A Brief History of Starbucks
In 1971, Starbucks’ opened its first store at Pike Street Market in Seattle, by three partners Zev Siegel, erry !ald"in and #ordon !o"ker$ Starbucks opened "ith the intent of being a gour%et coffee c offee bean retailer and coffee e&uip%ent seller$ 'he Starbucks na%e and logo ca%e fro% t"o influences( a character na%ed Starbuck in the classic book, Moby )ick, and a %ining ca%p on the base of Mt$ *ainier called Starbo$ 'hese t"o influences "ere co%bined to create Starbucks +ikipedia, -../0$ In 19-, entrepreneur and current chair%an, 2o"ard Schult3, 4oined the co%pany$ hen Schult3 4oined the co%pany, he "anted to change the co%pany’s focus a"ay fro% in ho%e coffee production and coffee bean retailing, to also include selling coffee drinks$ Schult3 "anted to create an Italian espresso bar at%osphere to the Starbucks 5o%pany 5o%pan y$ Siegel, !ald"in, and !o"ker didn’t like the idea, but in 196 Schult3 convinced the founders of Starbucks to test the coffee co ffee bar concept in a ne" location in do"nto"n Seattle8 +Starbucks, -..0$ In 19:, Schult3 decided to leave the co%pany and start his o"n Italian espresso inspired inspired co%pany called Il #iornale$ In 197, Schult3 got backing fro% local investors and purchased Starbucks$ Shult3 then changed the na%e Starbucks to Starbucks 5orporation +Starbucks, -..0$ 'oday, oday, Starbucks has %ore than 1-,... stores globally and %ore than ,.. in the ;nited States +*euters, -../0$ Starbucks’ Mission and Objectives: Mission Statements
Starbucks is different than %any businesses( they co%bine aggressive %arketing strategies "ith corporate responsibility$ Starbucks "ants to be %ore than the "orld’s "orld’s
largest coffee shop chain,8 +*euters, -../0 they "ant to be a responsible business as "ell$ 'his not only builds custo%er relationships, it also builds e%ployee
<;nderstanding of environ%ental issues and sharing infor%ation "ith our partners <)eveloping innovative and fle=ible solutions to bring about change
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responsibilities$ @ recent article in ork and Aa%ily Be"sbrief talks about ho" Starbucks keeps their "orkers involved in their 4obs and the co%pany’s values, stating> 'hey do it by taking their %ission state%ent very seriously, says )ave Pace, CP of Partner *esources( nu%ber one on the state%ent is providing a great "ork environ%ent and treating e%ployees "ith respect$ DEur partners,’ says Pace, Dcreate the environ%ent in our stores and %ake this a place people feel good about$ So they feel e%po"ered and valued, and kno" theyFre %aking a contribution$’8 +ork and Aa%ily Be"sbrief, -..0 Starbucks’ Niche
Starbucks e%ploys a concentrated targeting strategy, by inserting the%selves in the gour%et coffee niche, the co%pany can charge higher prices for their coffee$ 'his creates higher profitably for the co%pany because they are in this niche and people "ant to pay for the service$ )aniel #ross, "riter for Slate’s Moneybo=8 colu%n, says Starbucks %ust be banking on the theory that the people "ho buy its coffee donFt 4ust need coffee, they need Starbucks coffee$8 +#ross, -..60 'his creates a nice cushion for Starbucks to increase price if need be, such as the five cent price increase for coffee’s and fifty cent increase for pound coffee in Ectober of -../, yet Starbucks can be confident that their custo%ers "ill co%e back$ +@llison, -../0 'he over"hel%ing %a4ority of Starbucks custo%ers don’t 4ust "ant coffee, they "ant Starbucks coffee, and they don’t %ind paying for it$ Future Groth
Starbucks’ goal is 6.,... stores, -.,... of "hich are international, and -.,... planned for the ;nited States$ 'oday, there are %ore than 1-,... stores globally and ,.. in the ;nited States +*euters, -../0$ 5alifornia alone has %ore than -...
