Category: Starbucks

Can you imagine how different our twenty-first century lives would be like without coffee? To coffee lovers, it might be a frightening one. What brand of coffee comes to mind first? For me, Starbucks would be the first. It was founded in 1971 in the city of Seattle, and now the coffee chain has close to 24,000 stores worldwide. Starbucks has become one of the biggest coffee brands in the world. There are three reasons why Starbucks has been so successful.

First, it has built their own brand culture. Coffee is an old product. However, Starbucks offers a different and consistent way to enhance brand value. It does not spend significant amounts of money in various campaigns. It focuses on quality of products, quality of the equipment, the decoration of the stores, and the behavior of the employees. Starbucks experts select coffee beans very carefully. Every step has a strict standard, and taste testers have to judge roughly 100,000 cups of coffee to protect the quality. Customer experience is Starbucks’ central target. Every Starbucks store has a custom design, and it focuses a lot on the interior and exterior decorations. It wants customers to feel comfortable to come in to order and sit down to pass the time. Therefore, Starbucks has strongly believed in developing and building the brand through word-of-mouth channels.

Second, it respects their employees. Starbucks treat each employee equally and every member of the staff is called a “partner.” They prefer to spend more money on training employees than on advertisement. Starbucks has an effective communication method for employees. The managers arrange the working hours per employee availability and plan the schedule of time off according to the employee’s request. In addition, Starbucks distributes stock dividends to all employees. Using this approach, the employees can get benefits from the dividends of the company. Consequently, employees have more motivation to provide better service and increase their sales. Moreover, Starbucks is the first private company to provide comprehensive health care for temporary workers. To Starbucks, employees are the most valuable asset.

Finally, it provides high quality customer services. Have you ever come across a rude Starbucks staff? I sure have not. They are fast, efficient, friendly, energetic, and they call your names out correctly. Therefore, their customers feel that they are important. This is crucial to customer relationship success. In fact, the average Starbucks customer visits the store 6 times per month. In addition, the loyal customer will go to a store 16 times per month, which accounts for 20 percent of their customers. Starbucks is implementing customer feedback to create new products. One great example is customers inspired Pumpkin Spice Latte, which is available in certain seasons and has generated a coffee craze. Starbucks always does one thing, which is never stop thinking about their customers. The more they are cared for, the better they are doing.

Consequently, they are becoming successful in the coffee area. Starbucks fully considers the feelings of their employees, puts a lot of value on customer service, and strives to build a people-based corporate culture. Such a concept will give people a warm feeling that feels humanized. In the end, consumers can enjoy the taste of their coffee and enjoy the mood of Starbucks, which is conducive to the development of its brand culture.

When Starbucks advanced as a business it set the models exceptionally high for its clients through its incentive. Despite the fact, Starbucks first figured out how to satisfy these guidelines, the retail extension and the item advancement methodology that the organization tracked with the customization of the beverages had a destructive impact on every one of the three parts (coffee quality, service, and atmosphere) of the offer which had prompted the declining impacts of consumer loyalty

The image of the brand changed as earlier the brand store used to be known as “third place”, where customer can relax and enjoy with other or by themselves, was appealing to larger target market. In the past clients were paying a premium for the Starbucks experience, however now Starbucks was nothing unique. In the brain of the customer, Starbucks turned into the standard, a spot which was all over the place, with great coffee and predictable service. The dedicated clients lost the touch they had with the brand; there was no reason any longer to pay a premium for a decent coffee when they could go anyplace else for a lower cost.

Starbucks had about 150% expansion in retail locations from 1998 to 2002. By topographically bunching markets, Starbucks was bargaining the ‘atmosphere’ part of its value recommendation. Numerous stores assembled were small and didn’t have seating or relaxing spot. In this way, the upscale yet welcoming condition that the organization guaranteed with its value proposition and which brought a great deal of loyal clients to the business didn’t exist any more.

The picture of Starbucks had changed in the brain of the buyers who saw the quick expansion of Starbucks with the increase of stores all over the place, as a path for the company to make money.

Unsatisfactory service of the partners led to decline in the service as the customers were growing, complexity due to hundreds of combination of customized drinks in its portfolio slowed down the process of delivering the beverage to the consumer and added strain to the partners, causing them to lose their soft skills.

Starbucks can attempt to advance its stored‐value card (SCV) more. The SVC not exclusively will help its cardholders to experience diminished exchange times which means quicker administration and accordingly higher satisfaction, yet it additionally persuades the customer to visit Starbucks more frequently and can gather and utilize the customer exchange information to improve the experience.

Starbucks has developed an internationalization strategy to permit the agency to open shops and franchises in nations for the duration of the globe. market studies is at the center of most of the market access strategies Starbucks is using. this situation take a look at will do not forget how marketplace studies has strengthened Starbuck’s get right of entry to to the chinese language language markets.

In 1992, together with the corporation’s facilities, Starbucks set up a increase approach primarily based on focused on locations with applicable population demographics to help and constitute them. A huge town became decided on to serve as a center for each area wherein a set will help the goal of starting at the least 20 shops over the primary years. one of the key achievement factors of this operation become to recruit experts with advertising and marketing and operating enjoy chain-preserve retailing as vicinity supervisor. This method built upon the growing popularity of the Starbucks logo, which, in some times, had reached new markets even earlier than stores opened.

The primary advertising technique is to represent Starbucks’ keep as a “third place” among paintings and domestic. The agency ought to growth the market percentage in present markets and open stores in new markets swiftly. additionally, Starbucks usually tries to extend its products portfolio. The enterprise cooperates with other corporations to boom and distribute new merchandise.

Fee discounts became accomplished thru centralized purchasing for, through modern day contracts development and stuck expenses for positive devices, and through consolidated art work underneath contractors with suitable charge-manage practices.

Starbucks access to rising and advanced markets is knowledgeable thru marketplace research. Starbucks performed marketplace studies to allow a deeper know-how of the chinese language markets, and the manner that capitalism functions in the people’s Republic of China . China includes some fantastic locally-based totally markets, an thing that makes market studies vital to launching new stores and franchises in China.

A deep understanding of intellectual property right legal guidelines is essential to successful marketplace get admission to in emerging markets. Starbucks articulated an access method that would address the dominant chinese language markets and that grow to be designed to be as inoffensive with admire the chinese way of life as viable.

