can attract this target audience and
position itself as a top choice for remote workers seeking a quiet and conducive workspace.

Competitive Landscape

Starbucks operates in a competitive coffeehouse industry where several players offer similar
services and strive to create welcoming environments for customers. When analysing the
competitive landscape for Starbucks' new brand featuring noiseless sections, it's important to
consider key competitors and their strategies:

Costa Coffee
Costa Coffee is a global coffeehouse chain present in 41 countries, with a significant
presence in the UK and Ireland. Costa Coffee emphasizes creating a comfortable
environment for customers, including those who wish to work or study. Some Costa Coffee
locations offer designated areas with quieter seating arrangements, power outlets, and free
Wi-Fi, catering to the needs of individuals seeking a productive ambiance. Additionally,
Costa Coffee has partnered with My Work Booth to provide designated quiet zones in many
of its cafes. This strategy positions Costa Coffee as a direct competitor, targeting individuals
seeking a noiseless work or study environment.

Caffe Nero
Caffe Nero is another prominent competitor in the coffeehouse industry, operating over
1,000 stores across 10 countries. The company focuses on premium coffee and a relaxed
atmosphere. Caffe Nero provides an environment conducive to work or study, with
comfortable seating, ample table space, and a relatively low noise level. Compared to some
other coffee chains, Caffe Nero outlets are designed to offer a quieter experience. This
strategy caters to individuals who prefer a calm environment for concentration and
productivity.

Pret A Manger
Pret A Manger is primarily known for its food offerings but also serves a variety of coffee
and other beverages. Some Pret A Manger locations have dedicated spaces for customers to
work or study, providing comfortable seating, power outlets, and a less noisy environment.
The company aims to create an environment that accommodates the needs of individuals
seeking a productive setting. This approach differentiates Pret A Manger and positions it as a
competitor for individuals seeking a serene work environment.

Peet's Coffee
Peet's Coffee is a specialty coffee chain known for its high-quality beans and expertly crafted
beverages. Many Peet's Coffee stores provide a relaxed and quiet atmosphere, making them
appealing to customers seeking a peaceful environment for work or study. The company's
focus on creating a noiseless space aligns with the target audience of Starbucks' noiseless
sections. Peet's Coffee's reputation for quality and its commitment to providing a tranquil
ambiance make it a formidable competitor.
The Coffee Bean & Tea Leaf
The Coffee Bean & Tea Leaf is a global coffee and tea chain with an extensive selection of
beverages. Some of their stores provide separate areas or enclosed spaces that offer a quieter
atmosphere for customers who wish to work or study. These sections often have a lower
noise level and comfortable seating arrangements. The Coffee Bean & Tea Leaf's attention to
providing a noiseless environment distinguishes it as a competitor for individuals seeking a
serene work or study space.

Independent Coffee Shops

Independent coffee shops also present competition to Starbucks. These establishments often
create a cozy and quiet ambiance, attracting customers seeking a peaceful setting for work or
study. Many independent coffee shops pride themselves on personalized service, attention to
detail, and a sense of community, providing an alternative option for those desiring a
noiseless environment. Starbucks must consider the appeal of these independent coffee shops
and differentiate its noiseless sections by offering unique experiences and maintaining its
brand reputation.

Co-working Spaces
While not direct competitors in the traditional coffeehouse sense, co-working spaces have
gained popularity among remote workers, freelancers, and students. These shared workspaces
provide a professional environment specifically tailored for productivity. They often offer
amenities such as private work areas, meeting rooms, and additional services like printing
and scanning. Starbucks' noiseless sections can potentially compete with co-working spaces
by providing an alternative workspace within its cafes. By offering a noiseless section with
the convenience of coffee and refreshments, Starbucks can attract individuals who seek a
focused work environment without committing to a full-time co-working space membership.

