...History of Starbucks In 1971, Starbucks was created from three friends, an english and history teacher as well as a writer. The names of the three individuals are Jerry Baldwin, Zev Siegl and Gordown Bowker. The fist store of Starbucks was opened in Seattle, Washington, with the store selling only one thing, fresh roasted coffee beans. The partnership and creation of Starbucks began when the trio frequented as well as work for a store named, Peet’s Coffee, located in Berkley, California. The owner of Peet’s Coffee, Alfred Peet, was dubbed the “grandfather” of the specialty coffee industry. Alfred Peet, shared his style of roasting beans to the trio and from then, is where the idea of Starbucks originated from. By the early 80’s, a man by the name of Howard Shultz, a drip coffee maker salesman, came on board as the Director of Marketing for the Starbuck organization. In Seattle, he had advised the members of Starbucks to sell coffee and espresso drinks because of his experience traveling in Milan. Through Shultz experience, he observed that the cafe businesses in Italy were served as a meeting place and became a central part of the societal fabric. He sought to bring this experience back home and develop it with the Starbucks brand. But Schultz was rejected and it is then he decided to open his own coffee chain called. ll Giornale. ll Giornale became a big success and eventually acquired the Starbucks chain and their roasting techniques for $3.8 million, in 1987. In the 1990's...
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...THE HISTORY OF STARBUCKS * Founder: The corporation of the History teacher – Zev Siegel, the English teacher – Jerry Baldwin and the Writer – Gordon Bowker, has established Starbucks. * The man behind Starbucks’s success - Howard Schultz In 1981, Howard Schultz is now Starbucks chairman, president and CEO. From his first time trying a cup of Sumatra, he was impressed by Starbucks and became a member of it in the following year. In 1983, Howard traveled to Italia and decided to leave Starbucks for a short period to set up his own business namely Il Giornale coffeehouses and returned in August 1987 to acquire Starbucks with the support of local investors. In 1996, Starbucks opened their first stores outside of North America in Singapore and Japan. In 1998, Starbucks expanded to grocery store across US and launch their website Strabucks.com. In 2000, Starbucks established license agreement to put up for sale the Fairtrade certified coffee in the US and Canada. In 2008, Starbucks launched their first online community – My Starbucks Idea. In 2010, Starbucks customers had an access to free unlimited wifi at the stores. Until now, Starbucks has build up to over 21,000 stores all over the world, and the company is the leading roaster and retailer of specialty coffee in the world. With every cup of coffee, Starbucks aims to bring their signature tradition and an exceptional experience to life. Since the first time, Starbucks has set out to be dissimilar type of company...
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...Summary Starbucks is undoubtedly one of the most – if not the single most – successful coffee chains of the last few decades. This assessment seeks to explore the Starbucks brandscape through an external analysis of the economic, competitive, social, demographic and legal and regulatory factors of the coffee market. Application of the Marketing Mix, a detailed consumer analysis, as well as an examination of future implications for the brand will also be addressed. In a market of 1.5 billion, the Canadian coffee and tea industry accounts for nearly 1.1% of the total value of food and beverage sales of goods manufactured in the sector. A growing target market for this industry includes university and post-graduate students ages 18-29 living in urban areas. These two segments “account for the largest portion of gourmet coffee drinkers” Starbucks has capitalized on this target market and has become one of the most dominant forces in the coffee and tea industry. Besides their commitment to selling quality products, Starbucks is one of the most socially engaged companies in North America. From ethical outsourcing, promoting diversity within the company, community involvement and youth leadership, as well as being environmentally conscious, Starbucks has created a brand that has proven to be extremely marketable and profitable in the ever-growing socially conscious society. The future of Starbucks is promising. However, in order to continue being market leaders Starbucks needs to...
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...Starbucks - Segmentation and Target Market Paper MKT 571 March 11, 2014 Starbucks - Segmentation and Target Market Paper Company History Starbucks Corporation is the largest coffeehouse company in the world. Offering the world’s finest fresh-roasted whole bean coffees, this global American company’s history began with the opening of a single store in Seattle Washington’s Historic Pike Place Market in 1971 (Starbucks Corporation, 2014). Inspired by a roasting entrepreneur Alfred Peet, the founders, English teacher Jerry Baldwin, history teacher Zev Siegl, and writer Gordon Bowker created the current Starbucks name and green and white Siern Greek Mythology logo (Madison, 2011). Inspired from early traditions in coffee trade and the first mate from the novel Moby Dick, the unusual company and logo emerged. In 1981, Howard Schultz (Starbucks chairman, president and chief executive officer) first experienced coffee and was drawn to join Starbucks a year later. In 1983, after travels to Italy and becoming captivated by Italian coffee bars, Schultz brought back the Italian coffeehouse traditions to the United States (U.S.) (Starbucks Corporation, 2014). Schultz’s romance with the coffee experience had begun and within a few years he sought local investors and purchased Starbucks. Since Schultz’s purchase, Starbucks has partnered and dissolved its partnership with Kraft, added free Wi-Fi to their stores, placed product on supermarket shelves, partnered with Apple for an iTunes...
