Starbucks vision for the company, he was hoping

Starbucks Overview

The story of Starbucks is undoubtedly a story of a
major success in the terms of global brand exposure. The company started as a
single whole bean coffee shop in Seattle in 1971 and only changed its course in
1987 after it was acquired by Howard Schultz. Schultz who made himself CEO, had
a wider vision for the company, he was hoping to import the Italian coffee bar
culture with Starbucks to the USA. In the early 90th the company
went public and started its meteoric expansion, when between 1991 to 2007 the
chain opened on average two new stores every day. Today the chain has 21,500
stores in 72 countries which makes Starbucks the largest coffee chain in the
world.

Starbucks
Band Positioning:

When Shultz became CEO, he aimed to make Starbucks to the”
third place” – a place where people spend their time between work and home and
form a community.

Starbucks made its brand unique by creating an
experience around the consumption of coffee, their customers came not only for
coffee but also for the satisfaction of being physically inside a Starbucks store
or carrying a coffee cup with Starbucks logo. This experience was promoted by
the welcoming environment and decoration, music, consistent quality, quick
service, and the Starbucks employees attitude.

To keep their customer
base enticed Starbucks keeps on changing the variety of their products, and
keeps on introducing new items in their menu, such as: “fresh-brewed coffee,
Italian-style espresso beverages, cold blended beverages, a variety of pastries
and confections, coffee-related accessories and equipment, and a line of
premium teas”.

 

At the early 90th
Starbucks target market was mainly the baby boomer generation, 24-44 aged,
white collar groups which Starbucks was an “affordable luxury” for them.

With time the company decided to
expand the target audience to more segments, it popularized the brand and starting
opening chains in rural areas, ethnically diverse neighbourhoods and grocery
stores.