In preference to taking the conventional method to advertising and promotions—that may had been seen by the use of ability chinese language customers as attacking their tradition of consuming tea—they placed stores in excessive-site visitors and immoderate visibility places.

In keeping with their website, they’ve more than 24,000 shops across greater than seventy five markets and additionally they say” it’s clear that our passion for brilliant coffee, real service, and network connection transcends language and way of life.”. The us has the most shops in the world with a total of 6031 stores after which comes south Korah with 1231 shops and they’re establishing extra shops.

despite the fact that globalization has allowed big multinationals to enlarge across the globe developing their recognition and earnings, this phenomenon has been widely criticized and Starbucks was also the sufferer of anti-consumerism and anti-globalization actions. The increase revel in thru the business enterprise and its global dominance has generated many terrible discourses, more regularly than now not criticizing Starbucks’ ascendancy on the expense of nearby espresso shops.

As a multinational logo that aspires to be a recognized worldwide chief, Starbucks’ advertising approach calls for a diploma of standardization. to start with, the commercial enterprise agency occasionally advertises inside the traditional experience thru television, radio and print ads, further to this, the business business enterprise has advanced and perfected their social media advertising and marketing approach, the use of twitter, pinterest, Instagram, youtube, and different structures for competitions and promotional deliver for their clients. it could be argued that Starbucks’ achievement inside the social media sphere is also exceedingly depending on the anti-Starbucks movement, as this generates multiplied insurance of the emblem name, allowing the business organisation to counteract the accusations and promote their moral behavior even greater.

The involvement of customers in product development and variety (i.e.: new drink flavors) in addition to the encouragement to proportion personal studies in the interim are an indispensable a part of Starbucks’ international advertising approach. The employer regularly prides itself on the fact that it creates a community revel in amongst people from amazing countries via the recognizable emblem name Starbucks. The enterprise uses social media to encourage its customers to create a feeling of belonging to a network and rewards its dependable clients thru My Starbucks praise, using polls to make sure the most potential of crowdsourcing. via this, the employer demonstrates loyalty on its element to its customers, that focuses on remodeling their clients in brand ambassadors, in location of creating an investment time and big finances shares in competitive advertising and marketing strategies aimed towards collecting big shares of recent purchasers.

I decided to set out a place to first begin my observations without knowing what really to expect on what I would find. I came across a Starbucks that was near my home that was fairly empty compared to another one I had been at just a few days before. The Starbucks near my gym is in the corner of El Segundo Ave. and Hawthorne Blvd. in Hawthorne, CA and is in a busy street. I decided to compare this Starbucks location to the one nearby Cal State LA. It gave me an opportunity to observe subjects that I would consider different from myself and my values. As an anthropologist conducting an observation, it was poor of me to assume both locations would be similar but quickly had to avoid any biased ideas that I had of these two locations.

To blend in with my surroundings, I first decided to order a “venti pink drink”, also known as a “large pink drink”. Starbucks is the only location I know that they do not incorporate the typical; small, medium, and large cup sizes. This takes a while for one to get used to since many of the sizes sound like if you are only familiar with its Latin roots. After receiving my drink, I sat in a booth towards the corner of each location and began observing.

I first arrived at the location near Cal State LA during a busy school day during the schools “Dead Week” for finals. I figured the environment would be interesting to observe how differently it would be compared to one that is not necessarily with a school atmosphere. After being at this Starbucks for around fifteen minutes I decided I had enough to draw out my surroundings. The location was like any ordinary Starbucks. It has booths one can sit at and look out the window and get a view of the street and drive thru. There were twelve tables with four chairs on each one for anyone who would like to sit down with a group and get some studying in. there were these small stands where baristas would place a drink and someone would just walk in and take said drink without the need to get in line. After this, I began my observations of the people. Gender was not really a factor in here since many of the people coming in were just at random sitting down to grab a seat and get schoolwork done. From the people who walked in, only 3 were driving while the rest walked in on foot or just happened to have parked far instead of the open parking spots at the front of the store. Around 85% of the people who walked in had a backpack on which led me to believe they were all students at Cal State LA. Most contained a laptop or books inside their backpacks that they would pull out after taking a seat. Many would order and then take a seat and start studying right away. They were clearly focused and avoiding any distractions. The atmosphere was very quiet but at the same time very chaotic since there was a lot of people in this location all stressing in a way with the overload of work they have coming up or already struggling with. This focus the students had did not allow for much communication to take place so language could not really be taken aside from the ordering of the drinks in English.

I observed both locations at the same times. I figured people go for their morning cup of coffee, so I decided to observe both locations at 7am. Most of the behavior I observed at the Hawthorne location was a very casual and relaxed. The style and overall look of the Starbucks was very similar to the Cal State LA location. This location did not however have the drive thru or even the booth looking out the window and just consisted of tables and seats. Most of the people seemed to all be friendly in groups engaging with one another and enjoying their beverages. Sitting in circles conversating at a low volume. The energy was definitely less tense since people at this location were more focused on the drink, not the schoolwork. Once in a while you would get that someone that would recognize another fellow customer and they would proceed to great each other with a handshake meaning they are mutual and often seen each other before. Language was very diverse at this location. In the surrounding area, the community is very diverse with plenty of races in the city’s demographic. This allows for the opportunities to listen to languages such as Spanish and even ASL during my time of this ethnographic observation which caught my eye.

Overall, I have to say that for the most part of my biased ideas was reinforced which is consistent with what I figured would be the case. I was not able to fully understand my subjects and engage with them, I only observed how they behaved in that instance which may have been completely out their norm and even their first time at Starbucks.

The Chinese market is described as unique and difficult due to its climate, level of wealth and development, food preferences, laws, languages, traditions, spending motivators, and habits (Zakkour, 2014). Because of these characteristics, many brands invested in the country. However, some companies failed because their marketing research was insufficient to remain in the business. Some companies might have failed, but some were also successful in positioning their companies. One example is Starbucks. They scrutinized every detail upon entering: from demographic to its political and legal factors.

Culture was one of the factors that Starbucks had to consider upon expanding into the Chinese market. For a tea-loving community, it wasn’t easy for Chinese people to embrace the idea of coffee drinking mainly because it was not part of their culture. Cultural values are very important to all Chinese people. Starbucks saw an opportunity to expand its business and formed partnerships with Chinese business people and investors in order to expand its offshore business (Khlystov, 2016). Nevertheless, the company still had a hard time to attract customers who had their taste buds locked into tea. At that point, Starbucks came up with an idea to lure the Chinese people: they incorporated Chinese culture into the structure and design of their outlets. It was effective. They were able to entice customers by creating a particular ambiance in their outlets: serene and quiet, a place where customers can feel relaxed with friends and families – but instead of having tea, customers got coffee in their cups.

