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The speed with which Starbucks had managed its ascent was almost as remarkable as the changes it had wrought in traditional conceptions of brand marketing. At a time of rising perceptions of parity across most product and service categories throughout the developed world, Starbucks had managed to take one of the world's oldest commodities and turn it into a differentiated, lasting, value-laden bra... More

The speed with which Starbucks had managed its ascent was almost as remarkable as the changes it had wrought in traditional conceptions of brand marketing. At a time of rising perceptions of parity across most product and service categories throughout the developed world, Starbucks had managed to take one of the world's oldest commodities and turn it into a differentiated, lasting, value-laden brand. Moreover, the company had done this without relying on some of brand marketing's most venerable tools, including an extensive advertising and promotions budget. Over a 20-year period, Starbucks spent approximately $20 million total on advertising, an average of $1 million per year; in contrast, according to a 2001 Business Week analysis of the top 100 brands, Proctor & Gamble Company's Pampers brand - which ranked 92, four places below Starbucks, on the list - spends $30 million annually on advertising. How did a small Seattle company turn itself into a global synonym for java and joe? The answer, we believe, lies with an ingredient as central to Starbucks's business as the premium coffee beans it roasts: Relationships. "Starbucks starts and ends with core values ... [and] the core values emanate from and around relationships with people," says Anne McGonigle, the company's vice president for special projects.

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