STARBUCKS

History of Starbucks

The first place with the name Starbucks was opened in Seattle, Washington in 1971 by
three partners: English professor Jerry Baldwin, history professor Zev Siegel, and writer
Gordon Bowker. The three, inspired by coffee entrepreneur Alfred Peet, opened their first
store selling coffee beans and machines, located in 2000 Western Avenue, from 1971 to
1976. During the first year they were exclusive customers of Alfred Peet and later Start
acquiring green coffee beans from other suppliers.

Mission:

Our mission is to inspire and nurture the human spirit. So we are committed to contributing
to the community positively from the way we buy coffee and reduce the impact on our
environment, to the way we get involved with our communities

Vision:
We want to be welcome wherever we do business. We are able to contribute positively
because we work to achieve a union between partners, customers and community to
cooperate every day.

VALUES:

► Passion

► Integrity

► Entrepreneurship

► Pride for the pursuit of success

► Respect for partners

Countries:

Starbucks is located in 63 countries, among which the USA (11,000), Canada and China are
the ones with the greatest worldwide presence.
MARKET SHARE:

INTERNATIONAL: If there is a leading chain of coffee shops worldwide, that is, without a
doubt, Starbucks, which has become the cafeteria franchise with the largest number of
stores worldwide. Specifically, it had 19,767 stores worldwide in 2013. With this data,
Starbucks becomes the absolute leader of coffee shops, although it is true that it has a direct
competitor that is going strong.

This is none other than Dunkin ’Donuts, which has 10,858 stores worldwide. After Dunkin
’Donuts, Tim Hortons is in the ranking, the Canadian chain that, in 2013, had 4,740 stores
around the world.Once off the podium, you can find chains like Costa Coffee, with 2,861
establishments; Panera Bread, which has 1,777 stores worldwide, or McCafé, with 1,600
stores around the world, although, yes, in 2012, so the figure will now be much higher,
since this formula of McDonald's is succeeding among the public and is becoming a great
rival for Starbucks.

Returning to the coffee industry and the industry leader, Starbucks not only earns large
revenues for its coffees, but also for the food they sell, since, for example, the mermaid's
coffee chain sells a wide range of food products ( both sweet and savory) and their sales
were, in 2013, 2,420 million dollars. So, as you can see, the success of Starbucks is
something totally verifiable, since it is not surprising to go through one of its premises and
see that there are always customers. This may be due to several factors, among which we
could highlight, among others: product customization; have McDonald’s inspiration; offer
an authentic experience to the consumer and a premium service and, above all, focus the
operation on the client

CLIENTES

- Socio Economic Class A, B and C +

-Men and women
- 25-45 years
- University / professionals
Business Objectives & Strategies

Before I explain their objectives let me state the “Mission Statement” of the Starbucks
Corporation Their main mission statement is “To inspire and nurture the human spirit – one
person, one cup and one neighbourhood at a time”

Starbucks holds around 33 percent of the market share for coffee in the U.S. It sells almost
as much coffee as do fast food and convenience stores combined, even though it the bulk of
its consumers are in cities or upscale suburban areas. Starbucks has been able to gain such a
large share of the market by catering specifically to a well-defined target audience.
Starbucks’ primary target market is men and women aged 25 to 40. They account for
almost half (49 percent) of its total business. Starbucks’ appeal to this consumer age group
through hip, contemporary design that is consistent in its advertising and decor, and
working to keep its products current as status symbols. Customers tend to be urbanites with
relatively high income, professional careers and a focus on social welfare. This target
audience grows at a rate of 3 percent annually.

Based on this alone you can figure out that Starbucks has the main objective of increasing
its market share as it will try (like all businesses) to expand its sphere of influence in the
market and create loyal customers, it will use more branding to upgrade its image and
market itself more of a “Status symbol” which it already is to a extent and all this helps to
achieve another objective which is to make as much as profit as possible, as they try to
increase themselves as a better brand than their rivals they will face another objective
which is providing better “Customer service” than their rivals. Also most likely they will
have the objective of growing into other countries because believe it or not, they are
countries which have little to no outlets of Starbucks and that means a untapped market
which they will try to tap into. Finally Starbucks would seek to better or adjust their core
values to create a better more positive cooperate culture.

The Business Model

Starbucks is not selling coffee, it sells time! Let me give you more detailed explanation -
you can buy coffee anywhere and probably you will get even better quality and cheaper
coffee than in Starbucks. What they want is to make sure you spend more time there, by
giving you free wifi, cosy seats, and etc. With this they create brand loyalty! - making sure
Starbucks is the first brand that comes to your mind when you want coffee and even when
you don't want coffee.

They use whole bundle of marketing strategies! Then they use positioning strategy -
making sure that they are at the right and convenient location for their target audience. If
they are not there consumer probably will go somewhere else. There are even some
crossroads where Starbucks are on each corner.

Another strategy is product line and differentiation. Basically creating lots of new drinks;
bombarding you with choices and different flavours. It is not coffee any more it is sugared
water with coffee flavour .But looks like coffee heaven in consumer's eyes.Then comes
strategic pricing. They use Profit-driven strategy - means that the company evaluates its
success at price management by what it earns relative to alternative investments rather than
by the revenue it generates relative to

Conclusion
Starbuck’s was successful, in my opinion, because it came along just at the right time
Americans were ready for a superior, full-flavored product, ready to move away from that
watered-down crap they were drinking for generations. Not only did Starbuck’s offer a
quality product, but a quality environment as well. Comfortable seating, and always a
pleasant lounge atmosphere.