Introduction
Starbuck’s strategy focused on three components; high-quality coffee, intimate service, and ambient atmosphere. Starbucks worked closely with growers in Africa, South and Central America, and Asia-Pacific regions to insure the quality of its product. Starbucks called all employees' "partners" and worked hard to train them with the skills necessary to best serve the customer. The atmosphere at Starbucks was crafted after the European-style espresso bar. The company goal was to create ambience through the Starbucks "experience" and by making the area comfortable, yet upscale.
Its primary objective was, simply put, to become the “most recognized and respected brand in the world.” This objective required most of the company’s strategic goals to be based on company growth and product innovation. There were many opportunities that made expansion plausible, such as a rise in coffee consumption and untapped metropolitan areas. Starbucks had reached all of its success without spending a large amount of money on advertising. Point-of-sale materials were primarily used and their local-store marketing was far less than the industry average.
Background
Starbucks originally opened in 1971. The Seattle based store began by selling whole Arabic coffee beans to consumers. In 1987 it was purchased by Howard Schultz and he made the company what it is today. The company started selling coffee by the cup and opened new stores in various locations. There were 140 stores in the Northwest and Chicago by 1992, and it was at that time that Schultz decided to take the company public. This allowed him to raise $25 million and open stores across the nation. Starbucks was the dominant specialty-coffee chain in North America by ...
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... with their customers. The program will be free, however; customers will have to provide their name, physical address, email address, select an age and income range, as well as identify their favorite Starbucks beverage in order to participant. This will allow Starbucks to gather valuable information about their clientele. It will track consumer spending, number of visits, and number of locations that members frequent. The company will also have demographic information such as age, income, geographic location, and drink preference of each member. This ongoing research will be able to track trends, the success of new product introductions, and keep the company in constant contact with their valued consumers. The new marketing department will have the tools necessary to measure and tie customer service and bottom line performance into the future decision making process.
However, at this point it is essential to note that Starbucks’ products are premium products and its customers are also the premium customers who fi...
Starbucks was created in in 1971 when Jerry Baldwin, Zev Siegel, and Gordon Bowher decided to open the first store in Seattle. The trio opened the first store in Pikes Place, which was a popular market area in Seattle. In the beginning the customers were encouraged to learn how to grind beans and make their own freshly brewed coffee at home. At that time the store did not offer fresh-brewed coffee sold by the cup like today, they sold beans and coffee makers. Starbucks was actually named after the first mate
People. Starbucks asserts that the café service for people, so the employees are really important. When the company select new employee, it pays more attention on persons with good manners and good affinity. Besides, most of them are young, they full of energy and have great ability of accepting new
Presently this brings us to Starbucks, and how it has turned into a standout amongst the most unmistakable house-hold organizations on the planet basically through globalization. Starbucks began as standalone espresso joint in Pikes Place Market in Seattle, Washington in 1971. Today the establishment has 20,366 stores to its name. A...
Get ready, set, GROW!!! That really seemed to be Starbucks mission in life. From 1998 to 2002 they tripled the number of stores that they either operated or licensed. They wanted to penetrate every possible market and they seem to have been pretty successful at achieving this. Starbucks also had defined what they wanted to be when they grow up, in that they wanted to be the third place in a person’s life after their work and home. Starbucks created a unique gather spot for people and for its start targeted mostly affluent shoppers. Starbucks really felt that they were delivering the values of 1) Providing the highest quality coffee, 2) Creating a welcoming and customer focused experience, 3) Priding themselves in their unique ambient atmosphere. So Starbuck’s was not only trying to sell great coffee they were creating a unique experience in doing so.
Starbucks is one of the largest coffee franchises in the world. With over 26,000 stores in 64 countries, the company has the right to brag about this. One of the problems which Starbucks is currently being faced with is the brand being watered down by over expansion and a too diverse product mix. With McDonalds and Dunkin Donuts entering into the specialty coffee market, Starbucks needs to alter the path which it is going in order to remain competitive in this industry.
Starbucks portray a number of issues that may affect the company’s’ growth in the near future. To clearly understand these issues, they will be analysed in order to understand and create recommendations to assist in the growth of a successfully company.
There have been some distinguished controllable and uncontrollable elements Starbucks has encountered when entering global markets. The strategies of any company’s goals are vital to its success. This is one area Starbucks has excelled in, just as McDonald’s has in recent years. Starbucks has paralleled its branding with the actions found at any Starbucks across the world. They have an excellent company vision, which they stick to, which in turn assists their brand image. Starbucks’ image has been achieved not only through this and their massive global entrance, but through their ability to provide honest quality service.
The Starbucks Corporation is built around an experience, the Starbucks experience. While the Starbucks experience is most notably associated with the way customers are treated, one could argue however, that the Starbucks experience transcends just the way customers are treated. The Starbucks experience is an all encompassing culture that revolves not just around customers but also to employees, or “partners” and suppliers. Burks (2009) notes that the company cares about the footprint it leaves, no matter where it does business; “the company is dedicated to making positive contributions to the communities where it doe...
Starbucks is an international coffee house and it was created in 1971 when they opened the first store in Seattle, Newcastle. Currently, they own 21,000 stores in 65 different countries of the world, and their passion for the great coffee, excellent service and community interaction exceeds cultures and languages (Starbucks, 2014). This company is the number 1 brand coffeehouse chain in the world due to the best roaster, marketer and seller of speciality coffee. Its main slogan: “Our mission: to inspire and nurture the human spirit – one person, one cup and one neighbourhood at a time” (Jurevicius, 2013).
With clear core values towards providing quality coffee, the best service, and atmosphere, Starbucks has enjoyed great success since it was founded 30 years ago. The company has being doing very well for last 11 years with 5% or more store sales increase, even with the rest economy still reeling from the post-9/11 recession. However recent research, conducted to Starbucks, have showed some concerns regarding company’s problem meeting customers’ expectations.
In 2002, unexpected findings of a market research showed problems regarding customer satisfaction and brand meaning for Starbucks customers. The situation was unacceptable for a company whose overall objective is to build the most recognized and respected brand in the world. Starbucks was supposed to represent a new and different place where any man would relax and enjoy quality time, alone or with others. But the market research showed that in the mind of the consumers, Starbucks brand is viewed as corporative, trying to expand endlessly and looking to make lots of money. This huge gap between customers' perception and Starbucks' values and goals called for immediate action.
The structure of Starbucks business communication is exceptional. Rather you are in their store buying a Caramel Frappuccino®, visiting their website or watching one of their advertisements on television; as the consumer, the message is loud and clear. Pick up any newspaper and you are likely to find an article about the coffee giant. Starbucks pledges a commitment to their over 172,000 partners (employees) and the community. “We realize our people are the cornerstone of our success, and we know that their ideas, commitment and connection to our customers are truly the essential elements in the Starbucks Experience” (Starbucks, 2008).
In addition to being best-known supplier of the finest coffee and promising only the highest quality products, Starbucks emphasizes firm values, provides guidelines to enhance employee self-esteem. This is to ensure continued customer satisfaction. Moreover, diversity has become a priority to providing an inviting environment to all consumers. Starbucks continues to abide by a strict, slow growth policy in which they set out to dominate a market before moving on to expand, thus history has shown this strategy to be successful for Starbucks, making them one the fastest growing companies nationwide.
The strategic vision that Howard Schultz had for Starbucks was "Establish Starbucks as the premier purveyor of the finest coffee in the world while maintaining our uncompromising principles while we grow". This s...