First, the availability of improved marketing intelligence has facilitated planning. Second, the utilization of the computer and various mathematical models has made an impact. Third, managements are becoming more scientific and organizations are now more complex with a broader diversity of products. Fourth, business outlays are larger and risks are often greater, all of which factors necessitate planning.
The company was opened in Washington in 1971. Its founders were Jerry Baldwin, Gordon Bowker, Alfred Peer. Howard Schiltz joined Starbucks in 1982 and proposed a new marketing mix: the idea was that the company should sell coffee beans and espresso drinks on the national scale. In two years, Starbucks expanded its business and bought Peet’s. In 1987, Starbucks opened its first outside store. Since 2000, Starbucks expanded its global presence and opened new stores around the world. Today, Starbucks has 8,505 stores worldwide. The company states that its mission statement is more than a strategy approach but a philosophy of the company. The mission is to "establish Starbucks as the premier purveyor of the finest coffee in the world while maintaining our uncompromising principles while we grow" (Starbucks Home Page 2008). While this freedom from any constraints may be attractive, it also creates challenges in tackling segmentation and targeting issues. One approach in this situation is to start with an examination of consumer motivations and goals in using a product category as a basis for identifying gaps in marketplace offerings. This consumer insight is the basis for developing a product or service that addresses unmet goals. Starbucks illustrates this approach. When Starbucks was conceived, coffee manufacturers were focusing on the rational benefits of their brands such as the superior taste attributable to a particular growing process as a way of competing in a declining market. In contrast, Starbucks created a coffee-based experience in which the range of preparations and atmosphere of the stores encouraged customers to view having a cup of Starbucks as a way of indulging themselves. In essence, Starbucks targeted people seeking an indulgence experience rather than simply coffee consumption (Starbucks Home Page 2008).
Strategy and Success Factors
The success of Starbucks is based on its unique approach to product mix and brand. On a more everyday level, Starbucks has built a powerful experiential brand. Starbucks stores are much more than a place to purchase a jolt of java (Starbucks Strategy n.d.). They offer a brief reprieve in a hectic day. a chance to inhale the rich aroma of fresh coffee and listen to relaxing music, while tasting a rich, specially prepared brew in the company of like-minded coffee addicts. One hallmark of the Starbucks’ experience, and any great experience really, is consistency. Delivering a consistently good experience is a challenge in the retail coffee business. Making a consistently high-quality caf latt, for instance, requires, first, brewing two ounces of coffee. Starbucks’ guidelines require this to be drawn in 18 to 23 seconds at 90 degrees Celsius and 9 bars of pressure to produce excellent espresso (Starbucks Home Page 2008). Second, the milk must be steamed to 160 degrees Fahrenheit. Most Italian espresso machines contain a single boiler that both heat the water for coffee and makes steam to foam the milk. .