There are various successful brands which have understood that the key to success is the brand. It serves as a compass, which guides the organization, their partners as well as their consumers. Most visions and missions do not capture an organization’s core purpose, that is, what differentiates them from the rest. There must be a shared understanding of what a brand represents. This means that a brand team should have a theme that guides their effort.
To create a successful brand, Starbucks has unveiled a new logo, as a strategy for marketing its new products. Starbucks is among the most popular coffee houses globally. Their customers could be having mixed feelings about the idea, but the company insists it is good for their growth worldwide, as well as, giving out new products beyond coffee only (Schultz & Dori 1997).
There are changes that have been made to their former advert. The green ring around the image of a mermaid has been done away with, in addition to the words ‘Starbucks’ and ‘Coffee’. However, the mermaid siren image will still be intact, but become green in color.
There have been previous changes to the brand. Originally brown in color, the logo had the words ‘Starbucks Coffee Tea Spices’. The words were then changed to ‘Starbucks Coffee’. Currently, in their elimination of the word ‘coffee’, the brand will be transformed into dealing with more products other than coffee. Their presence in many countries gives them a venue for launching their vision.
Their keeping of the mermaid sign in place is aimed at making sure that the customer can recognize the brand without their name. They would still be connected emotionally to the brand. Customers would begin to view the changed logo sometime this year. The Starbuck Coffee Company will be celebrating its fortieth anniversary. It is important to note that, over the years, the company has been investing millions into developing products that are coffee-related, which are also designed to have a presence in the market.
For a company to have wide market coverage, it has to invest in creating a high number of channels. This would also translate into a growth in the sales. Starbucks Coffee Company has put into use this principle. It started with only a single channel. They were company-owned stores, which were profitable and carefully staffed (Schultz & Dori 1997).
Starbucks then franchised its operations into other venues, for example, bookstores, airports, and college. They have recently gone into an agreement with Albertson’s food chain, which will see coffee bars being opened in its many supermarkets. It is important to note that other products are also sold in these venues. A rapid growth is created with addition of more channels (Schultz & Dori 1997).
A distribution channel is supposed to promote a certain product. Some other distribution channels help a company like Starbuck in risk taking, for example they can hold stock for the company. Furthermore, it caters for any financial requirement of the company so that work goes on smoothly in the distribution chain.
The distribution channels are also important in negotiating the price, in addition to other offers that relate to the product, according to the demand of the customer. They do this by understanding the needs of their customers, as well as adjusting their offers accordingly. They also create contact with new customers, as well as, maintaining the already existing ones.
Distribution channels act as intermediaries. They are important in managing the distribution costs efficiently. They are very useful because they are experienced, in addition to having potential contacts that increase their productiveness. They have a large scale of operation when compared to the manufacturer in solitude. This translates to the scale of sales being higher.