After understanding their cultural values, Starbucks faced political restrictions. China is a highly bureaucratic country with difficult processes of getting permissions and sanctions to start and run the business (Das, 2017). Entering a communist party where political things could change anytime was a challenge for Starbucks. As a result, they maintained and built relationship with firms and the government officials. It was also essential for the company to understand the property right laws and licensing issues upon entering an emerging market. They used intellectual protection laws to prevent its business model and brand from being illegally copied in China (Devault, 2018). Starbucks registered all its major trademarks in China four years after opening its first café in 1999 (Devault, 2018).

The vital demographic factor that Starbucks had to acknowledge was who to market its products to. With China’s ever-growing population and changing times, the older generation holds more collective goals, while the younger generation is more individualistic (especially considering the new law of one-child policy). However, Starbucks has become one of the most popular brands amidst the age group ranging from 20 to 40 years old called “Chuppies”. Local people who were trying to ape the Western lifestyle patronized coffee drinking as well. In addition, the younger generation enchantment to brands and products from the West led Starbucks to gain an understanding more about the business climate in China.

Their initial global strategy was to use different types of owner structures; they either used authorized local developer or set up a joint venture. Having these strategies helped the company to sell their products because they had someone who understood the different facets of the government and its counterparts. In addition, these local partners knew the Chinese market condition better. It was an effective step to satisfy the preferences of the different regions of customers. Although they were operating at a low risk level, the disadvantage was that they company were only receiving royalty fees. This means that they were only reaping minimum profits as the market grew. China became a member of the World Trade Organization (WTO) in 2001, which opened up opportunities for foreign investors to invest in the Chinese market. The organization made it easier for foreign companies to navigate alone. To take advantage of this opportunity, Starbucks announced that it was buying out its partner in China and took control of 60 stores in 2006.

The ability to adapt assists everyone, whether a business or a person, to keep moving forward. With the population of China continuing to grow and with the country in the WTO, the possibilities are limitless. Starbucks has expanded all over the world and will continue to grow as long as they follow the same practices they put in place like the ones in China.

Starbucks v. Obsidian

First Issue: Trademark Dilution

Rule: “Dilution is the lessening of the capacity of a famous mark to identify and distinguish goods or services, regardless of the presence or absence of likelihood of confusion, mistake or deception” (“Trademark Dilution”). To make a trademark dilution claim, a plaintiff must show:

1. that it owns a famous and distinctive mark;
2. that the defendant is using a mark that is allegedly diluting the famous mark;
3. that a similarity between the marks gives rise to an association between the marks;
4. that the association is likely to impair the distinctiveness or harm the reputation of the famous mark. (Casenote Legal Briefs 24)

Regarding the fourth point, distinctiveness could be defined as the ability of consumers to understand that a product comes from a particular source or has a specific origin (Casenote Legal Briefs 25). In the evaluation of dilution by blurring, courts look at some or all of six factors:

1. the degree of similarity between the marks;
2. the distinctiveness of the famous mark;
3. the degree of the plaintiff’s substantially exclusive use of the famous mark
4. the degree of recognition of the famous mark;
5. whether the defendant intended to create an association between the marks;
6. the actual association between the marks. (Casenote Legal Briefs 25)

Starbucks Claim: since the FRAPPUCCINO® mark is one of the most recognizable and famous, Starbucks possesses all rights “of protection against likely dilution by blurring and by tarnishment” (Hampy). Obsidian launched the FREDDOCCINO after the FRAPPUCCINO® mark had become famous, and had no right, license of use, or authority from Starbucks. Thus, the similarity of FREDDOCCINO in sound and look will likely count as trademark dilution under 15 U.S.C. § 1125(c).

Obsidian Defense: Even though the name of FREDDOCCINO has some similarity to the sound of FRAPPUCCINO, it is only a minimal degree of similarity. Therefore, there is no harm to the reputation of the FRAPPUCCINO® mark, and the consumers can distinguish between the products as shown in the picture above. Thus, there is no evidence that FREDDOCCINO will harm the FRAPPUCCINO® mark’s reputation.

Second Issue: Infringement of Registered Trademark

Starbucks Claim: The use of the FREDDOCCINO mark for frozen blended beverages by Obsidian could be considered to be used in commerce of reproduction or copy of a trademark which is identified by the U.S. Trademark Registration No. 1., 745,953, 2,148,066, 3,080,371, and 3,535,367, in a way that could deceive customers (Starbucks v. Obsidian Group – Freddoccino 3).

Obsidians direct intent was to create links between their products and the FRAPPUCCINO mark with the primary aim of using the well-known brand to benefit from increased sales. It also constitutes an infringement of Starbucks’ trademark and a violation of Section 32(l) of the Lanham Act, 15 U.S.C. § 1114(l) (Starbucks v. Obsidian Group – Freddoccino 3).

Obsidian Defense: Obsidian

Third Claim: Trademark Infringement, Unfair Competition, and False Designation of Origin

Starbucks Claim: Obsidian’s unauthorized use of the FREDDOCCINO mark constitutes:

use in commerce of a word, term, name, symbol, or device, or some combination thereof, or a false designation of origin, false or misleading description of fact, or false or misleading representation of fact, which is likely to cause mistake, or to deceive as to the affiliation, connection, or association among and between the parties and their respective services, or confusion or mistake as to the origin, sponsorship, or approval among and between the parties and their respective services. (“15 U.S. Code § 1125”; Starbucks v. Obsidian Group – Freddoccino 5).

In this way, Obsidian’s use of FREDDOCCINO is “infringement of Starbucks’ trademark, unfair competition, and false designation of origin in violation of Section 43(a) of the Lanham Act, 15 U.S.C. § 1125(a)” (Starbucks v. Obsidian Group – Freddoccino 7).

Fourth Issue: False Advertising

Rule: The Lanham Act prohibits literally false advertising in addition to advertisements that are confusing, misleading, or deceiving. A literally false advertisement violates the Lanham Act without consideration of consumer reactions (“15 U.S.C. §§1051-1127”).

