Starbucks Natalie Waskel Patrick Hogan Demi DiCristofano Kristyn Looper
Brand Mission To inspire and nurture the human spirit – one cup and one neighborhood at at time. Coffee has always been about quality. It’s all about the human connection. Starbucks is about the enjoyment at the speed of life – sometimes slow and savored, sometimes faster. Every store is part of a community, they take responsibility to be good neighbors seriously.
Brief Company History1970s• Starbucks opens first store in 1971 in Seattle Washington.• Named after Herman Melville’s classic novel Moby Dick.1980s• Howard Schultz joins Starbucks.• While on trip to Milan, Italy Schultz becomes so infatuated with the ideas of Milan’s espresso bars and coffee houses that he decides to bring them back to Seattle.1990s• Starbucks begins to expand to the rest of the United States and then globally.• Becomes first company to offer stock option to their part time employees.• First Starbucks opens in the Middle East in 1999.2000s• Has more than 16,000 stores in 48 countries.• Begins to offer more drinks besides coffee, such as: Tazo Tea and Frappuccinos.
Howard Schultz joins Starbucks and travels to Italy, where he comes up with the coffee house Opens 1st roasting Opens stores in idea for Starbucks. Total of 55 plant in Kent, Japan and stores. Washington. Singapore. 1971 1982-1984 1985- 1989 1991 1993 1995 1996 1987 II Giornale acquires Starbucks 1st privately owned U.S. company Begins serving and opens stores in Chicago to offer stock option. Opens 1st frappuccinos, introducesStarbucks opens 1st and Vancouver, Canada. airport store at Seattle Starbucks ice cream. Totalstore. International Airport. stores: 677. Acquires Launches Starbucks VIA Acquires Tazo Tea Introduces Ethical Seattle Coffee Eliminates all ready Brew Coffee. Co. Extends brand Coffee Sourcing Company. trans fats and Becomes the world’s largest into Grocery Stores. guidelines and Opens stores in makes 2% buyer of Fair Trade Coffee. Launches introduces StarbucksTurkey , Chile milk the new Partners with Red and Starbucks.com Card. and Peru. standard. launches iPhone apps. Total Stores: 16,635.1997 1998 1999-2000 2001 2002 2003 2006 2007 2008 2009Establishes the Has over 3,500 Establishes Launches 1st AnnouncesStarbucks Foundation. stores including Starbucks paper cup StarbucksOpen stores in the stores in: Coffee saving 750,000 Shared Planet.Philippines. Qatar, Hong Trading trees each year. Opens stores in Kong, Kuwait, and company. Argentina, Bulgar Saudi Arabia. Total Stores: ia. Czech 5,886. Republic, and Portugal.Starbucks Brief Company History Time Line
CSR Starbucks Youth Action Grants Supports young people and helps them to identify problems in their neighborhoods. Starbucks Foundation Starbucks China Education Project – supports education in China C.O.A.S.T. – aids in recovery and revitalization of the Gulf Coast Develop projects for the communities who produce Starbucks coffee, tea, and cocoa. Such as: education and agricultural training, improving biodiversity conservation and nutrition and water sanitation. Ethos Water – Which provides people in developing countries access to fresh water. (STARBUCKS) RED Every time a customer uses a Starbucks RED gift card a portion of the cost goes to people living with AIDS/HIV in Africa.
CSR continued… Create Jobs for the USA Starbucks plans to create over 2,000 jobs in the next fiscal year. Starbucks Community Stores Located in Los Angeles and New York along with 2 other nonprofit organizations. Starbucks helps to improve community education, employment, health, housing and safety. Starbucks Shared Planet Purchase ethically sourced and responsibly grown coffee to reduce environmental footprint and fight climate change. Partners with: Conservation International, Fair Trade, African Wildlife Foundation, Business for Social Responsibility, Earthwatch Institute, Ceres, United States Green Building Council, Save the Children, Sustainable Food Lab, Mercy Corps, International Youth Foundation, and Ashoka Youth Ventures.
CSR continued… Environment Develop comprehensive recycling solutions for paper and plastic by 2012 Recycling bins in front of every store by 2015 Serve 25% of beverages in reusable cups by 2015 Reduce water consumption by 25% in company-owned stores by 2015 Community Have employees, partners and costumers contribute 1 million hours of community service by 2015 Coffee purchasing and farmer support By 2015 100% of coffee should be ethically sourced Invest in farmers and their communities by increasing farmer loans to $20 million by 2015 Improve farmers’ access to carbon markets, helping them generate additional income while protecting the environment.