Starbucks in the state of 5alifornia and ashington has an average of 11,... people per Starbucks$ In @pril of -.., Starbucks "as opening %ore than 1:. stores per day, "ith the purchasing of Seattle’s !est 5offee and 'orrefa3ione Italia$ +ikipedia, -../0 'his enor%ous e=pansion is still continuing, "ith the purchase of rival coffee %aker )iedrich 5offee, in Septe%ber -../$ Bo coffee co%pany is any"here near Starbucks si3e or popularity$ ust Aood %aga3ine says, Starbucks is %ore than -. ti%es the si3e of its closest co%petitor, 5aribou 5offee$ If a co%petitor fails to e%erge, Starbucks "ill continue gro"ing in si3e until its shops begin to cannibali3e their o"n %arkets, %aking further gro"th unprofitable$8 +ust Aoods, -../0 'his is e=actly "here Starbuck s is at$ 'he only thing that "ill cease Starbucks e=pansion is itself$ Ene corner in Be" Gork 5ity has a Starbucks on every corner, and a shopping %all in Seattle has three Starbucks positioned throughout the %all$ 'he e=pansion for this co%pany is i%%ense and "ill continue until the profits cease, "hich doesn’t see% like any ti%e soon$ Starbucks and !iversification
Starbucks isn’t 4ust a one coffee store$ Starbucks is kno"n for its various types of drinks and food$ Starbucks give %any choices, fro% grande non
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Starbucks has even started selling 5)’s and )C)’s at their stores$ Starbucks kno"s that variety can sell, and they do a great 4ob of it$ 'his strategy of )iversification can be defined as, a strategy of increasing sales by introducing ne" products into ne" %arkets$8 +a%b, 2air, Mcdaniel, -../0 'his process of diversification is creates ne" opportunities for custo%ers to buy a variety of products to suit individual needs, and increase sales in the process$ Starbucks’ Objectives
Starbucks has very defined co%pany ob4ectives found on their "ebsite, but the %ost i%portant is the follo"ing state%ents> 'he 5o%panyFs ob4ective is to establish Starbucks as the %ost recogni3ed and respected brand in the "orld$ 'o achieve this goal, the 5o%pany plans to continue to rapidly e=pand its retail operations, gro" its specialty sales and other operations, and selectively pursue opportunities to leverage the Starbucks brand through the introduction of ne" products and the develop%ent of ne" distribution channels$8 +Starbucks, -../0 'he ob4ectives state%ent is to the point and specific$ 'hey clearly e=plain ho" they "ant to achieve their goal of being the %ost recogni3ed and respected brand in the "orld$8 'he state%ent has clearly stated %arketing ob4ectives, "hich "ould be to be the biggest and %ost "ell kno"n coffee co%pany in the "orld$
Starbucks does a great 4ob of clearly laying out their %arketing ob4ectives and co%pany goals$ @lthough the %arketing ob4ectives are not clearly stated Marketing Eb4ectives8 "ith a hierarchical list of ob4ectives listed, they do e=plain key issues$ Starbucks is very focused on not %arketing and targeting their drinks to younger audiences$ 'here is a long section on the Starbucks "ebsite co%pletely devoted to ho" the co%pany doesn’t "ant to target youth and "hat they do to steer a"ay fro% it$ Most
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of the other infor%ation can be found in the @bout ;s8 page found on their "ebsite$ So%e of the biggest ob4ectives that Starbucks has are> being corporately responsible, being the largest and %ost "ell kno"n coffee co%pany in the "orld, and e=panding to 6.,... stores$ @ll of the %ission ob4ectives have clear guidelines on ho" Starbucks is going to acco%plish these ob4ectives and sensible ti%e lines for the%$ Making goals and creating business ob4ectives needs to have five ele%ents that create the acrony% SM@*'> Specific, Measurable, @ttainable, *ealistic, 'i%ely$ ith Starbucks, all of their business goals and ob4ectives cover the five areas of SM@*' goal setting, and so far they are reaching all the goals and ob4ectives they are setting$ Starbucks is a great e=a%ple to any co%pany "ith their goals and ob4ectives$
Starbucks’ Marketin" Scheme
