Brand Value Chain

In: Business and Management

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CASE STUDY: STARBUCKS COFFEE

BY: KATHLEEN LEE GRC 411

CASE STUDY: STARBUCKS Brief History:

The first Starbucks location opened in 1971. The name is inspired by Moby Dick’s first mate. This name and the mermaid logo were inspired by the love of the sea, from Starbucks original location in Seattle Washington in the heart of Pike Place Market. Starting as a single shop specializing in high quality coffee and brewing products the company grew to be the largest roaster in Washington with multiple locations until the early 80’s. In 1981, current CEO Howard Schultz, recognized a great opportunity and began working with the founder Jerry Baldwin. After a trip to Italy to find new products, Schultz realized an opportunity to bring the café community environment he found in Italy to the United states and the Starbuck’s brand we know today began to take form. Selling espresso by the cup was the first test. Schultz left Baldwin to open his own Italian coffee house Il Giornale which found outrageous success and in 1987 when Starbucks decided to sell the original 6 locations, Schultz raised the money with investors and purchased the company and fused them with his Italian bistro locations. The company experienced rapid growth going public in 1992, and growing tenfold by 1997, with locations around the United States, Japan and Singapore. Starbucks also began expanding its brand. According to George Garza in his article The history of Starbucks the following product lines were added: • Offering Starbucks coffee on United Airlines flights. • Selling premium teas through Starbucks’ own Tazo Tea Company. • Using the Internet to offer people the option to purchase Starbucks coffee online. • Distributing whole bean and ground coffee to supermarkets. • Producing premium coffee ice cream with Dreyer’s. • Selling CDs in Starbucks retail stores. Starbucks uses minimal…...

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