Starbucks Claim: Obsidian is accused of using a specific registered trademark symbol for its FREDDOCCINO mark. In addition, Obsidian uses Fair Trade Certified signage in its U.S. Coffee Culture stores and its online stores claimed to offer fair trade coffee (Starbucks v. Obsidian Group – Freddoccino 5). These constitute the use in commerce of:

a word, term, name, symbol, or device, or some combination thereof, or a false or misleading description of fact, or a false or misleading representation of fact, in commercial advertising or promotion, that misrepresents the nature, characteristics, qualities, or geographic origin of goods, services, or commercial activities. (Casenote Legal Briefs 76)

Under these conditions, the companys actions corrupted the nature, basic characteristics, and sources of its goods and provided customers with the false information about them trying to impact their purchasing decisions (Starbucks v. Obsidian Group – Freddoccino 8).

Obsidian’s conduct is willful, as evidenced by the fact that the “FREDDOCCINO mark is not registered in the United States and that Coffee Culture does not offer Fair Trade Certified coffees in all of its stores” bearing the Fair Trade Certified signage (Starbucks v. Obsidian Group – Freddoccino 4). Obsidian’s acts constitute “false or misleading descriptions of fact or false or misleading representations of fact in violation of Section 43(a) of the Lanham Act, 15 U.S.C. § 1125(a)” (Casenote Legal Briefs 56).

Starbucks v. Dabuccino

Rule: The Lanham Act, 15 U.S.C. § 1114, states that any person who uses in commerce any reproduction, counterfeit, copy, or colorable imitation of a registered mark in connection with the sale, offering for sale, distribution, or advertising of any goods or services on or in connection with which such use is likely to cause confusion, or to cause mistake, or to deceive… can be held liable for such use. (15 U.S. Code § 1114)

Based on this, Starbucks will argue that James Landgraf and his partners are committing trademark infringement since they are using reproductions of registered Starbucks Frappuccino cups in the line of bongs (or “water pipes”) that they released for sale (Starbucks v. Obsidian Group – Freddoccino 9).

James Landgraf, and his partners may argue that there is difference in the present logo as well as actual use of the product. Furthermore, the lines do not compete, so it could be argued that there is no infringement.

‘The End’ v. Starbucks

Unfair Competition, and False Designation of Origin

Rule: “The End” Claim: “By virtue of its extensive use, registration, advertising, promotion, and consumer and marketplace recognition, the UNICORN LATTE mark is famous and distinctive, and is entitled to protection against likely dilution by blurring and by tarnishment” (Starbucks v. Obsidian Group – Freddoccino 5). As far its wide use, registration, advertising, promotion, and marketplace recognition, is protected by the law, all trademark rights of the UNICORN LATTE are protected from dilution by blurring and tarnishment (Casenote Legal Briefs 56). After 15 months of production and advertising, the UNICORN LATTE became popular and famous, which could obviously result in a mistake regarding the sponsorship, affiliation, and other aspects of the willful violation of the trademarks rights according to the Lanham Act, Sections 32 and 43, 15 U.S.C. §§ 1114, 1125 (“15 U.S. Code § 1114”).

Trademark Dilution

Rule: To make a trademark dilution claim, a plaintiff must show:

1. that it owns a famous and distinctive mark;
2. that the defendant has commenced using a mark that is allegedly diluting the famous mark;
3. that a similarity between the marks gives rise to an association between the marks;
4. that the association is likely to impair the distinctiveness or harm the reputation of the famous mark. (“Trademarks: Likelihood of Confusion and Dilution”)

In the fourth section, distinctiveness refers to the ability of consumers to recognize that the product comes from a particular source. In evaluating dilution by blurring, courts look at six factors:

(i) the degree of similarity between the marks; (ii) the distinctiveness of the famous mark, (iii) the degree of the plaintiff’s substantially exclusive use of the famous mark, (iv) the degree of recognition of the famous mark, (v) whether the defendant intended to create an association between the marks, and (vi) the actual association between the marks. (Casenote Legal Briefs 25)

“The End” Claim: Since “The End” owns the distinctive UNICORN LATTE mark and Starbucks launched their similarly-colored Unicorn Frappuccino mark after the UNICORN LATTE became famous, the average consumer may not recognize the distinctiveness. Starbucks’ acts constitute trademark dilution in violation of the Lanham Act, 15 U.S.C. § l 125(c).

Starbucks v. Bill

Rule: “The noncommercial use of a trademark as the domain name of a website – the subject of which is consumer commentary about the products and services represented by the mark – does not constitute infringement under the Lanham Act” (“15 U.S. Code § 1125”).

Bosley Medical Group v. Kremer

Bill Defense: Since Bill has not yet commenced the sale of the vessel he is not committing infringement under the Lanham Act.

Starbucks will argue that since Bill distributed the vessels that has registered Trademark logo on them, he is infringing the Lanham Act, 15 U.S.C. § 1114.

The Old Farmer’s Almanac v. New York Magazine, Hale and others

In order to prove trademark infringement, the owner of the trademark must prove three elements of a trademark infringement claim, which are

1. validity,
2. priority and
3. likelihood of confusion.

Validity

The first element that a plaintiff must prove is that it owns a valid trademark. For the owners of a federal trademark registration, the registration acts as prima facie evidence that the mark is valid. In this case, The Old Farmer’s Almanac had worldwide recognition and so the publisher of the Old Farmer’s Almanac had never troubled to seek federal registration of its trademarks. This is more likely to prove that The Old Farmer’s Almanac’s mark was valid. However, the New York Magazine, Hale and others might argue that “almanac” is merely a description of the product.

By definition, an almanac is “a book containing a calendar of a given year, with a record of various astronomical phenomena, often with weather prognostications, seasonal suggestions for farmers, and other information” (Encyclopedia Britannica 45). It is neither a compilation nor a gift catalog. The Old Farmer’s Almanac and the Farmer’s Almanac could argue that even though the name could be considered descriptive, it still has acquired secondary meaning.

When determining whether or not a mark has acquired secondary meaning, a court will look at both direct and circumstantial factors. To prove that a defendant has committed unfair competition by trademark infringement under common law, a plaintiff must show that the trademark was valid and eligible to be protected under trademark law and that it was infringed upon by the defendant (“Trademark Infringement”).

