American brand Starbucks familiar, feasible to every connoisseur of quality and delicious coffee. This is accessible, because Starbucks is the largest coffeehouse chain in the world, which branches operate in fifty countries.
Over the past few decades, the brand has become a symbol of America, not yielding to the popularity of McDonald. Add to this that the company has started the overseas expansion.
The Starbucks story began back in 1971, in Seattle.
How it all began?
They invested in it a tiny amount – only 1,350 dollars from their savings, the budget of the firm was scanty.
The newly business had taken a loan of $ 5,000.
It was the authorized capital of the new store, engaged in retail sales of coffee beans.
Where did the name Starbucks come?
The name of the company was borrowed from one of the heroes of the novel “Moby Dick” Herman Melville, the emblem was a siren located in a circle, on which was written the full name of the institution.
Why a siren?
The creators of the store thought that it meant that products were brought from far away.
In 1982, the head of sales department became Howard Schultz, but soon he was released without finding consensus with the boss.
Discussion between the boss and Howard was about that Howard would borrow the idea embodied by Italians and made coffee shops too.
But the authorities did not appreciate the idea. Schultz had to realize his ideas by his own.
And it is impossible not to recognize done this case brilliantly!
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Howard’s 1st coffeehouse was named Il Giornale, and the premier location was in Chicago. The second was in Seattle. The third opened its doors to residents in Vancouver.
They began were wildly pop and generated significant revenue for Howard.
Starbucks deals were quite unimportant. Howard Schultz paid $ 4 million and bought Starbucks from the former owners.
He combined shopping campaign with its cafes.
Since 1987 the company has become famous for Howard Starbucks Corporation and shops Starbucks.
What type of business is Starbucks?
Presently, the brand is doing everything to make the atmosphere absolutely in all branches relaxing and attractive.
Arriving there, a customer pays not only for premium coffee but too for a relaxing or conversely, the ability to work with a cup of favorite beverage.
Starbucks are active freelancers, bloggers to write their new posts, podcasters.
The atmosphere of the coffee shop attracts people with laptops.
At Starbucks, totally different people are drinking coffee, from businessmen (drinking espresso on the go) ending young couples.
Students could spend time with friends, write their abstracts, thesis or buy college essays.
Visitors could offer tea, hot chocolate and other beverages and snack.
In all shops, there is Wi-Fi, which is very fitting for people that could not live without PC and the Internet.
Any guess could order a favorite album of songs that will sound without intermission in a coffee shop.
This thing will cost $ 9 to music lovers. Add to this that the concern cares not only about customers?
But too about the employees.
As a result, the concern is reckoned in one of the best employers in the world.
Starbucks marketing plan
- Opening shops throughout Pacific Ocean of the US, on the whole territory of North America and, finally, in the world with the opportunity to cooperate with local companies.
- The strategy to increase revenues from buyers was: the development product strategy assumed concomitant goods, as CD disks and a magazine about lifestyle.
- Following this, the brand continued to implement its diversification strategy, invading on supermarket shelves with their bottled beverage Frappucino and ice cream Starbucks, as well as buying firm Tazo Tea (tea retailer).
- Offering coffee in the United Airlines aircraft.
- Distribution of ground coffee and coffee beans in supermarkets as Wal-Mart.
The conquering territory strategy of the concern – so took root to become a commonplace and ubiquitous element of reality.
Starbucks advertising methods
Howard Schultz stressed that his business is not to fill stomachs, and to fill the soul. He coined the core term third place – the middle between work and home.
Frappuccino for Nina (Ann, Irene )! You could hear in a cafe.
Some Nina that barista could hardly recall ever, coming to the bar and takes a cup of coffee on which the marker is written her name.
It is a trifle, but nice. This famous trifle largely created the iconic image of Starbucks, captivates people’s personal attitude of the brand, even such a simple and unpretentious.
One Dollar a Year
One chip of companies, in many stores they pay to their landlords exactly one dollar a year and landlords, do not remain in the loser.
No one has been pressed. The concern confident that clients will come, for the ambiance, beverages, name written on a glass.
The brand will transform this spot, it will be sought-after, despite location.
Location on Feng Shui
Th brand is very sensitive to the choice of the premises, exposing its basic requirement when renting premises orientation of doors and windows on the sides of the light.
At Starbucks individual opinion, the front door should face on the north, not on to the south or to the east.
The Eco Trend
The brand actively embodies the idea of the eco-friendly planet, through the production and distribution of reusable mugs and glasses.
For instance, in a coffee shop, you can go to “refuel” your thermos from Starbucks.
This company is loved by thousands of Starbucks customers since at the moment it is fashionable to be eco.
In the cafe is constantly playing music. It is interesting that there is a central server, which is engaged in playing the same music throughout the Starbucks network.
Promotion strategy of Starbucks
Focusing on the customer, the concern is always carrying out an analysis for increasing the value of their products by providing a larger number of customers benefit.
For instance, marketing experts have come up with orders and experienced rapid system that allows customers registered online, to book by phone, and in the nearest cafe Starbucks, for them will be waiting for the order – a cup of coffee or tea.
