In today’s capitalistic society, various large companies have emerged that define American capitalism. Among these companies is the popular Starbucks, which has had an influence in numerous countries across the planet. Starbucks’ evolution since its establishment is a true reflection of how businesses and capitalism intertwine in the more prominent theme of American capitalism. Looking through its history, the organization is a coffee retailer company popularly recognized for its specialty coffee. It was founded in 1971 in Seattle by three American entrepreneurs: Gordon Bowker, Jerry Baldwin, and Zev Siegl. The company was just a modest coffee shop when it was established in 1971. Later, it was bought by Howard Schultz, who turned the shop into a cafe brand icon. Behind the success of Starbucks is the company’s unique marketing strategies, which have evolved over the decades to adapt with the dynamic market and population. Also, its journey since its inception demonstrates an interesting perspective regarding the coffee market dynamics and its influence on American capitalism. Most importantly, Starbucks has demonstrated flexibility over the decades in adjusting to the dynamic market and consumers’ choices. What is interesting here is the fact that Starbucks not only sells coffee but has also managed to influence how individuals view and consume coffee, prompting a shift into specialty coffee culture. Basically, the company reflects the interplay between consumer choice, business growth, and the dynamic landscape of American capitalism. Ultimately, Starbucks’ evolution power in marketing strategies demonstrates transformation in the coffee industry, which has left a profound mark on the larger culture and economic landscape of American capitalism.
The transformation of Starbucks into a global coffee giant can be attributed to its enormous marketing. Interestingly, the company’s rise to its current status started with its small-scale marketing during the 1970s. Among these strategies is the brand consistency evident in the company’s logo. As time passed, the logo of Starbucks underwent various redesigned changes, but it has maintained the bulk of its logo. Initially, its logo had a “bare-breasted figure surrounded by the Starbuck’s original name, (Starbucks Coffee, Tea and Spices).”[1] In 1987, it was redesigned to merge the companies’ signature color, whereby green was replaced with brown, and the siren was modernized with a shorter name surrounding the logo. Starbucks’ website notes, “in 1992, we made her face the star of the show, and in 2011 she became the siren of today.”[2] At the moment, Starbucks’s logo entails the modernized siren, which does not include the company’s name. Generally, Starbucks’s logo has created an excellent link with its customers since its establishment. The brand’s consistency has also enabled brand loyalty among its consumers. This is fueled by the fact that “it directs its brand image to correspond to numerous demographics, combining inclusivity and cultural significance.”[3] Starbucks’ idea of a smiling dark green siren has captured the public eye over the years. In return, the logo has motivated a more significant percentage of the public to retain their interest in the company’s products. The brand consistency has helped maintain customer satisfaction and loyalty to the company.
Also, as Howard Schultz took over the company from its original founders, he adopted the notion of a “third place feeling” strategy to market the brand. The concept implies a favorable environment where its target consumers can relax and share quality time. Accordingly, “it was on a trip to Milan in 1983 that Howard first experienced Italy’s coffeehouses, and he returned to Seattle inspired to bring the warmth and artistry of its coffee culture to Starbucks.”[4] Fundamentally, it was during his experience in Italy that Howard adopted the “third place” strategy. His aim was to transform the brand into a warm and welcoming place to attract more customers. That being so, he trained his employees on quality customer service and maintained an ambient environment that delivered high-quality products. The company also maintained ambient interiors that are welcoming and comfortable. At the moment, the “third place” marketing strategy includes providing free wi-fi services in company shops, comfy seats, and warm lighting. It also provides for the accessibility of various Starbucks stores, which are available in many locations across the world. It is through the aforementioned concept that the latest company’s mission was adopted in 2008. It states, “With every cup, with every conversation, with every community – we nurture the limitless possibilities of human connection.”[5] From the mission, the company clearly aims to form a close connection between its target consumers, baristas, and the entire company. This feeling provided by the “third place” concept has contributed significantly to the industry’s popularity.
The advancement in technology has enabled the company to embrace digital marketing. Following the invention of smartphones in 2009, Starbucks has taken its marketing into mobile phones. This is evident when the company adopts a mobile app. The app gives room for in-app payments, whereby Starbucks’ consumers can also order ahead and get loyalty rewards. Besides engaging customers, the app also allows the company to engage with its target market. The app makes it easier for consumers to avoid waiting in lines and order in the comfort of their homes or workplaces. On the other hand, loyalty rewards inspire customers to use the app frequently, which in turn increases sales. Also, the company has adopted various social media platforms to market their products. Evidently, the company is active on multiple social media platforms, such as Instagram and X.[6] The platform has allowed the company to communicate with its target customers, share its content, and drive various marketing campaigns, prompting brand awareness and a sense of community.[7] It’s also using the platforms to advertise new products and the company’s brand. These also include various channels like television and ads. The aforementioned platforms have popularized the company and attracted a wide variety of customers.
