...Starbucks’ Company History Starbucks was formed in 1971, in a single store in the state of Seattle. From just a small store, it offers the world best quality coffees with stores across the globe. The Chairman, Howard Schultz in 1981 had his first coffee Sumatra and has been drawn ever since. A year later he joined the company and went to Italy to see how their coffee shops operate and the varieties it offered. The owners back then did not agree to his ideas because he wanted to change things to be same like in Italy. He then left the company and three years later in 1987 he bought the company from its owners. From the start he set out a different tradition. One that will let customers enjoy coffee from different parts of the globe and they would interact while enjoying coffee. Today the company has over 16000 stores around the world and it’s operating in 63 countries. Starbucks is known to have specialty coffee from different parts of the world. Our mission To inspire and nurture the human spirit – one person, one cup and one neighborhood at a time. Identifying Consumer Base Identifying consumer base is the most important goal in marketing. This is done through market segmentation. Stabucks company is a peoples- oriented company and this is important for their success in the long-run. Understanding and knowing who they are trying to reach is important. This is because not everyone is interested in the company product or service, (Grewal, p.245). There are a number of...
Words: 1336 - Pages: 6
...1 The trouble with Starbucks On a dark December morning three years ago, Howard Schultz bounded into a coffee shop in Dublin and started shaking hands with people in red T-shirts and green aprons before peppering them with questions. “Are you all new with Starbucks?” he asked the staff. “Who are the customers, and have they been to Starbucks before?” The store was the second Starbucks to open in Ireland, and Schultz, a tall, lean, energetic man who had bought the Starbucks brand more than two decades earlier, was in town to find out what the locals thought of his empire. Watching his customers order espressos, lattes and cappuccinos as the morning sun slowly lit College Green Square, Schultz explained why the ubiquitous coffee brand had become so successful. “The story is kind of boring,” he said. “We keep doing the same thing, year-in and year-out.” And that thing wasn’t really about coffee. Starbucks’ rapid expansion, which saw it open more than 10,000 stores in three dozen countries, was sustainable, Schultz argued, because of the unique experience people had at the stores. “The one thing I think is really important,” he said, “is the sense of community and human connection in every Starbucks store you go into.” In 2005, Schultz had every reason to be confident about the future of the coffee chain that he had joined back in 1982 (when it comprised just four stores in Seattle). That December, Starbucks’ stock was trading close to historic highs of about $30 a share. Its sales...
Words: 4582 - Pages: 19
...Economics & Institutions TReNDS Martin Pitek MGMT - 7730 March 20, 2009 Starbucks Coffee Table of Contents Introduction 3 Product Analysis 3 Product Overview 3 Market Structure 4 Competition 5 Dunkin Donuts 7 Krispy Kreme 3 McDonalds 8 Panera Bread 8 Elasticity Estimates Pricing Strategy 10 Forecast 12 Determants of Demand 13 Forecast Model 15 Forecast Error! Bookmark not defined. Summary 15 Works Cited Introduction With the economy in trouble, the stock market tanking it is important to start your day with a good cup of coffee to take on these challenges. Can Starbuck’s sustain it business model and place in the market? The paper examines Starbucks business and it respective practices. In 1971, the original Starbucks opened in Pike Place Market in Seattle, Washington by three partners named Jerry Baldwin, Zev Siegal, and Gordon Bowker. Their focus was to sell coffee beans and equipment. They purchased green coffee beans from Peet’s, a specialty coffee roaster and retailer, during their first year of operation. Later, they began buying coffee beans directly from the growers. In 1983, an entrepreneur by the name of Howard Schultz joined the company; Schultz felt that the company should sell coffee and espresso drinks as well as coffee beans. The partners felt that selling coffee and espresso...
Words: 7573 - Pages: 31
...http://meangreen.hubpages.com/hub/Starbucks-Analysis Starbucks Stock Analysis After years of continual growth fueled, both literally and figuratively, by the popularity of their specialty coffee products, Starbucks has finally started to come back down to earth. Comparable store sales have been declining along with Starbuck’s stock price over the last several years. This is uncharted waters for the Starbucks Corporation, which had been growing at an exponential rate since its humble origins as a single retail store in Seattle’s Pike Place Market in 1971. While much of this decline has been attributed to the recent unfavorable economic conditions throughout the United States, there are also several consumer issues facing the Starbucks Corporation that need to be addressed. Most notably, these issues are 1) lower consumer traffic and lower average sale per transaction, 2) customers trading down to lower priced products within Starbucks, and/or switching to competitors with lower prices for similar products, and 3) declines in general consumer demand for specialty coffee products.Starbucks needs to account for these issues if they hope to continue their dominance in the market. Starbucks Economic Analysis Nearly two and half decades of phenomenal growth has finally subsided and left the Starbucks Corporation in a precarious situation. As of July 2008 the company has had a decline in customer traffic for the first time ever and their stock price has lost nearly half of its...