Marketing can be defined as an organi3ational function and a set of processes for creating, co%%unicating, and delivering value to custo%ers and for %anaging custo%er relationships in "ays that benefit the organi3ation and its stakeholders$8 +a%b, 2air, Mcdaniel, -../0 Starbucks is a co%pany that %arkets itself to all people, fro% #en G’ers to seniors$ 'he appeal of Starbucks coffee reaches all ages, fro% young to old people$ @ recent article by anet @da%y in the all Street ournal titled #etting the Jids 2ooked on Starbucks( 5offee 5hain Sticks to Pledge Bot to Market to 5hildren hile 5atering to Aa%ilies,8 talks about ho" Starbuck’s %arkets itself to the public, and inadvertently to children$ In the article, it talks about ho" Starbucks is pro%oting so%e of the %ore kid< friendly8 drinks, such as the Arappuccinos, at local co%%unity events, such as fa%ily< oriented co%%unity event Kthe Phoeni= Zoo$8 +@da%y, -../0 'o so%e, this is co%ing across as targeting youths "ith these products$ 'he reason that people disapprove of this,
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is because of the high fat and calorie content, as "ell as the effects that caffeine can have on younger drinkers$ Starbucks denies any such actions, saying overall %arketing, advertising and event sponsorship efforts are not directed at children or youth$8 +@da%y, -../0 @lthough Starbucks isn’t trying to directly %arket to the%, they are creating chances for #eneration G’ers and '"eeners to support their business$ Aor e=a%ple, the article says, as Starbucks e=pands, it is attracting ne" de%ographics,8 +@da%y, -../0 "hich "ould be the younger age groups$ Starbucks %ight not intentionally %arket itself to the younger generations, but the co%pany’s appeal reaches all generations$ 'hese drinks, especially the Arappucino’s, are not cheap, in fact they are so%e of those %ost e=pensive drinks at the store$ 'his doesn’t stop #en G’ers and '"eeners fro% drinking the% up$ Are&uently, especially "ith '"eeners, the %oney they are spending isn’t fro% their o"n pay checks$ It’s usually fro% a parent or fa%ily %e%ber$ 'he article talks about @ndrea Jlee%an "hose grandparents gave her a card to use at Starbucks$ Starbucks cards aren’t 4ust an adult gift any%ore( they are beco%ing birthday presents and stocking stuffers %ore and %ore fre&uently$ Starbucks’ target %arket %ight be the !aby !oo%ers or seniors, but they have %anaged to reach every seg%ent of the %arket$ eon a3aroff, fro% the 5hicago 'ribune, observes, 5offee traditionalists %ay flinch at Starbucks 5orp$Fs "inter offering, the 5hai ?ggnog atte$ !ut theyFre still flocking to buy their cups of 4oe> 'he see%ingly ubi&uitous coffee shop continues to a"e co%petitors and detractors alike$8 +a3aroff, -..:0 More #han a $offee
Ene of the %ain reasons for Starbucks huge popularity is that they provide %ore than a coffee$ 'hey provide an at%osphere, a friendly face, they provide an e=perience$
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Starbucks is beco%ing a place for the young and old to hang out and sociali3e$ It’s fun, inviting, and rela=ed$ Starbucks is %ore than a place to buy coffee, it’s an e=perience$ @s Inc$co%, a %aga3ine for entrepreneurs puts it, Starbucks is %asterful at "rapping its product in a deeply
an interesting proble%, both consu%ers "anted a different e=perience8 and both sets of consu%ers "ere at Starbucks for the service, not 4ust the coffee$ !oth parties could have gotten her coffee and left, but they didn’t, they "anted a place to study, a place to hang out, they "anted an e=perience$ 'hat’s "hat %akes Starbucks %ore than a gour%et coffee seller, the e=perience$
S%O# Ana&ysis:
Starbuck’s is changing "hat "e eat and drink$ It’s altering "here and "hen "e "ork and play$ It’s shaping ho" "e spend ti%e and %oney +Starbucks 5orporation8, -..:0$8 Starbuck’s is a very profitable organi3ation, earning over L/.. %illion in - ..6 and generating revenue over L:... %illion in the sa%e year$ ith such high earnings, Starbucks has a strong financial base that can help the% undertake up and co%ing businesses$ 'his also %eans Starbucks has funds to do research and develop%ent, to beco%e leaders in the innovation of ne" coffee products$ Aor e=a%ple, in -..6 Starbuck’s introduced a ne" product line, the Arappuccino +2orovit3, -../0$ 'he Arappuccino "as an instant hit, and Starbuck’s introduction of this blended beverage gave the% the opportunity for gro"th before other co%peting coffee co%panies could innovate and launch their o"n versions$ Bot only is Starbucks successful financially, they "ere all rated in the Fortune Top 100 Companies to Work For in -..:$ 'he co%pany provides great benefits for their
e%ployees and this internal strength has %ade Starbuck’s an attractive co%pany to "ork for$ 'he organi3ation is also kno"n for its strong ethical values and ethical %ission state%ent, "hich has pro%otes the health of our environ%ent and the concept of
