The list of ten most valuable brands of 2013 compiled by Interbrand features quite a few familiar faces: Google, Coca Cola, IBM, Microsoft and General Electric. The list has not changed much since 2009, except for two notable additions, Apple and Samsung, which kicked Nokia out of the list down to the 57th place. What has propelled Apple and Samsung into the ranks of top performers? Our textbook suggests four main drivers of brand equity: awareness (familiarity with the brand), perceived value, brand associations and brand loyalty.

At this point, I think, both companies are way past the awareness building stage. They do spend money on brand exposure, as the recent Oscar selfie made with Samsung phone has shown, but I don’t see lots of heavy advertising. Unlike Microsoft and Coca Cola, the tech giants did not even bother make a Super Bowl ad this year.

As a person with no background in computer science and limited understanding of this technology, I can’t really say how much value does iPhone provide in relation to price. I do appreciate the user-friendly interface and reliability, but it is difficult for me to make a comprehensive comparison to competing products. And I think that there are many people who are like me. It seems that they have to make their decisions based on perceptions rather than hard facts. According to Interbrand, the role of brand in purchase decision is more important when products are not easily comparable. Technology products fall within this category, and that’s probably one of the reasons they have the most valuable brands.

Apple has created such strong brand associations of innovation and creativity that consumers probably don’t even think about researching its technology before making a decision to buy the product. I still wonder what will it take to make them switch to Samsungs.

http://www.interbrand.com/en/best-global-brands/2013/best-global-brands-methodology.aspx

Why don’t we see Starbucks at every busy corner in Paris? This was one of the things that struck me when I visited the city three years ago. It was not rare to see people walking on the streets and holding typical paper coffee cups, but it is much more common to see them sitting around small round tables in front of local cafés. This was an interesting example demonstrating the importance of sociocultural factors in market entry strategies.

French people are avid coffee drinkers. Per capita consumption of coffee in France is 25 percent higher than in the US, according to the International Coffee Organization (ICO) research. However, there are significant differences in how people in these two countries actually go about drinking coffee.

As the ICO states, out-of-home consumption takes up a similar share of total consumption in both countries, but specific locations for consumption differ in popularity. Coffee chains represent less than one percent of outside consumption in France, and almost four percent in the US. Sociocultural factors are one of the reasons why France was not a successful market entry for Starbucks, despite the company’s attempts to adjust its offerings.

Here is a picture of a Starbucks coffee shop on Boulevard de Capucines – large velvet armchairs grouped around tiny tables under shining chandeliers. The menu features little sandwiches, cheesecakes and tarte aux pommes (Starbucks, 2013). Starbucks coffee shops are filled with young crowd, but there is not much to earn off them. Slowly growing sales and high labour costs have resulted in a slim margin. Apparently, adult coffee drinkers did not find the Starbucks’ way of drinking coffee very appealing.

http://www.annabellebreakey.com/blog/wp-content/gallery/starbucks-paris/starbucks3.jpg

Did marketers at Starbucks expect the expansion to be challenging?

It’s chief operating officer for Europe, Asia and Middle East toured the region to learn about the local variations in tastes and preferences. The management is aware of the difficulties, and they are determined to expand beyond the North American market, which may be close to saturation (Alderman, 2012). It is important for Starbucks to keep its distinct brand and image. I think the brand’s close association with American style should help its expansion.

Alderman, L. (2012 March 30). Starbucks Tailors its Experience to Fit to European Tastes. The New York Times. Retrieved from http://www.nytimes.com/2012/03/31/business/starbucks-tailors-its-experience-to-fit-to-european-tastes.html?pagewanted=all&_r=0

International Coffee Organization (2011). Trends in Consumption. Retrieved from  http://dev.ico.org/documents/icc-109-8e-trends-consumption.pdf

Starbucks (2013). Menu. Retrieved fromhttp://www.starbucks.fr/liste-de-menu