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...Starbucks could be called one of the largest success stories in American history. The company started from humble beginnings and worked its way to the top. Starting from a small building in Pike Place market in Seattle Washington, there are now more than 20,000 locations worldwide. The company’s mission and goals have allowed it to succeed in a fast pace world, and Starbuck’s loyal customers have stuck by their favorite brand through it all. The Starbucks experience is unique from all others. The history and progress of the company have contributed to the Starbucks lifestyle we all know today. In 1971 Jerry Baldwin, Zev Siegel, and Jordan Bowker pulled together $8,000 to open up the first Starbucks. Alfred Peet, their supplier of premium coffee beans and equipment helped inspire their venture (gourmet-coffee-zone 1). In 1982, Baldwin insisted on bringing Howard Shultz into the company as leader of the marketing department. After a trip to Italy, Shultz felt very inspired by the fashionable coffee houses and café culture he saw. Baldwin was not originally sold by the idea. He didn’t want selling coffee by the cup to distract from his whole coffee bean sales, but he let Howard test it out in a corner of one of the stores. Eventually Howard Shultz left Starbucks to start his own business. Selling his coffee by the cup was a big success. In 1987 he purchased Starbucks for 3.7 million dollars (gourmet-coffee-zone 1). Although it may have seemed like a gamble at the time...
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...Starbucks’ Purchasing System Glimpse of Starbucks and Other Players in the Industry Behind a company’s success, there are so many stories to tell, ups and downs, where they all start from zero. The world’s leading coffee, Starbucks, did not get the reputation by luck, but by their dream and vision supported by actions and hard work. This chapter will be discussing a little bit of information as follow: • Starbucks’ history, how they started the business and how they grew. • Market with the other coffee companies, how they affected the Starbucks’ business in the market. Starbucks’ History Starbucks set its first footprint in Seattle, Washington in 1971 by three partners - English teacher Jerry Baldwin, history teacher Zev Siegel, and writer Gordon Bowker. The three were inspired by Alfred Peet, whom they knew personally, to open their first store in Pike Place Market to sell high-quality coffee beans and equipment. About eleven years after, entrepreneur Howard Schultz joined the company, bringing in an idea to sell coffee and expresso drink as well as beans, which was rejected by the original owners. This made Howard Schultz start his Il Giornale coffee bar chain in 1985, which then bought Starbucks after it bought Peet’s. Since then it quickly began to expand. See Figure 1.1 to see more clear picture of Starbucks and its footprints. Today, for U.S. people, Starbucks is a lovely place for friends to hang out; for customers in other countries, this brand in certain...
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...When considering successful franchises it seems appropriate to look at Starbucks history. Not just a neighborhood coffee shop, Starbucks Coffee Company has become synomous with quality products and service. Whether you are Generation X or part of Generation Y, the working class and the technologically advanced youth has embraced what Starbucks has to offer - even if they have to stand a half an hour in line to get it. But once you are sipping your venti decaf, non-fat, sugar-free vanilla latte with no foam, do you ever wonder how it all started? Do you know of Starbucks history, and why people of all ages were willing to pay nearly $6.00 for something that is seemingly worth a lot less? Starbucks Marketing Strategy implements many of the high ideals within the Starbucks mission statement . These motivating factors are largely responsible for this franchise's success. Like successful franchises (i.e. MacDonalds), Starbucks started with a vison that was followed through to the end. And, just as in other highly success ventures, the leaders that held the Starbuck's vision, have not rested on its laurels. Starbucks Coffee Company is still expanding in interesting and groundbreaking ways even today. The environmentally conscious Starbucks Corporate Social Responsibilty statement speaks to a new breed of businesses that care about their carbon footprint. With the influence of this forward-thinking company, and its consistently innovative approach to each viral marketing...
