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Starbucks Coffee Company

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  1. Starbucks Coffee Company Team 3: Kelli McKinstry, Britny Livingston, Alec Falkenhagen, Brandon Tack

  2. History The first Starbucks opened in 1971 in Seattle’s Pike Place MarketThe name, inspired by Moby Dick, evoked the romance of the high seas and the seafaring tradition of the early coffee traders.In 1981, Howard Schultz, CEO of Starbucks had first walked into a Starbucks store. Howard was drawn into Starbucks and joined a year later.Today, with more than 18,000 stores in 62 countries, Starbucks is the premier roaster and retailer of specialty coffee in the world.

  3. Differentiation • Product Branding • Service Quality • Corporate Social Responsibilities

  4. Differentiation – Product Branding • Unique Logo • Drink Size Names • Brewing Equipment • Music CDs • Signature Coffee Blends • Merchandizing (Mugs, Shirts, iPhone cases, The Starbucks Card)

  5. Differentiation – Service Quality • High Service Quality • Achieved by… • How does Starbucks do it? • Environment/Attitude • Brochure • Education

  6. Differentiation – Corporate Social Responsibilities • Committed to bettering the communities it serves. • Mindful of the environment • Ethically sourced supplies • Investment in farmers

  7. Attracting Customers • Marketing & Advertising • The Target Demographic

  8. Attracting Customers – Marketing & Advertising • How is Starbucks set apart from others? • Commercials • Humor • 14 words • GO GREEN • Staying Modern • Gift cards • Rewards cards • Birthday Rewards • IPhone and Android Apps

  9. Attracting Customers – the Target Market Men and Women are targeted equally Ages 25 to 40 – 49% Ages 18 to 24 – 40% People in cities/upscale suburban areas

  10. Starbucks – Staying On Top The Strategy: Helping People Connect Free WiFi internet in every location In-Store Music Sociable Atmosphere Large Tables to Accommodate Groups and Business Meetings

  11. The First Mover Advantage • Before Starbucks only 200 coffee shops were open in the US • Established brand recognition • Established a niche market • First mover in mobile transactions • 26 million transactions to date on mobile app

  12. Standing Out • Pay with phone app • Barista Education • 87,000 drink combinations • 30 Minutes • 220 customers/hour

  13. Expansion • 1971 First Starbucks opens in Seattle • 1987 17 stores opened, changed named to Starbucks • 1991 Opens first licensed airport store • 1994 First Drive-thru open: Total stores 425 • 1996 Begins selling bottled Frappuccino • 1997 Expands the company internationally in the • Philippines • 1999 Starbucks acquires Tazo Tea • 2001 Introduces Starbucks Card • 2003 Acquires Seattle Best Coffee Company

  14. Expansion • 2004 Total stores: 8,569 • 2006 Launches first recycled paper beverage cup • 2007 Eliminates all artificial trans fat and makes 2% milk - the new standard for espresso beverages • 2010 Offers free Wi-Fi; total stores: 16,858 • 2011 Celebrates 40th anniversary! Introduces K-cups • 2012 Introduces Blonde roast: Total Stores: 17,651