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sustainability +2orovit3, -../0$ ?%ployees at Starbucks should have greater 4ob satisfaction kno"ing that the co%pany is taking care of the%, as "ell as looking out for the future of our society$ @nother strength of Starbucks is its continuous gro"th and e=pansion$ Starbuck’s, "hich started locally in Seattle, has e=panded into over ,.. stores in the ;nited States alone, and over 1-,... "orld"ide +*euters, -../0$ Starbuck’s popularity and global presence provides the organi3ation "ith strong brand recognition as "ell as a strong custo%er base$ 5usto%ers are fa%iliar "ith the brand and often "ill choice "hat they like and kno", Starbucks, over other less popular coffee brands$ ith the continuous gro"th over the past decade of the coffee %arket, Starbucks has begun to target its shop locations in clusters in hopes to do%inate particular areas$ 'his allo"s convenient access for custo%ers and potential to capture an even greater share of the coffee %arket$ @lthough Starbuck’s is a current leader in the coffee %arket, but their continuous gro"th is hard to predict$ Ene thing to take into consideration as a possible "eakness is Starbuck’s reliance on the %arket it @%erica$ @ppro=i%ately :O of Starbuck’s revenue co%es fro% the ;nited States %arket +Starbucks 5orporation,8 -..:0$ Starbuck’s has e=panded into the global %arket and needs to generate greater revenue outside of ;nites States in order to be less effected if negative econo%ic conditions or increasing levels of co%petition "ere to beco%e present in the ;nited States$ Starbuck’s has been having facing proble%s in %any of their international stores$ Many apanese stores, for e=a%ples, are failing to see any gro"th in their store sales$
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@ %a4ority of Starbucks sales gro"th can be linked to their continuous ne" product develop%ent and creativity, but there are &uestions on ho" %uch longer these continuously successful innovations "ill last$ @ decrease in innovation could have a negative effect on Starbucks sales$ 'he organi3ation is also dependent on a %ain co%petitive advantage, the retail of coffee$ 'his could %ake the% slo" to change and e=pansion into sectors should the need present itself$ Surprisingly, Starbucks generates lo"er revenues and inco%e per e%ployee as co%pared to the industry average$ In -..6, revenue per e%ployee "as nearly L6.,... dollars less that the industry average$ Aurther%ore, the net inco%e per average e%ployee in -..6 "as L:-96, co%pared to the industry average of L9:.. +Starbucks 5orporation,8 -..:0$
'hese lo" returns could reflect negatively upon e%ployee efficiency$ Starbucks has various strengths and "eaknesses that can deter%ine their future$
@s Starbucks continues to gro" they "ill be faced "ith various opportunities$ 5urrently Starbucks has over 6.O of the specialty coffee %arket, having this a%ount of the %arket "ill offer the co%pany a considerable opportunity to further gro"th and e=pansion in the future$ 5o
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need that isn’t being %et in these countries and is taking it as an opportunity to enter into the international %arket +Starbucks 5orporation,8 -..:0$ 'his is a huge risk for the%, but if they are right in recogni3ing this need for their coffee, they could see an even greater return$ Starbuck’s "ill face continuous opportunity in the near future, but like any co%pany, they "ill also be faced "ith threats$ 'he "orld coffee %arket is a very co%petitive and gro"ing sector$ @s this %arket continues to gro" the specialty coffee %arket is being filled "ith ne" entrants, co%petition$ 5urrently, Starbuck’s %a4or co%petitors include Mc)onald’s, )iedrich 5offee, and #reen Mountain 5offee +2orovit3, -../0$ Ene of these co%petitors or any other co%pany "ith a great a%ount of operating, %arketing, and financial resources could enter this %arket at any ti%e and co%pete directly against Starbuck’s$ Starbucks %ust be a"are of co%petition and that fact that it is al"ays changing in order to re%ain a leader in coffee retailing$ )ue to natural disasters, changes in our econo%y, and changes in supply and de%and, the threat of increase costs for supplies can &uickly and easily increase$ Milk prices have consistently been going up in price over the last fe" years +2orovit3, -../0$ 5offee prices are sensitive to "eather$ If a hurricane takes out a bulk of the coffee bean far%s, the price of beans "ill increase due to the li%ited supply and higher de%and$ If Starbuck’s keeps their prices the sa%e, and is paying %ore for supplies, they "ill have a s%aller profit %argin$ Starbuck’s is currently a strong co%pany, "ith various opportunities and threats that they "ill have to continue to deal "ith as they are presented$ Starbucks global presence provides the organi3ation "ith "idespread brand recognition and a strong
