Starbucks began as a small coffee shop in 1971 and has since grown into a global brand with over 16,000 locations worldwide. The company aims to establish itself as the most recognized brand globally through its focus on coffee quality, creating a third place experience in its stores, and innovation. While facing competition, Starbucks is expanding its retail presence internationally and developing new products to continue its long-term goal of dominating the specialty coffee market.

1. Peer PEER SHMELZER MORATINMKTG 6000MAY 2011PSTARBUCKS

2. TABLE OF CONTENTS2Coffee Statistics 3Starbucks’ History 4Starbucks’ Mission 5Starbucks’ Vision 6Starbucks’ Six Principles 7Starbucks’ Unconventional Marketing Strategy 8Starbucks Expansion Strategy 11SWAT Analysis 12Competitors 16Starbucks Today 17Summary 19Works Cited 20

3. Coffee StatisticsSpecialty coffee sales are increasing by 20% per year and account for nearly 8% of the 18 billion dollar U.S. coffee market.

4. Among coffee drinkers the average consumption in the United States is 3.1 cups of coffee per day.

5. 50% of the population, equivalent to 150 million Americans, drink espresso, cappuccino, latte, or iced/cold coffees.

6. Independent coffee shops equal $12 billion in annual sales.

7. At the present time there are approximately 24,000 Coffee Shops across the country. Statistics show there will be approximately 50,000+ Coffee Shops by the year 2011.

8. Americans consume 400 million cups of coffee per day making the United States the leading consumer of coffee in the world.3

9. Starbucks’ HistoryStarbucks opened its first store in 1971 in the Pike Place Market in downtown Seattle.In 1987 Starbucks opens its first stores outside of Seattle area in Chicago and Vancouver, B.C. 1996 Starbucks joins with Pepsi-Cola to begin selling bottled Frappuccino coffee drink , and also opens its first store outside of North America in Japan. 2002 Starbucks enters into licensing agreements with national Fair Trade organizations to sell Fair Trade Certified coffee in the countries where Starbucks does business. By 2009 Starbucks becomes the world’s largest buyer of Fair Trade Certified coffee.4

10. Starbucks’ Mission"To inspire and nurture the human spirit - One person, One cup, and One Neighborhood at a time."5

11. Starbucks’ Vision“Establish Starbucks as the most recognized and respected brand in the world."6

12. Starbucks’ Six Principles Provide a great work environment and treat each others with respect and dignity.

13. Embrace diversity as an essential component in the way they do business.

14. Apply the highest standards of excellence to the purchasing, roasting and fresh delivery of their coffee.

15. Develop enthusiastically satisfied customers all of the time.

16. Contribute positively to their communities and their environment.

17. Recognize that profitability is essential to their future success.7

18. Starbucks’ Unconventional Marketing Strategy Starbucks chose an unconventional marketing strategy that may be unique and seldom-tried, that will most perfectly match the concept that the company wants to portray.Perfect Cup of Coffee- Emphasis on product quality. Their coffee, even though priced slightly more expensive than expected, is notorious for satisfying customers with its rich, delicious taste and aroma.Third Place- Creating this unique and relaxing “experience” and “atmosphere” for people to go to between home and work has been very important for the company as they realized that this is one of the strongest concepts attached to the company, to which customers have been strongly attracted.8

19. Starbucks’ Unconventional Marketing Strategy Customer Satisfaction–From the entrance to the store to the very last drop of their coffees, it is a must that customers feel the uniqueness of enjoying their Starbucks coffee experience. Creating a Starbucks Community- The Starbucks marketing strategy has even expanded to create a community around their brand. On their website, individuals are encouraged to express their experiences with Starbucks history, and the company strives to “personally” join in the discussions. Smart Partnerships-Starbucks Coffee Company has been known to create strategic partnerships that demonstrate the fact that another way to grow your business is to partner smart. 9

20. Starbucks’ Unconventional Marketing Strategy Innovation- Through the years, they’ve added different flavors to their coffee, more food on their menu, and even became one of the first to offer internet capability in their stores.Brand Marketing- The Starbucks marketing strategy has always focused on “word-of-mouth” advertising and letting the high quality of their products and services speak for themselves. 10