2. 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
4. Subsidies Aside from Starbucks Corp… Tazo Tea Company Seattle’s Best Coffee Torrefazione Italia Hear Music Ethos Water
5. 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
8. Target Markets At first… …young college students, social classes, and neighborhoods that would be most receptive to the idea of buying… A LIFESTYLE!
9. Target Markets (cont.) Now… …Starbucks wants to include EVERYBODY* *Ignorance of very definition of TARGET MARKET
10. 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
11. 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
12. 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!
young college students, social classes, and neighborhoods that would be most receptive to the idea of buying $3 a cup of coffee and spending time with friends at their stores