Starbucks was founded in 1971 by three partners in Seattle’s renowned open-air Pike Place Market and was named after the first mate in Herman Melville’s Moby Dick. Howard Schultz joined Starbucks in 1982 as director of retail operations and marketing. Returning from a trip to Milan, Italy, with its 1,500 coffee bars, Schultz recognized an opportunity to develop a similar retail coffee-bar culture in Seattle. In 1985, the company tested the first downtown Seattle coffeehouse, served the first Starbucks Café latté, and introduced its Christmas blend. Since then, Starbucks has been expanding across the United States and around the globe and now operates 12,440 locations in 36 countries. It opens about three new stores a day and serves more than 30 million customers a week.

1. What is the total product that Starbucks markets?
2. What is the role of the development of new products in Starbucks’ success?
3. Why do you think some new Starbucks products succeed and others, like Chantico, fail?