Understanding the competitive landscape allows Starbucks to differentiate its noiseless

sections and position them strategically within the market. By leveraging its brand reputation,
existing customer base, and the unique experience it offers, Starbucks can compete
effectively with established players and attract customers seeking a noiseless environment for
work, study, or relaxation.
Choice for a Strategic Identity Option

Positioning

The strategic positioning of Starbucks' new brand featuring noiseless professional sections
will revolve around positioning itself as the premier destination for individuals seeking a
tranquil and productive work environment. The brand will position itself as a premium and
sophisticated alternative to traditional workspaces, emphasizing the serene atmosphere and
exceptional service it offers. The key elements of the positioning strategy are:

Premium Work Environment

The brand will position itself as a premium work environment, emphasizing the upscale
aesthetics, comfortable seating, and refined ambiance of the professional sections. This
positioning will attract professionals, business travellers, and students who value a
sophisticated and elegant atmosphere.

Tranquil and Productive Atmosphere

The brand will highlight the professional’s sections' tranquil atmosphere, focusing on
minimizing distractions and creating an environment conducive to deep work and focused
studying. This positioning will resonate with individuals who seek a peaceful and productive
work environment.

Personalized Service and Attention to Detail

Starbucks will position itself as a brand that delivers exceptional customer service and
attention to detail. The trained staff will provide personalized assistance, catering to the
specific needs of customers within the professional sections. This positioning will enhance
the overall customer experience and foster a sense of loyalty and satisfaction.

Personality

The personality of Starbucks' new brand featuring noiseless sections will embody
sophistication, professionalism, and attentiveness. The brand's personality will reflect the
following characteristics:

Sophisticated
The brand will exude sophistication, elegance, and refinement in its design, ambiance, and
overall experience. This personality trait will resonate with individuals who appreciate a
premium work environment.

Professional
The brand will project a professional image, emphasizing the suitability of the professional
sections for work-related activities. This personality trait will attract professionals and
business travellers who seek a conducive space for focused work or meetings.

Attentive
The brand will prioritize attentive and personalized service, ensuring that customers' needs
are met. The staff will be knowledgeable, responsive, and helpful, fostering a sense of care
and dedication. This personality trait will enhance the overall customer experience and create
a positive brand perception.

Communication

To effectively communicate the strategic identity and personality of the brand, Starbucks will
employ various communication strategies. The key elements of the communication strategy
are

Visual Branding
The visual elements, including the logo, signage, and interior design of the noiseless sections,
will reflect the brand's sophisticated and professional personality. The use of premium
materials, elegant colour schemes, and subtle branding elements will reinforce the brand's
positioning.

Marketing Collaterals
Marketing collaterals such as brochures, pamphlets, and digital advertisements will showcase
the serene ambiance, premium amenities, and personalized service offered within the
noiseless sections. The messaging will highlight the brand's commitment to providing a
tranquil and productive work environment.

Digital Presence
Starbucks will leverage its online platforms, including the official website and social media
channels, to communicate the brand's strategic identity. Engaging content, including visuals,
videos, and testimonials, will highlight the premium work environment, personalized service,
and testimonials from satisfied customers.

Partnerships and Collaborations

The brand will collaborate with productivity experts, influencers, and thought leaders to
create engaging content, workshops, and events that align with the brand's positioning. These
partnerships will be promoted through various channels, reinforcing the brand's commitment
to productivity and personal growth.

Customer Engagement
Starbucks will encourage customer feedback, reviews, and testimonials, showcasing positive
experiences within the noiseless sections. Engaging with customers through social media,
surveys, and loyalty programs will foster a sense of community and further strengthen the
brand's positioning.

By effectively communicating the brand's strategic identity, personality, and unique value
proposition, Starbucks can establish itself as the go-to destination for individuals seeking
a calm and serene environment to work or study from.
Tactical Decisions (4P/4C)

4P’s

Product

Noiseless Professional Sections: Starbucks can distinguish the design language of the
professional dedicated areas within their coffee shops from the rest of the café by utilizing
a minimalist and premium design language which further emphasizes the quiet and conducive
environment for work, study, and relaxation. This can include comfortable seating, ample
workspace, and a tranquil atmosphere.

