Blog 4: Starbucks

Starbucks was founded in Seattle, WA in 1971 with their first coffee bean store opening in Seattle’s Pike Place Market. Howard Schultz became a part of the company in 1982. In 1984, Schultz was inspired by Milan espresso bars and started to test and expand into the coffee shop culture in America. This growth continued at a rapid pace and then grew to international proportions, totaling over 18,000 stores. A Starbucks shop originally sold fresh-roasted whole coffee beans, then expanded into coffee drinks, and now sells a variety of blended coffee drinks, teas, food and snacks, and even goods such as mugs and cups. In addition to their retail stores, Starbucks products such as bottled Frappuccinos and roasted coffee beans are also sold in grocery stores. The customer experience now is digitally integrated with online communities and applications. Starbucks is a food and drink company with a strong emphasis on connections. They are positioned as a young, convenient global coffee company with a personal touch in every cup.

In addition to the physical goods that Starbucks sells, they are also very involved in fair trading practices. This is one of the main reasons that I love this company so much. Since in 1999, Starbucks has been involved with the promotion and conservation of proper farming and fair trading practices. They work with organizations to promote sustainable coffee growing practices. According to their website “[they] seek to serve high-quality coffee that is responsibly grown and ethically traded. [They] do this through our coffee purchasing practices, farmer support centers, loan programs and forest conservation efforts.” The commitment to the environment and their suppliers is a trait I greatly admire and would love to be a part of one day. In addition to the commitment to ethical farming practices, Starbucks also has the best mission statement I have ever seen. Their dedication to their customers and employees, or partners, is unmatched. I picked this company not because I have ever worked there or have personal ties to the company, but because I feel as though they have great priorities and a business method that I am proud to support. I would love to work for Starbucks, and therefore this a great opportunity to learn more about their business model and absorb more knowledge about this company. 

Starbucks reaches across a vast array of customers, including four primary markets that I will focus on. These four are soccer moms, students, young creative or hipster professionals, and also executive business men. Soccer moms are always on the go, transporting around town to various events and taking care of her children. Her children are generally younger, under the age of 15. The value proposition that Starbucks gives her is convenience and relaxation. As she is always busy, Starbucks is an easy way to grab a nice cup of coffee to help her stay awake during her day. In addition, it provides her with a soothing atmosphere to “stop and smell the coffee” during her hectic schedule. The younger students visiting Starbucks are generally in high school or college, busy with classes and extracurricular activities, and come from above average income families. They use Starbucks as a place to meet, do homework, work together, or just sit and catch up with a friend. Their value proposition could be independence and relationships. As they are no longer studying at home or relying on their parent’s transportation, they see Starbucks as a cool place to get away from home with their friends. It can be a meeting place with friends that is provided by the cozy atmosphere, welcoming baristas, and abundance of consumption choices that suit all tastes. Young creative or hipster professionals value Starbucks as a coffee house as well as an environmentally friendly company. They appreciate the sustainable growing practices that Starbucks enforces, and feel as though they are being socially responsible by supporting Starbucks. Their value proposition is the quality of the coffee and the eco-friendly corporate policies. Many avid coffee drinkers are picky about their taste, and Starbucks provides a quality coffee bean and therefore an exceptional drinking experience for them. Higher up in the business chain, the executive workers drink Starbucks as a stimulant to keep them working and as a break from their crazy days. Many will pick up a coffee in the morning to wake them up on the way to work. Their value proposition would be convenience and reliability. The abundance of Starbucks stores make it easy for them to get their morning coffee wherever they are working.

*All of the information presented has been gathered from starbucks.com