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...1.0 INTRODUCTION Name : Starbucks Corporation (NASDAQ: SBUX) Headquarters : Seattle, Washington, U.S. Employees : 176,000 in 2008 Revenue for 2008 : US$10.383 billion CEO : Howard Schultz (Founder of Starbucks coffeehouse) Starbucks Corporation is an international coffeehouse chain based in Seattle, Washington, United States. Starbucks is the largest coffeehouse company in the world, with 16,120 stores in 49 countries, including around 11,000 in the United States, followed by nearly 1,000 in Canada and more than 800 in Japan. Starbucks sells drip brewed coffee, espresso-based hot drinks, other hot and cold drinks, snacks, and items such as mugs and coffee beans. Through the Starbucks Entertainment division and Hear Music brand, the company also markets books, music, and film. Many of the company's products are seasonal or specific to the locality of the store. Starbucks-brand ice cream and coffee are also offered at grocery stores. Starbucks’ Italian style coffee, espresso beverages, teas, pastries and confections had made Starbucks one of the greatest retailing stories of recent history and world’s biggest specialty coffee chain. In 2003, Starbucks made the fortune 500. 1.1 BACKGROUND OF THE COMPANY 1.1.1 Era before Howard Schultz In 1971, three academics, English Teacher Jerry Baldwin, History Teacher Zel Siegel and writer Gordon Bowker opened Starbucks Coffee, Tea and Spice in Touristy Pikes Place Market in Seattle. The three were...
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...STARBUCKS COFFEE HISTORY Starbucks’s history began in 1971 by three teachers who opened a small cafe called Starbucks Coffee, tea and spice in Seattle, USA. They were assertive about their good coffee and exotic teas. They were selling coffee beans and quality teas for people to prepare at their homes. In the early 1981 they hired Howard Schultz who changed the destiny of Starbucks Coffee as director of retail and marketing. Actually Schultz had an experience with the delicious taste of Starbucks Coffee as a customer and thought. When he became a part of company he was thinking there was something magical about Starbucks like passion he had never felt in business before. Schultz offered company to expand their product range and increase the number of stores. Logos and shops were readjusted. In 1990, starbucks made decisions to create headquarters and to centralize the decision making, thus they could easily stimulated the generation of new ideas. They informed their employee and kept responsible them from strategies in daily contact with each other. Individual Creativity is very important in building an innovation. People from different diciplines working effectively together helps them to solve many problems. In 1996, Starbucks was owning 1015 stores all around the world. The next step was to strengthen the brand. They should change the brands image that it was not only product and service also an unique experience on coffee drinking. They had partnership with United...
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...Starbucks Student Name Course Instructor Date Starbucks The Starbucks Corporation has enjoyed phenomenal growth since its early days in 1971 as a quaint coffee shop in Seattle, Washington. The rise of Starbucks can be directly attributed to the following factors; the emphasis placed on product quality, high employee standards, and creating the perfect cup of coffee (Coffee.org, 2013, pg.1). Starbucks has a reputation of caring about the community, environment, and people. “We aim to foster a better future for farmers and a more stable climate for the planet. Doing this helps create a long-term supply of the high-quality beans we’ve been carefully blending, roasting and packing fresh for more than forty years.” (Starbucks, 2013, pg.1). The company has a loyal customer base willing to pay premium prices for Starbucks products. Starbucks has strategically located its stores in the community, which is a competitive advantage. Starbucks is ahead of most competitors when it comes to financial strength and profitability. One of the strongest advantages of Starbucks they have years of experience delivering quality blended, premium coffee to its customers that are met with a warm atmosphere, which results in incomparable customer service. Starbucks products may be more expensive than those offered by the competition, however, their customer service, different brands of coffee and community connections offset. The customers of Starbucks have shared the experience as a community...
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...SWOT Analysis: Starbucks Coffee Company Ravineel Chand MGT 450: Strategic Planning for Organizations (BII1607A) Professor John Bruning February 27th, 2016 Introduction SWOT Analysis is a useful technique utilized by organizations to understand the strength and weaknesses of the organization. Furthermore, it is also utilized to understand the opportunities which may be open to the organization and the potential threats that it may face. “Once a company has a firm understanding of where it stands financially, the next part of the internal assessment is conducting a SWOT analysis, which stands for a company’s strengths, weaknesses, opportunities, and threats.” (Abraham. S.C, 2012) Using a SWOT analysis allows organizations to carefully pinpoint where they stand against competition, where their weaknesses and strengths lie, and how to gain more opportunities within their respective markets. The purpose of this paper is to conduct a SWOT analysis of the Starbucks (SBUX) corporation This paper will also describe the history of the organization, its products and major competitors. History Starbucks Corporation, founded in 1971, is a retailer of specialty coffee. Starbucks retails a variety of drip brewed coffee, espresso-based hot drinks, other hot and cold beverages, complementary food items, coffee-related accessories and equipment, teas, ice cream, and items such as mugs, coffee beans, and music and other non-food products through retail stores in approximately 39 countries...
