Company Background
The Starbucks was started with the three coffee fanatics with Gerald Balwin, Gordon Bowker and Ziev Siegl in 1971. They open a small coffee shop in Seattle’s Pike Place Market. The shop was specialized in selling whole Arabica beans to a niche market of coffee purist. Howard Schultz joined the company in 1982, and, after a trip to Milan, advised that the company sell coffee and espresso drinks as well as beans. The owners rejected this idea, believing that getting into the beverage business would distract the company from its primary focus. A few years later, the three founders decided to sell the company to Schultz. This event led to his opportunity to experiment on Starbucks. As soon as his took over, he began opening new outlets around the country. The stores sold whole beans and premium-priced coffee beverages by the cup and served to affluent, well-educated, white-collar patrons. The main idea of creating a chain of coffeehouse is that it would become the America’s “third place” since American had two places in their live—home and work.
As soon as his took over, he began opening new outlets around the country. By 1992 the company had 140 store outlets around the Northwest and Chicago. The stores sold whole beans and premium-priced coffee beverages by the cup and served to affluent, well-educated, white-collar patrons. The same year, Schultz decided to make the company public. He was criticized by some people in that decision but despite of the criticism, he pursued raising $25 million in the process. This enabled Starbucks open more stores.
By the mid-2002, Starbucks has been established as a dominant specialty-store brand in North America. Sales were higher more than ever and now the small coffee shop is serving more than 20 million unique customers in well over 5000 stores around the globe and was opening on average three new stores a day. Today Starbucks Corporation is the leading roaster, retailer, and marketer of specialty coffee in the world, without spending almost nothing on advertising.
In 1992, Schults remained as chairman and chief global strategist in control of the company, handing over day-to-day operation to CEO Orin Smith, joined the company in 1990.
Service
Starbucks brand strategy was best captured by it mantra “live coffee”. The phrase that reflected the importance the company attached to keep the national coffee culture alive. The company has three components making the service more strategic.
Coffee itself was their first strategy. Starbucks offers a good quality coffee and believe that the coffees they offer are high-quality coffee in the world. The company have standard in every coffee and controlled as much of the supply chain as possible.
The second component was service or Starbucks referred to as “customer intimacy”. Their goal is to create an uplifting experience every time as customer walk through the store. They really make sure that the service offered to their clients are as good and satisfying so that they can have loyal customers and have the possibility of repeat purchase and visit the store 18 times a month. Service is a simple thing as recognizing the customers. Partners must know the kind of drink wanted by a loyal customer or customizing the drink just the way they like it.
Third, is the atmosphere or they refer to as the “ambience”. Customers come for coffee but the ambience of their coffee shop makes them stay. Starbucks had seating areas to encourage lounging and layouts that were designed to provide an upscale yet inviting environment for those who wanted to stay.
With their marketing strategy they have less advertising and the does not focus on the media promotion. Their only marketing efforts are their environment and the high quality coffee only. They focus more on in-store advertisements and promotions. They also have partnerships with other companies that have shared the same their values and commitment to quality.
Marketing Distribution
Almost all of Starbucks locations were company-operated stored located in high-traffic, high-visibility settings such as retail centers, office buildings and university campuses. Starbucks also sold coffee products through non-company-operated retail channel so-called “Specialty Operations”. They also have the product distribution to food-service accounts like hotels, airlines, restaurants and the like and other domestic retail store. Other revenue were came from international license stores, grocery stores, warehouse clubs and on-line order sales. Also they partnered with companies to make some novelty items to be sold in Starbucks stores
Competition
Starbucks competed against a variety of small scale specialty coffee chains, most of which were regionally concentrated. Each competitor tries to differentiate itself for the Starbucks in a different way. The company also competed against thousands of independent specialty coffee shops which some of those offers a wide range of food and beverages and others offered a satellite television or internet connected computers. Starbucks also competed against donut and bagel chains which begun offering flavored coffee and non coffee alternatives.
Customer Satisfaction
Customer satisfaction is the most important and most focus of Starbucks. Starbucks maintains high customer satisfaction. Starbuck made sure that their employees or partners are well-informed of the step and ingredient in every kind of coffee the clients wishes to have. Partners must be well-trained in order to satisfy the customer. They must deliver service with a smile and eye to eye contact. They also encourage to asked questions to their clients that require more than a yes or no answer. Starbucks “just say yes” policy empowered partners to provide the best service possible, even if required going beyond company rules but the last thing they have to do is win the argument and the customers. They also have “Customer Snapshot” which every store is visited with anonymous mystery shopper three times a quarter in order to rate the store on four “basic service” and this are service, cleanliness, product quality and speed of service to ensure customer satisfaction.
