...Starbucks: Just Who is the Starbucks Customer? By now, you should be familiar with the Starbucks story. After a trip to Italy in the early 1980s, Howard Schultz was inspired to transform Starbucks—then just a handful of coffee shops in Seattle—into a chain of European-style coffeehouses. His vision wasn’t based on selling only gourmet coffees, espressos, and lattes, however. He wanted to provide customers with what he called a “third place”— a place away from home and work. As CEO of Starbucks, Schultz developed what became known as the Starbucks Experience, built around great coffee, personal service, and an inviting ambiance. WHAT GOES UP . . . It wasn’t long before Starbucks became a household word—a powerhouse premium brand in a category that previously consisted of only cheaper commodity products. In 20 years time, Schultz grew the company to almost 17,000 stores in dozens of countries. From 1995 to 2005, Starbucks added U.S. stores at an annual rate of 27 percent, far faster than the 17 percent annual growth of McDonald’s in its heyday. At one point, Starbucks opened over 3,300 locations in a single year—an average of 9 per day. In one stretch of crowded Manhattan, a person could get their caffeine fix at any of five Starbucks outlets in less than a block and a half. In fact, cramming so many stores so close together caused one satirical publication to run this headline: “A New Starbucks Opens in the Restroom of Existing Starbucks.” For many years, new store growth...
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...COMPANY DESCRIPTION Starbucks is the largest coffeehouse company in the world. It was founded by three very unusual entrepreneurs, an English teacher Jerry Baldwin, History teacher Zev Siegel and a Writer Gordon Bawker. They came with this brilliant idea of getting into the coffee business inspired by an entrepreneur who sold high quality coffee beans and equipments, named Alfred Peet. The first Starbucks store was opened in Pike Market Place in Seattle on March 30, 1971. It is a for profit company. In the 1990’s the company grew at a very fast pace. Studies show that Starbucks opened a new store every working day. From one store by its founders Starbucks grew to more than 8,000 stores in the United States itself and over 4000 stores around the world today. All this was due to the marketing strategies after Howard Schultz took over the company in 1982 as a marketing executive. His experiment to open a coffee bar in downtown Seattle made the mark for the company. First the espresso coffee bars were named Il Giornale used Starbucks high-quality coffee beans to make their coffee. The espresso coffee bars didn’t take time to gain popularity, with backing of local investors; Il Giornal acquired Starbucks assets and changed its name to Starbucks. It offers a very wide variety of products other than coffee beans and coffee beverages. The varieties include handicraft beverages, merchandise, fresh food, Starbucks entertainment, Starbucks card and Global consumer...
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...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. Introduction...
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...McDonald's or Starbucks: Who wins? - 1 - investing strategy - MSN Money http://money.msn.com/investment-advice/mcdonalds-or-starbucks-who-... More Hotmail Messenger Bing Make MSN your homepage Sign in Like 128k MONEY HOME NEWS INVESTING PERSONAL FINANCE MY MONEY REAL ESTATE CAREERS AUTOS TAXES Follow portfolio manager Enter a name or symbol markets GET QUOTE stocks mutual funds etfs broker center investor pro top stocks E*TRADE: 5 Star Trading Tools U.S. markets closed DJIA 13,228.31 +23.69 +0.18% NASDAQ 3,069.20 +18.59 +0.61% S&P 1,403.36 +3.38 +0.24% 7/5/2011 4:35 PM ET | By Michael Brush, MSN Money McDonald's or Starbucks: Who wins? The purveyor of burgers is going upscale, treading on turf that the coffee titan has trolled for years. Which company will prevail? And what's the effect on consumers? Share 941 Tweet 26 Like 76 109 Would you like some fries with that cinnamon dolce latte? OK, you probably won't hear that question any time soon. But in an odd twist in the evolutionary path of quick-serve eateries, McDonald's (MCD +1.62%, news) and Starbucks (SBUX -5.32%, news) are looking more alike every day. It's a trend that's going to continue, for a few simple reasons. With a McDonald's or a Starbucks just about everywhere you look, both companies are running out of room to roam. Starbucks was once expanding so rapidly that comedians joked it would be opening new coffee shops inside the bathrooms...
