Starbucks - Marketing Strategies

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CHAPTER 1 – INTRODUCTION
1.1 - Introduction of Starbucks
Starbucks, as we see today was not there from the very beginning. Starbucks has the very humble start when three coffee fanatics, Gerald Baldwin, Gordon bowker , and Ziev siegl, - opened a small coffee shop in Seattle's pike place market. Starbucks Corporation is an American global coffee company and coffeehouse chain based in Seattle, Washington. Starbucks is the largest coffeehouse company in the world, with 20,366 stores in 61 countries, including 13,123 in the United States, 1,299 in Canada, 977 in Japan, 793 in the United Kingdom, 732 in China, 473 in South Korea, 363 in Mexico, 282 in Taiwan, 204 in the Philippines, and 164 in Thailand. Starbucks locations serve hot and cold beverages, whole-bean coffee, micro ground instant coffee, full-leaf teas, pastries, and snacks. Most stores also sell 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 small bites after 4pm. Through the Starbucks Entertainment division and Hear Music brand, the company also markets books, music, and film. Many of the company's products are seasonal or specific to the locality of the store. Starbucks-brand ice cream and coffee are also offered at grocery stores. From Starbucks' founding in 1971 in Seattle as a local coffee bean roaster and retailer, the company has expanded rapidly. In the 1990s, Starbucks was opening a new store every workday, a pace that continued into the 2000s. The first store outside the United States or Canada opened in the mid-1990s, and overseas stores now constitute almost one third of Starbucks' stores. The company planned to open a net of 900 new stores outside of the United States in 2009, but has announced 300 store closures in the United States since 2008. 8

1.2 – History of Starbucks
Starbucks has always been a place where one can find the world‟s best coffees. From 1971–1976, the first Starbucks was at 1912 Pike Place Market; it then was never relocated. The company only sold roasted coffee and did not yet brew coffee to sell. During their first year of operation, they purchased green coffee beans from Peet's and then began buying directly from growers. 1970s

The first Starbucks opens. The name comes from Herman Melville‟s Moby Dick, a classic American novel about the 19th century whaling industry. The seafaring name seems appropriate for a store that imports the world‟s finest coffees to the cold, thirsty people of Seattle. 1980s

Howard Schultz joins Starbucks in 1982. While on a business trip in Italy, he visits Milan‟s famous espresso bars. Impressed with their popularity and culture, he sees their potential in Seattle. He‟s right – after trying lattes and mochas, Seattle quickly becomes coffee-crazy. 1990s

Starbucks expands beyond Seattle, first to the rest of the United States, then the entire world. After becoming one of the first companies to offer stock options to its part-time employees, Starbucks becomes a publicly traded company. 2000s

The Starbucks phenomenon continues. As of this writing, Starbucks has more than 15,000 locations in over 40 countries. In addition to our excellent coffees and espresso drinks, people now enjoy for Tazo tea and Frappuccino blended beverages. 9

1.3 – Starbucks Mission Statement
Today, Starbucks Coffee Company has outlined two mission statements; one for the company and one that defines their commitment to the environment: “To inspire and nurture the human spirit – one person, one cup, and one neighbourhood at a time” – Starbucks Coffee “Starbucks is committed to a role of environmental leadership in all facets of our business.” – Starbucks Environmental Mission Statement Along with its inspiring mission statements, principles have also been outlined to expound further on what Starbucks Coffee Company is all about. These principles were divided to highlight the entities that matter most to the company and...
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