In order to prove that a particular trademark is valid, a plaintiff must demonstrate that that the mark is either inherently distinctive or has acquired secondary meaning (“Litigation Procedures and Strategies: United States”). A mark can also get a secondary meaning if consumers have come to associate the mark with a single producer of a specific product (“Litigation Procedures and Strategies: United States”).

To ascertain secondary meaning, courts look at direct evidence of consumer surveys and testimony and exclusive use of the mark, as well as circumstantial evidence such as the amount of advertising behind the mark, the amount of sales and number of customers, whether there is an established place in the market for the product, and whether the defendant intentionally copied the plaintiff (Echo Travel, Inc. v. Travel Associates, Inc.).

Priority

In this case The Old Farmer’s Almanac had worldwide recognition and has been continuously published since 1792, which shows the priority of use. While the publisher of the Old Farmer’s Almanac had never troubled to seek federal registration of its trademark, circulation had risen from 3,000 to 9,000 copies within three year and has also has been online since 1997, which indicates that the court will likely consider the consumer and circumstantial evidence. Therefore, The Old Farmer’s Almanac still has a valid trademark.

Likelihood of Confusion

The likelihood of confusion may be established using the eight-factor test from Polaroid Corp. v. Polarad Electronics Corp., 287 F.2d 492 (2d Cir. 1961), which looks at: (1) the strength of the registered mark; (2) the similarity between the registered mark and the mark used by the alleged infringer; (3) the allegedly infringing product’s competitive proximity to the registered owner’s product; (4) the likelihood that the registered owner will bridge the gap to enter the same market as the alleged infringer; (5) actual misinforming and confusion of the part of purchasers; (6) the alleged infringer’s good faith; (7) the quality of the alleged infringer’s product; and (8) the complexity, sophistication, and other features of buyers in the relevant market (“Likelihood of Confusion Tests by Circuit”).

In this case, The Old Farmer’s Almanac had worldwide recognition and never troubled to seek federal registration of its trademark, but still has veiled trademark right. The eight-factor test is satisfied in this case. First, The Old Farmer’s Almanac mark is strong because it is registered and had worldwide recognition.

Second, the mark used by the New York Magazine, Hale and others is identical to the Farmer’s Almanac mark. Third, there is competitive proximity because the products of the New York Magazine, Hale and others are gardening/gift books that look similar to The Old Farmer’s Almanac’s gardening/gift book.

Fourth, there is gap to bridge since the New York Magazine, Hale and others are publishing which include “almanac product” in 2018 by Blum Corporation, an advertisement that is the almost the same as the The Old Farmer’s Almanac. This factor considers the actual steps taken by the New York Magazine, Hale and others to expand their business in addition to the conceptual idea of the “zone of expansion.” Trademark law gives trademark owners the rights to not only their current mark, but also the reasonable zone of expansion.

Fifth, the actual confusion occurred when it was stated that “Celebrating 190 years Blums Farmers and Planters Almanac has been a reliable companion to readers since 1828,” which is showing enough confusion to establish a Lanham Act violation. Sixth, New York Magazine, Hale and others clearly designed their magazine to resemble The Old Farmer’s Almanac and have not produced evidence that they published their almanac in good faith.

Additionally, they chose the random date of 1990 which does not refer to the publishing date but instead to something unrelated. Seventh, New York Magazine, Hale and others’ almanac magazines are of significantly lower quality than The Old Farmer’s Almanac and Farmer’s Almanac magazines, because they included specific information such as solar activity, astronomy cycles and weather patterns, and research was used to develop a secret forecasting formula which has worldwide recognition. This makes it important for The Old Farmer’s Almanac and Farmer’s Almanac to protect their reputation.

Eighth, although some consumers buying New York Magazine, Hale and others’ magazines may realize they are not authentic as The Old Farmer’s Almanac and Farmer’s Almanac magazines, other potential consumers may still be confused by the misrepresentation of advetrising about the publishing date. This harms the reputation of Old Farmer’s Almanac and Farmer’s Almanac magazines and their consumers. Thus, there is a high likelihood that potential customers can be confused by New York Magazine, Hale and others’ conduct which creates a trademark infringement.

Works Cited

Casenote Legal Briefs. Casenote Legal Briefs: Trademark and Unfair Comp Law, Keyed to Ginsburg, Litman, and, Kevlin. Wolters Kluwer Law & Business, 2014.

“Encyclopedia Britannica.” Britannica Concise Encyclopedia, 2007.

“15 U.S. Code § 1114 – Remedies; Infringement; Innocent Infringement by Printers and Publishers.” Cornell Law School, Web.

“15 U.S. Code § 1125 – False Designations of Origin, False Descriptions, and Dilution Forbidden.” Cornell Law School, web.

Hampy, Tyler. “Trademark Dilution: Blurring v. Tarnishment.” Legaltemusa, 2012, Web.

“Likelihood of Confusion Tests by Circuit.” Trademarkwell, Web.

“Litigation Procedures and Strategies: United States.”World Trademark Review, Web.

Starbucks v. Obsidian Group – Freddoccino. 2016, Web.

“Trademark Dilution.”Law Shelf, Web.

“Trademark Infringement.”Cornell Law School, Web.

“Trademarks: Likelihood of Confusion and Dilution.” Jux, Web.

One of the current issues is that many people are not being called by their valid names and stay unrecognized. The advertisement observed in this essay is called “Starbucks LGBT+ Channel 4 Diversity Award 2019 | Every name’s a story (Extended Version)”. The video sells the idea of the inclusivity of Starbucks, its support and acceptance of their customers of different gender, sex, or race. Their clients can feel safe and accepted using the brand’s services and get a joyful experience at its places. The central idea of the transgender youth’s struggles is represented in the Starbucks ad created in their support. Considering the plot, it is a simple and still demonstrative example of concerns and problems in society, illustrating the casual day with numerous inconveniences caused by the incorrect appeal to transgender people.

The first scene of the video begins in the dark rooms and the foreground where the person sits on the bed, fulfilling the sections of the online applications with the forms for first name, last name, and gender. There are some sketches, photos, film cameras, and bracelets with the colors of the transgender people flag. In the next scene, he is washing the dishes when suddenly the doorbell rings. The individual opens the door, and the delivery man asks: “Jemma Miller?” (Starbucks UK 00.23 – 00. 24) and gives the person a package. He becomes sad and devastated after hearing the name that the delivery man has called him.