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...Starbucks Marketing strategy Starbucks history has shown that they place a huge emphasis on product quality. Those call “Perfect Cup of Coffee”. Their coffee, even if priced slightly more expensive than expected, is notorious for satisfying customers with its rich, delicious taste and aroma. From the very beginning, the Starbucks marketing strategy has focused on creating the “third place” for everyone to go to between home and work. Creating this unique and relaxing “experience” and “atmosphere” for people has been very important for the company as they have realized that this is one of the strongest concepts attached to the company, to which customers have been strongly attracted. For the customer satisfaction is a very important issue with Starbucks. From entrance to the store to the very last drop of their coffees, it is a must that customers feel the uniqueness of enjoying their Starbucks coffee experience. Without a doubt, Starbucks Coffee Company knows the answer to the question, "Why is customer service important." The Starbucks marketing strategy has even expanded to create a community around their brand. On their website, individuals are encouraged to express their experiences with Starbucks history, and the company strives to “personally” join in the discussions. And also, Starbucks Coffee Company has been known to create strategic partnerships that demonstrate the fact that another way to grow your business is to partner smart. Over the years, the Starbucks Corporation...
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...opportunities and threats. Strengths and weaknesses can be found within the company structure, as well as the employee pool. Scanning the external environment can expose the company to opportunities not yet taken advantage of by other companies. This external scan can also bring light to threats from other organizations in respect to products, services, and costs. Starbucks was founded in 1971 when the first coffee store was opened, and became the competitive company it is today when expansion began in 1987. Starbucks’ mission is “to inspire and nurture the human spirit – one person, one cup, and one neighborhood at a time.” (Starbucks, Our Heritage, 2014) Internal factors affecting Starbucks’ product decisions involve environmental aspects such as where their coffee beans are farmed and the cost of those beans. If the farmers have issues with their beans, this limits the availability to Starbucks. This will force Starbucks to look elsewhere for their beans, which may cost more and be of lesser quality. If the price of the beans increases, this price will have to be passed on to the customer. The price of Starbucks’ coffee is currently quite expensive for an ordinary cup of coffee. Increasing the price could force some customers to look to the lower...
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...How does the design of Starbucks compare to other Coffee Shops in order to appeal to customers? Abstract: In order to overcome my curiosity of investigating the ways of which Starbucks Coffee Shop differs itself uniquely from other coffee shops, I will investigate the difference between the three Starbucks Coffee Shops of Sha Tin New Town Plaza, Hong Kong. Not only will I analyze the different design factors of Starbucks, but I will also be comparing them against the competitors within the perimeters of Sha Tin, Hong Kong. I will conduct an interview with a Coffee Shop entrepreneur; give out questionnaires to random customers of the three different Starbucks Coffee Shops of Sha Tin New Town Plaza, as well as observing the surroundings with my personal judgment. Furthermore, I am going to research the background and history of the Starbucks Coffee Shop design. Starbucks Coffee Shop originates from Seattle, and the after employing several designers, Schultz finally come across Wright Massey who quoted 'they didn't want any two stores to look alike'1. I conclude from my research, that Starbucks is unique from other Coffee shops in terms of its store designs, as well as its products. Aside from this, each of their stores are similar since their designs are of a template, but there are no two stores that are identical. From my observations, I round that the three Starbucks stores of Sha Tin New Town Plaza have their own styles. 1 ‗STARBUCKED A Double Tall Tale...
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...Klein Kelly Dunbar Senior Project 19 March 2013 Starbucks Starbucks could be called one of the largest success stories in American history. The company started from humble beginnings and worked its way to the top. Starting from a small building in Pike Place market in Seattle Washington, there are now more than 20,000 locations worldwide. The company’s mission and goals have allowed it to succeed in a fast pace world, and Starbuck’s loyal customers have stuck by their favorite brand through it all. The Starbucks experience is unique from all others. The history and progress of the company have contributed to the Starbucks lifestyle we all know today. In 1971 Jerry Baldwin, Zev Siegel, and Jordan Bowker pulled together $8,000 to open up the first Starbucks. Alfred Peet, their supplier of premium coffee beans and equipment helped inspire their venture (gourmet-coffee-zone 1). In 1982, Baldwin insisted on bringing Howard Shultz into the company as leader of the marketing department. After a trip to Italy, Shultz felt very inspired by the fashionable coffee houses and café culture he saw. Baldwin was not originally sold by the idea. He didn’t want selling coffee by the cup to distract from his whole coffee bean sales, but he let Howard test it out in a corner of one of the stores. Eventually Howard Shultz left Starbucks to start his own business. Selling his coffee by the cup was a big success. In 1987 he purchased Starbucks for 3.7 million dollars (gourmet-coffee-zone 1). Although...
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