Starbucks Coffee Company Team 3: Kelli McKinstry, Britny Livingston, Alec Falkenhagen, Brandon Tack

The first Starbucks opened in 1971 in Seattle’s Pike Place Market The name, inspired by Moby Dick, evoked the romance of the high seas and the seafaring tradition of the early coffee traders. In 1981, Howard Schultz, CEO of Starbucks had first walked into a Starbucks store. Howard was drawn into Starbucks and joined a year later. Today, with more than 18,000 stores in 62 countries, Starbucks is the premier roaster and retailer of specialty coffee in the world.

Differentiation Product Branding Service Quality Corporate Social Responsibilities

Differentiation – Product Branding Unique Logo Drink Size Names Brewing Equipment Music CDs Signature Coffee Blends Merchandizing (Mugs, Shirts, iPhone cases, The Starbucks Card)

Differentiation – Service Quality High Service Quality Achieved by… How does Starbucks do it? Environment/Attitude Brochure Education

Differentiation – Corporate Social Responsibilities Committed to bettering the communities it serves. Mindful of the environment Ethically sourced supplies Investment in farmers

Attracting Customers Marketing & Advertising The Target Demographic

Attracting Customers – Marketing & Advertising How is Starbucks set apart from others? Commercials Humor 14 words GO GREEN Staying Modern Gift cards Rewards cards Birthday Rewards IPhone and Android Apps

Attracting Customers – the Target Market Men and Women are targeted equally Ages 25 to 40 – 49% Ages 18 to 24 – 40% People in cities/upscale suburban areas

Starbucks – Staying On Top The Strategy: Helping People Connect Free WiFi internet in every location In-Store Music Sociable Atmosphere Large Tables to Accommodate Groups and Business Meetings

The First Mover Advantage Before Starbucks only 200 coffee shops were open in the US Established brand recognition Established a niche market First mover in mobile transactions 26 million transactions to date on mobile app

Standing Out Pay with phone app Barista Education 87,000 drink combinations 30 Minutes 220 customers/hour

1971 First Starbucks opens in Seattle stores opened, changed named to Starbucks 1991Opens first licensed airport store 1994First Drive-thru open: Total stores Begins selling bottled Frappuccino 1997Expands the company internationally in the Philippines 1999 Starbucks acquires Tazo Tea 2001Introduces Starbucks Card 2003 Acquires Seattle Best Coffee Company Expansion

2004Total stores: 8, Launches first recycled paper beverage cup 2007Eliminates all artificial trans fat and makes 2% milk - the new standard for espresso beverages 2010 Offers free Wi-Fi; total stores: 16, Celebrates 40 th anniversary! Introduces K-cups 2012Introduces Blonde roast: Total Stores: 17,651