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Starbucks has been opening its doors to millions of people for coffee, but it is more than the overpriced coffee that brings people in day after day. Starbucks offers a unique ambiance, friendly and helpful baristas to assist customers in any concerns they might have with the coffee or service. People buy Starbucks for what it represents and the status symbol that comes along with it.

What makes Starbucks unique from its competitors and how does its marketing strategy tick?

Background It all started when Gerald Baldwin, Gordon Bowker, and Ziev Siegl opened its first Seattle coffee shop in 1971. Since then, Starbucks Coffee Company established itself as the leader in the coffee industry with continuous market growth and expansion. With 17, 003 stores in 58 countries, the company’s main objective is to establish Starbucks as the “most recognized and respected brand in the world.” (Starbucks, 2011)

Currently, Starbucks is relying on retail expansion, product innovation, and service innovation to achieve a long-term goal once set by current chairman Howard Schultz:

“The idea was to create a chain of coffeehouses that would become America’s “third place.” At the time, most Americans had two places in their lives – home and work. But I believed that people needed another place, a place where they could go to relax and enjoy others, or just be by themselves. I envisioned a place that would be separate from home or work, a place that would mean different things to different people,” (Moon, 2011).

By working toward this goal, Starbucks wants to open new stores in both new and existing markets, expand their product development process, and cater to customers’ needs to eventually improve their financial position and dominate market share.

Marketing Strategy
Target Market Starbucks is mainly adult-focused and aims

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