Premium Coffee and Beverages: Starbucks should continue to focus on offering high-
quality coffee and a wide range of beverages to cater to the diverse preferences of their target
audience.

Snacks and Food Options: Alongside beverages, providing a selection of snacks and light
meals can enhance the overall customer experience and encourage longer stays.

Price

Competitive Pricing: Starbucks should strategically price their products to remain

competitive within the market while reflecting the premium quality and capitalizing on the
premium experience they offer.

Membership and Subscription Plans: Introducing membership or subscription plans can

provide added value to customers, such as exclusive access to noiseless sections, discounts,
or special offers.

Place

Strategic Locations: While already being prominent in those areas in developed countries
Starbucks should consider further expansion in areas with a high concentration of remote
workers, students, and professionals, such as business districts, educational institutions, and
coworking hubs in developing countries as well.

Collaborations with Coworking Spaces: Partnering with companies in the coworking

spaces market can create mutually beneficial opportunities, such as offering joint
memberships or providing special benefits to customers of both Starbucks and the coworking
spaces.
Promotion

Targeted Marketing Campaigns: Starbucks should develop marketing campaigns that

specifically highlight the noiseless professional sections, emphasizing the tranquil and
productive environment they offer.

Digital Marketing: Utilize online platforms and social media channels to reach and engage
with the target audience, showcasing the unique features and benefits of Starbucks' noiseless
sections.

Influencer Partnerships: Collaborate with influencers or industry experts who align with the
brand's values and target audience to increase brand visibility and credibility.

4C's

Customer Solution

Providing a quiet, premium, and conducive workspace that meets the needs of remote
workers, students, and professionals who seek a productive environment outside their home
or office.
Offering high-quality coffee, beverages, and food options to enhance the overall customer
experience.

Customer Cost

Offering competitive slightly premium pricing that aligns with the perceived value of
Starbucks' premium products and services.
Providing membership or subscription plans that offer cost-saving benefits for frequent
customers.

Convenience

Selecting strategic locations that are easily accessible and convenient for the target audience.
Integrating technology solutions to streamline ordering, payment, and loyalty programs,
making the customer experience more convenient.

Communication

Engaging with customers through various communication channels, including social media,
email newsletters, and in-store signage, to share information about noiseless sections,
promotions, and events.
Actively seeking customer feedback and responding to their needs and preferences,
demonstrating a customer-centric approach.

By focusing on these tactical decisions and aligning them with the target audience's needs
and preferences, Starbucks can effectively position itself as a leading destination for
individuals seeking a peaceful and productive work environment while enjoying premium
coffee and beverages.
Evaluation of Brand Concept from the View of Competitors and
Potential Customers

Competitors

Competitor Perception

Starbucks has established a strong brand identity cantered around quality coffee,
sustainable practices, and a welcoming atmosphere. Competitors may perceive
Starbucks as a formidable rival in the coffeehouse industry.

The introduction of noiseless sections within Starbucks cafes may be seen as an

innovative move by competitors. They may view it as an opportunity to assess
customer response and potentially consider implementing similar offerings in their
own establishments.

Competitors may also recognize Starbucks' commitment to social responsibility and

its reputation as a leading coffeehouse chain worldwide.

Market Share

Starbucks' extensive global presence with over 30,000 locations indicates a significant
market share. Competitors may be impacted by Starbucks' expansion strategy,
especially in urban areas where demand for quiet work or study spaces is high.

The success of Starbucks' noiseless sections in attracting customers seeking a

conducive environment for productivity may affect competitors' market share,
particularly those without similar offerings.
It is crucial for competitors to monitor Starbucks' market share and adapt their
strategies accordingly to remain competitive in the evolving coffeehouse industry.

