Background
Starbucks Coffee is a company that offers extraordinary coffee to its customers. It takes great pride in its retail service and providing great services to its customers. Howard Schultz, inspired and fascinated by Milan’s coffee culture in Italy, convinced his company (a shop in Seattle’s Pike Place Market) to set up an espresso bar in the corner of its only downtown Seattle shop. He envisioned coffeehouses as a “third place” to relax and enjoy others’ company that would be separate from home or work. As soon as Starbucks’ founders decided to sell, Schultz immediately bought the company. Schultz began opening new stores which sold whole beans and premium-priced coffee. When Schultz decided to take the company public, people were doubtful, but Schultz ignored and sold the company publicly. Starbucks raised more then $25 million and all proceeds went to grand openings of new stores. This was a start to a dominant specialty company. Without even advertising, net earnings still are rising to this day.
The Problem
Starbucks Coffee is known for its unique and specialty beverages, but with detailed training skills it may take time and devotion to providing these drinks to customers in a timely manner. Starbucks prided itself mainly on coffee itself. It believed that its highest-quality coffee in the world would help attract new and bring back regular customers.
Its second brand component was to create customer intimacy. This would include knowing customers’ customized drinks when they walk in the door.
The third brand was focused on a relaxed atmosphere. This would allow the people to come buy the coffee and stay at the cof ...