Starbucks doesn’t only takes great care in their partners (employees) but also in their stockholders. Starbucks has paid out dividends to their stockholders every quarter over the last 4 years (Dividend History, n.d.). Currently the dividend rate is $0.32 per share quarterly (Dividend History, n.d.). This is pretty impressive considering not all companies chose to pay out dividends quarterly or yearly and Starbucks have provided payouts quarterly for the past 4 years straight.
Starbucks has also been able to create other changes in the company outside of the ones they have made with their partners. When the Keurig coffee maker became popular, Starbucks created the Verismo. In adding the Verismo to their portfolio it made it possible for them to stay competitive with the Keurig coffee makers. Now people can make premium Starbucks coffee at home using the Verismo. Starbucks also created different models of the Verismo to appeal to their different target markets. They continued their modern, sleek and stylish traits when creating the Verismo, with different color options and sizes with different price points. With adding the Verismo brewing machines, they added the Verismo pods which are the equivalent to the Keurig’s k-cups. They made the pods and brewing machines available in their retail stores, online through their website and at other retailers such as Bed Bath and Beyond, William & Sonoma, Target and many more. This has helped to keep Starbucks in the game and on the
Starbucks recently unveiled a new single-serving home brewer. Starbucks has always made their coffee available at home. They were presently offering their coffee beans for home brewing; sells premixed bottled frappuccinos; and recently started selling Via which is instant Starbucks coffee. So, being able to brew Starbucks’ coffee at home isn’t a new concept. However, now Starbucks has an added twist with its new top notch coffee system, the Verismo. The Verismo is in alignment with Starbucks’ commitment to bring exceptional coffee and espresso beverages to their customers. In fact, in being able to offer customers these products at home, Starbucks has once again raised the bar (Starbucks Newsroom, 2012).
Starbucks advertises two essential mission statements. First and foremost, it strives to “establish [ourselves] as the premier purveyor of the finest coffee in the world while maintaining our uncompromising principles while [we] grow(s).” (Starbucks) Reflective of its mission, Starbucks bases its strategic campaign and communications on six indispensable philosophies; structuring a pleasant work environment in which employees are treated with “respect and dignity,” incorporating diversity in all business aspects, purchasing, roasting and delivering fresh coffee, retaining satisfied customers, giving back to the community and environment, and developing
Now a days, I like to think that Starbucks is one of the most recognized specialty coffee brands in the world. With numerous locations in over 62 countries, (Starbucks Annual Report, 2013) most of them located in shopping centers and airports, it makes it difficult to drive a few miles without coming across one of their many locations. Starbucks is not only a premier roaster, marketer and retailer of specialty coffees, they also have many other brands within their portfolio: Teavana, Tazo, Seattle’s Best Coffee, Starbucks VIA, Starbucks Refreshers, Evolution Fresh, La Boulange and Verismo (Starbucks Annual Report, 2013). Starbucks, as you can see is not just coffee, they offer quality food items, coffee accessories and teas. They also sell whole bean and ground coffees, premium Tazo-branded single serve products, and other branded products sold worldwide through grocery stores, warehouse clubs, convenience stores and specialty retailers (Starbucks: About Us, n.d.).
Starbucks is a Corporation, products provided by SB include a range of in-store, out-store, and on the go. They provide Coffee (More than 30 blends and single-origin premium coffees), Handcrafted Beverages (Fresh-brewed coffee, hot and iced espresso beverages Frappuccino coffee and non-coffee blended beverages, Starbucks Refreshers, smoothies and tea, Merchandise (Coffee-and-tea-brewing equipment, Verismo System by Starbucks, mugs and accessories, Fresh Food (Baked pastries, sandwiches, salads, salad and grain bowls, oatmeal, yogurt parfaits and fruit cups, Coffee & Tea (Whole bean and ground coffee, K-cup, Tazo Tea, filter bags, Ready-to-Drink (Starbucks bottled Frappuccino coffee drinks, Iced coffees and juiced teas.
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
One company that has been particularly successful in creating an overall company image in my option has been Starbucks. They have been able to maintain a dominant position in today’s market. Where in the morning most of our society needs a good cup of coffee in order to start their day. At one point, we looked at Starbucks as a high-end marketer. A sort of club to belong to. However, things managed to change in the recent years where a 4.00 cup of coffee was becoming a luxury items. This became known as the Coffee Wars. Starbuck had to now face competition from the fast food world. Which was McDonald’s and Dunkin’ Donuts. They started to look at this market as an opening to gain more customers. They started to offer their
Starbucks had is beginning in Seattle, Washington in 1971 by Jerry Baldwin, Gordon Bower and Zev Siegl. These three friends just had a love for dark roast, European styled coffee. They sat out to make sure that they offered better tasting coffee than Folgers and Maxwell House. These owners had a vision that show customers about fine coffees and wines. They made sure they had the best of the best coffee beans only importing from Sumatra, Kenya, Ethiopia and Costa Rica. The owners even made sure that they used the correct coffee pots and equipment that wouldn’t alter the flavor of the coffee. Howard Schultz joined in the company in 1982. He was just a customer at first but something far greater in the company and decided that he had to act on it. When Schultz originally requested to join the company he was rejected. After more than a year of wanting to join Schultz came on board as the marketing director for Starbucks. After going on a trip to Milan, Italy Schultz vision for the Starbucks company had become clear. He wanted to give the people something more than just fine tasting coffee. Schultz loved the idea of coffee bars baristas and customers interacting together. The connection to the people who love coffee did not have to take place only in their homes, where they ground and brew whole-bean coffee. He wanted to turn the Starbucks name into an official coffee bar. His bosses were not too fond of this idea. It just would be too much of a risk for them. They were too
Starbucks is the world’s largest coffee roaster and retailer of specialty coffee in the world. We have enjoyed great dividend returns over the past 5 years, and our growth has been on the rise. We are currently saturating the US market, while the emerging markets of developing countries offer many possibilities for growth and increased revenues. In our US market we should look at offering more items on the menu that complement our long-standing tradition of pleasing our customers. Exotic Juices, and snacks served with the same service could add a nice margin to the bottom line. In addition, the ability to offer a drive through service for the consumer that loves fine coffee but does not have the time to stop
I. The company that I will be working on is Starbucks. The company's business is based on coffee. The core business is in the quick service food sector, with a coffeeshop focus. QSR Magazine ranks Starbucks as the 3rd-largest firm in the US in the industry, and the largest with a coffee focus. The company also has retail and institutional businesses, marketing coffee in a variety of formats both to consumers via grocery outlets and to hotels and other institutional buyers.
