Starbucks: Delivering Customer Service 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.
Analyzing Starbucks’ identity starts with its mission statement, “To inspire and nurture the human spirit – one person, one cup and one neighborhood at a time”. Based on their mission statement,
It is evident that there are many things being fetishized in present day. Specialty coffee has been become increasingly popular since the 1980’s. As of 2001 27 million Americans consumed specialty coffee daily (Ponte 2002:1111). It can be said that Starbucks helped create the explosion and set the environment that it drew with
To reach its current status as the largest coffee-house company in the world, Starbucks went through many changes, starting in 1982, when Howard Schultz joined the Starbucks team, setting the whole process in motion. Yet the coffee-house that we have come to know today is actually the result of an experiment carried out after Schultz took a trip to Milan, Italy, where he witnessed the potential of the local cafés culture and thought to introduce it in Seattle.
An in-depth analysis of the case: Starbucks In 1971 Starbucks started as a small coffee shop that specialized in selling whole arabica beans in Seattle’s Pike Place market. After being inspired by Milan’s coffee culture - especially the role it espresso bars played in the Italians’ everyday social lives - Starbucks opened an espresso bar in the corner of their shop. Their ideal was to create a ‘third place’ - besides home and work - where people could relax and enjoy a good cup of coffee (Moon & Quelch, 2006). Over two decades the company enlarged and served over 20 million unique customers in over 5,000 stores around the world. Their brand strategy could best be described as ‘live coffee’, which meant creating an ‘experience’ around the consumption of coffee that fitted into people 's everyday lives (Moon & Quelch, 2006). Three components were fundamental for their branding strategy. First of all, the coffee itself which should represent the highest-quality coffee in the world, derived from Africa, Central and South America, and the Asia-Pacific regions (Moon & Quelch, 2006). Secondly, the atmosphere should be inviting and make customers feel comfortable. The ambiance in stores should make customers want to stay (Moon & Quelch, 2006). Thirdly, service - customer intimacy - is a key factor within their brand strategy, which aims to create an experience for the customers, and aims at building customer loyalty (Moon & Quelch, 2006). The employees - called ‘partners’ - are
Starbucks has a corporate identity that is based around how they sell more than just coffee. They sell a lifestyle. Starbucks uses text and images to convey their lifestyle to their target audiences. They don’t use big advertisements such as television or print which makes their brand seem more personal to each customer. In our society today we use brands such as this to form our own identity and to advertise ourselves in the world.
Starbucks Case Assignment starbucks Corp., an international coffee and coffeehouse chain based in Seattle, Washington, has expanded rapidly since its opening in 1971. These outrageous success was due to its well-developed strategy vision which lay out the company's strategic course in developing and strengthening its business. Starbucks is a global corporation that sells authentic coffee in 30 countries, reporting revenues of nearly $5.1 billion in 2006. The main goal of Starbucks is to embrace diversity by applying the highest standards of excellence. Starbucks strives to perfect the relationship with the working class by making the service as fast as possible because they believe that every customer has their own personal rate. One
This revolves around ignorance, a lot of Starbucks customers do not know what the logo is depicting, let alone what the mythical background it has. The use of the mythological Siren was intended to lure and attract customers into Starbucks. Having more knowledge about the Siren makes the logo have the opposite attraction than intended. If the Siren lures men to their death, what would the coffee shop utilizing the siren do?
With time the small industry of coffee has modernized into a multibillion dollar industry that surrounds the world. With the growth of the industry there has been many world wide changes. Over the past 30 years coffee shops have jumped to the front of the public culture. New coffee shops have changes the face of American cities along with British, German, Colombian, Kenyan and Indonesia towns to name few. (Coffee a comprehensive guide to the bean, the beverage, and the industry) Around the world coffee has become part of the daily culture and coffee shops have grown to accommodate the massive demand that people ask for. Without the growth of the industry there would be a shortage of the product and many would have to go without their beloved beverage. In the United States alone there has been a massive increase in the number of coffee shops. In 1980 the number of coffee shops was a year 2,000 and by 2008 there was an astonishing 27,715. (Coffee a comprehensive guide to the bean, the beverage, and the industry) This was an increase of over ten times in the short time. 11,000 of those stores, almost half, were Starbucks one of the biggest coffee brands in the worlds. The growth of Starbucks is due to the work of Howard Schultz a worker for the company before they became as massive as they are today. Starbucks started very small in Seattle, Washington in the mid 1970’s. Howard bought out the owners and then went on to turn the small company into a massive corporation. (Coffee a
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 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 world-renowned coffee company, Starbucks, has been around since 1971, and many believe the green lady in their logo is a mermaid, however, that is incorrect. The original location of the popular coffee shop is at Pike Place Market in Seattle and because of Seattle’s environment as a town next to the sea, the company wanted to have a logo that represented that statement. This is where the siren comes in, but wait, what is a siren? In Greek Mythology, a siren was a combination of the head of a woman and body of a bird, however, as time went on, a siren also became known as a mermaid with two-twin tails. For Starbucks, coffee came from the sea, and with the connection of the siren also originating from the sea, the icon was
Dear Diary, this is Howard Schultz writing to you today. I am sitting here reminiscing about my early years at Starbucks. I remember working at Hammarplast, when my curiosity got the better of me, and I wondered why this small coffee shop was ordering so many plastic cone filters. It is worth noting, that I had no ulterior motives when visiting Starbucks in 1981. Subsequently, I was impressed with their operation, and expressed my desire to work with the company. Consequently, it took me over a year to convince them, but eventually, I was awarded the marketing director position. Then, shortly after, during a trip to Milan I discovered the romance of coffee. Interestingly, I knew that there was a way to incorporate what I learned in Milan into the Starbucks brand, I just had to convince the owners. I remember the guys rejecting some of my ideas, thinking that my style was unsuited for the laid back atmosphere. Unfortunately, I was unable to convey my vision effectively, it was never the right time or the right path for those guys. Shortly afterwards, I left to pursue my dreams, of an espresso empire. Surprisingly, a few years later, I found out Starbucks was available to purchase. Somehow, I was able to raise the capital needed to purchase Starbucks, and this is when my dream began to blossom. Thus, I always felt that, I was the only one that was able to envision what the company could be. First, I started with the employees. Moreover, I wanted the employees to feel as if
“We are not in the coffee business, serving people. We are in the people business, serving coffee”, Howard Schultz’s philosophy has shaped and continues shape Starbucks, the world’s number one specialty coffee retailer with over 21,000 outlets in more than 65 countries nowadays (Starbucks, 2011). Starbucks was founded in 1971 and Howard Schultz joined Starbucks in 1982. In 1987, Howard acquired Starbucks and changed the name to Starbucks Corporation.
Starbucks first opened its doors in Seattle’s Pike Place Market with the name being coined from that of Moby Dick’s first mate (Schultz & Yang 1999). It has spread its shops across North America, all over Europe, the Middle East, Latin America as well as the Pacific Rim with an estimated 35 million customer weekly (Michelli, 2008). With tremendous growth from a small time coffee shop, the company has matured to an international icon that today it is one of the world’s leading retailer, roaster and brand specialty coffee (Story, 1971). The company offers whole bean coffees, espresso beverages, and confectionery and bakery items.