The main reason that Starbucks had so much success in the early 1990’s was because of Howard Schultz. When Schulttz bought the company in the late 1980’s he had vision to make it the coffee shop America’s “third place”. Before Americans had only two places in their lives home and work and now Schultz would make this the third place. This new type of coffee shop will be a place where people could go relax and enjoy other people in a great environment. As soon as he bought the company he started opening more new stores. At first they their business came from white collared patrons between the ages of 24 and 44. The biggest thing that help the company was in the mid 1990’s Starbucks went public and made $25 million. This again help open even more stores across the nation. This all was done without spending anything on marketing.
The Starbucks brand was “live coffee.” The company wanted to keep the national coffee culture alive. Starbucks created experience every time you went to get a cup of coffee from one of their stores. Starbucks had three components to their branding strategy. The first was coffee itself, Starbucks said it had the highest quality coffee in the world. The company controlled the supply chain and oversaw much of the roasting processes.
The second component was service. The goal of Starbucks was to create an uplifting experience every time a customer walked in the door. Something like the workers knowing the regulars names and what drink they like would help consumers become more loyal to Starbucks.
The third component was atmosphere. Starbucks does not want customers to come in and ...