Pmm Final Doc

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  • 8/13/2019 Pmm Final Doc



    Title Page Number




    4.1.PRODUCT 3

    4.2.PRICE 3


    4.4.PROMOTION 4


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    The Starbucks Coffee, Tea, and Spice Company were founded in Seattle in 1971 by

    Jerry Baldwin, Gordon Bowker and Zev Siegl, with a vision to educate the consumers about

    fine coffees. Starbucks began to expand when Howard Schultz took it over in 1987. His plan

    was to re-create the Italian espresso bar experience in America by making a personal

    relationship between consumers and coffee. Within years, they grew from a small, regional

    business into the undisputed leader in the speciality coffee industry by buying only the best

    quality coffee and providing an unmatched store experience.

    To inspire and nurture the human spirit one person, one cup, and one

    neighbourhood at a time.

    ---Starbucks Mission Statement from their website

    Ever since its establishment there has been a sharp growth in the company

    performance. According to their 2008 annual report, they have nearly 17,000 stores in 49

    countries. This report deals with the targeting and positioning of Starbucks when it was

    launched and how decisions on marketing mix supported that positioning.

    2. HISTORY

    Starbucks story began in 1971. Back then they were a roaster and retailer of whole

    bean and ground coffee, tea and spices with a single store in Seattles Pike Place Market.

    Starbucks is named after the first mate in Herman Melvilles Moby Dick. Their logo is also

    inspired by the seafeaturing a twintailed siren from Greek mythology.

    The first Starbucks opened in Seattle, Washington, on March 30, 1971 by three

    partners who met while students at the University of San Francisco: English teacher Jerry

    Baldwin, history teacher Zev Siegl, and writerGordon Bowker.The three were inspired to

    sell high-quality coffee beans and equipment by coffee roasting entrepreneur Alfred Peet

    after he taught them his style of roasting beans. Originally the company was to be called

    Pequod,after awhaling ship fromMoby-Dick,but this name was rejected by some of the co-

    founders. The company was instead named after thechief mate on the Pequod, Starbuck.
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    Year wise progress and story of Starbucks


    Starbucks opens first store in Seattles Pike Place Market. 1982 Howard Schultz joins Starbucks as director of retail operations and marketing. Starbucks begins providing coffee to fine restaurants and espresso bars.


    Howard travels to Italy, where hes impressed with the popularity of espresso bars inMilan. He sees the potential to develop a similar coffeehouse culture in Seattle.


    Howard convinces the founders of Starbucks to test the coffeehouse concept indowntown Seattle, where the first Starbucks Caf Latte is served. This successful

    experiment is the genesis for a company that Schultz founds in1985.


    Howard founds Il Giornale, offering brewed coffee and espresso beverages madefrom Starbucks coffee beans.

    1987 Il Giornale acquires Starbucks assets with the backing of local investors andchanges its name to Starbucks Corporation.

    Opens in Chicago and Vancouver, Canada. Total stores:17


    Offers full health benefits to eligible full and parttime employees. Total stores:33


    Total stores:551990

    Starbucks expands headquarters in Seattle. Total stores: 84


    Becomes the first privately owned U.S. company to offer a stock option program thatincludes part-time employees.

    Opens first licensed airport store at Seattles SeaTac International Airport. Total stores: 116

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    Acquires Tazo Tea. Partners with Conservation International to promote sustainablecoffeegrowing practices.

    Acquires Hear Music, a San Franciscobased music company. Announces third twofor

    one stock split. Opens stores in China, Kuwait, Lebanon and South Korea. Total stores: 2,498


    Howard Schultz transitions to chairman and chief global strategist, Orin Smithpromoted to president and chief executive officer.

    Establishes licensing agreement with TransFair USA to sell Fairtrade certified coffeein U.S. and Canada.

    Opens stores in Australia, Bahrain, Hong Kong, Qatar, Saudi Arabia and United ArabEmirates.

