Background: Since 1971, Starbucks Corporation has grown from a small coffee-roasting shop in Seattle to one of the largest chains of coffeehouses internationally, with nearly 21,00 stores worldwide. Starbucks originated as a coffee store selling coffee beans and coffee makers, and hoping to inspire people to brew their own fresh coffee. Today, Starbucks is one of the premier specialty coffee roasters in the world and carries beverages, snacks and consumer products. Starbucks Corporation owns a variety of coffee brands, tea brands, Ethos bottle water, pre-made drinks and Tazo Tea Company. Striving to be more than just coffee-roasters, Starbucks brand has grown to focus on “genuine service, an inviting atmosphere and a superb cup of expertly …show more content…
“Coffee has become more than just a shot of caffeine. It 's a $30 billion-a-year national industry, a foodie fixation, an affordable luxury, a boost of disease-fighting antioxidants, a versatile ingredient, an intoxicating aroma and a beverage that brings people together.” Because of all these factors, Starbucks has a very diverse audience and numerous competitors in the industry. As of 2011, coffee shops have maintained an average growth rate of 7% a year, and Starbucks alone is the third most recognized restaurant chain in America. The specialty coffee industry will continue to grow because of the variety of drinks and the appeal of specialty coffee …show more content…
Starbucks is considered part of the food and beverage industry, which has a target market that is very broad. The food and beverage industry, in theory, has an audience of the entire population that eats and drink. In more specified terms, many companies in the realm of the food and beverage industry have a target market that is composed of younger teens, ages twelve to sixteen. These kids are old enough to understand advertisements, yet still young enough to be influenced. They also typically have a say in what their parents buy, in terms of groceries and food. Another target market is moms in their mid thirties to early forties, who usually have younger kids. Moms are a target market because they typically buy the groceries for the household and make consumer
In conclusion, the attributes of the new Starbucks products were described in detail. The pace at which this product will move through the product life cycle was discussed as well as the factors that will impact its movement. Details on how the product life cycle will impact the marketing of the Chai Tea and energy drinks was identified. The positioning and differentiation strategies for this product were identified. The appropriate price strategy to be used was identified.
When it comes to coffee, Starbucks has made its mark and is ranked high on the list of most popular international chains. Its worldwide operation consists of over 16000 stores in approximately 49 countries. This company’s primary focus is on having a solid marketing strategy, exceptional customer service and distinguished products which has allowed the company to set itself apart from their competitors. There is great emphasis placed on having a high quality of coffee bean for this reason the company purchase their beans from a variety of coffee manufacturing countries. Starbucks is famous for their coffee but they have also broadened their horizons by selling cold beverages in a variety of flavors, fresh creamed beverages, richly
In 1971, a coffee bean retailing store named Starbucks was opened by Jerry Baldwin, Zev Siegl and Gordon Bowker in order to sell specialty whole-bean coffee in Seattle. And the name "Starbucks" was from mate Starbuck in the novel Moby Dick. In the decade, Starbucks had five stores and a small roasting facility in Seattle till 1981. In 1982, Schultz joined Starbucks as marketing manager. In 2001, Interbrand (a brand management consultancy) had named Starbucks as one of the 75 global brands of the 21st century. In 2002, Starbucks had 5689 outlets in 28 countries. By early 2006, Starbucks had more 11,000 stores around the world. Starbucks had turned coffee from a commodity into an experience to savor. (Business Management Updates and Resources [online])
Starbucks first opened its doors in Seattle’s Pike Place Market with the name being coined from that of Moby Dick’s first mate (Schultz & Yang 1999). It has spread its shops across North America, all over Europe, the Middle East, Latin America as well as the Pacific Rim with an estimated 35 million customer weekly (Michelli, 2008). With tremendous growth from a small time coffee shop, the company has matured to an international icon that today it is one of the world’s leading retailer, roaster and brand specialty coffee (Story, 1971). The company offers whole bean coffees, espresso beverages, and confectionery and bakery items.
The brand “Starbucks” is one of the most recognizable brands in the coffee industry. Not only is it considered a great workplace, but it is also ranked 91st in the best global brands.
Starbucks Coffee Co. throughout its existence since 1971, with its great management team, innovative style of thinking and strong will to succeed in compliance with its mission and vision statements has and continues to overcome its barriers by recognizing such strategic planning as those included in Porter’s five forces model. The model includes such components as Barriers to Entry, Supplier and Buyer Power, Threat of Substitutions, and most importantly the Industry Competitors. Starbucks throughout its existence has addressed each and every one of Porters forces with a positive edge that has greatly contributed to the success of the company. Starbucks took many risks and spent capital that it really did not have. To build a corporation based on intuition and a trip to Italy has undoubtedly paid off in the long run which is evident throughout the year that Starbucks has been in operation. Howard Schultz, CEO and founder of the company, has stuck to his conviction not to “sacrifice long-term integrity and values for short-term profit.” He knew if he played his cards right and stuck to his guns it would only be a matter of time that Starbucks would become the world largest coffee industry in the world. He wanted the company to become and international outlet for coffee consumers which not only included men and woman but also addresses the needs and wants of those of all ages and nationalities, children, students and any other category of people that have and interest in Starbucks diverse product line. With constant dedication to the company’s vision and mission statement and believing in the value of market share and name recognition and how critical they are to the success of the company, he was able to achieve his goal within a few years. During this time of course he has been able to open a total of 1,100 stores and continues to do so until this day.