After he attends the party where people are dancing and music is playing loudly, the individual smiles and comes to his dad to greet him. The father holds him and says to the woman he is talking to: “Carol, you remember my Jemma”? (Starbucks UK 00:52 – 00:54) and as he says it, the protagonist smiles melancholy. The woman on the phone says: “Hello, am I talking to Jemma” (Starbucks UK 00:37 – 00:39,) and an irritated expression appears on the individual’s face. On the way from university, sitting on the bus, the protagonists watch at the student identification document with their photograph on it and the name Jenna Miller.

The following day the person wakes up in his room, with a blue curtained window, creating a grim and dark atmosphere. As he draws back the curtains, the sunlight illuminates the room and his face. In the following scene, the individual stands at the coffee shop. When the Barista asks for the names, he says in a lower voice: “It’s James” (Starbucks UK 01:08 – 01:10). The Barista writes the name on the paper cup, pours the coffee into it, and gives it to the person calling him by the chosen name. He happily smiles while taking the cup and going outside the coffee shop on the street with the sun shining bright and people of different races and ethnicities sitting at the tables and drinking coffee. The advertisement is effective due to the exponential picture of one day of the life of a transgender teenager and the broad spectrum of negative emotions he experiences daily because of his position.

The advertisement of Starbucks in support of transgender youth achieved its mission in appealing to the audience’s emotions. In the video, multiple tools were used to empathize with the main character’s mood and feelings. As the scenes changed, the background music was always sad and melancholy. Even when the protagonist attended the party with the dance music with everyone laughing and enjoying the event, the sorrowful melody still overlayed it (Starbucks UK 00:49 – 00:56). The room was always dark, with predominantly blue colors and tones. Blue symbolizes sadness and sorrow, a feeling that the main character has experienced multiple times thought every regular day of his life. The mimics and micro face expressions demonstrated the eternal discomfort of being called by the given name and not the chosen one. The atmosphere gets more intense as the person silently lives through the negative emotions and cannot correct people who call him by the wrong name. However, by the end of the advertising, the music becomes louder and more optimistic and joyful as the individuals come to Starbucks and get a coffee with the chosen name written on the cup.

The producer managed to gain the trust of the audience and successfully appealed to them. The image of the main character that the author used in the video is androgynous but with predominantly feminine traits. Although the character has short hair, dressed in unisex casual or sports clothes, people still perceive the protagonist by the sex he was born with and call him by the given name, not the chosen one. Therefore, the representation of the transgender person is accurate and happening, for it makes the audience believe that the creators understand the struggle. At the end of the video, there is a logo of Starbuck next to the logo of Mermaids (Starbucks UK 01:29), which is the organization that helps and supports transgender people and their families. The cooperation with that kind of initiative additionally increases the credibility of the advertising makers.

Another goal of the advertising is to appeal to logos which has been accomplished effectively. The logic of the video is elementary, with a clear message that viewers can understand while watching it. The protagonist was unhappy through the advertising when people called him by his given name, and no one tried to turn to him appropriately. When people go to Starbucks, they feel safe and brave to call themselves by their chosen name without being judged and misunderstood (Starbucks UK 01:08 – 01:10). Therefore, Starbucks is the place that provides its customers with respect and recognition, making them feel comfortable and freely express themselves.

The social message that the company has made to imply successfully is about inclusivity. Through the advertising, the main focus was made on gender and sex problems and their recognition in the society. It was not directly said that the protagonist has felt uncomfortable, sad, or humiliated, but it was demonstrated through the facial expressions, colors, music, and lighting. An example serves the last scene that drastically differs from the other with the joyful music. It illustrated the importance of respect and particular attention to the issue, for it directly influences the mental state and well-being of transgender people, especially among the youth.

Although the advertisement was observing the issue of the transgender youth and their recognition, Starbuck managed to follow the philosophy of inclusivity throughout the whole video in many details. The producer of this ad claims that social issues such as inclusivity, recognition, support, and respect for minorities should be a necessity in every aspect of people’s life. In the scene of the hospital (Starbucks UK 00:29 – 00:32), the event (Starbucks UK 00:49 – 00:52), and the coffee shop (Starbucks UK 01:19 – 01:23), people of color can be seen interacting with other characters directly or appearing in the background. For instance, the story of an unrecognized transgender teenager tells the public how necessary it is to create safe spaces for suppressed parts of the population, for they have to struggle with social issues every day of their life.

Overall, the producers succeeded in presenting the central idea of the ad to the public and managed to apply it to them through pathos, ethos, and logos. They delivered the idea that the smallest act of support and respect in everyday life can impact the well-being and mental state of transgender people. Calling the people by their chosen name is a small but significant step in fighting against transphobia and spreading awareness. Through the video, the producers appealed to people’s emotions and showed that they have an understanding of how crucial it is to feel safe and accepted.

Many companies avoid implementing politicized issues in their ads to avoid critics and target a bigger audience of customers. However, this is the question of prioritizing equality over profit. Those kinds of campaigns can increase the brand’s loyalty at the same time, displease the rest of the public. Therefore, some companies strive to attract more diverse groups of customers with an intention to gain people’s attention to the existed problem and make changes. While others aim to profit from the social issues, sometimes it is hard to tell which reason intends companies to participate.

Work Cited

“Starbucks LGBT+ Channel 4 Diversity Award 2019 | Every name’s a story (Extended Version).”YouTube, uploaded by Starbucks UK, 2020.

Introduction

Nowadays, globalization has a vehement impact on international economics and trade (Surugui & Surugui, 2015). It creates new possibilities for financial growth and expansion. However, management of multinational giants often faces challenges such as cultural diversity and has to develop strategies to take advantage of this threat (Tutar, Altinoz, & Cakiroglu, 2014). This trend led to the development of a fair trade movement that helped Starbucks gain its worldwide recognition and develop the international image. Nonetheless, when discovering Starbucks’ operations in GCC countries, apart from the support of fair trade, the company faces a plethora of challenges related to specifics of culture and economic environment. For example, the enterprise had to redesign its logo, as women could not appear on it in countries such as Saudi Arabia (Cader, 2015). At the same time, these countries are highly responsive to the actions of the company and may consider some of them as offensive (Cader, 2015). For example, along with having segregated locations for families and singles, one of the stores banned women from entering the restaurant while causing dissonance in society (Hanks, 2016).

