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Supporting document #1

Date published: April 2021


Source: Starbucks 2020 Global Environmental and Social Impact Report. Available
at:
[https://stories.starbucks.com/uploads/2021/04/Starbucks-2020-Global-Environment
al-and-Social-Impact-Report.pdf].
Supporting document #2
Date published: April 2023
Source: 2022 Starbucks Global Environmental Social Impact Report. Available at:
[https://stories.starbucks.com/uploads/2023/04/2022-Starbucks-Global-Environmental-Social
-Impact-Report.pdf] .
Supporting document #3
www.linkedin.com. (2023). Sustainable Success: How Starbucks Transformed Brand Equity.
[online] Available at:
https://www.linkedin.com/pulse/sustainable-success-how-starbucks-transformed-brand-equ
ity-hesham#:~:text=Literature%20Review%3A&text=Ethical%20Sourcing%3A%20Starbucks%
20prioritized%20ethical.

Sustainable Success: How


Starbucks Transformed
Brand Equity
Hussein Hesham

Hussein Hesham

Market and Strategies Unit Director | Ensuring Investments Feasibility & Market
Opportunities | Developing Effective Marketing Roadmaps & Go-To-Market
Strategies

Published Aug 31, 2023

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Sustainability: Brewing Success in Brand Equity - A Starbucks


Case Study

1. Introduction:
In this edition, we delve into an intriguing academic research paper
that explores how Starbucks successfully integrated sustainability
into its marketing strategy, with profound effects on its brand
equity.

When Starbucks entered the market with a focus on sustainability, it


encountered specific challenges related to integrating sustainability
into its business practices. These challenges included:

1. Supply Chain Transparency.


2. Environmental Impact.
3. Consumer Awareness and Education.
4. Balancing Costs and Profitability.
5. Changing Consumer Expectations.
6. Cultural and Market Variations.

By addressing these challenges, Starbucks has been able to make


significant progress in integrating sustainability into its brand and
operations, contributing to its overall brand equity and reputation.

This paper aims to explore how the company overcame these


hurdles by embracing sustainability as a core component of its
marketing strategy.

2. Paper Details

● Title: "The Impact of Sustainability on Brand Equity: A


Study of Starbucks"
● Authors: H. Christine Hsu and D. Steven White.
3. Literature Review:

Starbucks implemented several sustainability marketing strategies


to promote its commitment to sustainability and enhance its brand
equity. Some of the key strategies they applied are:

1. Ethical Sourcing: Starbucks prioritized ethical sourcing


practices by partnering with coffee farmers and
implementing programs like Coffee and Farmer Equity
(C.A.F.E.) Practices. This strategy ensured fair
compensation for farmers, protected biodiversity, and
promoted sustainable farming methods.
2. Environmental Stewardship: Starbucks focused on
reducing its environmental impact through initiatives like
promoting recycling, minimizing water usage, and
adopting energy-efficient practices in its stores. They also
implemented LEED (Leadership in Energy and
Environmental Design) standards for store construction
and design.
3. Sustainable Packaging: Starbucks aimed to reduce waste
by introducing recyclable and reusable packaging options.
They encouraged customers to bring their own reusable
cups and offered incentives for doing so.
4. Community Engagement: Starbucks actively engaged with
local communities through various programs, such as
supporting youth education, empowering women, and
investing in farmer support centers. This strategy
showcased their commitment to social responsibility and
sustainability.
5. Transparency and Communication: Starbucks prioritized
transparency by providing information about its
sustainability initiatives to customers. They shared stories
and details about their sourcing practices, environmental
goals, and community impact through various
communication channels, including social media and their
website.
6. Employee Engagement: Starbucks involved its employees
in sustainability efforts through training programs,
empowering them to become sustainability advocates.
This strategy helped create a culture of sustainability
within the organization and fostered a sense of purpose
among employees.

By implementing these sustainability marketing strategies,


Starbucks effectively communicated its commitment to
sustainability, engaged customers, and built a positive brand image.
These efforts not only enhanced the company's brand equity but
also attracted environmentally conscious consumers who aligned
with Starbucks' values.

4. Conclusion:

The study concludes that Starbucks' sustainability-focused


marketing strategy has had a significant positive impact on the
company's brand equity.

By aligning their values with those of socially and environmentally


conscious consumers, Starbucks has not only enhanced its
reputation but also fostered customer loyalty and increased market
share.