Three skills that are prominent brands owned by marketers:
- The ability to find a place where their clients communicate.
- The ability to create content that people want to discuss.
- The ability to utilize social networks for feedback from customers.
A good example is Starbucks, whose Facebook page attracted more than 34 million subscribers. For its advertising campaign, it chose Facebook, where more subscribers.
Starbucks chooses the platform, implying a wider audience to provide a lot of publicity.
Subscribers, alternately, have an incentive to continue to monitor the news of the brand.
Starbucks has launched an interesting project on the internet, which is a site of ideas for the brand.
Any person, whether he is an employee of the company or a simple client can share his idea about improving coffee.
Each idea will be examined, some could even be implemented.
Before the ideas reach the company, they are subject to a penalty by registered users of the site who can vote for each idea.
Natch, at Starbucks, will consider only the most popular.
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The brand offers consumers learn more about coffee via QR-code.
The brand has launched a new program using to provide more info about coffee to consumers, via Mashable.
Codes have already appeared in some its stores and advertising in popular magazines as People, newspapers, and billboards.
Advertising promotes mobile paid app Starbucks and provides supplementary info, usually in the form of a video about selling coffee.
Starbucks Business Level Strategy
For the successful operation of the brand, the tradition – it is the image tool, as said the concern’s leadership.
Thus, the company intends to almost double increase its market capitalization to $ 100 billion, due to sales of wine and tea.
Schultz intends to promote not only coffee but also other beverages, as he said.
The tea market is ready for innovation. The company intends to take on its leadership position.
Where does Starbucks advertise?
Th company’s success was largely achieved due to the effect of word of mouth.
This type of advertising is still the most effective. In 2004, the concern reached a record number of stores in its global network 1344.
How goes the spread of branding?
The very notion – the franchise of the brand does not exist, as the concern does not sell the franchise in the stereotype form.
- The brand’s owners examine each proposal upon the opening of a new café individually.
- Private investors can open a coffee house Starbucks Coffee too, but the license terms will be very severe.
- In America and Europe, the concern is moving through the purchase of other networks cafes, coffee houses and then there are as joint ventures.
- In the entire history of the concern, there were individual sales of the official franchise, while buyers were very famed people.
The company’s marketing strategies have never failed or lack of understanding of consumers, which automatically makes it as a model for replication of successful experiences.
Why are people so fond of Starbucks coffee shops? It is simple – it is a place where you can safely drink coffee and talk with friends, business partners, or to arrange a meeting.
But what are you aware of this brand apart from the fact that in its coffee shops are always delicious and cozy?
- The company supports the legalization of gay marriage. In 2012, Starbucks was one of the several famed companies, which supported the initiative of the Washington government to legalize same-sex marriage.Opponents of gay unions immediately announced a boycott of coffee shops, collecting 22 thousand signatures on a petition.
- At the coffee house could be another name. The 1st name that occurred to the founders of the coffee shop was Cargo House.
But one of the trio partners quickly dissuaded them from this idea, saying that it will be easier to promote a brand if the name begins with the signs ST.
- At the premier logo of Starbucks, the mermaid was with an open chest.
For all the years of coffee logo top, it was modified several times. Unchanged remained in it, only the presence of the siren.
- Initially, the company is not selling brewed coffee. In total, initially, Starbucks had only selling roasted coffee beans and equipment for the preparation of a beverage.
- In some shops sell a coffee as a volume of the human stomach. It used to be four kinds of glasses in a line of Starbucks – Low (240 ml) and high (350 ml), the Grande (480 mL), Venti (590 mL). The company’s management has decided not to stop there and in 2011 released the glass of Trenta, which could accommodate 910 ml.
- The brand is constantly experimenting with tastes. On last Halloween at Starbucks appeared coffee with pumpkin flavor.
And the drink was quite popular. But in a coffee house decided not to stop there and began to produce beer with the taste of latte.
- The Grande cup of coffee contains up to five times more caffeine than energy. Scientists found that caffeine daily rate for healthy adults – 400 mg. But in a glass Grande contains 415 mg of the substance.The most expensive Starbucks drink – in China. A cup of coffee, which in London is worth $ 3.81, in Beijing, you will have to pay a dollar more.
For years, the brand spent more money on training their staff than to advertise their product.
They constantly polished twenty-four-hour program, which is offered to each new recruit.
It includes basic courses: the introduction (4 hours), preparation of a perfect cup (4 hours) and customer service (4 hours), as well as classes on the basics of orientation and retail skills.
From the 1st day, they tried to immerse newcomers in the culture, where the central place occupied by the value of showing how it is important to treat visitors and each other with respect and dignity.
Train recruits personally managers of coffee shops or regional managers, showing them all in practice.
They train baristas to make contact with visitors to the eyes, to anticipate their wishes, to explain the difference between varieties clearly and simply, and to compensate the moral damage dissatisfied customers coupon Starbucks, which entitles them to a free drink.
The history of the concern shows how small coffee roasters of local importance, which simply were selling coffee beans, become an international corporation with stores and offices in more than 9,000 cities in 34 countries, serving approximately 20 million of visitors.