Starbucks valued simplicity and quality over technical mediocrity; in other words, Howard Schultz wanted to position Starbucks as a traditional coffee company, aligning with the coffee industries of Italy, Sumatra, and Ethiopia which are known for producing high-quality coffee. He also recognized that convenient store locations were very important to the customers, in conjunction with great service. In addition, Schultz put emphasis on innovation; “innovation” did not necessarily mean technology as far as the coffee making process is concerned, but Starbucks did innovate in packaging to protect the flavor and freshness of the coffee beans.
Starbucks is diversifying into other related industries including bottled water, and even the music retailing industry. When a customer enters a Starbucks, they get a wide choice of many different types of products. They provide bagels, souvenirs, pastries, yogurt, wraps, fruit, Frappuccino, Espressos, Tazo teas, and many other items. Starbucks uses contemporary design of all promotional, web-related, and other material to keep it appealing to young generations. This contemporary look and feel is unified throughout all their material, so even the older target segments will feel younger when they drink your coffee.
As Mr. Todd Coffee requested, I will state the history of the Starbucks logo, the potential risk of logo redesign, and other branding successes and failures in detail through this summary report. To be more acceptable and popular, Starbucks has redesigned its logo five times since original image. To be more beneficial, the branding team of Starbucks plans to explore another logo update soon. Hence, I offer this report to help them to know the detailed information about logo redesign and to make the final decision on whether or not Starbucks should update its logo again.
I would initially bring back the appeal of the coffee shop feel/experience that has been lost due to the increased changes and modifications. I would essentially phase out the drive through windows as it takes away from the experience of the coffee shop atmosphere and the luxury feel you gain when you sit inside the coffee shop to drink your beverage. In addition, Starbucks drive-throughs are at times very extensive due to early morning rush and the brand loyalty. However, I believe that if I were to keep the drive through I would enhance it and make it into a dual drive through with added features in the lines in which you ordered from. For instance, basic Starbucks coffee would entail one line and specialty coffees would be another lane in the drive through. Furthermore, I would want to eliminate the fast food appeal that Starbucks now gives off and incorporate more of a luxury atmosphere and time for increased social experiences and networking. Likewise, I would place Starbucks brand in locations that catered to younger audiences such as schools and create a smaller version coffee shop for students to enjoy while on breaks or lunch. Younger audiences tend to enjoy flavored coffee almost more than older adults.
can order and pay for their drinks in a flash while stacking up rewards for each purchase made. This Strategy has significantly drawn people to Starbucks due to its highly anticipated services, products, and marketing strategies that differ from most fast food restaurants. The next service is the Starbucks webpage where the customers can go onto the site and view product and also make purchases. This service is quite excellent for those that want to checkout items online through the site, because it incorporates a similar process as the application on your smartphone. Starbucks also incorporates equipment and drinkware to their massive line of products. First their Drinkware consists of cups and mugs that are affordable to the customers. These cups come in many colors and aesthetic values, which make people interested in purchasing. Starbucks had the right idea when they decided to manufacture these cups out to their customers because not only were they a huge success for the business, but it also made Starbucks distribute more merchandise. Cold cups, which were from stainless steel containers. These containers made a rise once the popularity rose for other merchandise. These containers were sold very often to customers and once again made a surprise since it was from the same line of cups and mugs category. As more popularity grew in their products so did the equipment used to make customers coffee. First Starbucks decided to manufacture coffee makers, presses, and expresso
The case was about the product objectives and strategies associated with Starbucks. The author went further by providing the audience with some history of the arrival of this particular coffee brand within the United States. The company’s vision was to be a coffee shop initially out of Seattle Washington. However, the growth within the business sector flourished becoming one of the largest retail coffee shops in the world. Starbucks provided Americans with a rich brand of coffee. When analyzing the issues that Starbucks was encountering one must understand product selection. Some of the key elements of this process are to have the ability to figure out that creating anything one must plan and be willing to put forth the effort for implementing those plans into action. For example, Starbucks started off with the idea of making a profit like most businesses. Their original vision was slightly altered due to the decline in company sales and stock. Proving that more stores does not always reflect a higher rate of success. Instead of being known for their contributions to the industry, the company quickly became known for their lack of ability to stay afloat and a prosperous business. This notion tarnished the company’s reputation. These factors caused Starbucks to go through several changes to re-establish their reputation in the public’s eyesight. Therefore, they begin this process by making disciplined expansion decisions. Instead of trying to open new stores, the