The Starbucks was started with the three coffee fanatics with Gerald Balwin, Gordon Bowker and Ziev Siegl in 1971. They open a small coffee shop in Seattle’s Pike Place Market. The shop was specialized in selling whole Arabica beans to a niche market of coffee purist. Howard Schultz joined the company in 1982, and, after a trip to Milan, advised that the company sell coffee and espresso drinks as well as beans. The owners rejected this idea, believing that getting into the beverage business would distract the company from its primary focus. A few years later, the three founders decided to sell the company to Schultz. This event led to his opportunity to experiment on Starbucks. As soon as his took over, he began opening new outlets around the country. The stores sold whole beans and premium-priced coffee beverages by the cup and served to affluent, well-educated, white-collar patrons. The main idea of creating a chain of coffeehouse is that it would become the America’s “third place” since American had two places in their live—home and work.
As soon as his took over, he began opening new outlets around the country. By 1992 the company had 140 store outlets around the Northwest and Chicago. The stores sold whole beans and premium-priced coffee beverages by the cup and served to affluent, well-educated, white-collar patrons. The same year, Schultz decided to make the company public. He was criticized by some people in that decision but despite of the criticism, he pursued raising $25 million in the process. This enabled Starbucks open more stores.
By the mid-2002, Starbucks has been established as a dominant specialty-store brand in North America. Sales were higher more than ever and now the small coffee shop is serving more than 20 million unique customers in well over 5000 stores around the globe and was opening on average three new stores a day. Today Starbucks Corporation is the leading roaster, retailer, and marketer of specialty coffee in the world, without spending almost nothing on advertising.
In 1992, Schults remained as chairman and chief global strategist in control of the company, handing over day-to-day operation to CEO Orin Smith, joined the company in 1990.
Service
Starbucks brand strategy was best captured by it mantra “live coffee”. The phrase that reflected the importance the company attached to keep the national coffee culture alive. The company has three components making the service more strategic.
Coffee itself was their first strategy. Starbucks offers a good quality coffee and believe that the coffees they offer are high-quality coffee in the world. The company have standard in every coffee and controlled as much of the supply chain as possible.
The second component was service or Starbucks referred to as “customer intimacy”. Their goal is to create an uplifting experience every time as customer walk through the store. They really make sure that the service offered to their clients are as good and satisfying so that they can have loyal customers and have the possibility of repeat purchase and visit the store 18 times a month. Service is a simple thing as recognizing the customers. Partners must know the kind of drink wanted by a loyal customer or customizing the drink just the way they like it.
Third, is the atmosphere or they refer to as the “ambience”. Customers come for coffee but the ambience of their coffee shop makes them stay. Starbucks had seating areas to encourage lounging and layouts that were designed to provide an upscale yet inviting environment for those who wanted to stay.
With their marketing strategy they have less advertising and the does not focus on the media promotion. Their only marketing efforts are their environment and the high quality coffee only. They focus more on in-store advertisements and promotions. They also have partnerships with other companies that have shared the same their values and commitment to quality.
Marketing Distribution
Almost all of Starbucks locations were company-operated stored located in high-traffic, high-visibility settings such as retail centers, office buildings and university campuses. Starbucks also sold coffee products through non-company-operated retail channel so-called “Specialty Operations”. They also have the product distribution to food-service accounts like hotels, airlines, restaurants and the like and other domestic retail store. Other revenue were came from international license stores, grocery stores, warehouse clubs and on-line order sales. Also they partnered with companies to make some novelty items to be sold in Starbucks stores
Competition
Starbucks competed against a variety of small scale specialty coffee chains, most of which were regionally concentrated. Each competitor tries to differentiate itself for the Starbucks in a different way. The company also competed against thousands of independent specialty coffee shops which some of those offers a wide range of food and beverages and others offered a satellite television or internet connected computers. Starbucks also competed against donut and bagel chains which begun offering flavored coffee and non coffee alternatives.
Customer Satisfaction
Customer satisfaction is the most important and most focus of Starbucks. Starbucks maintains high customer satisfaction. Starbuck made sure that their employees or partners are well-informed of the step and ingredient in every kind of coffee the clients wishes to have. Partners must be well-trained in order to satisfy the customer. They must deliver service with a smile and eye to eye contact. They also encourage to asked questions to their clients that require more than a yes or no answer. Starbucks “just say yes” policy empowered partners to provide the best service possible, even if required going beyond company rules but the last thing they have to do is win the argument and the customers. They also have “Customer Snapshot” which every store is visited with anonymous mystery shopper three times a quarter in order to rate the store on four “basic service” and this are service, cleanliness, product quality and speed of service to ensure customer satisfaction.
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