2. • 1971- Originally started in Seattle by three friends, Jerry Baldwin, Zev
Siegl, and Gordon Bowker
• 1984- Howard Shultz was hired as the director of retail operations.
• 1985- Inspired to bring the coffee house tradition to the U.S.
• Started his own chain of coffee bars II Giornale
• 1987- Shultz bought Starbucks and renamed his chain
History
3. • Starbucks was inspired by Moby Dick and was designed to evoke the
romance of the high seas and the seafaring tradition of the early
coffee traders. (Starbucks.com)
• Mission Statement: To inspire and nurture the human spirit- one
person, one cup, and one neighborhood at a time.
4. • Specialty coffees, including Espressos, Frappuccino, Cappuccino, and
Tazo Tea
• Pastries and fresh food
• Consumer products- whole bean and ground coffee, K-cups, and
bottled coffee drinks
• Holds 33% of the coffee market share
Products
5. • Starbucks charges a higher price than most coffee shops, but people
are willing to pay for the quality of the product and the service.
• Last summer the price of tall lattes went up between 15 and 20 cents.
• Their packaged coffee sold in grocery stores went up about $1 per 12
oz. bag.
Price
6. • There are currently over 21,000 stores in sixty-six different countries.
• Starbucks stores can be found in malls, airports, college campuses
Place
7. • For the majority of Starbucks’ history, the company has relied on
word of mouth to promote their products, rather than traditional
advertising.
• They strive to create brand loyalty by providing quality products and
offering a comfortable environment.
• They promote their stores as a “third home” for their customers, as a
place to hang out between work and home.
• Starbucks has gained a competitive advantage by promoting quality
over price and providing a community atmosphere.
Promotion
8. • Their main target which accounts for almost half their sales are men
and women between the ages of 25-40.
• Live in urban communities and have a professional career with a high
income.
• Starbucks markets to them by having a contemporary design and
décor that gives their product a status symbol that parallels the
lifestyles of this market.
Target Market
9. • Their second largest market are young adults, typically college
students between the ages of 18-24.
• Accounts for about 40% of sales
• Starbucks markets themselves as a cool place for college students to
meet up with friends and have a place to study and also uses the
latest social media and technology to relate themselves with their
target audience.
Target Market
11. • In 2007 Starbucks launched their first national T.V. ad.
• Used the slogan “Pass the Cheer”
• This was in response to a 1% average decline of transactions per
store.
• https://www.youtube.com/watch?v=joDRNLjddpE
Red Cup Campaign
14. • In 2010 Starbucks used Pandora
advertisements to launch a new
ad campaign called Express the
Love.
• Used to promote the
Frappuccino.
• Allowed people to customize
their own drink.
• Targeted towards 18-24 year
olds.
15.
16. • In 2014 Starbucks launched its first global campaign that is taking the
focus off of its products and is focusing on the brand image instead.
• The campaign features a mini documentary that shows footage shot
in 59 different stores in 28 countries that was all filmed in the same
24 hour time period.
17. • The purpose of the film was to
show that even though there are
so many ways we can be
connected through technology,
we are not really connected to
each other unless we are face to
face.
• https://www.youtube.com/watc
h?v=CQmVpHQ8ENs
18. • Continue improving the
Starbucks app
• Expand the menu selection
• Continue to provide a
comfortable relaxing
environment for people to
connect with each other.
Future of
Starbucks