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...Background + Category Starbucks Corporation is an American coffee company. It falls under the restaurant category. It operates as a marketer, roaster, coffeehouse chain and it is the world’s leading specialty coffee retailer. It retail products includes more than 30 types of the world’s top coffee beans, handmade espresso coffee, a variety of hot and cold beverages, fresh food and delicious pastries, coffee machines, coffee mugs and other merchandise. The first Starbucks was founded in 1971; it was a single store in Seattle, Washington. It did not sell brewed coffee and espresso, but only coffee beans. In 1983, Howard Schultz, a former employee of Starbucks traveled to Italy and attracted by Italian coffee bars and the romance of the coffee...
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...CASE 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...
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...Overview: * Starbucks is a global coffee shop chain and it's headquarter is based in Seattle – U.S. It is considered the largest coffee shop company in the whole world. * It was established by 3 partners (Gerald Baldwin, Gordon Bowker and Ziev Siegl) Seattle – U.S. in 1971. In 1982 Schultz joined the team. Years later, the founders agreed to sell Starbucks to Schultz who took the company public. * The idea behind Starbucks was to make the coffee shop a "third place" beside home and work. * Starbucks operates 16,635 stores in 50 different countries. 11,068 of them are located in U.S. The company's product lines are the following: * Beverages (coffee – juice – tea) * Merchandises (mugs..) * Whole coffee beans * Pastries Starbucks strategy: * providing high quality products * Create profitability * Maximizing market penetration * Offering attractive and comfortable atmosphere The questions: Q1) What factors accounted for the extraordinary success of Starbucks in the early 1990s? The factors accounted for the success of Starbucks in the early 1990’s are: 1. Atmosphere: Starbucks is a coffee shop but the purpose behind it is not just offering coffee, instead providing the customers with a comfortable environment. Customers can relax, enjoy a cup of coffee or whatever Starbucks offers and read the newspaper or simply meet friends. This will result in customers staying more and more inside the coffee shop and makes them...
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...There are several barriers facing Starbucks as they try to “teach” people to change their consumption habits from tea to coffee. Firstly, tea is one of the common beverages in China. According to the history, China peoples start to drink tea before four thousand years ago. In China, tea has become a unique cultural phenomenon. The Chinese view tea to be both medicinal and beneficial whereas coffee does not have the same value to the Chinese. Other than that, having a cup of tea after meal will help to digestion. When feel upset, Chinese also believe a cup of tea will help to quiet down the mind. Moreover, when a Chinese family have guess come to their house, the owner will always treat the guess a cup of tea and can enhance the friendship. But to the coffee, Chinese do not get the benefits of drinking coffee and believe coffee are does not have the same value compare with tea. It will become one of the barriers facing Starbucks as they try to “teach” Chinese to change their view towards the coffee. In addition to this, one has to take into consideration the vast area of china. China consists of 1.3 billion of peoples. Even china is keep improving and economic start to growth up, but china is still having largely rural areas and lots of lower income family. Other than that, they have less familiarity with coffee and don’t have as much money spend on the more expensive beverage. Therefore, it will be other barriers to the Starbucks who want try to “teach” people to change their...
