Starbucks 's Marketing Plan For Starbucks

Starbucks is a highly known company and a predominant brand in multiple countries. The idea behind all of it was to not only serve name brand coffee but to be a third home for everyone throughout their busy days. Founded in 1985 by Jerry Baldwin and Howard S. Schultz, they settled the company in Seattle Washington. The owners found their niche in the food and drink market, and the brand of Starbucks makes each purchaser know what kind of quality they are purchasing. It has now become the world’s largest international brand and product with great success. Starbucks internal capabilities of the company help make it more successful while dealing with the external environment to find the perfect balance to create a competitive advantage and

The key elements of its organizational culture has derived from the managerial approach and concepts of Howard Schultz in making the company appeal as a global entity, while holding true to its values and mission statement. The Starbucks Mission statement is “to inspire and nurture the human spirit- one person one cup, and one neighborhood at a time. The company’s approach is to provide quality coffee, embrace diversity, connect with customers, improve their stores, be good neighbors, and reward their shareholders.” (Starbucks Coffee Company, 2013)

All this was possible due to the vision of Howard Schultz the chairman, president and chief executive officer of Starbucks who brought a little bit of Italy?s coffee bars? romance to the United States and more specifically to the Starbucks? coffee shops. Schultz wanted to ?establish Starbucks as the most recognized and respected brand in the world.? http://www.slideshare.net/malakcigar/human-resource-management-in-starbucks. This organization is very social and environment focused. It?s philosophy as described by Howard Schultz refers to ?we?ve? been building a company with a conscience for? more than four decades, intent on?the fair and humane treatment of our people as? well as the communities where we? do business, and the global environment we all? share.? This is also very symbolic, making the communities aware of the impact the organization has on the environment and the caring of its workers nurtures a trust in the relationship between the people and the organization.

Most Americans know Starbucks, the ever-present retail chain that steadily turned coffee drinking into a prominent activity. Nevertheless few know Howard Schultz, the humble CEO and genius behind Starbucks’. Schultz is credited with envisioning Italy’s “coffeehouse culture” in the United States and packaging it for mass consumption. This eccentric marketer converted a four-chain store operation in the foremost retailer of gourmet coffee in North America.

The key elements of its organizational culture has derived from the managerial approach and concepts of Howard Schultz in making the company appeal as a global entity, while holding true to its values and mission statement. The Starbucks Mission statement is “to inspire and nurture the human spirit- one person one cup, and one neighborhood at a time. The company’s approach is to provide quality coffee, embrace diversity, connect with customers, improve their stores, be good neighbors, and reward their shareholders.” (Starbucks Coffee Company, 2013)

Howard Schultz is not the only Howard to have a significant influence on Starbuck’s success. Howard Behar, the former president of Starbucks North America and Starbucks International always stressed the importance of people over profits. Behar worked at Starbucks from 1989- 2007, coaching hundreds of leaders to help the company grown into the coffee power-house it is today (Behar, 2014). Behar’s leadership approach at Starbucks was extremely people-centered, and the company held onto that philosophy after he retired. One of Behar’s famous quotes, “We’re in the people business serving coffee, not the coffee business serving people,” shows his true feelings and passion for the customer (Stallard, 2011). Behar is still loved and respected at Starbucks for his heart and passion as well as his work ethic, open-mindedness, and judgment about the world of business (Stallard, 2011). Howard Behar may not be in the coffee business anymore, but he passed on many of his beliefs and passions to Howard Schultz, current CEO of Starbucks,

Howard Schultz, ranked by Business Insider as one of the top CEO’s of the past twenty years, shaped the consumption of coffee into an experience and developed a strong brand, Starbucks, that is recognized internationally. Eight years later, after resigning in 2000, Schultz saw the company going downhill and decided to take control again, as CEO. The Starbucks creator had a vision for his company and shaped the culture by putting an emphasis on quality product and implementing the motto “employees first”. From early on, Starbucks was ahead of its time. Schultz offered healthcare for part-time and full time employees, extending this to domestic partnerships as well. Additionally, he makes an outstanding effort to employee minority workers, reimburse partial tuition and distribute employee stock options to baristas. After returning in 2008, Schultz made a controversial move of electing to send 10,000 managers to a leadership conference, which totaled over $30 million. He claims that this move was saving point for Starbucks and without it, the company surely would have failed.

