this market (Data Monitor, 2008b).
Driving growth at Starbucks over time were several important factors, among which the social and cultural appeal of high ticket coffee and other hot beverage products was paramount (Dransfield, 2008). Howard Schultz was a visionary businessman who bought out the original owners of Starbucks in 1987 and then ran the company until 2000. In the process, he is said by Dransfield (2008) to have created not only a runaway business success, but a small revolution in American culture. Under Schultz, Starbucks became the largest coffee house chain in the world in part because of savvy marketing, quality products, variety of items, and an image suggesting that the firm's products conferred higher status on their purchasers (Dransfield, 2008).
Starbucks used technology to enhance its appeal, offering high speed wireless Internet access in its stores. It created a subsidiary called Hear Music and a new record label in conjunction with Concord Music Group. It sold CDs that were available only at a Starbucks store.
According to Data Monitor (2008a), Starbucks used innovative and cost effective marketing strategies to build its image such as billboards, freestanding inserts in newspapers, samplings, and innovative schemes such as paying for a day of free parking in a downtown area. While the firm operates in 43 countries with 1,796 stores outside the United States, it also has 2,792 joint ventures and/or licensed stores internationally. In other words, Starbucks has capitalized upon a strong brand image to make the most of its opportunities.
Starbucks appeals to a specific demographic segment. The company's target market consists of young and middle-aged adults
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