Silva COML680 CompleteDraft - Gonzaga Universityweb02.gonzaga.edu/comltheses/proquestftp/Silva_gonzaga_0736M_10485.pdfstudy follows the philosophy of Martin Buber’s I-Thou relationship

STARBUCKS: BUILDING A GLOBAL BRAND


_________________________________________________

A Thesis

Presented to the Faculty in Communication and Leadership Studies

School of Professional Studies

Gonzaga University

__________________________________________________

Under the Supervision of Dr. John S. Caputo

Under the Mentorship of Professor Giovanni Caputo

__________________________________________________

In Partial Fulfillment

Of the Requirements for the Degree

Master of Arts in Communication and Leadership Studies

____________________________________________________ By

Jessica Lorraine Silva

May 2015 We the undersigned, certify that this thesis has been approved and that it is adequate in scope and methodology for the degree Master of Arts in Communication and Leadership Studies.



Acknowledgements I would like to offer a sincere thank you to the professors of the Gonzaga University Communication and Leadership Studies MA program, especially Dr. John Caputo. Thank you for encouraging me to expand my educational horizons and for pushing me to broaden my abilities. I also wish to express gratitude toward my mentor, Professor Giovanni Caputo, for his patient and thoughtful guidance throughout the process of preparing and writing this thesis. Finally, thank you to my family and friends for enduring this process with me. I could not have done it without your support.


ABSTRACT

Global brand positioning is an integral part of international marketing and branding. It requires

an effort to connect to local cultures and to focus strategies for diverse markets. To successfully

position itself internationally, an organization must develop a brand and product that offers

distinct value to the consumer in each unique marketplace. This thesis explores the global brand

positioning of Starbucks, an organization with continued international growth and success. The

study follows the philosophy of Martin Buber’s I-Thou relationship and takes the position that

communication is a dialogue. In the case of Starbucks, the organization’s brand helps create the

dialogue it has with consumers. This study is grounded in multiple theories, including cultural

adaptation theory as it relates to acculturation, global consumer culture and the theory of cultural

dimension. The study utilized a qualitative meta-analysis to determine concurrent themes in the

existing research. Throughout the study, several trends emerged including Starbucks’

development of a tailored third place and the glocalization of their stores and products. The

analysis shows a need for further research on global marketing and branding strategies to better

understand the benefits of incorporating culture.

Key Terms: brand, branding, globalization, global consumer culture, third place, glocalization


TABLE OF CONTENTS

CHAPTER 1: INTRODUCTION 1 Importance of the Study 1 Statement of Purpose 1 Definition of Terms Used 2 Organization of Remaining Chapters 3

CHAPTER 2: REVIEW OF LITERATURE 4

Philosophical and Ethical Assumptions 4 Theoretical Basis 5 The Literature 8 Rationale 10 Research Questions 12

CHAPTER 3: SCOPE AND METHODOLOGY 13

The Scope of the Study 13 Methodology 13 Data Analysis 14 Validity and Reliability 15 Ethical Considerations 15

CHAPTER 4: THE STUDY 17

Previous Studies 17 Emerging Trends 20 Discussion 21

CHAPTER 5: SUMMARIES AND CONCLUSIONS 24 Limitations of the Study 24 Further Study or Recommendations 24 Conclusions 25 REFERENCES 27

STARBUCKS: BUILDING A GLOBAL BRAND 1

CHAPTER ONE: INTRODUCTION

Introduction

Culture is a defining aspect of human interaction. It is the complex whole of an individual

that includes values, customs and beliefs. It is “manifested in social institutions, thought patterns

and the meaning and importance attached to material objects” (Lee, 1993, p.383). Cultural

values, beliefs and desires vary across the globe. Just as individuals cross international boarders

and adapt to social constructs and traditions, when entering the international market, an

organization also needs to adopt elements of the host culture into their brand positioning.

Importance of the Study

Brand image and identity are crucial components for brand positioning in the global

market (Goppel & Omonigho Mrabure, 2013). A brand’s success is measured by sales and

influence; however, sales and influence are not determined by the brand, but rather by

public perception (Boyle, 2007). Perceptions vary based on the collective cultures found in

the host country (Gotsi, et al. 2011). Organizations must be knowledgeable about the

beliefs and norms in their targeted international markets (Brecic et al, 2013).

Understanding these key factors will help shape how the international market perceives

the brand and whether or not the public will embrace it (Gotsi et al, 2013).

Statement of Purpose

This thesis explores the importance of incorporating cultural elements into brand

positioning through a qualitative meta-‐analysis of Starbucks’ global brand. The study aims

to understand how Starbucks, as a global brand, accommodates a multicultural audience

while honoring their brand and the values of culturally diverse markets and whether

elements of culture are ignored or implemented in the organization’s global brand


positioning. This research is intended to provide organizations interested in expanding into

the global marketplace an informed understanding of the benefits and implications of

infusing cultural elements into branding initiatives through the analysis of a well-‐

established global brand.

