Eleven lessons: managing design in eleven global brands

From its beginnings as a single coffee shop in Seattle 35 years ago, Starbucks is
now a global brand which uses design to aid the delivery of a distinctive service
experience to its customers. The Starbucks Global Creative team manages
regularly changing design themes while working within a global brand.

Overview
Starbucks uses design It has developed a strategy
that allows it to balance regularly changing design
themes with a consistent set of brand values, and
uses design as a way of aiding the delivery of a
consistent service experience to its customers.

Key elements of that strategy include:

— The development of detailed guidance for internal and external designers in the
company’s brand and design principles
— The use of a five word filter against which all design concepts are judged
— A defined Processway to take designs from concept to delivery, encompassing a
detailed suite of technical, legal and customer checks
— The development of an electronic workflow management tool to automate much of
the design Processway and to further support designers with access to additional
resources.

Meet the team

The Starbucks Global Creative team is responsible for the delivery of all in-store
collateral and packaging, for the design of much of Starbucks’ advertising and
marketing materials, and for a visual merchandising group that works on the visual
presentation in the stores and of the products. The group also commissions external
creative agencies that deliver worldwide advertising campaigns.

A separate store design group is responsible for the design of the furniture, fittings and
layout of Starbucks’ retail outlets. The Starbucks brand itself is managed by a brand

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group that strategise new brand platforms, such as a new product line and new
identities.

The Global Creative team is led by Hainsworth who manages just under 100 staff at
Starbucks' Seattle Support Center. Around 50 of these are designers, the rest
responsible for project management. All design departments within Starbucks, as well
as external agencies, work from 'the same creative palette,' says Hainsworth.

Designers
Starbucks’ Global Creative team employs graphic
designers together with technical and packaging
specialists. Some of the team also bring fine art and
illustration skills to the mix.

Designers are also encouraged to think of themselves as

business owners, and an emphasis is placed on
employing designers who are also thinkers and
strategists.

Hainsworth believes that fostering a creative culture in

Starbucks is important, and in his role as creative director, he is the face of design
within the organisation, and is responsible for showing that designers aren’t just 'off the
wall wacky people.'

In more depth
Read more about the skills that business leaders are looking for in their designers

History
Starbucks was founded 35 years ago as a single coffee shop in Seattle’s Pike Place
Market. The company in its current form began in 1982 when Howard Shultz, now
Chairman, joined as director of retail services and marketing. Shultz scaled up the
import and distribution of fine coffee and identified an up-market niche for coffee
houses, combining some of the atmosphere of Italian espresso houses with American
values of friendly, efficient service. The first of this new style of coffee bar was opened
in downtown Seattle in 1984.

By 1990 Starbucks had 84 stores around the US During the 1990s it continued to
expand and entered significant distribution relationships with a number of large US
retail, air travel and hotel chains. It also extended its brand to encompass other aspects
of the coffee shop experience, such as selling CDs of the music played in its stores as
well as ground coffee and related products for home consumption.

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The evolution of design at Starbucks
Starbucks deliberately avoids changing its core offering – the coffee. However, it
does have a policy of continually refining other aspects of its products and
services. Such innovation can be seen in the vast range of coffee-based products
that it offers, the transition from foam to paper cups for take-away drinks and in
the growth of its non-coffee retail items.

Starbucks enjoys a market leading position among coffee shops, but

the concept that it developed has been imitated and modified by an
increasing number of competitors. Starbucks must continue to evolve
its product offering in order to maintain its leadership position. It also
faces the significant challenge of managing a consistent brand
experience over thousands of separate retail outlets.

Simultaneously, the company has pursued a strategy of enriching the brand wherever
possible, branching out into areas such as Hear Music, its music recording and
distribution venture, and consumer goods. Such ventures, in turn, complement the
customer experience.

A two-way conversation
Design at Starbucks, says Stanley Hainsworth, Vice President of Global Creative, 'is
about a two way conversation between the company's customers and partners.' The
need to address internal audiences as well as external ones is vital, he says, since it is
the essence of the brand that employees share with their customers that plays a key
role in delivering the right Starbucks service experience.

Hainsworth’s team, based at Starbucks' Seattle Support Center, is responsible for the
design elements of the Starbucks experience. Those elements include the design of
posters, cups and cup sleeves, advertising, packaging and numerous other items large
and small that together make up much of a customer’s experience in a Starbucks store,
or when interacting with its products elsewhere.

