CASE STUDY The Starbucks Corporation was founded by three entrepreneurs at the place called Seattle in 1971. Initially they were selling of whole bean coffee in one Seattle store and by the year 1982 the business had grown tremendously and has opened five stores selling the coffee beans, a roasting facility, and a wholesale business for local restaurants. When the Starbucks started its business it was only a small retail coffee shop as like the other coffee shops. The main vision of the Starbucks owners was to educate customers about the fine coffees and feel the smell of the Dark roasted coffee, selling just the coffee was not their aim as the coffee was sold in the USA since 1960's. For the first two years, Starbucks losses doubled as overhead and operating expenses increased with Starbucks expansion. By 1991, Starbucks sales increased by 84% and the company were out of debt. Starbucks grew to 20 stores by 1988 then from 1996 to 2000, it grows roughly 2000 stores due to many changes that management made along the way. Starbucks developed a reputable relationship with the customers. Initially Starbucks concentrated their market on parents with the young children and it was hit concept and since then it has going for wider coverage by including Teenagers and social class particularly the business class people those who are working at the office and wanted to have a cup of coffee with a good atmosphere and facilities. Starbucks also had selected the store location where they can find the educated and coffee lovers also developed its product range at the same time. When Starbucks was launched there were many coffee bars in the United States at that time but Starbucks mainly focused on the strategy of new products, a stronger connection with the customers as the third place and expanding store locations in the United States and abroad. Starbucks has put themselves in the market as a highly reputed brand also planned in such a way that it distinguish their products from competing brands and give them the greatest strategic advantage in their target markets. Starbucks has a descriptively simple statement to inspire and nurture the human spirit-"one person, one cup, and one neighborhood at a time". When it comes to price of the Starbucks was higher than the other coffee shops, the customers were ready to pay the amount because Starbucks has developed a luxurious image with all the facilities inside the store. Starbucks as a good Brand have offered more benefits and facilities and the best quality of products to justify their higher prices. Page 1 of 3