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...Starbucks Case Study 1. Based on the case information and personal experiences, list at least five things that you know about Starbucks. This list offers you some idea about your cognitions concerning the coffee shop chain. After reading the case information, I have a greater amount of knowledge about Starbucks as a business aside from my personal experiences as a customer. I am a regular at my local Starbucks and feel that this company does attempt to cater to their customers. Specifically from reading the case study, I know that Starbucks is a fortune 500 company since 2003. The company has expanded to over 14,000 stores worldwide including multiple locations within popular cities such as New York and San Francisco (Peter and Olson, 2010, p. 32). Starbucks is trying to expand internationally and are trying to have 500 stores operating in Asia. In China only, Starbucks outlets have increased from 8 in 1999 to just less than 70 today (Starbucks-taking on the world, p. 13). Starbucks is expanding in order to develop sight recognition for customers in order to persuade customers into thinking Starbucks is a great product, offered in many locations, and everyone is drinking it. Each additional store only adds to the chances of more people seeing their store and also remembering Starbucks every time you want a coffee. Another thing I know is that Starbucks has recently attempted to gain food sales as they have begun to sell hot sandwiches, bakery items, and other...
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...STARBUCKS A Fortune 500 Company Business Management Issues BUS-285 Prepared by: Student Name For Mr. Jessie Bellflowers Instructor A research paper presented to Fayetteville Technical Community college in partial fulfillment of the requirements for the Business Management Issues Capstone Course. Fayetteville Technical Community College July 20, 2014 TABLE OF CONTENTS Title Page 1 Table of Contents 2 I. Executive Summary 3 II. Company Overview 4 III. Strategic Analysis 8 IV. Strategic Effectiveness Analysis 11 V. Conclusion 14 VI. References 15 EXECUTIVE SUMMARY Starbucks has been one of most popular coffeehouses in the world. They started their business as just a coffee-bean retailer. This didn’t last long. Howard Schultz...
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...Starbucks: Delivering Customer Service Case Study, BEP 430 Marketing 20030059 Dong-ock Kim1, 20030071 Min-geuk Kim2, 20040054 Keehyung Kim3, 20040535 Yohan Jo4, 20076006 Huang Qiuling5, 20076035 Dorjsuren Bayarmaa6 Marketing Team A1 2 3 4 5 6 erst_licht99@hotmail.com1, kmg0702@hanmail.net2, keehyoung@gmail.com3, zukjimote@gmail.com4, sharlin_huangqiuling@hotmail.com5, gordok_88@yahoo.com6 Professor: Wonjoon Kim Date submitted: May 7, 2007 TO: Day, vice president of administration in North America, Starbucks FROM: Dong-ock Kim, Min-geuk Kim, Keehyung Kim, Yohan Jo, Huang, Qiuling, Dorjsuren Bayarmaa RE: Starbucks: Delivering Customer Service DATE: May 7, 2007 Market Analysis Starbucks provides the highest-quality coffee what it believes in the world. It has hundreds of product lines and the sales of beverage take the largest percent. Despite of Starbucks’ overwhelming presence and convenience, customers think there was just a little of image and product differentiation between Starbucks and the smaller coffee chains. However, Starbucks has an uncomplicated distribution strategy, and it tries to make customers get entrance to Starbucks products easier and provide more convenience to customers. Moreover, it has company-operated stores located in hightraffic and high-visibility and non-company retail channels. In addition, Starbucks has four major competitors. Minneapolis-based Caribou Coffee which provides the look and feel of an Alaskan lodge has more than 200 stores...
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...Starbucks case report Xiaoteng Gao, Xiao Liu, Ping Cai, Mengqiong He, Yuheng Chen 1. What factors accounted for the extraordinary success of Starbucks in the early 1990s? In the early 1982, the inspiring experience of Milan’s coffee culture and espresso bars’ role in Italians’ everyday social lives motivated Howard Schult to convince the company to set up an espresso bar in the corner of its shop which became the prototype for his long-term vision and also foreshadowed the success of Starbucks. After Schult taking over the company, he took all measures to take the company public by opening new stores, increasing the variety of coffee beverage, positioning the main customers, raising money and etc. He also tried his best to have created Starbucks’ experiential brand strategy and value in the process of the coffee drinking experience. In summary, we can conclude that the success of Starbucks in the early 1990’s can be attributed to Howard Schultz’s vision of the Starbucks brand which placed value in the process of the coffee drinking experience. And there are seven main factors accounting for the extraordinary success of Starbucks in the early 1990s as follows: a. Coffee itself: Starbucks kept full control of quality of its products to be the highest-quality coffee in the world by souring from qualified channels, controlling as much of the supply chain as possible, working directly with growers of origin to purchase green beans and overseeing the custom-roasting process...
