Case Study - Starbucks

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Executive summary ---------------------------------------------------------------------2
History of starbucks----------------------------------------------------------------------2
From little beans big things grew ----------------------------------------------------------------3
Starbucks advertising--------------------------------------------------------------------4
Marketing situation ----------------------------------------------------------------------5 1.
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A business trip to Milan’s famous coffee shops in 1983 opened Schultz’s eyes to the rich tradition of the espresso beverage. Schultz recalls, “What I saw was the unique relationship that the Italian people had with the ubiquitous coffee bars around Italy. People used the local coffee bar as the third place from home and work. What I wanted to try and do was re-create that in North America.”1 Inspired by the Italian espresso bars, Schultz convinced executives to have Starbucks’ stores serve coffee by the cup. And the rest is history! The company has seen phenomenal growth from 17 coffee outlets in Seattle almost 15 years back to 5689 shops in around 28 countries worldwide. Starbucks went public in 1993 and has done extremely well in turning an everyday beverage into a premium product. The green and white mermaid logo is widely recognized; the brand is defined by not only its products, but also by attitude. Business Week’s most recent survey (2002) of the top global brands reported Starbucks as one of the fastest growing brands. It is all about the Starbucks experience, the atmosphere and the place that is a refuge for most people to get away from everyday stresses. The average customer visits a Starbucks eighteen times in a month and about 10 percent of all customers visit twice a day. They have created an affinity

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