This Module 1 SLP will be the first part of an in-depth market analysis. The company I have chosen is Starbucks Coffee Company. The first Starbucks opened in 1971 at Pike Place market in Seattle, WA. Eleven years later, Howard Schultz was hired by the company to be the director of retail operations and marketing. The first Starbucks with the current coffee house look and feel was opened in 1984 in downtown Seattle. The Starbucks headquarters is still located in Seattle, WA. Currently, Starbucks is relying on retail expansion, product innovation, and service innovation to achieve this long-term goal once set by current chairman Howard Schultz: “The idea was to create a chain of coffeehouses that would become America’s “third place.” At the time, most Americans had two places in their lives – home and work. But I believed that people needed another place, a place where they could go to relax and enjoy others, or just be by themselves. I envisioned a place that would be separate from home or work, a place that would mean different things to different people.” MISSION STATEMENT.
Starbucks Coffee Mission Statement:
"Our mission: to inspire and nurture the human spirit – one person, one cup and one neighborhood at a time." To accomplish its mission, Starbucks has principles that guide all of its employees as they go about their daily business: (Website, 2011) •Our Coffee – It has always been, and will always be, about quality. •Our Partners – We always treat each other with respect and dignity. And we hold each other to that standard. •Our Customers – When we are fully engaged, we connect with, laugh with, and uplift the lives of our customers – even if just for a few moments. •Our Stores – It’s about enjoyment at the speed of life – sometimes slow and savored, sometimes faster. Always full of humanity. •Our Neighborhood – We can be a force for positive action – bringing together our partners, customers, and the community to contribute every day. •Our Shareholders - We are fully accountable to get each of these elements right so that Starbucks – and everyone it touches – can endure and thrive. (Website, 2011) PRODUCTS, GOODS, or SERVICES
Starbucks stores offered a choice of regular or decaffeinated coffee beverages, a special "coffee of the day," and a broad selection of Italian-style espresso drinks. In addition, customers could choose from a wide selection of fresh-roasted whole-bean coffees (which could be ground on the premises and carried home in distinctive packages), a selection of fresh pastries and other food items, sodas, juices, teas, and coffee-related hardware and equipment. In 1997, the company introduced its Starbucks Barista home espresso machine featuring a new portafilter system that accommodated both ground coffee and Starbucks' new ready-to-use espresso pods. Power Frappuccino—a version of the company's popular Frappuccino blended beverage, packed with protein, carbohydrates, and vitamins—was tested in several markets during 1997; another promising new product being tested for possible rollout in 1998 was Chai Tea Lattè, a combination of black tea, exotic spices, honey, and milk. (Ward, 2011) The company's retail sales mix Is roughly 61 percent coffee beverages, 15 percent whole-bean coffees, 16 percent food items, and 8 percent coffee-related products and equipment. The product mix in each store varies, depending on the size and location of each outlet. Larger stores carry a greater variety of whole coffee beans, gourmet food items, teas, coffee mugs, coffee grinders, coffee-making equipment, filters, storage containers, and other accessories. Smaller stores and kiosks typically sell a full line of coffee beverages, a limited selection of whole-bean coffees, and a few hardware items. In recent years, the company began selling special jazz and blues CDs, which in some cases are special compilations that have been put together for Starbucks to...