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...Language class 2A 25 October 2012 Is Starbucks a Good Choice? Let us set a certain setting, “It is a cold night during the winter. It is freezing cold outside, and you decide to buy a cup of coffee to keep warm. (It is always a good choice to buy a cup of coffee in the cold winter.) There are several choices including Starbucks, COSTA, Macafee , or perhaps some Nestle instant coffee.” I suppose most of those people who live in urban areas would probably choose Starbucks. As a matter of fact, I myself am a Starbucks’ fan. I have always had a weak point for their latte and cappuccino. But still, there are many people who suppose Starbucks is very costly and that instant coffee is just as good. So here comes the problem, is Starbucks a sensible choice? Starbucks may give you an impression that they did many beneficial things for the environment. Even at the back of their invoice, they print their so-called “Share Planet” project to contribute to help the environment. Starbucks™ Shared Planet™ means focusing on the core areas where we have the biggest influence – ethical sourcing, environmental stewardship and community involvement.(Starbucks share the planet project) But what have have done? The bizarre policy in Starbucks which is aimed at preventing germs developing in the taps in its 10,000 stores worldwide, has outraged environmental groups. Every Starbucks branch has a cold tap behind the...
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...The history of Starbucks starts back in 1971 when the first store opened in Seattle, Washington. Jerry Baldwin, Zev Siegl and Gordon Bowker got the idea from Alfred Peet (of Peet's Coffee fame). The store initially sold just coffee beans and coffee making equipment rather than the drinks they have become so famous. After about 10 years, Howard Schultz was hired as Director of Retail Operations and came to the conclusion that they should be selling drinks rather than just beans and machines. He couldn't convince the owners, so he went his own way to start the Il Giornale chain of coffee bars in 1986. The next year, Baldwin and the others sold Starbucks to Schultz who then renamed his Il Giornale locations to Starbucks and quickly started to expand. After conquering Seattle, the chain spreads across the United States and then internationally. The first location outside of North America was in Tokyo and they still have a sizable presence in Japan today. Over the course of its life, Starbucks has bought or acquired companies especially those specializing in coffee businesses. In the 1990s, Starbucks was offering stock options to employees and went public. Today, Starbucks has expanded to more than 17,000 stores in 55 countries around the world. Their biggest presence is still in the United States, with 11,000 locations. You can find a Starbucks in such diverse nations as Chile, Romania, Bahrain and Bulgaria. The most recent expansion was to Budapest in June of 2010. ...
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...Case Report 1: Starbucks Customer Service What factors accounted for the extraordinary success of Starbucks in the early 1990s? What was so compelling about the Starbucks value proposition? What brand image did Starbucks develop during this period? There were several factors that contributed to the extraordinary success of Starbucks in the early 1990’s. First, the long-term vision was to create a coffee chain that would become America’s “third place”. People needed a third place outside of home and work where they could sit, relax, and enjoy their time alone or with others. Second, as soon as Howard Schultz took over as the Starbucks Owner, he began opening several new stores in key locations throughout Chicago and the northwest. Soon after, Shultz decided to take the company public. Doing so boosted the company tremendously in the right direction by raising $25 million and allowing even more stores to be opened. Lastly, despite great success, Starbucks spent nothing on advertising freeing up even more money towards other company resources at the time. These factors were of key importance in boosting Starbucks success in the 1990’s. Most importantly, Starbucks had a compelling value proposition for the company that created and developed the brand image of Starbucks. It was best explained by its “live coffee” theme that expressed the importance of keeping the coffee culture alive and creating an attractive experience that people could inject into their busy everyday lives. The...
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