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custo%er base$ Starbuck’s %ust continue to recogni3e that our "orld it constantly changing and the co%pany %ust change "ith us in order to %eet our de%ands$ 'hey also %ust continue to seek out opportunities and be a"are of potential threats to the organi3ation$ Marketin" Strate"y
Target Market Strategy
Starbucks %arkets are %ostly ho%ogenous( their %arket seg%ents are looking for specific coffee products$ Starbucks offers a heterogeneous product line that allo"s the% to %eet various %arket seg%ents needs$ Starbucks %ission state%ent is to beco%e the pre%ier purveyor of fine coffee, to do this they need to increase their target %arket seg%entation$ @ll of Starbucks %arkets, regional, national and international are increasing, the result in a record "orld"ide store openings of -,199 in fiscal year -../$ ?ach of these distinct %arkets, are large the ho%ogenous offerings of the 'arget Market does not provide Starbucks the need to create a uni&ue %arketing %i= for each %arket to align "ith their %ission state%ent$ Starbucks is focused on a concentrated targeting strategy, this strategy is used across the %arkets to provide the finest coffee to those desire it$ Starbucks concentrated target %arket li%its the evolving needs, and strea%lines the perceived satisfaction of the target %arkets$ hile there is no absolute need for coffee, Starbucks provides the third place8 e=perience( a place other than "ork or ho%e to en4oy the finest coffee$ Starbucks guiding principles in their %ission states to provide enthusiastically satisfied custo%ers, and this results in return custo%ers$ *epeat business is Starbucks, and high satisfaction rates are so%e of the driving forces in the third place8 e=perience$ Ef the %a4or focus "here Starbucks %ission state%ent does not guide "hat
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they actually do is in its %arketing policy$ Starbucks provide that it does not directly %arket to the youth$ Starbucks alliances "ith Itunes, various children’s books, and %ovies like @kelah and the bee looks to that %arketing %ission does not %atch "hat is actually happening$ Starbucks %ission state%ent allo"s their product to be consu%ed by all different people in different %arket seg%ents$ Be" %arket seg%ents %ainly consu%e Starbucks by "ord of %outh( Starbucks also aligns itself "ith grocery stores, 5olleges, and airports to allo" ne" %arkets to try their products$ Starbucks also changes one of its . different coffee flavors each "eek so consu%ers can try so%ething they like each "eek$ Ene of the %a4or ob4ectors to Starbucks Market Strategy are people against #lobali3ation, like during the protest of the 1999 'E, a second argu%ent is that Starbucks is purported %onopoly on the global coffee
Marketin" Mi' (roduct Starbucks offers a line of fine coffees, espresso based drinks, blinded drinks that
are coffee based, cr%e based, and no" 4uiced based$ Starbucks has e=panded their product depth to included coffee and espresso %akers, and coffee %ugs$ Starbucks has recently added to the product "idth by partnering "ith Itunes to offer %usic, they have also entered into %ovies and books$ Starbucks has been very careful in adding ne" products no %atter if it is an addition to a product line or increasing the product "idth$ Starbucks has been taken care "hen adding depth like the Marble Maple Macchiato are first tested in target %arkets like !oston, Seattle and Be" Gork$ 'hese products offered by Starbucks co%pli%ent each other and add to the third place8 e=perience, you ca n
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en4oy their coffee’s listen to %usic, read a book in a co%fortable chair$ ?ach of these products strictly aligns "ith each other$ Starbucks %ain product line its coffees, and espresso based drinks are in the gro"thQ%aturity stage, "hile the ne" introductions to the product "idth( Starbucks Itunes, books, and %ovies are in the Introductory states and people are taking an early adoption to the%$ ith Starbucks offering a vast product "idth their target %arkets do not re&uest either a decrease or increase in the range or the product &uality$ Starbucks increases to its product depth and "ith have recently been critici3ed because they are said to target children as the target %arket$ Starbucks has %aintained a fir% stand that this is not there target %arket, but a byproduct of targeting fa%ilies$ Starbucks has %aintained a consistent co%%it%ent to %aintain a superior product that has little "eakness or fla"s$ 'he only proble% that Starbucks has is that offering a product prepared by a barista, the product is not up to the custo%er’s standards or preferences$ ust as custo%ers have very picky needs for the coffee drinks, Starbucks is there to provide for those needs$ Starbucks is one of the %ost recogni3able na%es in the "orld$ It has effective placed the Starbucks logo as one of the %ost recogni3ed corporate logo’s around the "orld$ Ene "ay Starbucks has done this is that they guarantee each custo%er satisfaction, "ith the ust Say Ges8 policy$ 'his enables each barista to provide the custo%er "ith al%ost anything they re&uest, and "ill al"ays %ake their drink again if it is not up to their standards$ 'his policy and others are ho" Starbucks handles custo%er service, because it is a service industry Starbucks has to the ut%ost i%portance on serving their custo%ers$ 'here are &uality service checks done by an unkno"n shopper$ Starbucks strives for "hat they call egendary Service8 this is service above and beyond "hat nor%al coffee co%pany provide their custo%ers, one
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e=a%ple of this is trying to kno" each repeat custo%er by their na%e of drink$
(&ace)!istribution
@s Starbucks push through its gro"th phase and the nu%ber of stores "orld"ide cli%bs it o"n goals of .,... there are %ore stores for consu%ers to get to$ Ene threat to Starbucks consu%er base is s%all business coffee stands that are closer to p ro=i%ity to the custo%er$ Starbucks target %arket are not "illing to travel great distance to get their cup of coffee, this lead Starbucks to increase the nu%ber of stores each year eventually reaching their goal of .,...$ Starbucks appears to be on every corner of every city, Starbucks has placed its stores on each of the four corners in one Manhattan block so its consu%ers "ill not have to cross the street to get their products$ 'here is al"ays easy access to the stores for the custo%ers so they can enter easily during the busy day$ ?ach location is chosen biased on population of that area and the availability of both vehicle and foot traffic going into the store$ ?ach store is catered to the 'hird Place8 at%osphere, they have co%fortable chairs, and seats, soothing %usic can be heard playing$ Starbucks ensures that its e%ployees greet their custo%ers once they "alk in the door$ 'his effectively creates the 'hird Place8 to the custo%er and satisfies their "ants$ (resentation
Starbucks prides its self on presentation( all stores look the sa%e and feel the sa%e$ 'hey are held to a %onthly standard to %ake sure that all stores have the sa%e visual appeal$ ?ach drink prepared has a standard "eight and look before it can be given to the consu%er$ Bo only in the products offered by Starbucks but they enforce strict
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unifor% policy to their e%ployees so that they "ill present a friendly inviting %essage "hen a custo%er "alks into the door$
(romotion
'he %ain focus of Starbucks pro%otion is "ork of %outh( they "ant their product and custo%er service to e=ceed the e=pectations of their custo%ers that they "ill tell their friend about it$ Ether "ays potential consu%ers find out about Starbucks are billboards( ads on public transportation, both of these effectively target the right audience by attracting the co%%uter into Starbucks$ Starbucks dose not use persuasions, rather they si%ply re%ind the consu%er of the Starbucks ogo, or "hat a Starbucks atte looks like$ Advertisin"
Starbucks has t"o %a4or for%s of advertising %edia( the first stated above is public billboards and ads on public transportation or at public transportation stops$ 'he other is online advertising though its partnership "ith Itunes, "here the Starbucks logo can been seen on the ho%epage of Itunes$ Starbucks only uses still advertise%ents so there is not a need for ti%e and date considerations( there are al"ays there re%inding consu%ers that Starbucks is still there$ Starbucks has turned to and outside agency to help pick out the %usic and other %ovies that Starbucks "ill venture into that "ill align "ith its target %arket$ (ub&ic *e&ations
Starbucks has done "ell "ith the public relations "eather it be releasing good ne"s public relations or &uickly responding to bad publicity$ Starbucks continually sends infor%ation about their fair trade coffee operations, and the volunteer "ork that their