Definition of Terms Used

Throughout the following chapters several terms related to this study are

introduced. Each is defined below.

1. Brand: A known identity of a company in terms of what products and services they

offer. A name, term, design, symbol or any other feature that identifies a good or

service. A brand is created and influenced by people, visuals, culture, style,

perception, words and messages.

2. Branding: The identity of a product or service.

3. Globalization: The interconnections between societies, cultures and individuals

worldwide.

4. Global Consumer Culture: A complex structure that comprises cultural similarities

and differences with global and local meanings. A set of consumption –related

symbols and behaviors that are commonly understood but not necessarily shared by

consumers and business around the world.

5. Third Place: A social surrounding that exists between the formality and seriousness

of the work sphere and the privacy and familial intimacy of the domestic sphere.

6. Glocalization: The adaption of a product or service to appeal and identify locally or

culturally within the region it is sold.


Organization of Remaining Chapters

This thesis is organized into five chapters. The first chapter introduces the topic and

discusses the importance and relevance of the study. Chapter Two explores the

philosophical assumptions, theoretical framework, reviews the literature related to the

topic and states the research questions that frame the study. Chapter Three explains the

scope of the study, the methodology selected and the ethical considerations of the research.

Chapter Four reports the results of the study, discusses emerging trends within the

research and aligns the trends and findings to the research questions. The final chapter

reflects on the limitations of the study, suggestions for further research and a summary and

conclusion of the study.


CHAPTER TWO: REVIEW OF THE LITERATURE

Philosophical Assumptions

Culture is learned; it allows individuals to adapt to their natural and social environments.

Engaging in the local culture offers an outlet for an organization to create a dialogue with

consumers. Martin Buber’s philosophy of the I-Thou relationship views communication as

dialogue. The morally and ethically correct I- Thou relationship can only be created through

dialogue. Dialogue is synonymous with ethical communication, in that it forms the connection or

relationship between people that allows them to help each other become more human, through

self-disclosure, vulnerability, and affirmation of the other (Buber, 1958). Yoshikawa (1977)

asserts that meaningful dialogue between cultures is critical. Engaging in dialogue creates

authentic experiences. Much as dialogue is an important factor in creating a person-to-person

relationship, it is also necessary for building a consumer relationship. Dialogue allows a story to

unfold. In the world of marketing and advertising, a brand has the power to tell an organization’s

story.

Baxter (2006) states that the formula for growth and change is through the difference

each party (person, consumer or organization) brings to the dialogue. As cited in Baxter (2006),

Mikhail Bakhtin views dialogue as a “simultaneous differentiation from, yet fusion with another”

(p.101). Bakhtin states dialogue helps create new meaning out of previously established

meanings between two communicators. In the context of international expansion and marketing

efforts, an organization is bringing a new product or concept to the conversation. This product

may not successfully create dialogue within the new market if it completely overlooks the

established cultural values, beliefs and desires of the host culture.


This study assumes that creating a dialogue between an organization and the consumer is

constructed through an organization’s brand. The research presented aims to assert the

importance of incorporating the values of the native culture into the brand’s positioning in the

new market. The results of this study will provide further insight into the marketing positioning

of a company that has continued success in the international market, contribute to the body of

information on international marketing and provide a foundation for further research on

intercultural communication as it relates to successful global advertising.

Theoretical Basis

Globalization and the development of a world economy is increasing the need for

international marketing efforts. Organizations are becoming more aware of the need to be

culturally conscious in their efforts to expand and communicate in the international market.

Effective communication – and in turn, marketing – requires an understanding of the dynamics

and impact of culture. This study explores the importance of cultural understanding through the

lens of several theories. The first is cultural adaptation theory, specifically as it relates to

acculturation.

Acculturation describes the “changes in attitudes, values and behaviors of members of

one cultural group toward the norms of another cultural group” (Lee, 1993, p.381). It details the

nature of cultural change as a process of “human action and reaction, adjustment and

readjustment” (Lee, 1993, p.383). Acculturation includes adopting aspects of both the subjective

and objective culture of another (cultural) group. Subjective culture includes nonmaterial

elements such as norms, beliefs, laws and values; objective incorporates the material aspects like

food, tools and other material products.


Akaka and Alden (2010) posit evidence supporting the validity of acculturation to global

consumer culture. They describe global consumer culture (GCC) as a “set of consumption-

related symbols and behaviors that are commonly understood but not necessarily shared by

consumers and businesses around the world” (p.38). Global consumer culture is a complex

structure that comprises cultural similarities and differences and global and local meanings. It is

constantly evolving (Akaka & Alden, 2010). Marketing internationally is critical to global

consumer culture as it plays a key role in “communicating and reflecting cultural symbols in a

given culture” (Akaka & Alden, 2010, p.39).