Howard Schultz had the perfect plan to create a successful coffee company. He got people to pay more for a premium coffee then to just go to a local coffee shop and pay a lot less for a cheaper coffee. He did this by creating an experience around purchasing your coffee. Starbucks focused on creating relationships with its customers while providing one of the best premium coffees out there. Also being able to customize your own drink was a big success in getting people to purchase the product. A high quality coffee was one key component to Starbucks value proposition. Another was service and

Starbucks first opened in 1971 at a store in Seattle’s historic Pike Place Market. From one small store to over 19,000 coffee house, Starbucks offers the world’s best fresh-roasted whole bean coffee back then.

Starbucks started its operation in 1971 with its only store located at Seattle’s Pike Place Market. At that time, Starbucks was just a roaster and retailer of whole bean and ground coffee, tea and spices. Now,

In 1981 the director of marketing of Starbucks Howard Schultz traveled to Milan Italy, there he was amazed by the café that existed on every street corner of the city. When Schultz came back to the United States he was determine to turn Starbucks, which was just a coffee bean retailer at the time, into a café. The owners of Starbucks at the time didn’t buy into the idea so Schultz branched out, and would later make enough money from his idea to buy Starbucks from is former boss and turn Starbucks into what it is today. Today Starbucks is one of the most successful companies in the world, with over 21,366 stores worldwide. They buy coffee beans from all over the world, transport them, process them and get them to their store by some of the most sophisticated, and efficient logistics procedures.

Starbucks originated in Seattle, USA in 1971, by three partners, who met while they were studying together at the university. In 1984, when the sales started to decrease, while the specialty coffee sales increased. In 1987, the original owners opted to sell the coffee shop to one of their former employees by the name of Howard Schultz, who rebranded his II Giomate Coffee by the name of Starbucks and started to expand very quickly. It opened its first store in Vancouver, BC at the Waterfront Station, and another one in Chicago, Illinois, US. By the year, 1989 Starbucks had increased its stores to 46 locations. By the time Starbucks appeared on the Stock Market in 1992, it had expanded to 140 outlets with revenue of US$73.5

This particular case starts off by telling the background of Starbucks as it is today. 30 years ago, Starbucks was a single store in Seattle 's Pike Place Market selling premium roasted coffee. They decided to change their traditional customer experience in the 1980s. When the company 's director of marketing, Howard Schultz, came back from Italy, he felt enchanted with the coffee house experience of Italy. Mr. Schultz wanted to duplicate this experience in his own coffee stores.  The new strategy consisted of selling their already proven products in a tastefully designed coffee house setting. With this strategy, Starbucks became one of the best-known brands in the country in a decade. There stores became places for relaxation, reading the newspaper, holding business meetings, or even browsing the web.

Starbucks is a leading retailer and roaster for brand specialty coffee in the world. It has stores located in the United States, Canada, Europe, Asia and the Middle East. It retails a variety of hot and cold beverages, complimentary food items, coffee related accessories and equipment, and other non-food products through retail stores worldwide. More than 20 years ago, the idea of Howard Schultz to bring a European-style coffeehouse to the United States, was become real with Starbucks. Growth is the engine that keeps our company achieving its goal of being the number 1 company in the Coffee Industry.

A business trip to Milan’s famous coffee shops in 1983 opened Schultz’s eyes to the rich tradition of the espresso beverage. Schultz recalls, “What I saw was the unique relationship that the Italian people had with the ubiquitous coffee bars around Italy. People used the local coffee bar as the third place from home and work. What I wanted to try and do was re-create that in North America.”1 Inspired by the Italian espresso bars, Schultz convinced executives to have Starbucks’ stores serve coffee by the cup. And the rest is history! The company has seen phenomenal growth from 17 coffee outlets in Seattle almost 15 years back to 5689 shops in around 28 countries worldwide.