Competitive Analysis

Competitors in the coffeehouse industry, such as Costa Coffee, Caffè Nero, and Pret
A Manger, have recognized the importance of providing quieter environments for
work or study.

Starbucks should assess competitors' offerings and customer preferences to ensure

their professional sections are differentiated and meet the needs of potential
customers.

By offering a unique and inviting atmosphere combined with quality coffee,

Starbucks can stand out from competitors and attract customers seeking a noiseless
work environment.
Differentiation

Starbucks' professional sections will provide a unique value proposition that sets them
apart from most of the competitors.

Competitors who are not already offering a similar solution may evaluate the
feasibility of implementing similar noiseless sections in their own cafes to meet the
growing demand for quiet work or study spaces.

To maintain a competitive edge, Starbucks should continue to innovate and enhance

their noiseless sections, ensuring they remain differentiated from competitors'
offerings.

Customers

Customer Perception

Starbucks' strong brand identity and reputation as a reputable and socially responsible
coffeehouse chain influence potential customers' perception of the brand concept.

The incorporation of professional sections within Starbucks cafes may be perceived

positively by potential customers seeking a quiet and conducive environment for work
or study.

Starbucks' commitment to quality, sustainability, and community engagement

resonates with potential customers who value these attributes in a coffeehouse.

Market Research

Conducting market research is essential to identify potential customer segments that

show interest in noiseless work environments.

Understanding the demographics, psychographics, and behavioural patterns of these

segments will help Starbucks tailor their marketing efforts effectively.

By analysing market research data, Starbucks can identify untapped customer

segments and develop targeted strategies to attract them to their noiseless sections.

Customer Loyalty and Retention

Starbucks' strong brand image, high brand awareness, and customer loyalty contribute
to customer satisfaction and retention.

Starbucks should regularly measure customer satisfaction with their professional

sections to ensure they meet expectations.
 By addressing any concerns raised by customers, such as issues related to crowding
and noise, Starbucks can maintain high levels of customer loyalty and satisfaction.

By evaluating the brand concept from the perspective of competitors and potential customers,
Starbucks can gain insights to refine their strategy, differentiate themselves in the market, and
attract their target audience. Understanding competitor perception, monitoring market share,
and assessing differentiation opportunities will help Starbucks stay competitive. Analysing
customer perception, conducting market research, and focusing on customer loyalty and
retention will allow Starbucks to tailor their noiseless sections to meet the needs and
preferences of potential customers, enhancing their brand concept and overall success in the
coffeehouse industry

Additional Proposal Ideas

Brand Extension
Considering the success and demand for noiseless sections, Starbucks can explore the
possibility of extending this concept to other locations beyond its traditional stores. The data
suggests that individuals seek quiet spaces in various contexts, such as airports, train stations,
or shopping malls. By collaborating with these venues, Starbucks can create noiseless
sections within their premises, allowing customers to enjoy a peaceful coffee experience
wherever they go. This brand extension would not only cater to the needs of customers but
also expand Starbucks' brand presence and reach a wider audience.

Brand Monitoring and Adaptation

Continuous monitoring and evaluation of customer feedback, sales data, and market trends
are crucial to ensure the effectiveness of the noiseless sections as part of Starbucks' brand
development strategy. By tracking customer satisfaction, engagement metrics, and market
dynamics, Starbucks can identify areas for improvement, make necessary adjustments, and
adapt its noiseless sections to evolving customer preferences and changing market conditions.

By incorporating the discussed data into this detailed brand development framework,
Starbucks can strategically position and promote its noiseless sections as a unique offering,
attracting, and retaining customers who desire a peaceful and focused coffee shop experience.
This approach will enable Starbucks to strengthen its brand identity and differentiate itself
from competitors while fulfilling the needs of its target market.
Proposal for brand identity prism
Brand identity prism for Starbucks brand extension focusing on offering noise-free
professional space within its coffee shops:

Physique
The physical changes in Starbucks coffee shops would be designed to create an optimal
workspace for professionals seeking a noise-free environment. This could include the
addition of soundproofed booths or designated quiet zones within the stores. The interior
design would incorporate elements such as comfortable seating, adequate lighting, and
ergonomic workstations to enhance productivity and focus.