Research within this study also incorporates Hofstede’s theory of cultural dimension.

Hofstede (1980) provides a framework for understanding intercultural communication. Within

the theory of cultural dimension, Hofstede offers a distinction between values and cultures. He

defines values as “a tendency to prefer certain states of affairs over others” (1980, p.19) and

culture as an influence on “a person’s response to the world around them” (p.24).

Hofstede (1980) notes that cultural differences are based on whether an individual comes

from a collectivist or individualistic culture. This theory provides organizations and marketers

the framework to understand how consumers vary in their values, beliefs and desires as a

culture’s orientation to individualism or collectivism greatly impacts its values and beliefs

(Hofstede, 1980).

An individualistic culture places high value on freedom of thought and expression and

independence. A collectivist culture values cooperation and conformity and decisions in the best

interest of the group (Hofstede, 1980). It is important for organizations expanding into a new

market to understand where the culture falls on the individual-collective scale, as it will directly


impact the perception the culture has on the organization’s brand as it emerges in the

marketplace.

Martin Roth (1995) referenced Hofstede’s work as it related to global brand strategies.

Roth asserts a brand looking to break into an international market “must be designed to

appropriately position the product for the targeted market segments” (p.164). He further states

that an organization expanding into a new market should “explore how cultural and

socioeconomic characteristics affect the performance of the brand” (p.164).

Roth focused his research based on Hofstede’s work on cross-cultural value systems.

According to Roth (1995), Hofstede identified three aspects of culture that can be related to

consumer needs and branding: power distance, uncertainty avoidance and individualism. A

culture high in power distance emphasizes wealth and prestige and conforms to the

socioeconomic class they are in (rich, poor) or aspire to be in (Roth, 1995). Cultures with

uncertainty avoidance seek stability and predictability and often avoid change (Roth, 1995).

Individualistic describes a culture that values personal and individual time, freedom and

experiences.

Roth (1995) further explained that social brands were better suited for cultures with a

higher level of power distance because consumers placed a higher value on status and affiliation;

he found functional brand images connected best to cultures with uncertainty avoidance because

they were consistent and did not promote much risk; and finally, Roth’s research indicated

individualistic cultures responded to sensory brands that showcased “variety, novelty and

individual gratification” (1995, p.166).


The Literature

Globalization is defined as “the rapidly developing process of complex interconnections

between societies, cultures and individuals worldwide” (Maynard & Tian, 2004, p.287). In an

organizational setting, globalization often references a company’s strategic expansion into an

international market. For an organization, marketing their brand is a driving factor in the

advancement of globalization. For many organizations an innovative brand helps solidify their

product in consumers’ minds – a tagline, logo, design or feature that sets their brand or product

apart from others (Badal, Melewar & Small, 2006).

A brand’s identity is a unique aggregation of what its organization does – its mission, its

personality and its promise to consumers (Goppel & Omonigho Mrabure, 2013). Branding is an

integral branch of business; it is competitive in nature and all organizations must work to

differentiate their product – and brand – from their competitors (Goppel & Omonigho Mrabure,

2013). A brand can have multiple meanings and may be associated with diverse groups of

people, including cultures (Akaka & Alden, 2010). “Communicating a clearly defined brand

image enables consumers to identify the needs satisfied by the brand” (Roth, 1995, p.163).

A solid and strategic brand identity can enhance an organization’s position, performance

and its ability to expand globally (Goppel & Omonigho Mrabure, 2013; Roth, 1995). “The

strongest brands insulate themselves against competitors by having distinctive identities that

connect meaningfully with their target markets” (Brecic et al., 2013).

Melewar and Saunders (1999) conducted research on the influence of an international

standardization of corporate visual identity. In terms of their research, corporate visual identity

(CVI) is an element of brand identity; it is “the name, slogan and graphics (logotype and/or

symbol), typography and color” that represent the brand (p.583).


Brecic et al. (2013), Melewar and Saunders (1999) and Roth (1995) posit that brand identity and

image are essential to expanding into the global market. Melewar and Saunders (1999) suggest

that corporate visual identity is a part of brand identity that “multinational enterprises can use to

project their quality, prestige and style to stakeholders” (p.583). In contrast to rapidly changing

products and promotions, Melewar and Saunders (1999) further assert that an organization’s

brand and CVI can endure time as an “expression of the values and mission of a company”

(p.584). Positioning a brand as global through communications, using message elements such as

brand name, logo, visuals and themes creates perceived brand globalness (PBG) and a perception

of brand superiority (Steenkamp, Batra & Alden, 2003).

According to Gotsi, Lopez and Andriopoulos (2011), “brand identities can influence

country images and vice versa, and the way in which they influence each other is unlikely to be

fixed across international borders as consumers vary” based on their collective cultures (p.278).