'We are responsible for basically everything but the physical stores; everything that’s in
the stores, everything outside of the stores, advertising and partnering with advertising
agencies, collateral, packaging, products in grocery and communal stores, and the
website,' says Hainsworth.

Design process evolution

The current design process adopted by the Global Creative team evolved in parallel
with the group’s changing internal role. Originally, says Hainsworth, the department was
more like a creative services function, creating design and print creative processes for
the wider company. This approach led to inconsistency in output and the production of
designs that didn’t always match Starbucks brand values.

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In response, Hainsworth took steps to allow the department to have much more control
over designs. The basic mechanism introduced to do this was a five-word ‘filter,’ against
which every prospective design is evaluated.

The design process at Starbucks also covers the need to express the experience of
Starbucks. Starbucks realises that coffee isn’t new in itself, and therefore they use
design to build on the coffee experience, including the way in which baristas interact
with their customers. Hainsworth cites an example of a Starbucks outlet in which the
baristas had established a '100 club,' where staff had committed to memorising the
names and drink orders of 100 regular customers.

As a consequence of such experience design, Starbucks has found that customers who
feel comfortable in the Starbucks environment want to 'take it home with them' in
various ways. This demonstrates both the challenges and opportunities around
designing the Starbucks experience, particularly when they are able to drive trends and
establish industry standards.

Organisational position and influence

'Design has always been important to the company, but it hasn’t always had a
prominent place at the executive table,' says Hainsworth. 'But lately there has been a lot
more realisation that it can drive business and enhance sales. We can be strategic
about design. It’s not just pixie dust that you sprinkle on things.' He cites top-level
support as a key enabler for design’s current position with Starbucks. Howard Shultz,
Starbucks' Chairman, he says, 'has a real appreciation for the transformative power of
design.'

In more depth
Find out more about how successful design processes require good leadership

Market
Starbucks continues to be the largest player in the premium coffee shop market. The
market for take-away coffee has trebled from US$ 30 billion to US$ 90 billion over the
past ten years, and shows no signs of slowing down. In the US alone, it increased by 10
per cent last year when compared with 2005.

Today an increasing proportion of its revenues come from products sold through other
channels, including supermarkets, concessions at hotels and airlines and even (via its
dedicated iTunes store) the internet. The company says that in 2006 there were 550
million ‘brand experiences’ outside its traditional store environment.

The Starbucks design process

Starbucks has a well-defined ‘Global Creative Processway’ to describe its design
process. Presented as a subway map, this process defines all the steps a project
must pass through from concept, through execution to eventual production.

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There are two basic routes through the Processway: the
‘Mainline’for standardprojectsand the ‘Express’for
simpler projects with no new creative requirements such
as reprints of existing material. You can see part of
Starbucks' Global Creative Processway to the right, but to
see the full picture you can download a PDF version
(10MB).

The mainline process begins in ‘Concept Heights’ where

concepts are developed, presented and approved.
Agreed concepts continue to the ‘Downtown’ phase of the
Processway, where detailed implementation of the design is carried out, final approvals
are obtained and prepress work commences.

Express projects may enter the process here, or join it in the next phase: the
‘Production District.’ In this final phase the completed work is signed off by the project’s
owners and liaison with printers, packaging makers or other production resources is
managed.

In more depth
Read more about other visual management techniques that could be useful during
the development stage of the design process

Project lifecycles for Starbucks range from between just a few weeks to 72 weeks from
concept to delivery, with much of this time taken up in the production phase. Starbucks
makes combined use of offshore and onshore print and manufacturing suppliers and
relatively long lead times are designed into the process to maximise the cost
effectiveness of outsourcing in this way.

Theme selection
Design at Starbucks begins with a strategic planning
process to select key concepts, themes and palettes for
the coming year. Stores carry seasonal themes and the
Global Creative team works with the store design team
and other top-level stakeholders to decide on these
themes, taking input from the trends group and customer
insights.

Each theme requires a full suite of materials. Once the

theme has been established, individual design projects
follow the Global Creative Processway. Project managers
work with the design customer to prepare a brief for the project and to agree budgets
and schedules.

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Concept development
The design process itself begins with a ‘creative scrum,’ a meeting in which members of
the Global Creative department brainstorm ideas and generate concept ideas.

After the initial conceptmeetings, a single designer,

paired with a copywriter or other specialist, typically takes
design projects forward. Together, they develop a
concept for the project which is reviewed and approved
internally – measured against the five word filter before
being presented, reviewed and approved or rejected by
the customer.

