Professional Documents
Culture Documents
• Submitted By:
• Dolly Rana
Background of Company
• Founded by Jerry Baldwin, Gordon Bowker, & Zev
Siegel in 1971, in Seattle.
• Early name was Starbucks Coffee Tea and Spice
• Sold only whole-bean coffee and coffee brewing
machine
• Howard Schultz became CEO and renamed it as
Starbucks.
• Re-image from only selling beans to be a coffeehouse
Brand
• Unique Experience
• Affordable Luxury
• A place for casual
social interaction-
Third Place
• Priority to quality –
See, touch, hear,
Smell & taste
• Providing high level
customer Services
Value
• Quality-1st preference
• Premium European coffee experience to USA
• Value simplicity over technology
• Investing in innovation
• Employees as partners and the most
• important assets
Key Success Factors
• “Third Place” – From the very beginning, the Starbucks marketing strategy
has focused on creating the “third place” for everyone to go to between
home and work. Creating this unique and relaxing “experience” and
“atmosphere” for people has been very important for the company as
they have realized that this is one of the strongest concepts attached to
the company, to which customers have been strongly attracted.
Expansion Strategy
• Increase the Market Share by
opening additional stores &
by opening new retail stores
in new market.
• Key role of Flavor Lock Bags
• All stores would be owed &
operated by company instead
of pursuing a franchise
model.
Brand Strategy
• Offering the highest quality of coffee in the world.
• Worked directly with growers in various countries to
purchase green coffee beans.
• Oversaw the roasting process and controlled
distribution to retail stores around the globe.
• Personalizing customer service, making the customer
experience personal.
• Creating a romantic atmosphere is also part of the
brand strategy.
Strong International Expansion
• Little market experience in
Europe and Latin America
• Markets:
– Asia-Pacific
– Europe, Middle East,
Africa
– Latin America
• Different cultural features
Expansion Opportunities
• Coffee consumption is rise in
the U.S. drastically.
• largest growth is among
drinkers of specialty coffee.
• An estimated, one-third of
the U.S. coffee consumption
takes place outside of the
home.
Competitors
• Main competitor- Dunkin’Donuts
• Other competitors
McDonald
Burger King
Carl’s Jr.
Dairy queen
Barista
Café Coffee Day
Qwiky’s
Ventures into new areas
• Introduced its full-fledged restaurant in Seattle under
the name of café Starbucks in 1998.
• Joe magazine the result of a partnership with
time,inc,was a major innovation launched in 1999.
Starbucks Missteps
• In 1998,Starbucks began to develop an internet
strategy as another tool to increase sales and
strengthen its brand image.
Challenges Solution
• Small Markets like • High Population &
India, china changing Life style
• Threats from • New Flavors & other
Competitors Lunch items
• Threats from • Joint Venture with
Domestic Competitors Domestic Competitors
Barriers
• International Starbucks stores were not profitable
• Consumer needs and wants in various cultures
• Consumer response of marketing mix
• Different stage of brand life cycle
• Legal environment
• Administrative procedures
Conclusion
• Main strategy to open the own retail stores all over
the world at rapid pace.
• Focus more on Customers.
• It needs to stay focused on the customer to ensure
continued success and ward off constant threats.
• It needs to capitalize on opportunities like expanding
internationally and creating additional revenue
streams.