The idea of this research is unique, as it will reveal that multicultural giants such as Starbucks with certified products face challenges in particular markets. Consequently, it is vital to discuss the main details of this case, as it will help discover the trend of globalization from dissimilar angles. These findings can be actively used to understand the specifics of operating in GCC countries and avoid mistakes made by Starbucks.

Analysis

A brief description of the case study reflected above clearly shows that apart from a high recognition of companies worldwide, their management may face various challenges. The example of Starbucks can be actively used to present different types of globalization. In the first place, the company can be discovered as a trend-maker since Starbucks’ products create an association with a particular lifestyle that targets premium coffee-lovers and enthusiastic businessmen and students. Aiming at these niches and having the support of fair trade organizations helps the company have high profits and become one of the leaders in the market. It is one of the critical concepts of globalization, as, now, it is possible to spread ideas worldwide. Alas, a combination of these aspects did not ease Starbucks’ entrance to GCC countries. Not being able to take into account the specifics of Islamic advertising damaged the company’s reputation in this region (Cader, 2015). Consequently, when expanding to different countries, the management has to focus on designing new products and redesigning a brand to support local culture and avoid misunderstandings.

As for political globalization, the development of fair trade can be viewed as an example that represents its idea in this context. Fairtrade certification is discovered as one of the organizations that not only establish sufficient trade standards but ensure that farms are suitable and orientated towards social change (Negash, 2016). Starbucks uses only these producers, and this action helps the company develop an image of an ecologically-friendly company with premium products. It is another benefit of globalization since it supports financial and corporate growth. Nonetheless, even the existence of fair trade does not guarantee the company’s success in GCC countries, as special attention has to be paid to labeling and marketing of the products.

Based on the aspects reflected above, the main benefits of globalization are related to financial growth, culture and idea-sharing, and well-developed control mechanisms. One of the major opportunities to be taken is the fact that Starbucks has to continue its global expansion and open more locations in new countries. Thus, the failure to adapt products to the specifics of culture may be a potential reason for misunderstandings and intercultural conflicts (Cader, 2015). In turn, operating internationally makes businesses vulnerable to political and economic fluctuations and currency exchange. These threats can lead to the need to apply the principles of global leadership that will support ethics and diversity, and this matter can be discovered as a positive outcome (Chuang, 2013). Furthermore, the conflicts and issues can be resolved with the help of a localized product strategy and a profound analysis of the market before the entrance (Muccini & Ngumo, 2014).

Conclusion

Overall, it could be said that globalization revolutionizes modern economics and distributes brands and values worldwide without barriers. This trend led to the development of the fair trade movement that not only controls the trade but also aims at encouraging the development of sustainability. Nonetheless, apart from using coffee beans from the certified producers and have a well-developed brand image and associated lifestyle, Starbucks had some conflicts in GCC countries. Failure to adapt the logo to the cultural specifics damaged the company’s reputation and required the company to invest in redesigning the brand. Consequently, along with financial growth and opportunities for expansion, international companies have to take into diversity and ethics. This case shows that globalization should not only be associated with advantages that lead to the increased company’s profitability but also with the major threats such as dependence on the currency exchange and cultural specifics. This case study revealed that even the multinational giants like Starbucks tend to make these mistakes. Start-ups and SMEs (small and medium-sized companies) have to learn from these examples and reflect threats, opportunities, and strengths in their corporate strategies.

References

Cader, A. (2015). Islamic challenges to advertising: A Saudi Arabian perspective. Journal of Islamic Marketing, 6(2), 166-187.

Chuang, S. (2013). Essential skills for leadership effectiveness in diverse workplace development. Online Journal for Workforce Education and Development, 6(1), 1-24.

Hanks, H. (2016). Women welcome at Saudi Arabia Starbucks shop after a temporary ban. CNN. Web.

Muccini, E., & Ngumo, E. (2014). Implications of globalization for international business strategy: A multi-sectoral approach. International Journal of Science and Research, 3(4), 68-78.

Negash, R. (2016). Impact of fair-trade coffee certification on smallholder producers: Review paper. Global Journal of Management and Business Research, 16(5), 33-40.

Surugui, M., & Surugui, C. (2015). International trade, globalization, and economic interdependence between European countries: Implications for businesses and marketing framework. Procedia – Economics and Finance, 32(1), 131-138.

Tutar, H., Altinoz, M., & Cakiroglu, D. (2014). A study of cultural difference management strategies of multinational organizations. Procedia – Social and Behavioral Sciences, 150(1), 345-353.

Coffee became an essential morning attribute for a large number of citizens. The beverage helps to diminish the feeling of fatigue after awakening and stay alert and focused. While some people prefer to brew a cup of coffee themselves, other resort to coffee shops for their doze of this energizing beverage. Given the popularity and indispensability of the product, many coffee shop chains spread across the country. Starbucks and the Coffee Bean & Tea Leaf seem to be one of the most common choices. Although the two commercial coffee shop chains offer comparable service, a customer pays for two dissimilar experiences in actuality.

The quality of coffee is not the most striking difference between Starbucks and the Coffee Bean & Tea Leaf, while the price possibly is. It is not surprising that Starbucks’s prices are lower, as the Coffee Bean & Tea Leaf markets its products as handcrafted and of premium quality. Nonetheless, a regular coffee enthusiast and not a coffee connoisseur may not notice a considerable difference between beverages from the two chains. On the other hand, small divergences in flavor should be acknowledged. Thus, in many cases, the drinks offered in Coffee Bean seem to have a stronger and more saturated coffee flavor.

Moreover, the two brands align in the items offered in their menus. Since regular types of coffee do not surprise contemporary customers, brands experiment with blended drinks. Seasonality also plays a significant role for both Coffee Bean and Starbucks, as seasonal and holiday drinks featuring pumpkin pie spice or cookie butter serve as a primary attraction for curious buyers. Nevertheless, Starbucks seems to employ this strategy more effectively, as their pumpkin spice latte became an influential hit in recent years. In addition to teas and coffees, these chains’ menus include a small variety of food items – mainly pastries and sandwiches.

While taste, menus, and quality-price ratios do not have sizeable differences, the customer’s experience is incomparable. Even though both Starbucks and Coffee Bean target middle-class customers, the brand’s personalities are distinct. Starbucks accentuates personalization and sustainability while Coffee Bean neglects these elements. Personalized reusable Starbucks cups constitute a part of the brand’s appeal and make its logo globally recognizable. This commercial coffee shop chain tries to make each customer feel acknowledged, increasing their loyalty. On the contrary, Coffee Bean appears to be a more traditional brand in this aspect, focusing primarily on establishing that its product is of high quality.

