Starbucks Coffee
Company
Team 3:
Kelli McKinstry, Britny Livingston,
Alec Falkenhagen, Brandon Tack
The first Starbucks opened in 1971 in Seattle’s
Pike Place Market
The 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.
Differentiation
• Product Branding
• Service Quality
• Corporate Social Responsibilities
Differentiation –
Product Branding
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Unique Logo
Drink Size Names
Brewing Equipment
Music CDs
Signature Coffee Blends
Merchandizing (Mugs, Shirts,
iPhone cases, The Starbucks
Card)
Differentiation –
Service Quality
• High Service Quality
• Achieved by…
• How does Starbucks do it?
• Environment/Attitude
• Brochure
• Education
Differentiation –
Corporate Social
Responsibilities
• Committed to bettering the communities it
serves.
• Mindful of the environment
• Ethically sourced supplies
• Investment in farmers
Attracting Customers
• Marketing & Advertising
• The Target Demographic
Attracting Customers –
Marketing & Advertising
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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
Attracting Customers –
the Target Market
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Men and Women are targeted equally
Ages 25 to 40 – 49%
Ages 18 to 24 – 40%
People in cities/upscale suburban areas
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
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
Standing Out
• Pay with phone app
• Barista Education
• 87,000 drink combinations
• 30 Minutes
• 220 customers/hour
Expansion
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1971
1987
1991
1994
1996
1997
• 1999
• 2001
• 2003
First Starbucks opens in Seattle
17 stores opened, changed named to Starbucks
Opens first licensed airport store
First Drive-thru open: Total stores 425
Begins selling bottled Frappuccino
Expands the company internationally in the
Philippines
Starbucks acquires Tazo Tea
Introduces Starbucks Card
Acquires Seattle Best Coffee Company
Expansion
• 2004
• 2006
• 2007
• 2010
• 2011
• 2012
Total stores: 8,569
Launches first recycled paper beverage cup
Eliminates all artificial trans fat and makes 2%
milk - the new standard for espresso beverages
Offers free Wi-Fi; total stores: 16,858
Celebrates 40th anniversary! Introduces K-cups
Introduces Blonde roast: Total Stores: 17,651