starbucks corporation
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STARBUCKS CORPORATION
“ONE CUP AT A TIME”
Elizabeth Billingsley
BUSN 319 Marketing
DeVry University
March 23, 2010
Company History
March 30, 1971 – original Starbucks is opened in Seattle, Washington
April 1986 - Schultz starts the Il Giornale coffee bar chain
1987 – Baldwin, Siegal, and Bowker sell Starbucks to Schultz
Marketing Mix
Subsidies
Aside from Starbucks Corp…
Tazo Tea Company Seattle’s Best Coffee Torrefazione Italia Hear Music Ethos Water
Products
What does Starbucks really sell?
-A lifestyle-
Officially…drip-brewed coffee, espresso-based hot drinks, other hot/cold drinks, coffee beans, quick snacks and meals, ice cream, and accessories
And through Hear Music… books, music, and film
Channels of Distribution
RETAIL LOCATIONS KIOSKS WITHIN DIFFERENT STORES
ONLINE MEDIA
Pricing Structure
Luxury product
Buying out surrounding competitors
NON-licensing
Target Markets
At first…
…young college students, social classes, and neighborhoods that would be most receptive to the idea of buying… A LIFESTYLE!
Target Markets (cont.)
Now…
…Starbucks wants to include EVERYBODY*
*Ignorance of very definition of TARGET MARKET
Promotional Efforts Starbucks Card
Coffee services delivered to offices and drive-thru connivance
Appealing to a diverse customer base; more than just coffee!
Philanthropy
Corporate Social Responsibility
Controversies
US Army viral email scandal ‘The Way I See It’ Labor disputes
Industrial Workers of the World -> UNIONIZED!
Market strategy Saturating the market Anticompetitive attitude
Recent Changes
Opening of 900 stores internationally announced in 2009…but 900 store closures
throughout US since 2008
Price increases… in a suspicious economy?
New competition!
Final Assessment
Starbucks is going strong and fighting to stay at the top!
Questions
?
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