There are several factors that influence how a brand is perceived through international borders.

Kapferer (2012) relates consumer ethnocentrism and consumer animosity to international

perception; and Melewar and Saunders (1999) consider the impact of language as a barrier.

Shimp and Sharma (1987) define consumer ethnocentricity as “the beliefs held by consumers

about the appropriateness, indeed morality, of purchasing foreign-made products” (p.278); it is a

well-established bias among consumers in favor of local, homegrown products (Akaka & Alden,

2010).

Brand foreignness may have negative connotations; but, in some instances, it may also

“signal comparatively higher product quality, status, and symbolize a desirable lifestyle” (Brecic

et al., 2013, p.278). Studies show consumers may prefer global brands because they are

associated with higher prestige (Kapferer, 1997). This prestige is influenced by the brand’s


relative scarcity and higher price compared to local brands (Batra, et al., 2000). Global brands

may also signify cosmopolitanism (Thompson & Tambyah, 1999). Some consumers buy global

brands “to enhance their self-image as being cosmopolitan, sophisticated and modern” (Akaka &

Alden, 2010, p. 55). Global brands are known to purposely promote a foreign image when

marketing in transitional economies (Akaka & Alden, 2010). “This is to enhance the desirability

of these brands among local consumers who tend to associate foreignness with higher perceived

quality and social status given the brands' higher price, relative scarcity and higher prestige”

(Akaka & Alden, 2010, p. 46).

According to Brecic et al. (1998), consumer animosity is “remnants of antipathy related

to previous or ongoing military, political or economic events” (p.278). Consumer animosity can

lead to boycotting services or goods of a specific brand. Language also has a great deal of

influence in international marketing and has been argued as both a benefit and detriment to the

success of a brand. Melewar and Saunders (1999) state that language is the “primary

manifestation of culture as a factor” in brand image within an international context; dependent

upon how it is used (p.587).

Friedrich (2002) conducted a study on English being used within global advertising and

concluded that the use of English in marketing and advertising was associated with prestige. He

noted that English words were often accepted into local jargon and that using English provided

the organization more words to work with and to be creative with combinations (both English

and non-English words).

Rationale

Success in a new market requires an organization to first build a brand that has a broad

understanding of the country’s people, their needs and unique characteristics (Liu, 2002).


Globalization offers two standard approaches: local and international. Some organizations create

one standardized marketing mix to be used across the global market while others spend time

building a campaign specialized and unique to the new market (Roth, 1995). A standardized

approach often yields cost-saving benefits for the organization (Roth, 1995), but advertising that

is catered to the values of a native culture is more effective for an emerging product (or brand) in

a foreign market (Pae, Samiee, & Tai, 2001).

Marketing is perhaps the most “efficient and successful contemporary practitioners of a

skill that no one can afford to ignore; namely the ability to move fluently between the local and

the global, as well as between the concrete and the abstract” (Akaka & Alden, 2010, p.40). Due

to its ability to transfer, share and contribute to the creation of cultural meanings, marketing –

particularly for global or foreign brands – often establishes a “cultural paradox that questions

what is represented in an advertisement: the culture of the consumers or that of the company”

(Akaka & Alden, 2010, p.40). What is considered ‘global’ in any given culture is done relative to

what is considered ‘local’ (Tobin, 1992).

Local culture remains “a central influence on consumer behavior and individual identity”

(Steenkamp, 2003, p.55). Steenkamp (2003) suggests there is evidence that many consumers

prefer a brand with an attempt at local connections. This study aims to understand the importance

of incorporating the elements of a native culture into a brand’s positioning in a new market

through an analysis of a brand that is successfully growing within the global market: Starbucks.

Research Question

International marketing is an important component for any organization expanding into

the global market. While extensive research has been conducted on brand image in specific

regions, limited research has been done on a cross-cultural level. This study seeks to increase the


understanding and body of research on international marketing by analyzing Starbucks and its

strategy in the international market. With the examination, this study will focus its analysis on

Starbucks brand as it is integrated into individualistic and collectivist cultures. The goal of the

research is to provide a better understanding of how Starbucks advertises at a multicultural level

and the differences implemented between cultures. The study will concentrate on the following

research question:

(RQ1) How does Starbucks accommodate the complexities of a multicultural audience

while honoring their brand and the values of the new market?

(RQ2) Are elements of culture ignored or implemented in Starbucks’ branding

strategies?

The following chapter will discuss the specific methods used to evaluate the data and answer the

research questions.