Personality
The brand personality would revolve around professionalism, focus, and tranquillity.
Starbucks would position itself as a coffeehouse that goes beyond providing quality coffee,
emphasizing its commitment to offering a conducive space for individuals who need to work,
study, or hold meetings without distractions. It would strive to create a sense of calm and
mindfulness within its coffee shops.

Culture
Starbucks would foster a culture of productivity and collaboration within its noise-free
professional spaces. It would actively encourage customers to adhere to noise etiquette,
creating an atmosphere of mutual respect for others' need for a quiet work environment. The
coffee shop staff would be trained to support and maintain the tranquil environment, ensuring
customers have a positive experience.

Relationship
Starbucks would build a strong relationship with its customers by understanding and catering
to their professional needs. The brand would actively listen to customer feedback and
preferences, seeking input on the design and functionality of the noise-free workspaces.
Regular communication channels, such as surveys or feedback forms, would be implemented
to continuously improve the work environment based on customer insights.

Reflection The rebrand would reflect Starbucks' commitment to providing a positive and
enriching experience for professionals. It would showcase the brand's ability to adapt and
evolve in response to changing customer demands. Starbucks would highlight its
understanding of the challenges faced by professionals seeking a quiet workspace and
position itself as a reliable partner in their pursuit of productivity and success.

Self-image Customers who choose Starbucks' noise-free professional spaces would perceive
themselves as professionals who value focus, productivity, and a peaceful work environment.
They would associate their choice of workspace with a brand that understands their needs and
supports their professional aspirations. By working at Starbucks, they would feel a sense of
alignment with a brand that enhances their self-image as motivated and driven individuals.

Through this rebranding initiative, Starbucks aims to attract a new segment of customers who
prioritize a noise-free workspace. The brand positioning as a provider of quality coffee and a
peaceful professional environment would create a unique value proposition. Starbucks would
establish itself as a trusted brand that not only meets customers' coffee needs but also
understands and supports their desire for a productive and serene work environment.
Conclusion