In conclusion, despite the fact that Starbucks and Coffee Bean are comparable in quality, offered items, and, to an extent, prices, the customer experience that they offer are markedly different. In contrast to Coffee Bean, buyers at Starbucks do not pay only for coffee – they are provided with customized service. The two companies manage to sustain excitement by adding new innovative beverages, yet Starbucks personalized the approach to individual customers, which possibly made its logo more identifiable than that of Coffee Bean.

The fast-food sector is vital to the economy of various countries and various investors since it significantly contributes to economic growth. The industry is “expected to reach $931.7 billion by 2027, with a compound annual growth rate of 4%” (Kale& Deshmukh, 2020, para. 8). Starbucks Corporation is among the opportunistic quick-service companies that gain public attention regarding investments. The company started as a single small store in 1971 that became a coffee giant at the millennium’s end. Starbucks was founded by Jerry Baldwin, Zev Siegl, and Gordon Browker. The company underwent a series of revolutions to gain popularity in many countries. Starbucks Corporation serves six continents with 32660 stores spanning 79 countries. Therefore, the study topic is important since it gives insights on Starbucks Corporation benefiting investors from different countries. Investors should invest in Starbucks because it has profitable sales and constantly increases the number of customers which boosts finances.

Therefore, the scientific work will examine factors that will make investors want to invest in the researched company. Technological integration was essential among companies during the height of the COVID-19 pandemic. One of the main reasons why investors should invest in Starbucks is to own part of a business that has adopted drive-thru services which raises the finance of the company. Starbucks corporation was among the companies affected by the stringent public measures to control the spread of the virus. However, the closure of in-person stores was a blessing in disguise for Starbucks. This means that drive-thru services support small stores’ launches and exclusively focus on grab-and-go ordering (Volle, 2021). Increased sales among Starbucks stores helped boost the company’s finances for growth. Starbucks has an excellent brand image manifested through its increased mobile app usage (Volle, 2021). Thus, the company is attractive to potential customers and technically advanced people. Furthermore, the technological adoption among the Starbucks stores makes it easy for the business to survive pandemics like the Coronavirus that affect business operations. Therefore, investing in Starbucks is profitable since the company has a broad consumer base with constant purchase volume and can stay through global economic crisis due to the pandemic.

Other advantage of the company that can attract investors is the technological development of the company. Moreover, the company heavily invested in mobile app technology that boosted its sales and keep a competitive advantage in the coffee business. Mobile app ordering improves consumer convenience and saves on ordering time. Starbucks’ mobile app has an efficient integrated payment system that can help track customers’ purchase history. The payment system overcomes the problems associated with traditional payment methods, making it difficult for investors to track its financial performance. Furthermore, the company launched a mobile card app that allows customers to pay for their ordered coffee with various partner cards (Kale & Deshmukh, 2020). This indicates that mobile ordering app removes the hassle of waiting in line to order and waiting time for the coffee and food to be made. The company has gained a loyal and broad consumer base making Starbucks’ mobile app the most downloaded in Apple Store and the Google Play Store. Consequently, the company has over 30 million people who order through the mobile app (Bertels & Desplaces, 2021). This clearly indicates that mobile app customers make Starbucks attractive to investors since there is an assured and significant return on investment.

Another primary reason why investors should invest in Starbucks is to gain higher financial returns from a company that has established consumer loyalty programs. Consumer-based brand equity gains higher financial gains for a company. Starbucks has mastered the creation of customer loyalty programs making the company profitable. The company has designed a 90-day active Starbucks Rewards members to represent the most loyal and engaged customers (Grill-Goodman, 2021). Therefore, customers who become part of the offer receive benefits such as discounts, coupons, offers intended only for members within the loyalty program. The members can join the program by registering through the company’s official website or their smartphones applications. The website offers different features and benefits like “free adds-ons, ordering ahead and paying later through the smartphone application, free refills on brewed coffee, and free birthday treats every year” (Farfan, 2021, para. 3). However, the customer loyalty programs make Starbucks attractive to invest in since it has assured a broad-consumer base, boosted the company sales, and facilitated stable company stock prices, as shown in Figure 1. The programs help build consumer-based brand equity that help increase the loyalty and value of the existing customers. Therefore, investing in Starbucks is profitable since the company has established a loyal consumer base boosting the company’s sales.

On the other hand, some people hold a contrary opinion and consider Starbucks to be a lucrative company to invest in. People argue that the company’s stock prices and the consequent return on investments are expected to drop due to the increasing number of competitors in the industry. Moreover, the company’s main competitors like Dunkin Donuts and Maxwell House and Folgers are successful organizations on the market. The competitors have developed technologies in mobile ordering that are more user friendly than Starbucks. Furthermore, the company is subjected to macro and political risks making it difficult to expand the business. Over 30 million customers use the company’s mobile app to place orders (Bertels & Desplaces, 2021). This indicates that mobile application customers are satisfied with the ease of use of the application, which increases the number of downloads of the application. While investors should invest in Starbucks, the company experiences stiff competition, macro and political risks that may lower its profitability.

In conclusion, Starbucks is a great investment since it has built customer loyalty programs to lucrative sales and is implementing drive-thru services and mobile ordering. The company has developed loyal consumer programs that have boosted the company’s sales and consumer-based brand equity. Therefore, investing in Starbucks can be beneficial since the company has adopted drive-thru and mobile ordering and consumer loyalty programs making the company profitable. Although Starbucks Corporation has dependable technology and operates in a well-advanced economy, the company can adopt effective competitive strategies to attract more investors. The competitive strategies include adopting competitive prices, business expansion in developing countries in Africa, and the addition of a healthy menu. In addition, the company can adopt competitive prices compared to its competitors like Tim Hortons and Mcdonald’s. The prices will attract customers who choose Starbucks Corporation competitors. Expanding the business in developing countries such as Africa would increase the company’s annual earnings since its competitors have less invested there. Furthermore, Africa has a growing population that prefers coffee from Drive-Thru stores. Healthy menu options attract the growing population that is food-aware and intends to avoid lifestyle diseases like obesity. If Starbucks Corporation adopts an effective competitive strategy, it will attract more investors.

Reference Worksheet