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e%ployees do$ Starbucks "as &uick to release an counter to the recent : cent drink increase$ 'he Public *elations depart%ent ocated in Seattle, ashington handles these actions$ (ersona& Se&&in"
Ence a custo%er "alks into Starbucks they are greeted by the barista, "hich Starbucks "ants the consu%er to relate to the barista$ hile the barista does not entice the consu%er to by anything they are there to offer advice on drinks, food, %usic, and ho%e bre"ing, they are the they direct link to the consu%er and Starbucks$ Starbucks baristas are %ore than ade&uately co%pensated they star "ith higher than average "ages, and all e%ployees "ith -: hours a "eek are entitled to health benefits, ?%ployee Stock options and vacation ti%e$ Sa&es (romotion
Starbucks has li%ited sales pro%otions, rather it has seasonal offerings( so%e e=a%ples of this are the 5hrist%as blend, coffee beans, the eggnog latte, or the pu%pkin spice lattN$ 'hese pro%otions nor%ally add to the product depth for a short ti%e to try and add ne" %arket share$
(eo+&e
Starbucks is very focused in the people they hire "ill be friendly and "ill convey the Starbucks %ission to its consu%ers$ Starbucks consu%ers are %ade up of people fro% very different %arkets, one of the busiest ti%es Starbucks has is for% ->. p% until 6>. p% "hich sho"s that one of the %a4or group of people that co%prise Starbucks custo%er base are kids getting out of school$ 'he second busiest ti%e for Starbucks is the />.. a% until .>.. a% and represents the second largest base of consu%ers are co%%uters$
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Sitting in a Starbucks you "ill see all different people fro% all different place that represents the vast diversity that co%pose both the people that shop at Starbucks and are e%ployed there$ (rice
Starbucks strives to be the pre%ier purveyor of fine coffee( this does not %ean cheap coffee$ Starbucks prices have received nu%erous criticis%s for the price of its products$ @fter a recent price increase one "rite noted that a large cup of coffee "as still 1: cents cheaper than a cup at )unkin donuts$ ?ven "ith these criticis%s of high prices, it has not affected the custo%ers, even "ith the price change recently Starbucks sales continued to increase$ Ene advent of this "as the price change "as ti%ed "ith the "eather change "hen custo%ers nor%ally drink %ore hot drinks$ Starbucks does not have price pro%otions as %any of its co%petitors do, they have no fre&uent punch cards$ Starbucks accepts all for%s of pay%ent$ '"o for%s of pay%ent are co%pletely uni&ue to Starbucks$ 'he first is the Starbucks 5ard, "hich consu%ers can purchases and load "ith %oney and uses as a debit card at all ;$S$ Starbucks ocations, the other is the Starbucks )uetto 5ard, "hich is a credit card that offers double points for coffee and other purchases$ 'hese fle=ible for%s of pay%ents allo"s Starbucks custo%er to have the freedo% to pay ho" they prefer$ (rocess
Starbucks takes a great deal of e%phasis on the process once a custo%er enters a Starbucks store$ Ence a custo%er enters the store they are greeted and there order is received, that order is taken by the casher and relayed to the barista on the bar$ 'he consu%er then is sho" a place a"ay fro% cash registered "here they "ait for their
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drinks$ 'he barista prepares the drinks often %aking nu%erous drinks at once$ In the "aiting area the custo%ers can find the 2ear Music racks, "hole bean coffee, and ho%e coffee %akers to look at$ 'his allo"s a &uick transition for% ordering to receiving their product and giving additional opportunities to purchase additional products offered by Starbucks$ $onc&usion
Starbucks has %any %arketing strategy’s, it supports its original %ission state%ent to beco%e the pre%ier purveyor of fine coffee and %aintain its principles$ Starbucks has acco%plished this by adding additional stores though out the "orld and an continued e%phasis on custo%er satisfaction$ Starbucks has also %eet its %arket strategy and its environ%ental %ission state%ent by beco%ing the leader in fair trade coffee, and pro%oting non slash and burn techni&ues for their gro"ers$ Ene of the %a4or %isses of Starbucks is bet"een its Mission state%ent in is Marketing Policy$ Starbucks has atte%pted to take appropriate %easures and best effortsKso that Starbucks advertising and %arketing is not specifically ai%ed at reaching young consu%ers$8 'his is a strict contradiction to the addition to Music on Itunes, "hich is pri%arily used you younger consu%ers$ Starbucks has also issued ne" product depth that added slurpee like drink "ith no coffee$ 'he have also sponsored children’s %ovies like @kleah and the !ee, and provide children’s books in the store$ Starbucks has been effective in the %arketing policies, ho"ever "ith a saturated @%erican %arket youth %ay be the only other ne" target audience, if Starbucks shifted their policy to only advertise non