    Total stores: 3,5012001

    Introduces ethical coffeesourcing guidelines developed in partnership withConservation International.

    Introduces the Starbucks Card. Announces fourth twoforone stock split. Opens stores in Austria, Scotland, Switzerland and Wales. Total stores:4,709


    Establishes Starbucks Coffee Trading Company (SCTC) in Lausanne, Switzerland.

    Opens stores in Germany, Greece, Indonesia, Mexico, Oman, Puerto Rico and Spain. Total stores: 5,886


    Acquires Seattle Coffee Company, which includes Seattles Best Coffee andTorrefazione Italia coffee.

    Opens roasting facilities in Carson Valley, Nev., and Amsterdam, Netherlands. Opens stores in Chile, Cyprus, Peru and Turkey.

    Total stores:7,2252004

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    Opens first Farmer Support Centre in San Jose, Costa Rica. Releases Ray Charles, Genius Loves Company CD with Concord Records. Introduces Starbucks Coffee Master Program.

    Opens stores in France and Northern Ireland. Total stores: 8,569


    Jim Donald becomes president and chief executive officer to replace retiring OrinSmith.

    Acquires Ethos Water. Announces fifth twoforone stock split. Opens stores in Bahamas, Ireland and Jordan. Total stores: 10,241


    Launches the industrys first paper beverage cup containing postconsumer recycledfibre.

    Opens stores in Brazil and Egypt. Total stores: 12,440


    Eliminates all artificial trans-fat and makes 2 percent milk the new standard forespresso beverages.

    Opens stores in Denmark, the Netherlands, Romania and Russia. Total stores: 15,011


    Chairman Howard Schultz returns as chief executive officer. Acquires Coffee Equipment Company and its Clover brewing system. Launches My Starbucks Idea, Starbucks first online community. Launches Pike Place Roast TM, which quickly becomes Starbucks topselling coffee. Opens stores in Argentina, Belgium, Bulgaria, Czech Republic and Portugal. Total stores: 16,680


    Launches Starbucks VIA Ready Brew Coffee. Opens East Africa Farmer Support Centre in Kigali, Rwanda.

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    Launches my Starbucks and Starbucks Card, iPhone apps and Starbucks Card Mobilepayment.

    Opens stores in: Aruba and Poland.

    Total stores: 16,6352010

    Expands digital offerings for customers with free unlimited WiFi, Starbucks DigitalNetwork. Seattles Best Coffee reinvents business strategy to extend brands reach.

    Expands coffee offerings with ultrapremium Starbucks Reserve line and StarbucksNatural Fusions.

    Opens stores in El Salvador, Hungary and Sweden.

    Total stores: 16,8582011

    Celebrates 40th anniversary with updated brand identity and month of globalcommunity service.

    Launches Starbucks KCups portion packs. Acquires Evolution Fresh. Opens stores in Guatemala.

    Total stores: 17,0032012

    Introduces Starbucks Blonde Roast. Announces Verismo system by Starbucks premium singlecup espresso machine. Opens Farmer Support Center in Manizales, Colombia. Acquires La Boulange bakery brand to elevate core food offerings. Launches Starbucks Refreshers beverage platform. Opens stores in: Costa Rica, Curacao, Finland, Morocco and Norway. Total stores: 17,651



    Starbucks tried to position themselves as a premium product in the coffee industry by

    creating a high standard, introducing innovative products and providing excellent service.

    Schultz knew how perishable coffee was and they were so fanatical about quality control,

    and hence they carefully monitored each and every step of coffee production. They

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    bought dark-roast, whole bean coffee from places like Sumatra, Kenya, Ethiopia and

    Costa Rica; roasted them in their own plants; and sold only through company-owned

    stores. They used total quality management (TQM) in which all companys people are

    constantly involved in improving the quality of products. Usage of nonfat milk and

    introduction of Frappuccino made a significant presence in the balance sheet of Starbucks.

    Moreover, they provi