Starbucks Marketing Plan

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Starbucks Marketing Plan

M. K.

BUS 620 Managerial Marketing

Instructor: E. O.

November 17, 2012

Abstract
The idea to open a coffee shop was inspired by English teacher Jerry Baldwin, history teacher Ziev Siegl, and writer Gordon Bowker. However, in 1988 they sold Starbucks chain to Howard Schultz who had his own coffee roaster outlet named Giornale. The name Giornale was known for selling roasted coffee beans, tea, and spices. After Howard Schultz bought Starbucks he rebranded his own company Giornale to reflect the new name as Starbucks Coffee, Tea, and Spices and began quickly expending. His first Starbucks coffee shop was opened in Vancouver Waterfront Station, Chicago, Illinois, and British Columbia and by the year of 1992 Starbucks had grown to 165 coffee shops and was available to investors on the stock market. Today, Starbucks grew to the world famous company and continue growing as the number one coffee retailer.

Starbucks Marketing Plan

Executive Summary
In 1971, Starbucks begin its journey as a small coffee shop originated in Seattle's Pike Place Market. The idea to open a coffee shop was inspired by English teacher Jerry Baldwin, history teacher Ziev Siegl, and writer Gordon Bowker. However, in 1988 they sold Starbucks chain to Howard Schultz who had his own coffee roaster outlet named Giornale. The name Giornale was known for selling roasted coffee beans, tea, and spices. It did not sell coffee drinks prior to buying Starbucks. After Howard Schultz bought Starbucks he rebranded his own company Giornale to reflect the new name as Starbucks Coffee, Tea, and Spices and began quickly expending. His first Starbucks coffee shop was opened in Vancouver Waterfront Station, Chicago, Illinois, and British Columbia. By the year of 1992 Starbucks had grown to 165 coffee shops and was available to investors on the stock market. Today, Starbucks grew to the world famous number one coffee retailer. The company has expended to 10,000 coffee shops worldwide in more than 30 countries, "925 outlets in Japan, 730 in the U.K., 314 in Mexico" including the list of counties like "Spain, France, Germany, Switzerland, Austria, Greece, Turkey, Lebanon, Jordan, Egypt, and Saudi Arabia" (Faris, 2012). In Seattle "the chain has expanded into some 11,000 locations in the U.S." (Faris, 2012). Paradoxically, though, it doesn't have even one coffee shop in Italy, the country that originally inspired Schultz into coffee business. "It was on a business trip to Milan in 1983 that Howard Schultz had the revelation on which he built his global empire" (Faris, 2012). During his visit to Italy, Schultz almost instantly realized that coffee doesn't have to be just a drink. It can be an experience. This idea was so obvious to him that he begin shaking. Schultz saw a great business opportunity in the idea of experience that could be placed between home and work as a third place where people get together to relax and enjoy relaxing and slower, yet social atmosphere. Before Starbucks, "most Americans had two places in their lives - home and work" (Tewell, Odom, & Snider, 2006). Schultz created a third place for people, "a place where they could go to relax and enjoy others, or just be by themselves" (Tewell, Odom, & Snider, 2006). To achieve even greater position in the market, Starbucks working toward larger retail expansion, service and product innovation, product development expansion and over all improved financial position so it can continue to dominate market share. Schultz believe, that success is not an entitlement it is a continues process of every day achievements. "The secret to success without hard work is still a secret" (Dr. Misner). Starbucks is working hard to succeed every day. SWOT Analyses

Strengths
• Starbucks has well organized coffee menu...
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