New partners are given a 104 page booklet that they complete within their first 90 days of employment. This includes a map of the coffee growing regions of the world, information on farming, roasting and brewing and the range of flavours that Starbucks offers their customers. Partners are also expected to complete verified tastings twice a year and each is given a pound of coffee each week to continue to develop their knowledge of the coffees which Starbucks sells. Over time, they are also given the opportunity to become a coffee master – true experts in their field.
Starbucks executives are convinced that if the placement is related to a certain lifestyle that consumers desire, they will be naturally drawn to the product (Jones, 2003). Research also suggests that brand placements act as ‘tools for identities and aspirations’ for the audiences. In other words, the audiences ‘compare their consumption worlds with those depicted in the movies’ (DeLorme & Reid, 1999: 88).
Starbucks causes cultural concerns in Italy because of the association that Italians make between
coffee and leisurely sidewalk cafes. Coffee in Italy is more than a drink; it is part of the way of life and Italian mores. While in the United States it is common for people to buy takeaway coffee for drinking in the street or office, in Italy people usually prefer to relax and chat with peers while drinking coffee. Coffee shops offer a personal, friendly atmosphere that many Italians believe a large chain could not provide. Similarly, many people would prefer to frequent coffee shops that are each unique, while Starbucks offers a standard formula.
In 1990, there were approximately 200 freestanding coffee houses in the United States; today there are over 14,000, with Starbucks owning about 30% of the total (Daniels 2003). Starbucks’s model of café cool has proven readily exportable on a global scale, sweeping through Canada, China, Japan, Taiwan, Britain, and much of continental Europe, with bold plans to enter coffee mecca (Holmes 2002). Starbucks conquers Rome; grande or venti, Brute?
Starbucks cash and short-term investments were $1.4 billion and $666 million as of October 3, 2010 and September 27, 2009, respectively. We actively manage our cash and short-term investments in order to internally fund operating needs, make scheduled interest and principal payments on our borrowings, and return cash to shareholders through common stock dividend payments and share repurchases. Our short-term investments consisted predominantly of US Treasury and US Agency securities.
Starbucks, due to their market position and attributes, applies a Differentiation Focus strategy as defined by Porter’s Generic Market Theory. A review of Starbucks Corporation’s marketing strategies and alliance strategies proves that the company is being highly successful within this market scope.
In addition to its flagship Starbucks brand, its portfolio also includes Tazo Tea, Seattle’s Best Coffee, and Starbucks VIA Ready Brew. Starbucks has three operating segments: United States (US), International, and Global Consumer Products Group (CPG). Its Seattle’s Best Coffee operating segment is reported in Other with its Digital Ventures business.
In 1971, three Seattle entrepreneurs—Jerry Baldwin, Zev Siegl, and Gordon Bowker—started selling
whole-bean coffee in Seattle's Pike Place Market. They named their store Starbucks, after the first mate in
Moby Dick. By 1982, the business had grown to five stores, a small roasting facility, and a wholesale
business selling coffee to local restaurants.
One Tuesday afternoon in February 2008, Starbucks closed all of its US Stores. A note posted on 7,100 locked doors explained the reason: "We're taking time to perfect our espresso. Great espresso requires practice. That's why we're dedicating ourselves to honing our craft."
Roasting the coffee bean is close to an art form at Starbucks. Starbucks currently operates multiple roasting and distribution facilities. Roasters are promoted from within the company and trained for over a year, and it is considered quite an honor to be chosen. The coffee is roasted in a powerful gas-fired drum roaster for 12 to 15 minutes while roasters use sight, smell, hearing and computers to judge when beans are perfectly done. The color of the beans is even tested in an Agtron blood-cell analyzer, with the whole batch being discarded if the sample is not deemed perfect.