Words: 641 - Pages: 3
...Economics & Institutions TReNDS Martin Pitek MGMT - 7730 March 20, 2009 Starbucks Coffee Table of Contents Introduction 3 Product Analysis 3 Product Overview 3 Market Structure 4 Competition 5 Dunkin Donuts 7 Krispy Kreme 3 McDonalds 8 Panera Bread 8 Elasticity Estimates Pricing Strategy 10 Forecast 12 Determants of Demand 13 Forecast Model 15 Forecast Error! Bookmark not defined. Summary 15 Works Cited Introduction With the economy in trouble, the stock market tanking it is important to start your day with a good cup of coffee to take on these challenges. Can Starbuck’s sustain it business model and place in the market? The paper examines Starbucks business and it respective practices. In 1971, the original Starbucks opened in Pike Place Market in Seattle, Washington by three partners named Jerry Baldwin, Zev Siegal, and Gordon Bowker. Their focus was to sell coffee beans and equipment. They purchased green coffee beans from Peet’s, a specialty coffee roaster and retailer, during their first year of operation. Later, they began buying coffee beans directly from the growers. In 1983, an entrepreneur by the name of Howard Schultz joined the company; Schultz felt that the company should sell coffee and espresso drinks as well as coffee beans. The partners felt that selling coffee and espresso...
Words: 7573 - Pages: 31
...Phase I: Starbucks MKT/421 November 18, 2013 Pareesa Naveed Marketing Plan Phase I: Starbucks Marketing is an essential part of a business’ strategy for long-term success. Different business can have different views of what marketing means and how to create an effective marketing strategy specifically to meet the customer needs and the needs of the company. A marketing plan must have a defined goal and a vision on how to obtain that goal. The team is tasked to define a marketing plan to introduce Starbuck’s new Home Delivery and Catering Services. This marketing plan will provide an overview of the existing organization and describe the new services being considered. Additionally, the marketing plan will analyze the Strengths, Weaknesses, Opportunities, Threats, and Trends (SWOTT) of these new services. Finally, the plan will describe the research approach the team will use to develop the strategy and tactics to introduce the new Home Delivery and Catering Services. Starbucks opened the first store in the Seattle, Washington Pike Place Market in 1971. Starbucks always wanted to be a different kind of company by celebrating the rich tradition of coffee and by providing a feeling of connection. Starbucks has more than 18,000 stores in 62 countries. The company is the premier roaster and retailer of specialty coffee in the world and strives to bring the company’s heritage and an exceptional experience to life, (Starbucks Corporation, 2013). Starbucks is part...
Words: 1978 - Pages: 8
...In 1971 the first Starbucks opened at Pike Place Market in Seattle, Washington. The store at first just sold coffee beans and coffee equipment. The name Starbucks comes from the novel Moby Dick, who was named Starbucks, and it was a store that "imported the world's finest coffee to the cold, thirsty people of Seattle". In 1982 Howard Schultz came back to Seattle from a trip to Italy and introduced espressos, mochas and lattes to Starbucks, expanding the business more. By the 1990's Starbucks had expanded out of Seattle throughout various parts of the United States and then to different parts of the world. The impact that Starbucks has been huge, from taking over lots of small businesses is what has kept Starbucks growing. 'A Venti-Sized Recession' With high expenses of coffee, many people believe that the country is going to suffer high financial losses because of Starbucks. Like many coffee companies, Starbucks hit its peak of sales in 2006 and has since fallen . The countries financial crisis has gone global within the past couple of months. These effects Starbucks because there are many store located all around the world. Places where Starbucks aren't located, the banks seem to be surviving because they are not associated with banks in the Starbucks economies. That shows just how much Starbucks affect our economy and how many places that don't have Starbucks are doing a lot better with their economy. Starbucks Effect Starbucks is usually known for "working for the environment"...