Once concept approval is underway, the designer works

to generate a first draft of the project. This again is
reviewed internally and for any potential legal, or
customer sensitivity issues. The first layout is then delivered to the client for approval.
Once approved, more costly aspects of the process – specific photo shoots, for
example – are completed and the designers produce the final product for evaluation.

Approval
Today, final approval of Global Creative output is completed with a physical
presentation and sign off process. Final designs are put on display in an approvals room
in Starbucks Support Center, configured in exactly the same manner that they will be
when deployed in stores. Project stakeholders then have a two day period in which to
view the designs and either sign them off or request changes. The review team includes
the internal design management, Starbucks’ legal team and, of course, the Starbucks
client. Once all required stakeholders have approved the production-ready concept, it
enters the manufacturing or print process.

This sign-off process, says Stanley Hainsworth, Vice President of Starbucks' Global
Creative is one that will change dramatically with the introduction of the new online
workflow management tool, since stakeholders will have the option of signing some
designs off electronically.

Delivery
The importance of internal communication and the
acceptance of designs is acknowledged during the
production phase too. Shop floor representatives are
involved in final product reviews and part of the design
process is the production of photographic instructions to
help store management to install and arrange new items
correctly once delivered. These directions are distributed
in the form of a magazine - Siren’s Eye – which describes
every element of each season’s offering, with full
instructions on installation and display to ensure a
consistent brand experience in every store world wide.

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The process of installing promotional campaign materials in-store is conducted
simultaneously worldwide, and involves the efforts of a dedicated distribution team.

In more depth
Find out how final testing and approval are fundamental parts of the Deliver phase
of the design process

Evaluation
Front line staff and customer feedback are central to the design evaluation process at
Starbucks. During development the five-word filter drives go/no-go decisions on
designs, but it is feedback from retail staff and customers that is used to assess the
success of a project.

Starbucks has worked hard to develop effective mechanisms to link the development of
the brand directly to the customer experience. One aspect of this approach is a
concentration on internal communication with the thousands of individual baristas who
are the brand’s direct connection to its customer base.

Customer feedback is provided directly through a consumer insights group that talks to
customers and directs their feedback to the business. A sophisticated feedback
mechanism from the stores also ensures that all customer feedback is collected and
acted upon. Baristas feed customer comments back through their store management to
Starbucks Support Center, where the appropriate department undertakes to respond to
the customer within a certain time frame.

For Stanley Hainsworth, Vice President of Starbucks' Global Creative, this means that if
a customer has concerns about elements of a particular poster, he must respond to
them explaining the rationale and decide whether the comment warrants future redesign
or alteration.

In more depth
Read about how other companies in our study set targets for evaluating the success
of their products design

Status
Today, Starbucks has 12,440 stores in 37 countries. 2,199 of these were opened in the
last year. Annual revenue growth in 2006 was some 22 per cent, to a total turnover of
US$ 7.8 billion.

The company aims to keep opening outlets a rate of at least 2,400 stores a year with a
long-term target of 40,000 outlets. Both domestically and internationally, outlet
ownership is a combination of company owned and licensed or joint-venture premises.

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Tools, techniques and tips
Starbucks is now moving to a policy of multi-skilling its designers wherever
possible, ensuring that graphic designers have an understanding of the 3D
design environment and vice-versa. Sitting designers of different disciplines
together so that they can learn from one another wherever possible is reinforcing
this flexibility.

Starbucks’ Global Creative team produces a book of

brand guidelines for use by all creative people internally
and externally.

The book provides a comprehensive platform for the

Starbucks design process, covering the company’s
values, describing its design filters and offering specific
recommendations for photography, illustration,
typography and logo usage.

In more depth
See what tools and techniques other companies in our study use

The Global Creative team is also involved in a major project to build a fully electronic
version of its ‘Processway.’ The new workflow management tool will automate the
distribution of materials for sign-off and will provide a variety of other resources for
designers, including a document library where approved photography, illustrations and
logos can be accessed, together with guidelines for use and best practice.

In more depth
Find out how formal design process management could help your business

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With thanks to Starbucks
For the purpose of the design process study, we visited the
Starbucks Support Center in Seattle and spoke to Stanley
Hainsworth, Vice President of Starbucks Global Creative.

To find out more about Starbucks, visit the About Us section of

www.starbucks.com

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