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Strategic Public Relations – case 02
Karola Römer

STARBUCKS: ‘Should Starbucks collaborate with all of its stakeholders or only a select few?’
Starbucks, generally considered to be the most famous specialty coffee shop chain in the world, today has over 6,000 stores in more than 30 countries. Many analysts have credited Starbucks with having turned coffee from a commodity into an experience to savour.
Starbucks’ aim has always been to be one of the most recognized and respected brands in the world.
Since it made its IPO (initial public offering) in 1992, Starbucks has been growing at a rate of 20 per cent per annum with profits at a rate of 30 per cent per annum. Starbucks has always felt that the key to its growth and its business success would lie in a rounded corporate brand identity, a better understanding of its customers and a store experience that would generate a pull effect through world-of-mouth.
Howard Schultz, Starbuck’s founder and chairman, had early on in the company’s history envisioned a retail experience that revolved around high-quality coffee, personalized, knowledgeable services and sociability. So Starbucks put in place various measures to make this experience appealing to millions of people and to create a unique identity for Starbucks’ products and stores.
Schultz felt that the equity of the Starbucks brand depend less on advertising and promotion and more on personal communications, on strong ties with customers and with members of the local community and on word-of-mouth. As Schultz put it:
“If we want to exceed the trust of our customers, then we first have to build trust with our people. A brand has to start with the (internal) culture and naturally extend to our customers… Our brand is based on the experience that we control in our stores. When a company can create a relevant, emotional and intimate experience, it

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