Observational ResearchStarbucks product in Kroger Starbucks product in Schnucks
Observational Research Starbucks Product in Marshalls
Observational Research Starbucks in Barnes & Noble
Observational Research Display Case in Barnes & NobleCustomers at the Starbucks in Barnes & Noble
Survey 102 people surveyed 71 female 31 male 44% said they were between the ages of 21-23 59% said their highest level of education is Bachelors degree
Consumer ResearchWhat brands come to mind when you think of When you think of Starbucks, what coffee? comes to mind? Coffee Pure Vida Logo Folgers Chain Stores Maxwell House Certain smell Common Grounds The color green Dunkin Donuts Expensive Seattle’s Best High quality Starbucks Seattle
Consumer Research Rank Starbucks in terms of their environment involvement and social awareness? Excellent 17 17% Terrible Poor Good 69 68%Average Average 13 13% GoodExcellent Poor 2 2% 0 10 20 30 40 50 60 70 Terrible 1 1%
Consumer ResearchDoes the way Starbucks treat theiremployees or their green initiatives Yes 42 41% influence your buying decisions? 13 No 24 24% 42 Yes 24 No Not Not Sure 35 34% Sure
Consumer Research Do you feel that Starbucks is a socially responsible company? Yes 37 36% No 12 12% 12 37 Maybe 40 39% Yes No I dont40 Maybe know 12 I dont know what that means what 12 12% that means
Consumer Research Do you feel that Starbucks gives back to the community on local and global levels? 30 Yes 56 No 15 Not Sure Yes 30 29% No 15 15% Not Sure 56 55%
Competitive Research The main competitors of Starbucks include; Pura Vida, Seattle’s Best, Folgers, Maxwell House, Dunkin Donuts, Common Grounds, Panera. Research has indicated that Starbuck’s has unreasonable prices. This information was gathered from a survey that was handed out to 102 people through social media. Although most people believe that the prices were unreasonable, there were some respondents who felt that Starbuck’s has somewhat reasonable prices. Regarding the competitors, respondents believe that they possess reasonable prices.
Competitive Research Starbuck’s is perceived as a high quality company. Although the prices seem to be unreasonable, the physical location of the stores seems to be a strong advantage of the company. Due to the prices and the experience, Starbucks is perceived to be a high quality company that focuses on a relaxing environment. When ranking Starbucks in terms of their environmental involvement and social awareness, majority of participants felt that the company is very involved. When ranking the competitors position regarding their environmental involvement and social awareness, most participants felt as though they weren’t as involved with social responsibility as much as Starbucks.
Competitive Research With response to advertising, Starbuck’s and its main competitors share the same types of media. These include; television, radio and print advertisements. Being that all of these company’s advertise through the same medium, there aren’t unique techniques in which Starbuck’s utilizes to promote its’ company. In addition to the main competitors of Starbucks, other competitors would include other socially oriented establishments where you can share a beverage and one’s company.
Competitive MatrixBrand Starbucks Folgers Maxwell Dunkin Common Panera Pura Vida Seattle’s House Donuts Grounds Best Focus on quality, Focus on Flavorful, quality Focus on quality, Focus on service, Focus on Non-profit Emphasize thePhilosophy employees, heritage, driven coffee with availability and products and tradition, quality, company that source of coffee customers and richness, and multiple types. reliability. environment. service and advocates as the most the environment. quality. environment. corporate social important part of responsibility the company. Inviting Multiple types of Multiple blends of Multiple types of Warm social Warm rich colors Beautifully Multiple blendedDesign environment, coffee with bright coffee sold in products, environment, fostered in a designed products, light warm colors, packaging large packages, packaged in quality products warm packaging with colored bagged quality products, light colors. white cups with with good service environment light colors packaging and excellent bright coloring along with great service. service. Men and women Men and women Men and women Men and women Men and women Men and women Men and women Men and womenTarget ages 18 and older. ages 24 and older ages 24 and older. ages 18-35. ages 18-23. ages 18 and older. ages 18 and older ages 21-35Audience Prices of cups of Package of Package of Prices of cups of Prices of cups of Prices range from Packages of coffee Prices of cups ofPrice coffee to bags of roasted coffee ground coffee coffee to bags of coffee range from $2.49-$8.99. range from $12- coffee to bags of roasted beans (34.5 oz) $9. (34.5 oz.) $9.99. coffee range from $2.95-$4.25. $14 coffee range from range from $1.50- $2-$9. $1.50-$8. $16. Founded in Founded in San Introduced in Founded in Founded in 2005. Founded in 1999, Founded in 1997 First introducedHistory Seattle, WA in Francisco, CA in 1892. Quincy, MA in previously known in 1982 by the 1971. 1850. 1950. as Saint Louis Stewart Brothers. Bread Company. Individual cups of Multiple types of Ground coffee, Individual cups of Individual cups of Individual cups of Natural and Individual cups ofProducts coffee, packages coffee ranging flavored coffee, coffee, packages coffee with coffee, organic coffee in coffee and of coffee, and from classic roast instant coffee. of coffee, pastry’s multiple blends sandwiches, packages. packages of coffee other café foods. to dark roast. and bagels. along with other soups, salads, and with multiple café products. other bakery blends. items.
Place Starbucks has more than 15,000 stores in more than 50 countries, including over 11,000 in the US, over 1,000 in Canada, over 700 in the United Kingdom, and over 150 in Turkey. Starbucks is also located in convenient stores such as; Krogers, Walmart and Schnucks Starbucks strives to bring both heritage and an outstanding experience to life when a customer enters any location.
