Case: Starbucks

1

1. Howard Schultz, current Chairman and Chief Global Strategist of Starbucks, followed various key steps in order to build today s successful and continuously growing coffee business. After a witness visit of café business to Italy, Schultz decided to implement the European elegant café spirit into Starbucks coffee house all keeping the American warmth in one coffee shop, where customers can stop by to get a coffee on their way to work, socialize, have a break, or relax after work. In addition, Starbucks has been successfully able to engrave the brand name in the customers mind by creating a strategic mission and sui generis brand values. Starbucks core values has consisted of providing a great work environment and treating each other with respect and dignity, embracing diversity as an essential component in the way they business, applying the highest standards of excellence to the purchasing, roasting, and fresh delivery of their coffee, developing enthusiastically satisfied customers all of the time, contributing positively to their communities and their environment, recognizing that profitability is essential to their future success. Starbucks created simple yet powerful tactics to put these core values into motion. First and foremost, the company has put lots of focus on training its employees to provide the best service to customers, in a way to build a long lasting relationship with this latter; bearing in mind the idea that employees are the key component in keeping the company successful; the reason for which Starbucks has been wary in selecting employees, and considered the focus on empowering them as imperative.

because the company has seen the importance of having partners who would have compatible corporate culture and core values. Last but not least. This will enable Starbucks quality to be integrated no matter where it is located.Case: Starbucks 2 Second. Starbucks was very cautious while choosing it partners. where the guests. and more geographical brand expansions. in addition to the new customers. who were not . joint ventures had to expose the brand to a wider range of customers. Furthermore. with the condition that Starbucks should keep a hands-on controlling role in all aspects of the partnerships. the partnership should represent a clear benefit for the brand and the company as a whole. so that they enjoy the coffee the way they prefer to. In addition. Behar suggested that Starbucks should be more costumer-oriented. all maintaining the commitment to preserving the authenticity of Starbucks products. the company was highly conscious during each and every step of the Starbucks brand construction that continuous profitability is the key to long-lasting success. Third. oppositely to the prior idea of educating the customer to appreciate coffee the Starbucks way. passengers and travelers. the company has been investing in high quality equipment to ensure an A to Z product and service excellence. were not exposed to the same product quality they used to experience in their usual coffee shop. Almost the same facts happened in both Starbucks partnerships with Host Marriott and United Airlines. and should rather be flexible in offering what the customers demand. 2. as it will enable them to reinvest in more modern equipment.

the famous bottled coffee beverage.Case: Starbucks interested in exploring more the Starbucks coffee. which trained these employees as if they were new Starbucks hires. hence. did not provide the same quality of products and service. Host Marriott and Starbucks collaborated to take an effective collaborative action that consisted on investing in an employeetraining program. Starbucks decided to launch an advertising campaign that had as an objective the reinforcement of the company s core values of humility. beating well established competitors such as Haagen-Dazs. Starbucks created a new line of products. This new product offered an easy-pass for Starbucks to supermarkets. In order to avoid Schultz s fears regarding the coffee quality protection that might be threatened the introduction of the Frappuccino to supermarkets. humor. by leading it towards the creation of six popular Starbucks coffee ice cream flavors that were marketed under the Starbucks brand name. which Frappuccino. As for the Dryer s joint venture. Starbucks partnership with Kraft gave a good push to Starbucks in . and this within the first month of its introduction to supermarkets. The joint ventures with Pepsi and Dryer represented an added value and 3 more success to Starbucks. This happened for the reason that Host Marriott s employees were not properly trained to be the perfect Starbucks baristas. it offered a success to Starbucks as well. Thanks to Pepsi s joint venture. Starbucks exceled in the ice cream industry. Finally. and homey feeling.