5. Enhancing Your Marketing Role in Today's World:


● Embrace sustainability as a core value and integrate it into
your marketing strategy.
● Conduct thorough market research to identify consumer
preferences and align your brand accordingly.
● Engage in corporate social responsibility initiatives to build
trust and authenticity.
● Communicate your sustainability efforts transparently to
foster customer loyalty.
Supporting document #4
Date published: 3 January 2024
Source: Starbucks Drives Further Innovation in Sustainability, Becomes First National Coffee
Retailer to Accept Reusable Cups for Every Visit. Available at:
[https://stories.starbucks.ca/en-ca/stories/2024/starbucks-drives-further-innovation-in-sustain
ability-becomes-first-national-coffee-retailer-to-accept-reusable-cups-for-every-visit/] .

Starbucks Drives Further Innovation in


Sustainability, Becomes First National
Coffee Retailer to Accept Reusable Cups
for Every Visit
January 03, 2024 • 4 min read

​ Starting January 3, 2024, customers will be able to use their own clean, personal cup
for every visit to stores in Canada and the U.S. – including drive-thru, the Starbucks
app, and in café.
​ Starbucks is the first national coffee retailer in Canada to offer mobile order for all
drinks and sizes served in a reusable cup.
​ Milestone achieves goal set in 2022 to make it easier for customers to use reusable
cups and help Starbucks reduce cup waste sent to landfill.

TORONTO – Starbucks Coffee Company announced, starting today, customers at all


company-operated and participating licensed Starbucks stores across Canada and the U.S.
can use their clean personal cup when ordering in café, in the drive-thru or when ordering
ahead using the Starbucks app. With the majority of Starbucks beverages enjoyed on-the-go,
this milestone unlocks a big opportunity for customers to choose reusables and supports
Starbucks commitment to reduce waste by 50 percent by 2030.

“At Starbucks, we envision a future where every beverage can be served in a reusable cup,”
said Michael Kobori, Starbucks chief sustainability officer. “Offering customers more options
to use a personal cup when they visit Starbucks marks tangible progress towards the future.
We know our customers are passionate about the planet, and now, they can join us in our
efforts to give more than we take, no matter how they order.”

In Canada, Starbucks is the first national coffee retailer to offer customers the option to use
their personal cup in mobile order for all drinks and all sizes. This is part of a larger cultural
movement the company is leading to shift toward reusables and away from single-use
plastics, making it convenient for customers to use their own personal cup for every visit.

"As we know, the most sustainable cup is likely the one you already own. Bringing your own
cup to stores is a critical step toward reducing single-use packaging waste. Starbucks is a
leader in this work, as the first national retailer of scale to offer personal cup ordering for all
beverages and sizes in every channel, including mobile order,” says Kate Daly, Managing
Director and Head of the Center for the Circular Economy at Closed Loop Partners. “The
NextGen Consortium is proud to have Starbucks as a Founding Partner of the Consortium to
reduce packaging waste and looks forward to supporting Starbucks in their work to advance
a waste-free world.”

How it works
Customers at participating stores in Canada who bring any clean, personal cup will receive a
$0.10 discount on their beverage.

Café

In café, customers tell the barista when they order that they brought their own personal cup.
Customers choosing to sit and stay in café can also request a reusable ceramic or glass cup
at most stores.

Drive-Thru

In drive-thru, while ordering, customers order their beverage as usual, and let the barista
know they brought their own cup. At the pickup window, baristas will collect customers’
personal cup without the lid using a contactless vessel to ensure hygiene and safety. The
beverage will be returned the same way.

Starbucks app
When customers order via the Starbucks app, first they will hit the “Customization” button
and then select “Personal Cup” in the customization menu and continue ordering as normal.
When they get to the store, customers connect with their barista at the pickup area, and hand
over their clean personal cup without the lid. The barista will hand the beverage back in a
contactless vessel.

Designed with Partners and Customers in Mind

Starbucks is able to offer personal cup ordering in all channels as a direct result of its test
and learn approach, informed by partners (employees) in Starbucks Tryer Innovation Lab and
at pilot locations across the U.S.

Building off a successful personal cup test at 200 drive-thru stores across Colorado last
spring, Starbucks store partners informed and helped co-design the custom reusable cup
smallware all stores will now use to transfer orders to personal cups.
“As long as we are following all our procedures and steps, it doesn’t add any more time, and
it is actually making customers happier,” said Brook, a partner who worked at a store that
participated in the Colorado test. “This has been a really big hit.”

Starbucks has been championing reusable cup options for 30 years, and in recent years
Starbucks has conducted more than 20 reusables tests in stores around the world with more
planned in the year ahead.
Supporting document #5:
MacroTrends (2022). Starbucks Revenue 2006-2019 | SBUX. [online] Macrotrends.net.
Available at: https://www.macrotrends.net/stocks/charts/SBUX/starbucks/revenue.

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