Promotion Facebook Seasonal and holiday limited drinks Twitter Commercials Website Ads Hour of the day discount specials Starbucks card Starbucks reward stars Gift cards
Price Starbucks prices vary depending on the size. Starbucks sizes range from tall (small), grande (medium) and venti (large) and trenta ( X-large) . A regular coffee starts at $1.50 plus tax. Any special coffee such as; frappuccinos, espressos, cappuccinos, lattes and mochas start at $3.00 plus tax. Food prices such as; chicken sandwiches, egg salad sandwiches, and chipotle foods start at $ 3.99. Fresh fruit cups start at $2.99.
Branding Starbucks brand focuses on three components: coffee, people and stores. Starbucks has direct control over the quality and processing of the beans used to assure the highest possible quality of the coffee. The store design, atmosphere and aroma all influence to the “ Starbucks experience”. A large reason for Starbucks’ success is the fact the company is dedicated to keeping customers satisfied. There is not one strategy in which the corporation main focus is not directed at satisfying consumers.
Packaging Analysis The packaging of Starbucks comes in many different colors, styles and shapes. Most colors used for Starbucks packaging are dark, soothing earth tone colors such as; dark green, dark and light brown, dark orange, dark red and white. Green and brown symbolizes the natural products used , red and orange are used to catch the attention of the consumer and white is a classic color symbolizing the high quality of the brand.
Store Ambience Starbucks store design was inspired by viewing each store as a billboard for the company. Each component was created to emphasize the mood and atmosphere of the store, to make sure everything indicated "best of class" and that it reflected the voice of the community and the neighborhood. Starbucks worked hard to make sure the store appliances, the merchandise displays, the colors, the paintings, banners, the music, and the aromas all came together to create an alluring, positive environment that displayed the love of coffee. Starbucks banned smoking and asked employees/ baristas to abstain from wearing perfumes or colognes. Prepared foods were to be covered at all times so customers would smell the aroma of coffee only. Colorful banners and creative posters were used to living up the look of Starbucks stores and maintain a fresh environment. Promoting seasons and holidays is a way to show the customers we care.
Logo Analysis The company logo, modeled after a 15th century Norse woodcut, is a mixoparthenos, or "twin-tailed mermaid, or siren known in Greek mythology. However, there were some controversy with the logo that resulted in the logo change. The original logo, the Starbucks siren was topless and had a fully-visible double fish tail. This logo raised controversy because of the bare chest, but the logo continues to appear on some of the products like the Starbucks Anniversary Blend 1 lb. coffee bags. In the second version, her chest was covered by her flowing hair, but her navel was still visible, and the fish tail was cropped slightly. In the current version, her navel and chest are not visible at all, and only vestiges remain of the fish tails. They also removed the name of the company "Starbucks Coffee". The company’s intentions behind this, is to expand the brand beyond just coffee. They also removed the circle around the Siren and the logo now features just the Siren.
SWOT Analysis Strengths Successful and well known company. High brand recognition Multiple social responsible groups and programs. Focus on community, environmental, ethical sourcing and wellness. Community – Community Service, Youth, (Starbucks)RED, Starbucks Foundation, Ethos Water Fund Environment – Recycling, Energy, Water, Green Building, Climate Change Ethical Sourcing – Coffee, Farmer Support, Tea, Cocoa, Store Products Wellness – Improving the health in communities by providing balanced food and beverage options to consumers.
SWOT Analysis Weaknesses Starbuck’s products appear to be relatively expensive. Low awareness of social responsibility and environmental awareness. Large amount of socially responsibility competitors Opportunities - Low awareness of social responsibility encourages more awareness among consumers. - Popularity continues to grow. - Low frequency and exposure among advertising channels. Threats - Multiple competitors. - Lower exposure in stores. - Economic downfall.
Objectives Sales Objectives We hope to increase the sales of Starbucks by at least 20% in the next fiscal year. As well as raising the awareness of Starbucks’ social responsibility by at least 20%. We will compare our increase in sales and social responsibility to our competitors such as Panera Bread and Folgers.
Advertising Analysis Starbucks has come a long way with advertising their brand name. Starbucks started off from having no ads, commercials, billboards and posters to having very creative commercials, billboards and ads. Starbucks also has a facebook page, twitter account and website. These social networks allow the consumers to stay updated on the company as well as promotions.
Advertising Objectives The target audience is 18-25 year olds both male and female. The target audience is college educated. When purchasing coffee they are mostly concerned with price and quality of their coffee. The overall message will be to raise awareness of Starbuck’s involvement with social responsibility with raising the companies revenue as well.
Media Objectives We aim to target our bulk advertisements to primary and secondary audiences. Primary: Females 18-25 Secondary: Males 18-25 We aim to increase social responsibility awareness by 20% in the Chicagoland area. By involving multiple media outlets we hope to gain more attention and increase sales through events around Chicago using guerilla marketing, social networking, the auto show, taste of Chicago, various sports events and lollapalooza.