Starbucks was initially formed with the motto of selling good coffee with a unique flavor that a regular coffee brand wouldn’t offer. After the company was listed in the National Association of Securities Dealers Automated Quotation (NASDAQ), the growth of the company accelerated and it opened 16,680 stores across the globe.
High priced brews, Moccachinos, Cappuccinos, Lattes and frappes have awakened the senses of 50 million customers approximately worldwide. Starbucks was formed initially in the year 1971 in Seattle (Burks 2009, 1).
In the year 2013, the sales of global Starbucks stores grew by 8 percent and the expansion of the stores grew by 12 percent with revenue of $2.78 billion (Fontevecchia 2013). The company generated huge revenue from China and Asia Pacific region and earned a major part of the share in the coffee industry.
Starbucks is one of the most coveted brands in the coffee industry and has a highly developed copyright, logo, brand and trademarks. In the year 2010, the company’s profit margin had hit hard during recession but the company immediately regained profits by 12.7 percent in the year 2012.
Brand Power: In Australia, the brand is strongly associated with customer loyalty and innovative capabilities. The Company has maintained strong revenues, earnings per share, operating income and comparable store sales. Brand promise is crucial for Starbucks and the company has been using high quality beans. It has been observed that the customers prefer having Arabica over Robusta beans and accounts for 75 percent of the worldwide production (Burks 2009, 07). Starbucks uses high quality Arabica beans for serving the customers for their satisfaction purposes.
European Coffee Houses: The Australian customers prefer café chain similar to European coffee houses. The European Coffee houses were traditional and had an old charm to it and a warm atmosphere.