Starbucks
General Description:
Howard Schultz is the CEO of Starbucks. Starbucks website is at: www.Starbucks.com
Starbucks opened a single store business in 1971 in Seattle's historic Pike Place Market. Now there are over 15,000 stores in 50 different countries.
In 1981, Howard Schultz first walked into Starbucks and wanted to create more than just a single store business, he wanted to make it to a billion dollar retail operation. When he traveled to Italy he was amazed by with the Italian coffee bar and the love of the coffee experience and wanted to bring this tradition back to America.
Starbucks purchases and sells roasts high-quality coffee beans, along with fresh brewed coffee, Italian-style espresso drinks, cold blended drinks, teas, accessories such as fancy coffee mugs and special equipment, and a wide variety of balancing foods to go along with the drink that satisfies you. They also want to make things most convenient to you and for when you need them, so they produce and sell your own specialized beverage.
Starbucks goal is for coffee making to be the most ethically sourced as possible when it comes from growing and producing to selling it to their consumers. They think this makes a better cup of coffee and helps a better future for farmers and the climate of the earth.
  • Work directly with the coffee bean farmers from international countries to build up the right growing methods and investing in the communities to provide the best quality coffee.
  • Supports projects to help improve the development of their Tazo teas.
  • Ensures that their coca is the most high-quality, long lasting coca.

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Channels of Distribution

29 different countries manufacture and prodcue Starbucks beans. Starbucks has a licensing agreement with Kraft Foods, Inc. (Kraft) to sell and distribute Starbucks whole bean and ground coffees. Starbucks also has two non-retail joint ventures with the Pepsi-Cola Company, to promote Starbucks bottled Frappuccino coffee drink to supermarkets, drug stores, and other locations and Dreyer's Grand Ice cream, Inc. to develop and support Starbucks premium coffee ice creams. Starbucks restraint retail stores additionally sell their coffee beans and specialized drinks there as well.


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These channels fit the target consumer because it's satisfying them with different, convenient options for consumers all over the world to buy their coffee or coffee beans. Starbucks is more than just coffee, the company positions the brand to have an organic and ethical look upon it. The channel is a great fit for the company because it shows customers that they want to make the best cup of coffee and prove that they work hard to make it better than everyone elses.

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Starbucks uses Exclusive distribution. A few reasons why are because exclusive dealerships protect retailers by assuring there won't be another of that particular item available in that area. Some are restricted by size of population, others by geographical divisions. This is why you will never see a Starbucks down the street from another starbucks, this ensures the owner of the store that all the sales of the item and no competition which would possibly have lower prices which may cause the dealership to have to lower prices.

The intermediary adds value to the marketing of the product by bringing in specialization, marketing knowledge, capacity to segment the market, and selling skills that allow the marketer to implement marketing strategies effectively. The channel connects directly with the customer because they put their stores close to living spaces so the customers are able to get to stores quickly

Forms of Transportation

Air
Advantages: Very fast transporting, Reduces inventory and it carries high value items.

Motor
Advantages: you can go anywhere on land, good for moderate distance, and they can ship to almost all cities

Water
Advantage: Low cost, they can carry large bulky items, works easily with the truck portion of Starbucks transportation.

Main Points/Review Questions

1. Who is the CEO of Starbucks?
2. What is the web address for Starbucks?
3. What year did the first Starbucks open?
4. How many countries manufacture and produce Starbucks coffee beans?
5. True or False
Starbucks has one non-retail joint ventures with Pepsi-Cola Company?
6. What are the three main types of transportation Starbucks uses?

Main Points
· There are over 15,000 stores in 50 different countries.
· There are 3 main types of transportation that Starbucks uses. This is motor, Air, and Water transportation.
· Starbucks purchases and sells roasts high-quality coffee beans, along with fresh brewed coffee.
· Starbucks main goal is for coffee making to be the most ethically sourced as possible when it comes from growing and producing to selling it to their consumers.
· Starbucks opened a single store business in 1971 in Seattle's historic Pike Place Market.


Citations