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Analysts felt that the success of Starbucks showed that a quality product speaks for itself. The fact that Starbucks spent less than 1 % of its sales on advertising and marketing strengthened this view. In addition to being a popular brand among customers, Starbucks was also considered the best place to work due to its employee-friendly policies.1 Exhibit 1 shows Starbucks' income statement. See Starbucks' 2002 Annual Report, at http://www.starbucks.com/aboutus/financials.asp, for complete financial statements.
This case was written by K. Subhadra, under the direction of Sanjib Dutta, ICFAI Center for Management Research (ICMR)...
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