CHAPTER THREE: SCOPE AND METHODOLOGY

The Scope of the Study

This study analyzed the international marketing strategies from a single, evolving and

successful international organization: Starbucks. Starbucks was selected due to the

organization’s continued expansion into global markets and its ability to incorporate local culture

into each expansion. Choosing one organization allowed the researcher a more detailed and

comprehensive approach to the analysis. For the analysis the researcher reviewed advertisements

and articles that demonstrated the cultural differences infused in Starbucks’ marketing and

branding tactics abroad. The research aims to understand the degree of variation within

Starbucks’ marketing between cultures. For the purpose of this study, three main aspects of

global consumer culture are explored and compared within Starbucks’ global initiatives: “the

experience of consumption – the consumer culture, the space of consumption – the third place

and the ways of consumption – the lifestyles” (Ling, 2012, p.120).

The Methodology of the Study

For this study, a qualitative meta-analysis was determined the most effective research

method to reveal synchronous themes in Starbucks’ international marketing and branding efforts.

A qualitative meta-analysis is a research “technique used to create an integrative review”

(Neuman, 2011, p.124). It involves gathering details from previous studies and articles and

synthesizing the results (Neuman, 2011). A qualitative meta-analysis incorporates an analysis of

published studies to examine trends or results in current research (Rubin, 2010). By combining

results found in scholarly journals and through research, “researchers can tell how much of an

effect a particular variable has” (Rubin, 2010, p. 214). In this study, a qualitative meta-analysis

allowed the researcher to analyze trends found within Starbucks’ international branding tactics


and techniques. Through this method the researcher can draw conclusions on the consistency and

success of Starbucks’ initiatives employed at the global level.

Utilizing Academic Search Complete (EBSCO) Communication Source, Google Scholar

and several web-based search functions, studies, secondary source articles, case studies and

advertisements were discovered in support of the research. Narrowing the scope of the analysis

enabled themes to emerge within the literature and research. Such themes included Starbucks’

development of a “third place” as a way to culturally connect with consumers. This integrative

review seeks to present and summarize the current themes found in Starbucks’ global branding

and marketing initiatives and to provide a summary of information in support or dispute of RQ1

and 2.

Data Analysis

As mentioned, meta-analysis was the method selected to gather data in this study.

Neuman (2011) states a meta-analysis proceeds in five steps: “(1) Locate all potential studies on

a specific topic or research question. (2) Develop consistent criteria and screen studies for

relevance and/or quality. (3) Identify and record relevant information for each study. (4)

Synthesize and analyze the information into broad findings. (5) Draw summary conclusions

based on the findings” (p. 125). The data in this analysis was collected through studies, articles

and advertisements that related to Starbucks and its international marketing tactics. Articles

related to Starbucks, international branding, international marketing and global advertising were

also explored. Based on the five steps outlined by Neuman (2011), the data analysis of this study

included a narrow focus on Starbucks as the sole example of an international organization. It

reviewed Starbucks’ global marketing and branding tactics at a broad level to provide further

insight and understanding for RQ1 and RQ2.


Specific criteria to measure the relevance and quality of the data gathered were developed

and included such terms as: Starbucks international and/or global marketing; Starbucks

international and/or global branding; Starbucks international and/or global advertising;

international and/or global marketing and/or advertising strategies; and global consumer culture.

Specific information that related to Starbucks’ global positioning and marketing strategies were

also searched

The data will be compiled through successive approximation, a process used to refine the

data and information collected (Neuman, 2011). This process will allow the research to note and

analyze common themes and trends within the data that support the presented research questions.

Validity and Reliability

The research presented in this study is limited to the concepts of Starbucks’ specific

branding and marketing strategies abroad; however, some elements of the data collected also

resonate on a broader level in the realm of international marketing. Following Neuman’s

constructs of a meta-analysis, the researcher was able to eliminate studies and articles that were

not relevant to the work at hand or the research questions, enhancing the study’s validity and

reliability.

Ethical Considerations

Within all aspects of research, ethical considerations are a necessary component of the

analysis. Rubin (2010) asserts “researchers need to be accurate, honest and precise when

conducting research and when discussing the meaning of their data” (p. 204). The ethical

considerations of this study do not include the implications of having participants. However, the

meta-analysis structure of this study and the use of studies and secondary sources could impact

the ethical considerations.


Although the study is bound by these limitations, Neuman (2011) provides guidelines to

determine a quality source. Such guidelines include resources that provide information about the

author of the data, the location and other citation details. Within this study, the majority of data

collected was through EBSCO Communication Source, an online academic database that fulfills

these requirements. The secondary sources analyzed (advertisements, business articles) can all be

directly traced back to Starbucks as an organization. The research conducted in this study

ensures ethical standards and sources of information.

The following chapter will outline the results of the meta-analysis and evaluate the

findings of the study.


Chapter Four: The Study

Previous Studies

Understanding the global marketplace is a necessity for emerging international

organizations. Previous scholarship has been devoted to uncovering the successful steps to

implementing a global brand or product. Research has also focused on the marketing and

branding strategies employed to break into a new global market. Such research has included

analyzing a specific organization or brand. Although the amount of literature is limited,

Starbucks has become a brand of focus in recent years due to its growing international success.

