“Starbucks”
A Complete Marketing Analysis
Organizational History
The first Starbucks was founded in Seattle, Washington by Gordon Bowker, Jerry Baldwin, and Zev Siegel in 1971. The city was noted for its coffee before World War II, but the quality of its coffee had declined so much by the late 1960’s that Gordon Bowker made trips to British Columbia, to buy his coffee beans. (Reference for Business, n.d.) He wanted a dark, delicious coffee he had discovered in Italy. Jerry Baldwin and Zev Siegl were looking for new ventures at the time and the three of them got together and built their first store located in the Pike Place Market. They picked the name Starbucks for the punchy “st” sound and its reference to the coffee-loving Moby Dick.
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Starbucks didn’t like this idea and a result Schultz left the company and wrote a business plan of his own. His parting with Starbucks had such an impact they decided to invest in his vision. In 1986 Schultz opened his first coffee bar called Il Giornale serving Starbucks coffee and it was an instant hit. A year later Schultz’s coffee bars were thriving while Starbucks was struggling. Schultz approached Starbucks and offered them $4 million for the six store Starbucks chain. In 1987 the I1 Giornale shops changed their name to Starbucks and the company became Starbucks Corporation and went public in 1992. (Reference for Business, n.d.)
In 1994 Starbucks broke into new markets in Minneapolis, Boston, New York, Atlanta, Dallas, and Houston. (Reference for Business, n.d.) In 1996 Starbucks continued their growth by venturing overseas for the first time to Japan, Hawaii, Singapore, Taiwan, Thailand, New Zealand, and Malaysia, China and South Korea, Philippines, Kuwait, Lebanon and the UK. (Reference for Business, n.d.) Growth also continued here in the U.S. with 2,200 locations by the year 2000. Starbucks rate of growth in the early 2000’s pushed the chain past the 10,000 unit mark. (Reference for Business, n.d. pg. 4) Today Starbucks is the largest coffeehouse company in the world ahead of UK rival Costa Coffee, with 21,160 stores in 63 countries and territories, including 12,067 in the United States, 1,570 in China, 1,451 in Canada, 1,070 in
Starbucks Coffee originated in 1971 as a coffee and tea café opening in a small neighborhood of Seattle, Washington (Starbucks Corporation, 2010). Starbucks continued its service for Seattle residents for a decade when the new director of retail operations and marketing, Howard Shultz, decided to make some beneficial changes to the company. After two years of employment Howard Shultz decided to expand Starbucks outside of the Seattle area. In 1987 Starbucks was entering in the coffee market and the few numbers of Starbucks were now becoming a corporation (Starbucks Corporation, 2010). Fast forwarding to current times, Starbucks is
In 1987 Howard Schultz took the opportunity to purchase the company from the original owners. He then set his goals on opening new outlets outside Seattle. By the year 1989, the popularity for Starbucks increased and Schultz was under pressure to open more stores to cash in on the public demand. Soon, Starbucks increased its stores to more than 135 outlets and was earning up to 72 million dollars. This was the same year Schultz placed Starbucks
Starbucks is dominant coffee brand in North America, which also is well-known worldwide. Established in 1971 as coffee shop oriented to a niche of coffee purists, in late 1980’s it turned to be a constantly growing chain of stores that sold whole-beans and premium-priced coffee to mostly affluent, well-educated customers. In years 1992-2002 company was showing at least 5% annual growth. And by 2002 Starbucks was serving already 20M customers in 5886 stores (both operated and licensed) around the globe, had $3.3 billion net revenues and was opening 3 new stores a day in average.
The first Starbucks opened in 1971, in Seattle’s historic Pike Place Market. The name, inspired by Moby Dick. Howard Schultz (Starbucks chairman, president and chief executive officer) had first walked into a Starbucks store. “He had a vision to bring the Italian coffeehouse tradition back to the United States. A place for conversation and a sense of community.” A third place between work and home. From the beginning, Starbucks set out to be a different kind of company. One that not only celebrated coffee and the rich tradition, but that also brought a feeling of connection. ("Company Information | Starbucks Coffee
The first shop was a great success, and, after a few years and creating his own company (“ Il Giornale”), Schultz finally acquired Starbucks in 1987, and changed its name to Starbucks
Starbucks Corporation is one of the world’s largest coffee roaster, marketer, and retailer of coffee. Some people call Starbucks as one the most success stories in the American history. In 1971, three entrepreneurs, Jordan Bowker, Zev Siegel, and Jerry Baldwin came together with $8000 and opened first Starbucks store in Seattle, WA. They were inspired by the style of roasting beans of Alfred Peet, founder of the Peet’s Coffee & Tea. They started the company with a dream of selling high-quality coffee beans and coffee machines. During their first year of operation, Starbucks used to buy the green coffee beans from Peet’s Coffee but later they started buying the coffee from coffee planters.
