Introduction Since its IPO in 1992, Starbucks has consistently focused on growth. Initially, the growth was aimed at enabling Starbucks to achieve its goal of becoming the leading North American retailer of specialty coffees. Their initial success led Starbucks to expand their original goal to become the most recognized and respected coffee brand in the world. As an example, this case study focuses on an application by McDonalds to serve Starbucks coffee in its restaurants in to discuss the marketing strategy and underlying competitive premise that Starbucks has adopted to achieve both of its objectives. The study also describes the role that the Internet can potentially play in the development of Starbucks as a global brand. Background In 1994, the growth rate of domestic consumption of specialty coffee in the United States was 15% per year, while the growth rate of the overall domestic coffee market in the United States was essentially stable. . Although there was no precise definition on the distinction between specialty coffee and basic coffee, it was generally argued that specialty coffee was of higher quality. The increase in specialty coffee consumption is believed to be the result of four consumer trends: 1) the adoption of a healthier lifestyle had led North Americans to replace alcohol with coffee; 2) bars offered a place for people to meet; 3) the people liked the affordable luxuries and the specialty coffee was perfect; and 4) consumers were becoming more knowledgeable about coffee. As Starbucks sought to achieve its goals, it developed its marketing strategy in response to these trends. The brand they would build as a result would be leveraged to allow them to grow on a global scale. Starbucks Strategy In their quest for growth, Starbucks' initial goal was to become the leading specialty coffee retailer. Howard Schultz, President and CEO of Starbucks, wanted to achieve this goal by creating the "Starbucks Experience". Specifically, the vision was to create something more than just a shop to buy specialty coffees, the intention was to develop "a sort of 'third place' where [people] can escape, reflect, read, chat or listen". The Starbucks brand has focused on creating a retail-based brand that focuses on place and experience. Starbucks' growth plan centered on developing an integrated supply chain, developing a quality brand that could then be leveraged, and entering the grocery channel. Quality brand Starbucks developed proprietary roasting curves and technologies such as the one-way valve on the bags used to store roasted coffee to ensure a consistent, quality product.