In addition, the company has further shifted to unique innovations and promotional techniques to market its products and formulate expectations for new products to be launched. This has been made possible by the current Digital marketing era, which has enabled Starbucks to market its products through various campaigns. In most cases, the company has used social media platforms to execute these marketing campaigns. For example, the company used platforms like X to hold the “#WhatsYourName Campaign.” The aim of the campaign was to promote inclusivity and a sense of identity. According to the company, “taking a customer’s name, writing it on a cup, and calling it out is a symbol of our warm welcome. It is part of the Starbucks experience and creates a moment of connection between our baristas and customers.”[8] In return, the campaign has enhanced positive relationships between varying customers and the organization, as well as reaching out to diverse target customers. Unlike when the company started in 1971, Starbucks’ marketing has evolved to accommodate diverse customers like transgender. In addition to campaigns, Starbucks uses promotional hashtags to build its brand further. These hashtags enable its customers to come together in the name of the brand’s coffee and, at the same time, communicate with the company. In doing so, it promotes the company and encourages other individuals to try the brands’ products. In general, these adopted digital marketing platforms have made the company famous, and its unchanging message that is displayed frequently has made the company stand out globally.
To a greater extent, Starbucks’ marketing over the decades has shaped American and global capitalism. For example, the company has enhanced the culture of specialty coffee across America and other continents. Generally, since Howard took over the company and made it public, Starbucks has transformed how individuals consume coffee. The marketing has also influenced the whole coffee industry landscape and transformed into a broader economic trend. It is apparent that the significant impact of Starbucks’ marketing strategies is the adoption of coffee culture among Americans and other people across the world. This is fueled by the company’s focus on high-end coffee products, which has compelled the organization to upgrade coffee from being a mere commodity to a lifestyle. Accordingly, “with growing demand for specialty coffee, coffee lovers everywhere continue to seek the freshest and highest-quality flavors they can find.”[9] This indicates that the company initiated the growing demand for high-quality coffee. As a result, it has compelled people to seek high-quality coffee products, creating a coffee specialty culture. Most importantly, the company fosters an ambient environment, high-quality customer service, and the feeling of “third place.” Given its highest quality services and products, the company is more of a lifestyle, which has created a demand for premium coffee products globally, prompting specialty coffee culture.
Apart from the specialty coffee culture, Starbucks has also impacted its large and small competitors. Since Starbucks is the world’s leading coffee chain industry, it has forced other large companies like McDonald’s to adapt to Starbucks’s strategy of introducing its brand, McCafé. The introduction of McCafé reflects “McDonaldization,” whereby companies imitate successful businesses in an effort to remain relevant in the market. Fundamentally, Starbucks has forced McDonald’s to emulate its strategy by introducing the McCafé brand to stay competitive and capture market share. This includes adding other products to its stores to remain competitive. Evidently, “McDonald’s executives want to make the chain’s restaurants a place where people go for drinks as well as food.”[10] Additionally, McDonald’s has increased its number of stores across the continent, just like Starbucks. It has also been forced to provide slightly cheaper coffee drinks, which are still high quality, in order to adapt to the competitive market. Accordingly, “at $2, McCafé beverages are significantly less expensive than Starbucks’ — and they still push a more gourmet image.”[11] In the long run, the introduction of McCafé created a competitive market that was a reflection of American capitalism. Unfortunately, while Starbucks has influenced the marketing strategies of its large competitors, it has popularized coffee culture, making it hard for smaller cafes to persist.
Moreover, the marketing strategies employed by the leading coffee chain organization have enormously contributed to consumer trends and coffee choices. Given that Starbucks has successfully sold premium-priced drinks, it has contributed to consumers’ behavior of favoring high-quality and expensive drinks.[12] This, in return, has contributed to the proliferation of other products in the market, which is evident in the explosion of boba beverages. Over the years of its marketing, people have come to view Starbucks’ coffee as more than a drink. They have treated it as an indulgent treat and a way of life that is worth every penny. Therefore, given this perspective, it is arguable that the success of Starbucks in training people to buy expensive drinks is responsible for the explosion of boba drinks in recent years.
