THE FACTS Starbucks Corporation, doing business as

Starbucks Coffee, is an American coffee company and

coffeehouse chain based in Seattle, Washington.
Starbucks is the largest coffeehouse company in the
world ahead of UK rival Costa Coffee, with 22,551 stores
in 65 countries and territories, including 12,739 in the
United States, 1,868 in China, 1,395 in Canada, 1,117 in
Japan and 830 in the United Kingdom. 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.
THE STRATEGY 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.
MISSION STATEMENT ( when a company publicly
states its objective or vision)
To inspire and nurture the human spirit one person, one cup
and one neighborhood at a time.
With our partners, our coffee and our customers at our core, we live these
values:
Creating a culture of warmth and belonging, where everyone is welcome.
Acting with courage, challenging the status quo and finding new ways to
grow our company and each other.
Being present, connecting with transparency, dignity and respect.
Delivering our very best in all we do, holding ourselves accountable for
results.
We are performance driven, through the lens of humanity.

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, did not become lazy.
Starbucks Coffee Company is still expanding in interesting
and ground breaking ways even today. It is always
thinking forward and is consistently innovative
THE PRODUCTS Starbucks locations serve hot and cold
beverages, whole-bean coffee, microground instant
coffee, espresso, caffe latte, full-leaf teas, pastries, and
snacks. Most stores also sell pre-packaged food items, hot
and cold sandwiches, and items such as mugs and
tumblers. Starbucks Evenings locations also offer a
variety of beers, wines, and appetizers after 4. Starbuck
also has special coffees, juice/smoothie, hot chocolate,
healthy organic sandwiches, salads and pastry for
vegetarians and coffee cups. It also has the Starbucks
Entertainment division and Hear Music brand, the
company also markets books, music, and film. Some of
the company's products are seasonal or specific to the
locality of the store. Starbucks-brand coffee, ice cream
and bottled cold coffee drinks are also sold at grocery
stores.
HOW IT GOT STARTED March 30, 1971, by three
partners who met while they were students at the
University of San Francisco: English teacher Jerry Baldwin,
history teacher Zev Siegl, and writer Gordon Bowker. The
three were inspired to sell high-quality coffee beans and
equipment by coffee roasting entrepreneur Alfred Peet
after he taught them his style of roasting beans. The
company took the name Starbuck. The first Starbucks

cafe was located at 2000 Western Avenue from 1971

1976. This cafe was later moved to 1912 Pike Place
Market; never to be relocated again. During this time, the
company only sold roasted whole coffee beans and did
not yet brew coffee to sell. The only brewed coffee served
in the store were free samples. During their first year of
operation, they purchased green coffee beans from
Peet's, then began buying directly from growers. In 1976,
they opened their very first store at 2000 Western
Avenue, bought green coffee beans from Peets, and
started their coffee roasting business. It all started with a
passion for fresh coffee.
After ten years of Starbucks history a man named Howard
Schultz, who was a sales representative for one of
Starbucks suppliers, Hammerplast, became fascinated
with the coffee roasting company, and the amount of
plastic brewing thermoses that they were ordering. In
1982, Jerry Baldwin hired him as head of management. A
few years later, Howard Schultz attended an international
housewares show in Milan, Italy. It was at this moment
during Starbucks history that the concept of what the
company is today was born. Schultz discovered the
passionate coffee culture in Italy, and as he sipped his
first cup of caffe latte in Verona, Italy, he noticed at how
customers would drink coffee for hours, socialize, study or
read, and enjoy the trendy coffee house surroundings. He
wanted to bring the same concept to the U.S. and he
believed in its potential to bring Starbucks to the next
level. Starbucks went back to basics, and they
approached the basics with a science and intensity that
no one has ever done before. The rest is history.

