Starbuck's target market Essay

Submitted By celxox
Words: 927
Pages: 4

HISTORY

Today, Starbucks Corporation counts nearly 17 000 stores in 49 countries worldwide. Through the years, this retails store gained experience at different levels such as being the leading roaster, retailer and brand of coffee in America. These numerous retail stores were the expansion of the first small store, which opened in 1971 in Seattle Washington, heaven of coffee. The three founders: Gordon Bowker, Jerry Baldwin and Ziv Siegi put a lot of focus on the finest-quality whole been and ground coffees. Few years later, by 1982, Starbucks acquired five retail stores , a small toasting facility and a wholesale business who sold coffee to mainly local restaurants in Seattle. In the same year, Starbuck hired Howard Schultz to manage retail sales and marketing. In 1983, Howard Schultz travelled to Italy and got fascinated by the Italian coffee bars. Shortly, he wanted to Starbucks to open a coffee bar store in Seattle, but the three partners did not seem to rely on this idea. Therefore, he decided to quit the Starbucks company and open his own coffee bar named after II Giornale. As time went by, the three founders realized that it was hard for them to maintain quality. Therefore, Starbucks decided to sale their wholesale to a Seattle business man and few investors. A few months later, While the three founders were more concentrating on their other coffee business, II Giornale obtained the Starbucks retail store for 4 million dollars. Soon, II Giornale changed his name for Starbucks Corporation ready to expand widely, for example in Vancouver and in Chicago. Because of the uncontrollable expansion of stores and the use of costly methods; using high-grade arabica beans and expensive dark roasting, times became harder for the corporation, but it's market was growing at a very fast past with an increased in sales. In 1988, Starbucks added a mail order catalogue to their market, which allowed customers to order coffee directly at home coming from many states. For this company, making adds wasn't worth to invest because their brand name grew so fast by itself. For Schultz, the image of managers and employees was very important: ''hire people smarter than you are and get out of their way''(reference). Indeed, Schultz brought industry professionals to manage several functions such as Starbuck's; Finance, human resources, marketing and mail-order services. Schultz also hired an expert in information technology from McDonald's Corporation to make a point-of-sale system through pc's so for store managers to use. This system help the headquarters to access rapidly the different trends of every Starbuck's store. A few years later, Starbucks was the first private owned company to hire part-time employees. Just like managers, employees were very qualified and had an important role in the company; Starbucks offered them health and dental benefits. In 1992, Starbucks started to establish in shops, such as Nordstrom's department store and Barnes & Noble bookstores. By the end of 1993, the company had the stores expand in near of 275 locations. Two years later, Starbuck's began to concentrate on their in-house music diffused in every Starbuck's store and made compact discs. The year after, Starbuck's inked with Pepsi-Cola to create a bottle coffee drink also known as an ready-to-go beverage. The two companies also created with Dreyer's Ice cream by creating a coffee ice cream. By in 1996, Starbucks expanded in the Asians countries such as Japan and Singapore. In this same year, the company created an online store. Shortly after expanded into the UK, Starbucks bought a company at 86 millions named, country's Seattle Coffee company and transformed their stores into Starbuck's stores. In order to sell their coffee in supermarkets, Starbuck's made an alliance with Kraft Foods. In 1999, Starbucks bought a tea company called Tazo,…