Words: 855 - Pages: 4
...Connections 3 4 5 6 7 8 9 10 11 12 13 14 15 34 2 Rhinegeist is a brewing company located in Over the Rhine, Ohio. Founded by Bob Bonder and Bryant Goulding in 2013, Rhinegeist embraces the heritage and culture of the Over the Rhine. Their brew house was established in an old brewing facility built in the 1890s. Rhinegeist translates to “The Ghost of Rhine”, which comes with deep heritage of Over the Rhine. Rhinegeist wants to bring the tristate area together through enabling connections with their brew house. Through this, Rhinegeist will revive the community in Over the Rhine. However, they are still trying to attract customers from the northern Kentucky region. Enabling Connections 3 Summary of SWOT Analysis Rhinegeist is a local brewing company ran by Bryant Goulding and Bob Bonder. Rhinegeist produces and sells a wide variety of unique crab beers and ciders. Their target customers consists of millennials in the local tristate area who enjoy crab beers and ciders. Rhinegeist is currently positioned as a unique flavored local crab beer with brew house heritage. The average price of a Rhinegeist six-pack is around $9.99. Rhinegeist is also an experience, as they also offer tour services in their brew house. Major competitors of Rhinegeist are: MadTree, Budweiser, and River town Lagerhouse. Being pert of an extremely saturated market, Rhinegeist must to communicate the value of their crab beers compared to others. By attracting millennials from...
Words: 8282 - Pages: 34
...Although Starbucks has supported responsible business practices virtually since its incep-tion, as the company has grown, so has the importance of defending its image. At the end of 1999 Starbucks created a Corporate Social Responsibility department, now known as the Global Responsibility Department. Global Responsibility releases an annual report in order to allow shareholders to keep track of its performance, which can be accessed through the Shared Planet website. Starbucks is concerned about the environment, its employees, suppliers, customers, and its communities. In 1992, long before it became trendy to be "green," Starbucks developed an environmen-tal mission statement to more clearly articulate the company's environmental priorities and goals. This initiative created the Environmental Starbucks Coffee Company Affairs team, the purpose of which was to develop environmentally responsible policies and minimize the company's "footprint." As part of this effort, Starbucks began using environmental purchas-ing guidelines and set out to reduce waste through recycling and energy conservation and ed-ucate partners through the company's "Green Team" initiatives. Concerned stakeholders can now track the company's progress through its Shared Planet website, which clearly outlines Starbucks' environmental goals and how the company is faring in living up to those goals. Growing up poor with a father whose life was nearly ruined by an unsympathetic employer that did not offer...
Words: 964 - Pages: 4
...Brand Management Brand Value Chain - The below diagram is a typical model of brand value chain. It follows the process of developing a brand. There are two lines in this model, first line shows the various stages of developing the value of company and the second line consists of the multipliers which strengthen the relationship between the stages. Generally there are four value stages and three multipliers in a brand value chain model but for explaining the case of Starbucks we have excluded the fourth stage and the subsequent multiplier. Marketing Program Investor Customer Mind-set Market Performance Marketplace Conditions Multiplier Program Quality Multiplier Value Stages Multipliers * Product * Location * Advertising * Employee * Clarity * Distinctiveness * Relevance * Consistency * Price Premiums * Price Elastics * Market Share * Expansion Success * Cost Structure * Profitability * Awareness * Attitude * Association * Attachment * Activity * Competitive Reactions * Channel Support * Customer Size & Profile Marketing Program Investor Customer Mind-set Market Performance Marketplace Conditions Multiplier Program Quality Multiplier Value Stages Multipliers * Product * Location * Advertising * Employee * Clarity * Distinctiveness * Relevance * Consistency * Price Premiums * Price Elastics * Market Share *...
Words: 2894 - Pages: 12
... This report will present a financial analysis of Starbucks Corporation (SBUX). A full breakdown of the companies’ profile and ratio analysis will be provided and methods for improvements will also be provided. A full stock analysis will be included to anticipate Starbucks risks versus their returns on common stock and an estimation of the companies’ fundamental value. This report will also delve into the corporate governance of Starbucks as well as discuss the corporations’ corporate policies. By the end of this report a clear understanding of Starbucks Corporation and various brands under the monikers full financial status so that sound and viable investments decisions can be accurately made. Company Profile Starbucks Corporation retails, brews, markets, and develops a wide and various array of coffee and coffee based products worldwide. Starbucks operates in North and South America, Europe, The Middle East, Africa, and China. In addition to coffee products the company also produces a plethora of teas and bottled waters. Starbucks also provides fresh foods, pastries, and other edibles. The corporation has a partnership with Pepsi- Cola for them to license and sell Starbucks products. The companies’ products are offered through the Starbucks, Teavana, Tazo, Seattles Best Coffee, Evolution Fresh, La Boulange, Ethos, Starbucks VIA, Frappuccino, Starbucks Doubleshot, Starbucks Refreshers, and Starbucks Discoveries iced café Favorites brand names. The company...