Previous studies explore how Starbucks has achieved its global status through the development

of its brand.

Aiello and Dickinson (2014) reveal that Starbucks makes a concerted effort to

incorporate elements of the local community (and culture) into the development of their stores.

Since 2009, the design of Starbucks’ stores has been at the forefront of its global branding

strategies (Aiello & Dickinson, 2014). Through design, the organization strives to create a

globally consistent aesthetic with specific elements that are reflective of the culture and local

communities the stores are located in. Starbucks has created a standardization of brand quality

and practice, but they “source materials and employ craftsman with cultural and lifestyle

principles” relevant to the community (Aiello & Dickinson, 2014, p. 306). Through a visual

analysis of stores in Starbucks’ birthplace of Seattle and the European and Asian market, Aiello

and Dickinson (2014) conclude Starbucks relies heavily on their stores as a branding strategy and

strives for the stores to become a true reflection of the neighborhood.

Starbucks’ use of design and its infusion of local culture has been criticized as only a

surface-level connection to community (Thompson and Arsel, 2004). Aiello and Dickinson


(2011) recognize such criticism, but contend through their research that Starbucks’ stores are not

“rudimentary sketches of the local that are ‘plugged’ into a standard format” (p.317). They assert

instead, that Starbucks creates a “vision of the actual culture and community” that they weave

into the development of their stores (p.317).

Aiello and Dickinson (2011), Talpau and Doscor (2011) and Lin (2012) all note that

although while in recent years Starbucks has turned to traditional marketing strategies (print

advertisements, television commercials, etc.), that much of its global success is attributed to the

localized branding of its products and stores. Talpau and Doscor (2011) assert that companies

must continuously adjust to market needs and changes and that global organizations also need to

meet customers’ cultural preferences in their international locations.

Lin (2012) explored the Starbucks brand in Taiwan as it relates to global consumer

culture to gain understanding into how an international brand, like Starbucks, can achieve global

status without high levels of traditional media. Lin (2012) suggests that Starbucks makes their

products and services meaningful to new markets by understanding what is important to

individuals in each unique marketplace. Within Lin’s (2012) research, three aspects of global

consumer culture exist in the dynamic brand-building process Starbucks has employed abroad

and particularly within the area of study. The three aspects include the experience of

consumption (the consumer culture), the space of the consumption (the third place) and the ways

of consumption (the lifestyles). These three aspects are relevant to Starbucks in Taiwan because

coffee consumption includes behavior, experience and space (Lin, 2012). Frequency of visit, the

space of consumption, the lifestyles and consumer demographics were topics explored through

questionnaires with a five-point scale. Interviews were used to confirm the validity of the

questionnaire responses with 400 Starbucks users in Taiwan.


Through the analysis, Lin (2012) concedes that Starbucks’ use of place – creating

comfortable and familiar surroundings – and a prestigious reputation persuade new consumers to

try their products. The findings also indicate that coffee is not the only element of Starbucks

being consumed, but also the space and atmosphere inside the stores. The theoretical construct

and the data collected serve as a foundation for further study, at a larger scale (Lin, 2012).

The importance of culture and community in Starbucks’ branding is re-emphasized by

Wang (2012). Starbucks’ cultural influence extends beyond the confines of its brand and

product; it has propelled into an entire experience. In her article, Wang (2012) explores

contributing factors to Starbucks’ success in China – a predominantly collectivist and tea

drinking culture – and how it is reflective of Starbucks’ global status.

Through market research, Starbucks found that as the Chinese middle class emerged

there was an opportunity to introduce the Western coffee experience (Wang, 2012). Starbucks

focused their efforts not just on coffee but the experience of meeting at Starbucks. When entering

the Chinese market, Starbucks did not focus its efforts solely on positioning itself as a coffee

retailer; instead, it worked to capitalize on the tea-drinking culture of Chinese consumers by

introducing beverages using local ingredients (Wang, 2012). While Starbucks does offer a

variety of global products (The Fruppucino, the Latte, etc.), they also offer a highly localized

menu of beverages and treats that are tailored to the cultural market (Wang, 2012). It is critical

for Starbucks to adapt their business to local markets, so Starbucks creates a unique blend of

flavors through consumer taste profiles for each of their unique markets (Wang, 2012).

Although Starbucks has successfully connected local culture through store design and

creating local flavor, for a truly unique cultural (or local) experience local business often

outweigh the coffee powerhouse. According to Wang (2012), Lin (2012) Talpau and Boscor


(2011) and Aiello and Dickinson (2014), Starbucks acknowledges this by creating an experience

and a unique new place for consumers to convene.

