Peet's Coffee & Tea, located in Berkeley, California, was the inspiration for Starbucks. The three original Starbuck founders bought their first coffee beans from Peet's; eventually, Starbucks became Peet's competition.
"You get more than the finest coffee when you visit a Starbucks - you get great people, first-rate music, and a comfortable and upbeat meeting place," says Starbucks chairman Howard Schultz. "We establish the value of buying a product at Starbucks by our uncompromising quality and by building a personal relationship with each of our customers. Starbucks is rekindling America's love affair with coffee, bringing romance and fresh flavor back to the brew."
For the thirteen-week period ending January 1st, 2006, Starbucks revenues increased 22% to $19.3 billion. Increase in net income was by 20% to $174.2 million. Starbucks employees total 115,000. Howard Schultz is Chairman of the Board, and James L. Donald is Chief Executive Officer and Director, with corporate headquarters located in Seattle, Washington, where the Starbucks experience all began.
Because Chairman Howard Schultz deems music to be an integral part of the Starbucks experience, a business wire released on May 1st of this year is of importance. A never-released 1972 album of jazz standards recorded by Diana Ross was discovered in the Motown vault nearly three decades later. This album will make its exclusive debut at Starbucks on May 16, 2006.
Source: Guru Net News Alert, May 1, 2006
Also of importance is to note that along with a quality selection of thirty blends of coffees from around the world and espresso, Starbucks also offer, in some markets, Tazo teas, Ethos water, salads, sandwiches, and pastries. A premium line of ice cream also adds to their diverse product line.
STARBUCKS MARKETING POLICY
Since Starbucks customers include people of diverse ethnic, age, and income groups with varying interests and tastes, the company embraces the art of providing excellent customer service by serving relevant products to their customer base, including some products which will dictate appeal to the youth group.
Measures are taken to not only target marketing to the young consumers. A review process is put into place prior to the approval and distribution of materials and campaigns. A panel consisting of key employees reviews the marketing materials to provide written and verbal input. The company goes to great lengths to avoid materials that could possibly be offensive or insensitive, racially and culturally.
Starbucks has implemented instructions to its advertising agency to choose media campaigns whose composition aligns with its adult customer base. Policy dictates that materials targeting to the youth population be shared with all staff employed in the marketing division.
Diversity is synonymous with Starbucks in believing that diversity is a way of life. Prominent in the company's mission statement is their main goal"to establish Starbucks as the premier purveyor of the finest coffee in the world while maintaining our uncompromising principle as we grow."
Education and recognition in diversity are Starbucks priorities. Diversity Learning Journey workshops are offered to all partners.
Source: Starbucks Homepage, 2006
The importance of market planning is evident in the fact that Starbucks continues to open