In August 2003, Starbucks opened its first store in South

America in Lima, Peru. In 2007, the company opened its
first store in Russia, ten years after first registering a
trademark there. In March 2008 they purchased the
manufacturer of the Clover Brewing System. They began
testing the "fresh-pressed" coffee system at several
Starbucks locations in Seattle, California, New York and
Boston
In early 2008, Starbucks started a community website, My
Starbucks Idea, designed to collect suggestions and
feedback from customers. In May 2008, a loyalty program
was introduced for registered users of the Starbucks Card
(previously simply a gift card) offering perks such as free
Wi-Fi Internet access, no charge for soy milk & flavoured
syrups, and free refills on brewed drip coffee or tea. In
2009, Starbucks began testing its mobile app for the
Starbucks card, a stored value system in which
consumers access pre-paid funds to purchase products at
Starbucks. In November 14, 2012, Starbucks announced
the purchase of Teavana ( a specialty tea and tea
accessory company) for $620 million in cash on
December 31, 2012.
On February 1, 2013, Starbucks opened its first store in
Ho Chi Minh City, Vietnam, and this was followed by an
announcement in late August 2013 that they would open
a store in Colombia. The Colombian announcement was
delivered at a press conference in Bogota, where the
company's CEO explained, "Starbucks has always admired
and respected Colombia's distinguished coffee tradition
In August 2014, Starbucks opened their first store in
Williamsburg, Brooklyn. This location will be one of 30

Starbucks stores that will serve beer and wine. In August

2015, Starbucks announced that it will enter Cambodia,
its 16th market in the China/Asia Pacific region. Between
1987 and 2007, Starbucks opened on average two new
stores every day.
TARGET
Age: Young adults
Nice place to relax, chat, chilly music
Trendy coffees which present their lifestyle
Age: Middle age
Place to calm down, relax, chat, read a book
Possibility for a small (healthy) snack with a great coffee
A great third place Starbucks has appealed to such a wide
target market, it seems every product introduced will be
an instant success.
Why is Starbucks so successful?
High quality and well-designed furniture
Free WiFi to everybody
Children Corner

Develop outlets in non-high street areas and developing

cities Starbucks offers more than a high-priced coffee.
It provides an emotional experience: a retreat from a busy
day, a place to meet and share with friends, a
comfortable, daily destination. Its welcoming and homey.

That uplifting experience forms strong emotional

connections, which in turn drives repeat business.
Ultimately, customers want to feel that you care about
them.
BUSINESS COMPETITION
Why does Starbucks put so many small rivals out of
business? Here are several reasons.
Starbucks is prepared to lose money in the short run
to nail rivals.
Starbucks opens in high-concentration, clustering,
in small districts. Then it sells at prices which put
financial strain on small coffee shops.
It has a superlative range of products. Its fashionable
to say that the delightful family owned Italian place
youve been going to for years does an amazing
Espresso, but can they do a Frappucino too? Or a
skinny-mocha with foam on legs (yes, thats a thing)?
You want it, Starbucks has it.
Attention to detail. Schultz did a lot of analysis in
order to create the worlds biggest coffee retailer. In
no particular order: the tables are round to prevent
lone drinkers from feeling alone. Next time you are in
Starbucks have a good look around. Look at the
pictures, the length of the counter, the height of the
window seats, and know that everything has been
designed with scientific precision.
The language of Starbucks, tall, venti and grande,
creates a special a collegiate atmosphere, where
customers feel like members. Its a part of the

Starbucks experience. You simply cannot order "Venti

Latte" anywhere else.
Starbucks is obsessive about conducting customers
surveys on everything from the music to the dcor to
the toilets. It innovates: look at the use of first names
when ordering coffee.
It was amongst the first to adopt mobile payments
and has worked with PayPal to create its own mobile
payment app.
Its a COOL place to hang out and do business. Other
coffee shops are to bright and uncomfortable to
socialize or do business. One can go there just to
relax and use your computer. After 20 minutes you
will buy something.
Quality drinks. - Starbucks does provide a great
variety of coffee based drinks. The cups and
materials used in production are well made.
Starbucks Experience - It doesn't matter where in the
world you walk into Starbucks, you can expect the
familiar experience of coffee and the place. "
Customized Drinks - it is the only place which will
easily understand and know what one means by
"Grande half-sweet, non-fat vanilla latte".
Also, if you hang out half a day at one of their shops,
they don't mind.

COMPETITION Starbucks reported global comparablestore sales grew 6%, while competitors McDonald's
(NYSE:MCD) and Dunkin' Brands (NASDAQ:DNKN) saw
global comparable sales rise 0.5% and 1.2%, respectively.
Starbucks saw strong growth across all regions. The
Americas segment posted growth of 6%; Europe, the
Middle East, and Africa rose 6%; and China/Asia Pacific

saw comparable sales rise 7%. What this means is that

across the globe, the company is posting consistent sales
growth no matter where a Starbucks store is located.
Besides sales growth, Starbucks continues to boost
profits. The company earned $3.6 billion in revenues
during its fiscal second quarter in 2013.