Emerging Trends

The aforementioned studies stress the importance of Starbucks’ ability to incorporate

local culture into their global brand. Aiello and Dickinson (2014), Talpau and Doscor (2011),

Lin (2012), Thompson and Arsel (2004) and Wang (2012) all note the development of a “third

place” as a contributing factor to Starbucks’ status as a global organization. Starbucks has

transformed itself from a coffeehouse to a frequent meeting place for consumers to relax and

converse; it has become a third place besides home and work (Lin, 2012).

Third places exist between the formality and seriousness of the work sphere and the privacy and familial intimacy of the domestic sphere…they are conducive to formal conversations and casual friendships where patrons imbibe a comforting sense of community, camaraderie and social engagement (Thompson & Arsel, 2004, p. 263.)

Starbucks has created a third place by creating a standardized commodity with its atmosphere.

This third place becomes a marketing mix tool for Starbucks to make their products easily

accessible and available to target customers and connect with local culture; the place itself is part

of the product (Lin, 2012).

Through an inviting interior, comfortable lounge areas and upbeat, pleasant music

Starbucks has developed standard elements of a third place to be carried throughout stores world-

wide (Lin, 2012; Thompson and Arsel, 2004). Although Starbucks has set a precedent with a

standardization of quality and practice, they have also developed a localization in the

implementation and development of their stores and the third place (Lin, 2012; Aiello and

Dickinson, 2014; Wang, 2012).

Thompson and Arsel (2004) and Kjeldgaard and Ostberg (2007) explore glocalization as

a contributing factor to Starbucks’ international success. Glocalization suggests an intermingling


of the global and the local (Kjeldgaard & Ostberg, 2007). Glocalization is described as the

adaptation of a product or service to appeal and identify locally or culturally within the region it

is sold; it is when a product is altered to meet the needs of or appeal to local consumers

(Kjeldgaard & Ostberg, 2007). The above research supports the idea of glocalization in

Starbucks’ global implementation. Starbucks demonstrates glocalization through the brand’s

creation of a third place and products reflective of the local culture. In Wang’s article (2012) she

demonstrates an example of Starbucks’ glocalization in China through the brands development

of an East meets West blend of flavors, including products tailored towards Chinese preferences

such as its black sesame green-tea cake roll (Beattie, 2012).

Discussion

The previous research indicates the practice of acculturation in Starbucks’ global

branding strategies through the creation of a third place and the glocalization of that place. The

development of a third place is Starbucks’ effort at incorporating and adopting elements of the

subjective culture. As outlined in Chapter Two, the subjective culture includes beliefs, customs,

norms and values. Based on the framework presented in Chapter Two of Hofstede’s theory of

cultural dimension, Starbucks develops a further understanding of how consumers vary in their

beliefs, values and desires based on their culture. Understanding this cultural dimension allows

Starbucks to appropriately position its products to various markets, creating a third place

environment that is reflective of its neighborhood and culture. For instance, in the Asian market

(such as China or Taiwan) – which identify as typically collectivist cultures – Starbucks develops

a third place environment that is more conducive to group social gathering – a trait that is

associated with collectivist cultures. Within the Asian market, Starbucks designs their stores with

fewer single and café style tables and opts for more large tables and lounge areas for group


settings (Aiello & Dickinson, 2014). In France, however, Starbucks gears their store environment

towards the more individualistic culture. Individualistic cultures, like France, place high value on

personal and individual time (Roth, 1995). Recognizing the degree of difference between

cultures, Starbucks designs its French stores to have a more intimate setting with café style

seating and tables set for two (Alderman, 2012; Aiello & Dickinson, 2014).

Starbucks adopts elements of the objective culture through the glocalization of the

products available within varying marketplaces. In acculturation, the objective culture refers to

material elements of culture, such as food. As referenced in Wang’s (2012) article, Starbucks

creates products (beverages and treats) unique to each cultural market. Through the glocalization

of products and the third place atmosphere, Starbucks is creating a dialogue with the local culture

and consumer; meaningfully connecting with each target market. As written in the philosophical

assumptions in Chapter Two, dialogue allows an organization and consumer to share a story.

Starbucks uses its brand to help tell this story. The mission of the organization is to “inspire and

nurture the human spirit – one person, one cup and one neighborhood at a time” (Starbucks,

2015). The research outlined and analyzed in this study supports this mission and provides an

understanding of the RQs presented in Chapter Two.

RQ1 asked how Starbucks, as a global brand, accommodates the complexities of a

multicultural audience while honoring their brand and the values of the new market. While there

were no articles found that directly related to the scope of this study, consistent trends emerged

in relation to this question. Such trends included Starbucks adopting local flavors and aesthetics,

developing cultural taste profiles and creating an inviting and comfortable environment. Aiello

and Dickinson (2014), Lin (2012) and Wang (2012) emphasized store design was a leading

brand strategy for Starbucks. Lin (2012) and Wang (2012) explored this further, with their


research indicating that Starbucks follows a standardization of quality and practices that adheres

to its brand standards while simultaneously embracing elements of the host culture creating a

third place environment.

