Starbucks Brand

In addition to the trade-offs Howard Schultz and Starbucks made. Another consists of the company’s management deciding to invest a significant amount of capital to provide the highest quality coffee products for their customers. Providing quality coffee requires extreme dedication and

Starbucks has developed a brand image that has revolutionized coffee drinking experience. It has created an ambiance that is designed to attract customers and keep them coming back to Starbucks stores. It offers wide varieties of services such as comfortable seating areas with unique music and free wireless Internet for their customers while sipping their favorite coffee. This distinctiveness sets Starbucks apart from most of its competitors and has allowed the company to successfully grow and profit while charging premium prices for their products.

* Starbucks expanded to pursue sales of products in a variety of distribution channels and market segments. Products were marketed to restaurants, airlines, hotels, universities, hospitals, business offices, country clubs, and select retailers. In the airline industry, Starbucks coffee was served in flights United Airlines and United Airlines. Packets of Starbucks coffee along with coffee making equipment were made available in each room in Hyatt, Hilton, Sheraton, Radisson and Westin Hotels. Coffee service was also provided in several Wells Fargo banks in California. Foodservice distributors such as Sysco

Starbucks has created a competitive advantage with their product quality by setting themselves apart from their competitors. “The Company has stayed with the upper-scale of the coffee market, competing on comfort rather than convenience, which is the case with its closest competitors, McDonald’s and Dunkin Donuts” (Mourdoukoutas, Panos). Consumers believe they are receiving a better product and experience when they purchase from a Starbucks as opposed to another large food service company that may sell coffee.

starbucks Corp., an international coffee and coffeehouse chain based in Seattle, Washington, has expanded rapidly since its opening in 1971. These outrageous success was due to its well-developed strategy vision which lay out the company's strategic course in developing and strengthening its business. Starbucks is a global corporation that sells authentic coffee in 30 countries, reporting revenues of nearly $5.1 billion in 2006. The main goal of Starbucks is to embrace diversity by applying the highest standards of excellence. Starbucks strives to perfect the relationship with the working class by making the service as fast as possible because they believe that every customer has their own personal rate. One

Atmosphere: Starbucks’ new design gave people a location to not only go and purchase refreshments but spend time to relax.

Starbucks’ lead in the specialty coffee industry exemplifies the result of deftly executing a well-planned business strategy. Moreover, Starbucks is well positioned for what is expected to be a continuing rise in the popularity of specialty coffee products. The question before Starbucks’ leadership, however, is what avenues will lead to Starbucks’ goal of remaining true to its core, the highest quality coffee products while providing a “total coffee experience” for its customers?

from a small local store to its current global enterprise. Starbucks has strategic partners all over

According to Rebecca Larson, assistant Professor of Business at Liberty University, Starbucks partnered with Barnes and Nobles bookstores in 1993 to provide in-house coffee shops, benefiting both retailers (Czaja, 2011). This would not only bring more consumers in Barnes and Noble stores to buy books, but to also allow them to enjoy their favorite coffee drink while they read their favorite story. This “one-two” punch, allowed both retailers to gain a significant amount of popularity for years. In 1996, Starbucks also entered a partnership with Pepsico so they would be able to bottle, distribute and sell their famous coffee drink, Frappacino. (Czaja, 2011). Starbucks aligning themselves with United Airlines, resulted in them being able to share their coffee on airline flights with the company’s famous logo on the cups. Partnering with Kraft foods made their brand sellable in local grocery stores. To push their goals for social and economic justice, Starbucks also partnered with the NAACP in 2006.

The next exhibits show payroll structure and income volume per location in 2002 and product mix for North American company-operated stores. Exhibit 6 shows US retail coffee market predictions till 2005 years. It clearly shows changing in Americans’ coffee drinking style into specialty coffee. It is very important for Starbucks because company’s main market is specialty coffee. Next of the exhibits, shows positive customer snapshot scores for North America stores. Those snapshots suggest further company’s success. The only issue we can find is the product quality. According to the exhibit product quality went down during 3rd quarter of 2002.

The initial approach of brand building for Starbucks is by enticing customers to visit their stores and enjoy the coffee. It has gained from word of mouth and cup by cup from customers and very appealing storefronts. During this period the company put all her resources into store expansion as it has seen influx of customers into its stores.

Starbucks does not use direct advertising such as commercials, ads or other promotion. They do however; have one of the largest social media networks with one of the highest customer contact percentages on a daily basis. This is one way they continue to promote their brand with customers who have been with the company for a long time. At the same time Starbucks has made quality choices in generating “alliances” with companies who have a similar market segment or customer base. Some of these alliances have been with “Barnes and Noble, I-tunes, Green Mountain, Tata Coffee”. These have allowed Starbucks to differentiate their product in India, Canada, USA and China. They can provide their quality product in hotels, bookstores and specific markets that relate to their direct customer base.

Starbucks successfully used the licensing and partnership to open more store in the U.S. market. Starbucks cannot able to open its own company store but partnering with the Host Marriott will allow their expansion of the market while ensuring that the costs are at the maintained at a low level. Starbucks found that airport is the location where Starbucks find the most customer traffic and are mostly convenient access for the travelers and shoppers. Starbucks have the Licensing arrangements so there are more control over the own brand name, own goal and its own recipes. These stores create the value as a customer convenience and create the new market. This is the very positive sign to do the partnership according to Schultz, “Weather it works is matter of whom you choose as partner ,the amount of due diligence you do beforehand, and how

The CEO (Chief Executive Officer), Howard Schultz pointed that the main reason from the decline of “Starbucks Experience” was that the number of Starbucks shops increased sharply from only 1,000 to 13,000 within ten years. Other people considered their brand has been commercialized, and the customers hadn’t had enough enthusiasms to appreciate every moment of their coffee any longer. He suggested that Starbucks should re-find its origin. Nevertheless, his advice apparently was opposite to the

Starbucks is one of PepsiCo’s local strategic alliances were it enabled the company to claim its share in the energy drinks market. Global alliance have been made to claim its share in the increasing beverage market in China, it formed partnership with Tingyi. It also created a joint venture with Tata global beverages in India in order to improve the manufacturing abilities of drinking water. PepsiCo recently started a strategic partnership as well with Almarai in Saudi Arabia.