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. Its 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 History

1970s
Starbucks opens first store in 1971 in Seattle Washington. Named after Herman Melvilles classic novel Moby Dick. Howard Schultz joins Starbucks. While on trip to Milan, Italy Schultz becomes so infatuated with the ideas of Milans espresso bars and coffee houses that he decides to bring them back to Seattle. 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. Has more than 16,000 stores in 48 countries. Begins to offer more drinks besides coffee, such as: Tazo Tea and Frappuccinos.

1980s

1990s

2000s

Howard Schultz joins Starbucks and travels to Italy, where he comes up with the coffee house idea for Starbucks.

Total of 55 stores.

Opens 1st roasting plant in Kent, Washington.

Opens stores in Japan and Singapore.

1971

1982-1984 19851987

1989

1991

1993

1995

1996

Starbucks opens 1st store. Acquires Tazo Tea Co. Extends brand into Grocery Stores. Launches Starbucks.com

II Giornale acquires Starbucks and opens stores in Chicago and Vancouver, Canada.

1st privately owned U.S. company to offer stock option. Opens 1st airport store at Seattle International Airport. Acquires Introduces Ethical Seattle Coffee Eliminates all Coffee Sourcing trans fats and Company. guidelines and makes 2% Opens stores in introduces StarbucksTurkey , Chile milk the new Card. standard. and Peru.

Begins serving frappuccinos, introduces Starbucks ice cream. Total stores: 677. Launches Starbucks VIA ready Brew Coffee. Becomes the worlds largest buyer of Fair Trade Coffee. Partners with Red and launches iPhone apps. Total Stores: 16,635.

1997

1998

1999-2000

2001

2002 2003

2006

2007

2008

2009

Establishes the Starbucks Foundation. Open stores in the Philippines.

Has over 3,500 stores including stores in: Qatar, Hong Kong, Kuwait, and Saudi Arabia.

Establishes Starbucks Coffee Trading company. Total Stores: 5,886.

Launches 1st paper cup saving 750,000 trees each year.

Starbucks Brief Company History Time Line

Announces Starbucks Shared Planet. Opens stores in Argentina, Bulgaria. Czech Republic, and Portugal.

Corporate Social Responsibility

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 Research

Starbucks 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 & Noble

Customers at the Starbucks in Barnes & Noble

Consumer Research

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 Research
What brands come to mind when you think of coffee?
When you think of Starbucks, what comes to mind?

Coffee Logo Chain Stores

Pure Vida Folgers Maxwell House Common Grounds Dunkin Donuts Seattles Best Starbucks

Certain smell
The color green Expensive High quality Seattle

Consumer Research
Rank Starbucks in terms of their environment involvement and social awareness?
Excellent
Terrible Poor Average Good Excellent 0 10 20 30 40 50 60 70

17 69 13 2 1

17%

Good Average Poor Terrible

68%

13% 2% 1%

Consumer Research
Does the way Starbucks treat their employees or their green initiatives influence your buying decisions?
13

Yes
No

42
24 35

41%
24% 34%

42 24

Yes

No
Not Sure

Not Sure

Consumer Research
Do you feel that Starbucks is a socially responsible company?
Yes No
12 37 Yes

37 12 40

36% 12% 39%

Maybe
No
Maybe

40 12

I don't know what that means

I don't know what that means

12

12%

Consumer Research
Do you feel that Starbucks gives back to the community on local and global levels?
30 Yes No 15 Not Sure

56

Yes No Not Sure

30 15 56

29% 15% 55%

Competitive Research

Competitive Research
The main competitors of Starbucks

include; Pura Vida, Seattles Best, Folgers, Maxwell House, Dunkin Donuts, Common Grounds, Panera.

Research has indicated that Starbucks

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 Starbucks has somewhat reasonable prices. Regarding the competitors, respondents believe that they possess reasonable prices.

Competitive Research

Starbucks 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 werent as involved with social responsibility as much as Starbucks.

Competitive Research
With response to advertising, Starbucks and its

main competitors share the same types of media. These include; television, radio and print advertisements. Being that all of these companys advertise through the same medium, there arent unique techniques in which Starbucks 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 ones company.

Competitive Matrix
Brand Philosophy Starbucks
Focus on quality, employees, customers and the environment.

Folgers
Focus on heritage, richness, and quality.

Maxwell House
Flavorful, quality driven coffee with multiple types.

Dunkin Donuts
Focus on quality, availability and reliability.

Common Grounds
Focus on service, products and environment.

Panera
Focus on tradition, quality, service and environment.

Pura Vida
Non-profit company that advocates corporate social responsibility

Seattles Best
Emphasize the source of coffee as the most important part of the company.

Design

Inviting environment, warm colors, quality products, and excellent service. Men and women ages 18 and older. Prices of cups of coffee to bags of roasted beans range from $1.50$16. Founded in Seattle, WA in 1971. Individual cups of coffee, packages of coffee, and other caf foods.

Multiple types of coffee with bright packaging

Multiple blends of coffee sold in large packages, light colors.

Multiple types of products, packaged in white cups with bright coloring

Warm social environment, quality products with good service

Warm rich colors fostered in a warm environment along with great service. Men and women ages 18 and older. Prices range from $2.49-$8.99.

Beautifully designed packaging with light colors

Multiple blended products, light colored bagged packaging

Target Audience Price

Men and women ages 24 and older Package of roasted coffee (34.5 oz) $9.

Men and women ages 24 and older. Package of ground coffee (34.5 oz.) $9.99.

Men and women ages 18-35. Prices of cups of coffee to bags of coffee range from $2-$9. Founded in Quincy, MA in 1950. Individual cups of coffee, packages of coffee, pastrys and bagels.

Men and women ages 18-23. Prices of cups of coffee range from $2.95-$4.25.

Men and women ages 18 and older Packages of coffee range from $12$14

Men and women ages 21-35 Prices of cups of coffee to bags of coffee range from $1.50-$8. First introduced in 1982 by the Stewart Brothers. Individual cups of coffee and packages of coffee with multiple blends.

History

Founded in San Francisco, CA in 1850. Multiple types of coffee ranging from classic roast to dark roast.

Introduced in 1892. Ground coffee, flavored coffee, instant coffee.

Founded in 2005.

Products

Individual cups of coffee with multiple blends along with other caf products.

Founded in 1999, previously known as Saint Louis Bread Company. Individual cups of coffee, sandwiches, soups, salads, and other bakery items.

Founded in 1997

Natural and organic coffee in packages.

Marketing Mix

Products
Drinks
Bottle drinks, brewed coffee, chocolate beverages,

espresso beverages, frappuccino blended beverages, kids drinks, Tazo tea, smoothies, ice coffee.
Food
Bakery, Starbucks petites, bistro boxes, hot

breakfast, salads, sandwiches, Panini and wraps, ice cream, yogurt parfaits.
Merchandise
Apparel, drink ware, gift packs, CDs, brewing

equipment.

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 Twitter Website Hour of the day Seasonal and holiday

limited drinks
Commercials Ads

discount specials
Starbucks reward stars

Starbucks card
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.

Brand Analysis

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 fullyvisible 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 companys 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

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

Starbucks 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

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 Starbucks 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.