The second research question (RQ2) posed in this study asked whether elements of

culture were ignored or implemented in Starbucks’ branding strategy. It is evident within all the

studies that both subjective and objective elements of the host culture play an important role in

Starbucks’ global branding strategy. Through extensive market research Starbucks gains an

understanding of each new (or potential) market (Aiello & Dickinson, 2014; Wang, 2012).

Conducting market research connects Starbucks to the values and beliefs of the host culture,

affording the organization the ability to appropriately connect their brand and stores to each

unique marketplace. Starbucks’ chief executive officer and chairman, Howard Schultz,

recognizes the importance of culture as a global brand stating, “We remain highly respectful of

the culture and traditions of the countries in which we do business. We recognize that our

success is not an entitlement, and we must continue to earn the trust and respect of customers

daily” (Starbucks, 2015). Through Starbucks’ efforts to create a third place environment and the

organization’s dedication to create authentic taste profiles unique to each individual market place

they are building trust among global consumers.

Overall, the findings support the theories and RQs outlined in Chapter Two, but the low

volume of research that directly connects to the scope of this thesis demonstrates the need for

further study. In the remaining chapter such limitations and areas for future research will be

explored.


CHAPTER FIVE: SUMMARIES AND CONLUSIONS

Limitations of the Study

The purpose of this study was to explore the global branding strategies of Starbucks to

determine whether or not the coffee giant, as a successful global brand, incorporated elements of

culture into its branding strategies abroad. There were a variety of limitations within this study

and the most apparent was related to the narrowed scope of the study itself. The focus was

narrowed on one organization to make the study more manageable within the given time

constraints; however, the focus on Starbucks produced a limited amount of research and previous

studies. Although consistent trends emerged within the available research they were limited in

variation due to the lack of a wide body of research.

Due to the nature of this study and the amount of available literature, the results of this

study lack perspective. While some of the research within previous studies incorporated methods

involving interaction and questionnaires with Starbucks customers, the lack of available

literature also contributed to a lack of perspective – not featuring the human element of the

Starbucks global brand. How do global consumers perceive the brand’s attempts at incorporating

culture? How does this perspective vary between cultures?

Further Study or Recommendations

Further studies on Starbucks’ global branding strategies can answer the previously listed

questions. It is clear within the results of this study that Starbucks incorporates elements of

culture into its global branding strategy. The brand works to tailor its stores and products to each

individual market. Future research should incorporate the consumer perspective. Through

surveys, interviews, focus groups and questionnaires with the local consumers, information can

be discovered on how well the cultural initiatives employed by Starbucks abroad our perceived


by the consumer within that market. Such research would explore the local success of Starbucks’

cultural infusion and could discover avenues for brands, like Starbucks, to further connect with

consumers through their brand and elements of local culture.

Another compelling area for future research includes a cross-comparison of multiple

international brands. Further research with various global organizations is necessary to develop a

broader understanding of if and how global companies rely on and incorporate culture into their

marketing and branding strategies. Studying the practices and strategies of multiple global

brands would provide a robust understanding of how culture can be used to identify and connect

with global consumers from a variety of cultural backgrounds.

Similarly, areas of further research should include studies on individual and multiple

global organizations across various diverse cultures (i.e. Japan versus Greece versus Iran, etc.).

Narrowing the focus on not just the brand, but also the positioning of the brand within a

specific culture will showcase the variations implemented to create a brand or product that

appeals to a diverse global audience.

Conclusions

Global brand positioning is an important part of the international marketing process. It

requires an effort from an organization to connect with local cultures and focus on strategies for

diverse markets. To successfully position itself internationally, an organization must develop a

brand and product that offers distinct value to the consumer in each unique marketplace (Roth,

1995; Liu, 2002). The results in this study indicate that Starbucks connects to local culture

through the development of its stores and the glocalizaiton of products.

The goal of this thesis was to determine whether Starbucks, as a global organization,

incorporates culture into its global branding strategy and if so, how. The empirical evidence


found in this study demonstrates that Starbucks uses culture as a means to communicate and

connect with consumers. The organization uses culture within its branding process to create a

dialogue and authenticity with the new market. Establishing an authentic dialogue with the

consumer builds a bridge of trust between the organization and its customers. Understanding the

importance and impact culture can have on branding strategies allows organizations (like

Starbucks) to cross various boarders, creating a global brand.


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Silva COML680 CompleteDraft - Gonzaga Universityweb02.gonzaga.edu/comltheses/proquestftp/Silva_gonzaga_0736M_10485.pdfstudy follows the philosophy of Martin Buber’s I-Thou relationship