Starbucks Essay examples

1909 Words May 15th, 2012 8 Pages

Annie C. Rodriguez

MKT-301 Principles of Marketing
Mr. M. Loizides Howard Schultz traveled to Italy in the early 1980’s and was inspired to transform
Starbucks, what then was just a handful of Seattle coffee shops, to a European-style coffee houses. His vision was to provide customers with the “third place” to go to. A place where they could relax that was away from home and work. A place where you can get away from it all and just sink into your thoughts and relax your mind. He started and created what is known as the
Starbucks Experience. His idea worked and after twenty years Starbucks is a household word and an icon in finely brewed coffee. However, what goes
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It also provided them with the opportunity to catch up with friends or just sit back and enjoy a book. But as the success and popularity of Starbucks grew and more and more locations were added the atmosphere changed to a more hustle and bustle flow and it became a less attractive place to hide out. Gone was the typical customer and in entering now were customers who were less affluent, less educated, and less professional. By 2007 80% of all coffee purchased was consumed outside of the store, they were evolving to a more good coffee on the run establishment. Executives took notice and CEO
Howard Schultz sent a memo to management were he stated, “in order to achieve the growth, development, and scale necessary to go from less than 1,000 stores to 15,000 stores and beyond,
[Starbucks had made the decisions that may] have led to the watering down of the Starbucks experience. Stores no longer have the soul of the past and reflect a chain of stores versus the warm felling of a neighborhood store” (Kowitt, Beth). He implemented the re-marketing of
Starbucks to include labor hours, he had time saving automated machines to stores and he wanted to master the quality of the coffee. He implemented the Coffee Master training program for the barista’s. He also introduced a new line of ultra-premium whole-bean coffees and provided WI-FI service and sold the music of Starbucks. Schultz realized that Starbucks was no longer a special place and they

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