Words: 1560 - Pages: 7
...Starbucks’ Target Market Abstract/Synopsis Perhaps the most important task for marketing is identifying the consumer base. This is done through market segmentation or STP analysis. Being people oriented is essential because developing long time relationships is what drives successful businesses. Understanding who it is that a company is trying to reach is essential as not everyone is interested in every product or service (Grewal, p.245). While there are many ways to establish a segmenting strategy, as outlined by Grewal and Levy, depending on the company’s unique product line or service, there may be a variety of viable strategies to consider. Starbucks has been successful in part because of their ability to identify who their majority of consumers is, with relation to demographic and psychograpic segmentation, and worked to target those types of individuals in an effort to establish long term relationships. Primary Target Market To identify Starbucks’ target audience for their brand-name, high quality coffee roast, one may look at the demographic distribution of Starbucks consumption. One important demographic-segmentation characterizing within a company’s consumer base is customer income. When a company produces a product, they must market the product price in accordance with their target audience (Grewal, p250). Porsche for example would not market their automobiles on billboards in low-income neighborhoods, because their target audience has to be able to afford...
Words: 1258 - Pages: 6
...STUDY 10 Go online to to find more case studies. Starbucks’ failure in Australia Paul G. Patterson, Jane Scott and Mark D. Uncles All authors are from the School of Marketing, Australian School of Business, University of NSW In mid-2008 when Starbucks management announced that they would be closing nearly three-quarters of its 84 Australian stores there was a mixed reaction. Some people were shocked, others triumphant. Journalists used every pun in the book to create a sensational headline, and it seemed everyone had a theory as to what went wrong. This case outlines the astounding growth and expansion of the Starbucks brand worldwide, including in Australia. It then shifts focus to describe the extent of the store closures in Australia, before offering several reasons for the failure and lessons that others might learn from the case. History of Starbucks While Starbucks may be responsible for ‘growing’ the premium in-store and takeaway coffee market in various parts of the world, competing brands are emerging in many parts of the world. Starbucks’ first store opened in 1971 in Seattle’s Pike Place Market. By the time the company was publicly listed in 1992, it had 140 stores and was expanding at a breakneck pace, with a growing store count of an extra 40%–60% a year. While former CEO Jim Donald claimed that ‘we don’t want to take over the world’, during the 1990s and early 2000s, Starbucks was opening on average at least one store a day (Palmer...
Words: 6707 - Pages: 27
...highest-quality coffee drinks brewed from freshly roasted beans. From lattes and mochas to smoothies and coffee coolers, Caribou offers a variety of tasty coffee and non-coffee treats. Caribou coffee shops are designed to be warm and comfortable with plenty of seating, and staffed by enthusiastic servers dedicated to outstanding customer service. Most of Caribou’s stores have the look and feel of a mountain lodge, with knotty-pine cabinetry, a fireplace and soft seating. Whether buying whole, luscious beans to brew at home, or enjoying a steaming cup prepared at the coffee shop, each customer can get a taste of Caribou’s passion for outstanding coffee. Caribou selects the finest beans to create unique and unparalleled blends while employing the highest quality coffee standards from roasting through brewing for the ultimate taste sensation. Additionally, Caribou takes that same passion for excellence in store by adhering to strict quality processes including a policy to brew new coffee at least once per hour, ensuring customers are always getting the freshest coffee. Caribou Coffee Company Inc. is the nation’s second largest specialty coffee company with more than 300 stores and nearly 4,500 employees. Headquartered in Minneapolis, Caribou Coffee stores can be found in Minnesota, Wisconsin, Illinois, Ohio, Georgia, North Carolina, Michigan and Maryland, Virginia, Washington D.C., and Pennsylvania. 2. Supply Chain Management Caribou relies upon both its external brokers and its...
Words: 3672 - Pages: 15
...The case of Starbucks Paul G. Patterson *, Jane Scott, Mark D. Uncles School of Marketing, Australian School of Business, University of NSW, Sydney, NSW 2052, Australia a r t i c l e i n f o a b s t r a c t The astounding growth and expansion of Starbucks is outlined, both on a global scale and within Australia. The focus then shifts to the abrupt closure of three-quarters of the Australian stores in mid 2008. Several reasons for these closures are described and examined, including that: Starbucks overestimated their points of differentiation and the perceived value of their supplementary services; their service standards declined; they ignored some golden rules of international marketing; they expanded too quickly and forced themselves upon an unwilling public; they entered late into a highly competitive market; they failed to communicate the brand; and their business model was unsustainable. Key lessons that may go beyond the specifics of the Starbucks case are the importance of: undertaking market research and taking note of it; thinking globally but acting locally; establishing a differential advantage and then striving to sustain it; not losing sight of what makes a brand successful in the first place; and the necessity of having a sustainable business model. Ó 2009 Australian and New Zealand Marketing Academy. Published by Elsevier Ltd. All rights reserved. Keywords: Service brands Service quality Global branding International business Starbucks Coffee 1...
Words: 8036 - Pages: 33