To sum up, it is evident that Starbucks is the leading coffee retailer on the planet, and it was founded in 1971. From the above discussion, it is apparent that the company has embraced various marketing strategies over the years since its creation. These strategies include consistency in its logo. Even though the design of the logo changed over time, its message and sire beacon remained constant, contributing significantly to maintaining customer loyalty. Similarly, Howards opted for a “third place” notion to provide a conducive environment for its customers. As time passed, the company adopted digital strategies, which took the company to another level. Examples of these digital platforms include using mobile phones and social media platforms to conduct promotions aimed at reaching a wider audience. Besides its marketing, Starbucks has also affected American capitalism by introducing specialty coffee. As a result, other brands like McCafé emerge to compete with Starbucks. However, given that Starbucks is a giant coffeehouse globally, such brands must imitate Starbucks’s marketing strategies to remain competitive. Unfortunately, the competition from large competitors has made it harder for smaller cafes to grow. Generally, Starbucks introduced a coffee culture that swallowed smaller cafes and simultaneously made some drinks like boba explode.
Areiza-Padilla, Jose Andres, and Mario Andres Manzi Puertas. “Conspicuous Consumption in Emerging Markets: The Case of Starbucks in Colombia as a Global and Sustainable Brand.” Frontiers in Psychology 12 (August 19, 2021): 662950. https://doi.org/10.3389/fpsyg.2021.662950.
Nair, Rajesh Kumar, Rupesh Sinha, Sheryl George Crasto, Khor Wee Kian, Daisy Mui Hung Kee, Shamin Athirah Binti Abdullah, Siti Nuraliah Ninti Zaidi, et al. “The Effect of Starbucks Marketing Campaigns on Consumer Buying Behaviour.” Asia Pacific Journal of Management and Education (APJME) 4, no. 1 (March 20, 2021): 72–81.
Peiper, Heidi. “A New Mission for Starbucks.” Starbucks Stories, April 24, 2023. https://stories.starbucks.com/stories/2023/a-new-mission-for-starbucks/.
Reuters. “McDonald’s Owners Eye Starbucks with McCafé Drinks,” 2008. https://www.reuters.com/article/idUSN17518495/.
Starbucks. “Every Name’s a Story #Whatsyourname.” stories.starbucks.com, January 31, 2020. https://stories.starbucks.com/emea/stories/2020/whatsyourname/.
———. “Our Company.” Starbucks Coffee Company, 2024. https://www.starbucks.com/about-us/.
———. “The Evolution of Our Logo.” archive.starbucks.com, 2024. https://archive.starbucks.com/record/the-evolution-of-our-logo.
Starbucks. “Evolution of Specialty Coffee Brings Rare Coffee to Market in Starbucks Exclusive Limited Reserve,” March 6, 2008. https://stories.starbucks.com/stories/2008/evolution-of-specialty-coffee-brings-rare-coffee-to-market-in-starbucks-exc/.
Taylor, Kate. “McDonald’s ‘Mirror of Starbucks’ Is Revolutionizing the Chain’s Business — Here’s How.” Business Insider, 2017. https://www.businessinsider.com/mcdonalds-mccafe-mirrors-starbucks-boosts-sales-2017-10?r=US&IR=T#it-provides-a-reputation-boost-1.
[1] Starbucks, “The Evolution of Our Logo,” archive.starbucks.com, 2024, https://archive.starbucks.com/record/the-evolution-of-our-logo., par.1.
[2] Ibid, par.2.
[3] Jose Andres Areiza-Padilla and Mario Andres Manzi Puertas, “Conspicuous Consumption in Emerging Markets: The Case of Starbucks in Colombia as a Global and Sustainable Brand,” Frontiers in Psychology 12 (August 19, 2021): 662950, https://doi.org/10.3389/fpsyg.2021.662950.
[4] Starbucks, “Our Company,” Starbucks Coffee Company, 2024, https://www.starbucks.com/about-us/., par.2.
[5] Heidi Peiper, “A New Mission for Starbucks,” Starbucks Stories, April 24, 2023, https://stories.starbucks.com/stories/2023/a-new-mission-for-starbucks/., par.5.
[6] Starbucks, “Every Name’s a Story #Whatsyourname,” stories.starbucks.com, January 31, 2020, https://stories.starbucks.com/emea/stories/2020/whatsyourname/., Par.3.
[7] Rajesh Kumar Nair et al., “The Effect of Starbucks Marketing Campaigns on Consumer Buying Behaviour,” Asia Pacific Journal of Management and Education (APJME) 4, no. 1 (March 20, 2021): 72–81.
[8] Starbucks, Op. Cit., par.3.
[9] Reuters, “McDonald’s Owners Eye Starbucks with McCafé Drinks,” 2008, https://www.reuters.com/article/idUSN17518495/., par.1.
[10] Reuters, Op. Cit., par.12.
[11] Kate Taylor, “McDonald’s ‘Mirror of Starbucks’ Is Revolutionizing the Chain’s Business — Here’s How,” Business Insider, 2017, https://www.businessinsider.com/mcdonalds-mccafe-mirrors-starbucks-boosts-sales-2017-10?r=US&IR=T#it-provides-a-reputation-boost-1., par.8.
[12] Starbucks, Op. Cit., par.3.