In conclusion, our vision for the Starbucks brand strategy rebrand is to position Starbucks as
the leading global coffeehouse chain that not only provides premium coffee but also becomes
the go-to place for students and professionals seeking a conducive work or study
environment. By incorporating noiseless, professional sections within its cafes, Starbucks
aims to compete with the rising popularity of coworking spaces and other dedicated
work/study facilities. This rebranding strategy will differentiate Starbucks and attract
individuals who prioritize a serene, peaceful, and professional experience outside of
traditional office or study spaces.
Our vision statement encapsulates this goal, emphasizing Starbucks' ambition to be the global
leader in providing premium coffee experiences while revolutionizing the way individuals
work and enhancing productivity in a welcoming and sustainable atmosphere. The mission
statement further solidifies our commitment to passionately serving the finest coffee while
providing a peaceful and conducive environment for focused work or study. We remain
dedicated to exceptional customer experiences, sustainability, and fostering a sense of
community.
The market for Starbucks' new brand can be defined by considering the global coffee shop
industry and the coworking space market. With the coffee shop industry expected to reach
$229.9 billion by 2030, and the coworking space market projected to reach $24 billion by the
same year, Starbucks has a significant opportunity to tap into these growing markets. By
catering to the demand for quiet workspaces and offering a unique coffeehouse experience,
Starbucks can differentiate itself and further strengthen its position in the industry.
Remote work trends play a crucial role in shaping Starbucks' new brand strategy. With a
significant portion of the global workforce seeking flexibility in their work arrangements and
preferring a hybrid work style, Starbucks' noiseless sections can cater to their needs. The
target audience for Starbucks' noiseless professional sections primarily consists of working-
age adults, both male and female, from higher-income groups. They value flexibility,
productivity, quality, comfort, and a change of environment. By positioning itself as a top
choice for remote workers seeking a quiet and conducive workspace, Starbucks can attract
this target audience and expand its customer base.
Analyzing the competitive landscape, we identified key competitors such as Costa Coffee,
Caffè Nero, Pret A Manger, Peet's Coffee, The Coffee Bean & Tea Leaf, independent coffee
shops, and coworking spaces. By leveraging its brand reputation, existing customer base, and
unique experience, Starbucks can effectively differentiate its noiseless sections and position
itself as the preferred choice for individuals seeking a noiseless environment for work, study,
or relaxation.
To successfully execute the strategic identity, Starbucks will focus on positioning itself as a
premium work environment with a tranquil and productive atmosphere. The brand will
embody sophistication, professionalism, and attentiveness, which will be communicated
through visual branding, marketing collaterals, digital presence, and personalized service.
In summary, Starbucks' rebranding strategy to incorporate noiseless, professional sections
within its cafes aligns with the evolving needs of remote workers and individuals seeking
alternative workspaces. By capitalizing on the global coffee shop industry and coworking
space market, Starbucks can establish itself as the premier destination for individuals seeking
a productive and peaceful work or study environment.
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List of charts
Chart 1Net Revenue of Starbucks ( Source : 5) .............................9
Chart 2 Revenue distribution of Starbucks ( Source : 5) .............10
Chart 3 US Customer Statisfaction index scores of Starbucks (
Source : 5) ....................................................................................10
Chart 4 Number of Starbucks stores worldwide ( Source : 5) .....11
Chart 5 Net income of Starbucks ( Source : 5) ............................11
Chart 6 Operating income of Starbucks ( Source : 5) ..................12
Chart 7 Number of international and US-based Starbucks stores (
Source : 5) ....................................................................................12
Chart 8 Popularity of coffee chains (Source : 5) ..........................13
Chart 9 Starbucks brand awareness , usage , popularity , loyalty
and buzz among customers ( Source : 5) .....................................13
Chart 10 Starbucks advertising spending worldwide ( Source : 5)
......................................................................................................14
Chart 11 Public opinion on the state of remote work 2022 (
Source : 12) ..................................................................................23
Chart 12 Market size of global coworking space market in 2021 (
Source : 13) ..................................................................................23
Chart 13 Coffee shop market size worldwide ( Source : 14) .......24
Chart 14 Typical workspaces outside of the main office ( Source :
15) ................................................................................................24
Chart 15 Cited benefits of working remotely ( Source : 16)........25
Chart 16 Availability of remote work in US by annual income (
Source : 17) ..................................................................................25
Chart 17 Employees' preference on hybrid, remote work or office
environments worldwide in 2022, by gender ( Source : 18) ........26
Chart 18 Share of workers working onsite versus hybrid or
remote in the United States from 2019 to 4th quarter 2022 (
Source : 19) ..................................................................................26
Chart 19 Number of people in coworking spaces worldwide (
Source : 20) ..................................................................................27
Chart 20 Share of people who consider flexible working to be the
new normal in 2019, by country ( Source : 21) ...........................27
Chart 21 What People Find Distracting at Work ( Source : 22 ) .28
List of pictures
Picture 1 Starbucks logo throughout the years ( Source : 7).......16
Picture 2 Starbucks visual identity ( Source : 8) .........................17
Picture 3 Starbucks store design ( Source : 9) ............................18
Picture 4 Starbucks product offering throughout the years (
Source : 10) ..................................................................................18
Picture 5 Starbucks employee dress code ( Source : 11) ............19
List of tables
Table 1 Restaurants ranking by brand value ( Source : 6) ...........14