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*eferences
Starbucks$ +-../0$ ikipedia$ *etrieved Bove%ber 11, -../, fro% http>QQen$"ikipedia$orgQkikiQstarbucks @da%y, anet$ +-../, une -70$ #etting the Jinds hooked on Starbucks( coffee 5hain sticks to pledge not to %arket to children "hile catering to fa%ilies$ The Wall Street Journal. *etrieved Bove%ber -:, -../, fro%
http>QQpro&uest$u%i$co%Qp&d"ebRdid1.//96:.:1sid-A%tclientld9-: :*T'.9CBa%ePT) Spector, Mike$ +-../, 1 uly0$ @%ericans’ #ro"ing 'aste for 'ea !re"s a Market( 5o%panies ook to 5ash in on @ncient !everage’s ure( Starbuck’s !ig 2ead Start$ The Wall Street Journal $ *etrieved Bove%ber -, -../, fro% http>QQpro&uest$u%i$co%Qp&d"edRdid1.7-.61sid-f%tclientld9-:: *T'.9CBa%ePT) Muno3, oren3a$ +-../, 1 May0$ Starbucks Signs "ith illia% Morris to get )eals !re"ing( 'he talent agency "ill suggest %usic, %ovies and books for coffee giant to tout in its stores$ Los Angeles Times. *etrieved Bove%ber -:, -../, fro% http>QQpro&uest$u%i$co%Qp&d"edRdid1.-96/-1sid-f%tclientld9-:: *T'.9CBa%ePT) )o%inus, Susan$ +-../, -- Ectober0$ 'he Starbucks @esthetic$ The New ork Times$ *etrieved Bove%ber -1, -../, fro% http>QQpro&uest$u%i$co%Qp&d"edR did116./79:1sid-f%tclientld9-::*T'.9CBa%ePT) Starbucks$ +-../0 @nnual *eport -../$ *etrieved Bove%ber 19, -../, fro% http>QQ"""$starbucks$co%
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2orovit3, !ruce$ +-../, May 190$ Starbucks @i%s !eyond attes to ?=tend !rand$ !SA To"ay. *etrieved Bove%ber 11, -../, fro% http>QQ"""$usatoday$co%QptQcpt Starbucks 5orporation$ +-..:, anuary -:0$ *etrieved Bove%ber /, -../, fro% http>QQ"""$investor$reuters$co%QdataQfilesQ5o%pany$pdf SE' @nalysis$ +-../, @ugust 1.0$ ?"ing Marion Jauff%an Aoundation$ *etrieved Bove%ber -, -../, fro% http>QQeventuring$kauff%an$orgQeShipQapp%anagerQeCenturing$co%Q Starbucks$ +-../, Ectober 170$ In Wikipe"ia# The Free $n%y%lope"ia$ *etrieved .->1, Ectober 1, -../, fro% http>QQen$"ikipedia$orgQ"Qinde=$phpRtitleStarbucksoldid-./-69 a3aroff, ,$ +-..:, )ece%ber0 Starbucks !re"s ;p Successful #ro"th Aor%ula$ *etrieved, Ectober 17, -../, fro%, http>QQ"""$chicagotribune$co%QbusinessQsns< your%oney<1-1"atch,1,/77/:$storyRcollchi
a%b, 5$, 2air, $, Mc)aniel, 5arl$, +-../0 Marketing th edition$ Ehio( 'ho%son South estern$ Pg / and 6$ @da%y, $, +-../0 #etting the Jids 2ooked on Starbucks( 5offee 5hain Sticks to Pledge Bot to Market to 5hildren hile 5atering to Aa%ilies$ The Wall Street Journal Be" Gork, B$G$> un -7, -../$ pg$ )$1 *euters, +-../, Ectober0 Starbucks to double Borth @%erican stores, Bo ti%eline given for plan to eventually have 6.,... outlets "orld"ide$ *etrieved Ectober 17, -../, fro%, http>QQ"""$%snbc$%sn$co%QidQ1:16:. Starbucks, +-..0 5o%pany 2istory, *etrieved Ectober 17, -../, fro%, http>QQ"""$starbucks$co$4pQenQco%panyUhistory$ht% Moore, @$, +-../, Ectober0 StarbucksF ne" store 6.,..., Inks %usic deal "ith @ppleFs i'unes$ *etrieved Ectober 1/, -../, fro% http>QQ"""$%arket"atch$co%Qne"sQstoryQStory$asp=RguidO7!)@7-6)@ .)A<6?!@QQ"""$inc$co%QresourcesQ%arketingQarticlesQ-..:.6.1Qstarbucks$ht%l *eed, '$, +-..6, )ece%ber0 Perfecting the drip> 'he coffee business boo%s as consu%ers de%and specialty drinks$ *etrieved Ectober 16, -../, fro%, http>QQ"""$statene"s$co%Qarticle$pht%lRpk-7611
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#ross, )$, +-..6, Ectober0 Starbucks vs$ Its @ddicts( the coffee chain bets youFll pay even %ore for your caffeine fi=$ *etrieved Ectober 1/, -../, fro% http>QQ"""$slate$co%QidQ-1.7.7 @llison, M$, +-../, Septe%ber0 Starbucks bre"ing up ne" drink prices$ *etrieved Ectober 17, -../, fro%, http>QQseattleti%es$n"source$co%Qht%lQbusinesstechnologyQ-..-7.-17Ustarbucks --$ht%l ork and Aa%ily Be"sbrief, +-.., Bove%ber0 Starbucks e%ployees feel valued( itFs not easy to %ake coffee shop e%ployees enthusiastic about their "ork, but starbucks see%s to kno" ho"$ *etrieved Bove%ber -., -../ fro% http>QQ"""$findarticles$co%QpQarticlesQ%iU%.IBQisU-..UBovQaiU1111./1.1
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