elegant people who are luxury lovers. Combining the seafaring history of coffee and Seattle s strong seaport roots. 2011). a deckhand in the classic American novel Moby dick. music. and colors. Logos: Starbucks name was inspired by Starbuck . Although Starbucks has updated its logo several times over the past 40 years. who was a 16th century Norse woodcut of a twintailed mermaid. The stores location was carefully chosen. 2011). Imagery: Starbucks customers are seen as intellectual. came out to be the representative of the old mermaid looking at that time (Steve. Starbucks is perceived to be a coffee shop that offers high quality products. Performance: In terms of performance. Judgments: Maintaining high quality products and service increases customers trust on Starbucks. as well as the stores design. 4. in a way that this latter largely benefitted from the Kraft's extensive distribution network. to create from this coffee shop a personal treat for customers. Starbucks decided to offer to its clientele the best of everything. a Siren. The logo was designed around Siren. the founders was trying to create something that contains a seductive mystery mixed with a nautical theme (Steve. In addition. through effectively in vesting in modern equipment. the Siren is always there to be the She for Starbucks. Back to the beginning of Starbucks. which increases the company s credibility . 4 3.Case: Starbucks terms of distribution. as well as being romantic and innovative.

in a warm and inviting atmosphere where customers they are home. In addition. all being comfortable and relaxed Resonance: Starbucks is company that is highly involved in the community all being actively engaged and highly committed to it. The rivalry threat was strong. it is clear that there are some similarities concerning the performance. McDonalds could also be seen as threatening fro the reason that it has been trying to take some of Starbucks stake in the market by offering lattes and cappuccinos. The Dunkin Donuts knockout trial was offering much lower prices than Starbucks. the company could not escape from competition and trials to duplicate the Starbucks experience. Being involved in various social causes of the community encourages the customers loyalty to the brand. a step that seemed to be the most threatening to this latter. especially from Dunkin Donuts that strived to create a similar atmosphere by offering WI-FI service in some of the locations. Concerning Dunkin Donuts versus Starbucks. since they both strive for realizing .Case: Starbucks Feelings: Starbucks objective is to create a unique coffee experience. However. and the unique product and service experience it provides to its customers. 5 5. as well as diversifying in their product line by offering cappuccinos and lattes. it tried to even beat Starbucks by eliminating the need for baristas through investing in machines that could produce quality cappuccino in few seconds. It should not be denied that Starbucks has stood up thanks to its core values.

in addition to the unique and inviting atmosphere it offers to its customers. 2010). and it is perceived to be more for cultivated luxurious yet relaxed people. Starbucks acts as a leader in the Coffee provider industry and a successful pioneer for corporate citizenship. 2010). as well as investing in equipment and technologies that would help in providing better products and services. or surfing in their MacBooks while having their favorite Starbucks drink. Customer can easily be taught to link these efforts with the company s image. who are willing to go and socialize in the coffeehouse. 2010). Dunking Donuts appears to be more for customers who are not at all willing to stay at the coffee house. 6. which has several different aspects including Community. 6 namely coffee machines. . and offers a much better service than Dunkin Donuts. Wellness and Diversity (Starbucks. However. relax while reading a book. Starbucks conducts a progressive corporate citizenship strategy. and has instituted recycling programs to reduce waste in their stores (Starbucks. It has been recognized as one of the 100 best corporate citizens every year since 2000 by the Corporate Responsibility Association (Starbucks. While Starbucks imagery is completely different. talking about the imagery. uses the materials that only come from suppliers who responsibly grow and ethically trade coffee. Ethical Sourcing. means for people who stop by for a quick cup of coffee. Starbucks still provides better wider product lines. Environment.Case: Starbucks availability and location convenience. Besides. To be specific. Starbucks participates in the local community service projects. and WI-FI service.

and clean product finishing process. and enjoy the same atmosphere every day. recycling product dressing. when they buy a coffee. will be accepted by customer as a friendly choice. . customer will feel the same accomplishment with Starbucks together. More importantly. and the community.Case: Starbucks 7 which has friendly atmosphere in the store with a lovely green logo. which has accomplished grateful social responsibility to the society. environment. A coffee shop.

(n. Starbucks Named One of the 100 Best Corporate Citizens.starbucks.d) . (n. So Who is The Siren.com/blog/so-who-is-the-siren Starbucks. Retrieved from http://news.starbucks.com/ article_display.d). Being Responsible Company. Retrieved from http://www.Case: Starbucks Reference Starbucks.org/beyondhigher-education/businesses/starbucks Starbucks Newsroom (2010. (n.d). Retrieved from http://unai-globalcitizenship. Retrieved from http://www. March 2).com/responsibility Starbucks.starbucks.cfm?article_id=331 8 .