Starbucks entered its twenty-sixth year as the uncontested leader of the gourmet coffee market. The company had already experienced incredible growth， with sales approaching $700 million in 1996， and Schultz had plans to continue expanding， opening almost 900 new stores over the next several years. But the coming years would undoubtedly prove challenging. Competitors like The Second Cup， Seattle's Best Coffee， and Barnie's had expansion plans of their own. And many companies imitated Schultz's formula for success with the hope of beating Starbucks at its own game. The Starbucks marketing team had to be savvy to stay on top.
Starbucks is America’s most favorite crazed and glorious coffee shops. This tiny coffee shop is the most enjoyable place to get coffee, hot cocoa, and specialty tea drinks. Starbucks is well-known for selling amazing tasting coffee. It started off as quaint coffee house in Seattle, Washington 40 years ago. With excellent marketing strategies and innovation today Starbucks enjoyed phenomenal growth with widely profitable earnings and stores expanding across the United States and in other countries. They have pioneered their way to global success in a way that has never been done before with any other coffee shop.
Starbucks started out as a small company that only sold coffee grounds. Not all of the different style of beverages that they do today. Starbucks has progressively become better and better. The reason for this is that Howard Schultz has constantly changed the company as the world has changed. For example on December 06, 2011 Starbucks released an app that customers could use on a mobile phone to pay for their drinks at starbucks. Technology in the world is constantly advancing and Starbucks knew that so they adapted to the new changes and made this app. Another example is the new line of drinks Starbucks has come out with, Starbuck 's refreshers beverages, that are not a roasted coffee like every other dark coffee, but it still has the caffeine and other natural qualities that comes from a coffee bean. By doing this it has opened up Starbucks to even more customers because some people hate the taste of
Starbucks is a food service best known for it’s coffees, tea and pastries. They are number 131 in the fortune 500 companies. They are recognized as one of the most prosperous and fastest growing brands in america. In fact Starbucks has added an average of two stores on a daily basis since 1987.
No ifs and buts about it, Starbucks has turned a simple product like coffee into a lifestyle. Coffee used to be only drunk in the mornings for people to get caffeine but now people are drinking coffee all times of the day and Starbucks is a big reason why. Starbucks has turned coffee into an enjoyable experience that anyone can have at any time of the day. When you go into Starbucks it’s not just about coffee, it is about an experience. The Starbucks experience has helped Starbucks distinguish it’s self from stores like Dunkin Donuts and has help Starbucks grow from one store in Seattle, to one of the biggest companies in the world with more than 15,000 stores in 50 countries. However, Starbucks rise to the top
Starbucks corporate strategy has been to establish itself as the premier supplier of the finest coffee in the world, while providing superior delivering services towards their customers. They have proven that by maintaining their promise to their customer as Starbucks a great and proven work environment for every staff member in its retail stores. Starbucks always trying to satisfy its customers through upholds diversity and promises the highest standards for its products. In between, it also serve the community and the environment. Also, Starbucks remain to be profitable although there is slightly slow growth .Starbucks is also being one of the fastest growing companies in the country. However, Starbucks’ coffees price which emphasize high quality coffee beans sells much expensive than other market competitor product. This situation indirectly way creates the opportunity for rivals. Even though Starbucks has high reputation and loyalty customer but there is still others look for cheaper price coffee.
Some people cannot get their day stated without a cup in the morning. This makes a lot of competition for Starbucks in their specific market. What separates Starbucks from the rest is their innovativeness and customer experience. When Howard Schultz rejoined Starbucks in 1982 a couple years later he went to Italy to get some inspiration for the coffeehouse concept and wanted the Starbucks atmosphere to mirror that. People not only come to Starbucks to start their day but they go to have some peace and quiet, do homework, have a meeting or just to meet people a socialize. Starbucks’s the total package and that’s what separates them from other in their same market. All of the barriers that coffee shops have set Starbucks has broken down and make their own market for others to follow and try to keep up
Whenever people think of coffee, they will think of the name Starbucks. What is Starbucks? Starbucks Corporation is an American global coffee company and coffeehouse chain. Starbucks opens their first store in Seattle’s Pike Place Market back in 1971, they were only a roaster and retailer of whole bean and ground coffee, tea and spices. Today, Starbucks have more than 19000 retail stores in all over the world. The mission of Starbucks is “to inspire and nurture the human spirit – one person, one cup and one neighborhood at a time” (Starbucks Corporation, 2014). Although the main selling point of Starbucks is their coffee, Starbucks also offer variety range of products from tea, smoothies to merchandizes.
For those of you who do not know about Starbucks, Starbucks is an American franchise business that has been established since 1971 and currently has spread in around 75 countries around the world. And unlike most cafes or restaurants, Starbucks offers a concept that will provide an amazing experience. Some people may think that starbucks is just an ordinary cafe that offer coffee as a mainstay menu. They think that basically all restaurants will always have the same concept even though they have different menu.