Background + Category
Starbucks Corporation is an American coffee company. It falls under the restaurant category. It operates as a marketer, roaster, coffeehouse chain and it is the world’s leading specialty coffee retailer. It retail products includes more than 30 types of the world’s top coffee beans, handmade espresso coffee, a variety of hot and cold beverages, fresh food and delicious pastries, coffee machines, coffee mugs and other merchandise. The first Starbucks was founded in 1971; it was a single store in Seattle, Washington. It did not sell brewed coffee and espresso, but only coffee beans. In 1983, Howard Schultz, a former employee of Starbucks traveled to Italy and attracted by Italian coffee bars and the romance of the coffee …show more content…
It company’s mission statement is “To inspire and nurture the human spirit – one person, one cup and one neighborhood at a time.” Starbucks brand message is that they value each customer specially. For a long time, the company has been committed to providing the highest quality coffee and service to customers, creating a unique “Starbucks experience”. Customer experience is the core demands of its brand equity. They want the brand to bring friends together, set up the conversation and foster the relationship. Starbucks goal is to become the ‘Third Place’ in the customer’s daily lives, a place away from work or home (Starbucks, 2016). A place where the customer can rest, read, think, write and even stare into blank space. In other words, it is a place where customers can connect with people and also reconnect with themselves. Just like McDonald’s has been promoting sales of joy, Starbucks gradually breaks down the typical American culture into elements that can experience: visual warmth, music genre that appeals to everyone, aroma of coffee and so on. They are not just selling coffee but also a lifestyle. At the same time, the company continuously carries out various corporate social responsibility activities to contribute to the community and to make the world a better …show more content…
Founded in London in 1971, Costa is the nation’s favorite coffee shop and the largest coffee shop chain in Britain. Costa Coffee is also the leading retailer and roaster. According to Costa’s official website, they are the only coffee shop business in the world that source 100% of their beans from Rainforest Alliance certified farms. Unlike Starbucks that uses automatic coffee machines, each and every cup of Costa Coffee is made using the beans that have been slow roasted for 22 minutes in Costa Roastery in London and handcrafted by Costa’s baristas. This is to ensure a smoother flavor, which can produce a bitter taste (Dana, 2010). Costa defines itself as the ‘Real Coffee’; lesser choice, higher price but their coffee is smooth, aromatic and delicate. Although this could reduce the production of the coffee beans, Costa still insists on its way to retain the coffee oil and aroma of the coffee. As a consequence, their target market is limited because the lack of flexibility. In contrast to that, Starbucks always try to integrate to local cultures in different country. For example, they sell dragon dumplings and mooncake in China. Besides, they offer different mugs and tumblers in different countries to an extent that collecting Starbucks mugs has become a hobby for their customers or travelers. As a result, Starbucks is still ranked 1 in the