The first Starbucks opened in 1971 with a simple goal to sell good hot beverages, its original name was “Starbucks Coffee, Tea, and Spices”. Back then, the company was a single store in Seattle’s historic Pike Place Market. From just a narrow storefront, Starbucks offered some of the world’s fines fresh-roasted whole bean coffees. The name, inspired by Moby Dick, evoked the romance of high seas and the seafaring tradition of the early coffee traders.
The original Starbucks was founded in 1971, in Seattle’s historic Pike Place Market, by three owners Jerry Baldwin, Zev Siegl and Gordon Bowker; who later hired Howard Schultz to be their director of sales in 1982 (Sun). During one of Schultz’s trip to Italy, he saw the essence of how cozy little coffee shops on neighboring street corners played a vital role in the social life of most Italians. It was the main point for the neighborhood, where friends met, mingled
The Starbucks story began in 1971 in Seattle’s Pike Place Market, selling high-quality dark-roasted coffee in small batches. The bean roaster and retail store was originally started by three partners, Jerry Baldwin, Zev Siegel, and Gordon Bowker. The three later sold the company to Howard Schultz in 1987. Howard Schultz had a strategy and a vision for the company that established its as one of the major corporate success stories of the late 20th century. The vision of founder Howard Schultz was inspired by Italian coffee bars/beverage retailer. Having experienced the espresso and coffeehouse
In all companies, there are many strengths, weaknesses, opportunities, and threats. Starbucks is one of the world’s leading coffeehouse chain. The beginning of Starbucks was in 1971, the first store ever to open in Seattle’s Pike Place Market. Thanks to Howard Schultz the founder of Starbucks the beginning was far from the end. Schultz was bright and new that Starbucks would have a future. In 1987, seventeen stores open in Chicago and Vancouver. 1988, thirty-three stores were open, Starbucks committed to giving their employees full/part time jobs with full health benefits. In 1991, Starbucks first store in an airport, having 116 stores open at the time. 1994, 425 stores opened, first drive-thru was established. In 1995, they began selling the world’s most popular and favorite drink the Frappuccino, with 677 stores opened. 1996, the first store opened outside of North America in Japan and Singapore, having 1,015 stores. In 1998, Starbucks partnership with Magic Johnson, opened stores in underserved neighborhoods, with 1,886 stores. In 2002, the best thing any store can have is Wi-Fi, Starbucks launches free Wi-Fi in stores, over 5,800 stores. In 2006, Starbucks launches the industry’s first paper beverage cup containing post-consumer recycled fiber, with 12,440 stores opened. In 2008, Starbucks adopted a new mission statement, “To inspire and nurture the human spirit – one person, one cup, and one neighborhood at a time.” With 16,680 stores open. In 2011, launch first annual
Eventually in 1984, the owners of Starbucks, purchased Peet 's. Even though the price of coffee was decreasing, by 1986 the company operated six stores in Seattle and had really just began to sell espresso coffee (Starbucks Timeline, 2016). A year later in 1987, the original owners sold the Starbucks chain to former employee Howard Schultz. The next step for Howard was to rebrand his Il Giornale coffee outlets as Starbucks. Later in the same year,
Eventually in 1984, the owners of Starbucks, purchased Peet 's. Even though the price of coffee was decreasing, by 1986 the company operated six stores in Seattle and had really just began to sell espresso coffee (Starbucks Timeline, 2016). A year later in 1987, the original owners sold the Starbucks chain to former employee Howard Schultz. The next step for Howard was to rebrand his Il Giornale coffee outlets as Starbucks. Later in the same year,
Starbucks Corporation (SBUX) was founded in 1971, where the first Starbucks stored opened on March 30th, 1971. Starbucks was founded by Jerry Baldwin, Zev Siegel, and Gordon Bowker while attending University of San Francisco. After entrepreneur Alfred Peet taught them his style of roasting beans the three students were inspired and wanted to sell high-quality coffee beans and equipment by Peet. At first they were going to name the company Pequod, some co-founders did not like it then after they named after the chef on the Pequod “Starbucks”.
In general the coffeehouse industry in the United States was experiencing an increase in coffee consumption per capita due to the “Starbucks effect”. At this time Starbucks was operating approximately 20,000 stores in the United States and was living a fast expansion strategy worldwide.
Following its success in the United States, Starbucks ventured overseas and quickly became a globalization icon. With its rapid globalization strategy, Starbucks expanded from about 5000 stores to an estimated 15,000 stores in 2000 (Groth, 2011). By mid-2000s, Starbucks’ supply chain faced many issues, resulting with challenges of having to fulfill expansion strategies yet minimizing escalating operation expenses. By 2008, Starbucks’ stocks fell by 42% (Schultz, 2011). The rapid expansion took a toll on the sales growth and stretched the limits of the existing supply chain, which then rippled down to erode the customer-valued ‘Starbucks experience’ (Gibbons, 2011).