Starbucks focuses on China. (global marketing)

China is one of the fastest growing market for Starbucks. The company didn't see any slowdown on its business in China, even if it's closing stores in other markets affected by recession . The company's CEO has high expectation and says that the new market will bring a remarkable profit.

Starbucks adjusted its plans and strategies to the new culture. Chinese people see the Starbucks' locations more like restaurants where they can go after work and relax. If in USA more of Starbucks sales represents "take-away" beverages, in China "take-away" beverages sales represents 5% from the total.

In China, Starbucks makes most of its business in the afternoon and night, when people are done with heir works, unlike the USA where the company sell more during the day.
In order to benefit costumers needs Starbucks locations in China are larger and have a lot of seats because people spend sometimes hours in there. For Chinese people drinking coffee without food is not common. Therefore, the stores sell also food.

Starbucks changed its tactics in doing business in China and that made them gain the customers' confidence. Starbucks is planning to open several hundred of stores in the next years. They believe that the foreign expansion, will help the company to raise its revenue by 20 % every year.

Starbucks' global marketing

Starbucks is a global company that has over 5.000 store outside USA, reaching 50 countries. Being an international company means to be opened to new markets. Starbucks is a master of doing business with new countries because their passion transcends the new culture and languages.

Starbucks began its worldwide domination in the late 90's. Japan and Britain, the tea-drinker countries were the first ones occupied. In 1996, Starbucks opened the first outlet in Tokyo with a ceremony where Shinto priests blessed and prayed for harmony between Starbucks and the forces of nature. On that day was a line of over 100 Japanese people waiting with excitement to taste the coffee. From that moment Starbucks became very successful in Japan. The company didn't make to many changes in terms of strategies; they just added green tea frapuccino and made the beverage cups smaller.

In Britain, Starbucks used another strategy"breaking through the noise". Starbucks opened 65 stores in London and that shocked the public. People were not used to it because on that period the idea of coffee store wasn't that popular in Britain. The company faced a light resistance from the public , but that didn't stop them to expand. A charming campaign helped the company to become a power in Britain coffee industry having over 500 stores in London.

Nowadays , Starbucks reached the markets of 50 countries. Is Starbucks making an aggressive expansion of its Empire? Schultz, the company's CEO said "There are going to be very few countries in the course of time that we are not going to be in. Be patient."

Greener Cups in Starbucks

Starbucks is always looking for ways of decreasing environmental impact of their disposable cups.
In 1997, the company created recycled - content cup sleeve in order to avoid the use of "double cupping".
In 2006, Starbucks brought to the industry the first hot beverage paper cup with post-consumer recycled fiber.
In 2008, the company introduced Vivanno beverages with a new plastic cup that has less impact on environment.
Starbucks offers 10 cents discount in the U.S and Canada stores to those customers who use their own reusable mugs for their beverages. Customers who stay in the store can also ask for ceramic mugs. In U.S and Canada the use of reusable mugs has increased with 22 million times during 2008 - representing 1 million pounds of paper saved.
In conclusion, reducing the environmental impact of the cups depends on developing recyclable cups and increasing customers' use of reusable mugs.

Starbucks - a leader in environmental responsibilities

Starbucks created a global environmental strategy that will help to achieve a meaningful reduction of their environmental footprint.Therefore, the company is working on:

• reducing energy use. In 2008, the company purchased renewable energy in amount that represents 20% of the total electricity used. The company's plan is to have 50 % of store energy coming from certified renewable stores;


• incorporating green building standards in all new constructions;


• reducing water usage. The company is working on introducing hand meter system that will use less water than the deeper well system;


• recycling. In 2008, 70% of Starbucks stores recycled at least one type of waste. By 2015, the company is planning to have recycling available in 100% of their stores.

Starbucks is an example of a company that is caring for our planet and is always looking for different ways of reducing their footprint on earth.

Starbucks Social Responsibilities: Ethics

Starbucks goal is to buy and sell 100% responsibly grown and traded coffee. In 2008 the company bought 385 pounds of coffee, from which 75% was responsibly grown and ethically traded.
Starbucks always wanted to sell the highest quality coffee. That's why one of the company's goals is to make sure the coffee was grown under the highest standards of quality.

• For more than 10 years Starbucks and Conservation International(CI) have been working together in order to help farmers grow coffee;


• In 2004 the company created Farmers Support Center in Costa Rica. The main purpose of the Center is to show farmers better methods of growing coffee. Therefore, a team of agronomists is working together with the farmers;


• In 2008 Starbucks opened another Farmer Support Center in Rwanda;


• The company is supporting small scale and Fair Trade farmers;


• Starbucks pays high prices; average price the company paid for coffee in fiscal 2008 was $1.49 per pound;


• Starbucks buys organic coffee;


• The company is investing in a better future for farmers through loan program.
  

The company is focused on using responsible growing practices and reducing the environmental footprint by working to use less and do more with what they use.

Last Starbucks Innovation: "lean retailing"

Starbucks is making many changes in terms of products, locations and costumer expectations. The last innovation the company announced is to embrace the Japanese style of "lean retailing". Scott Heydon, the company's "vice president of lean thinking," said that if Starbucks can reduce the time each employee spends making a drink, the company is gonna be able to make more drinks with the same numbers of workers.

Starbucks is making studies of motion analysing every movement of the baristas. Thirty percent of worker's time is motion"walking, reaching and bending". The "lean thinking team" is working on reducing that time as much as possible. This is gonna allowed the workers to spend more time interacting with the customers and improving Starbucks experience. Now, the company want to focus on optimal ways to do the work.

The new Starbucks' move is an example of how big brands are remodeling their business during the recession. Opening new stores and adding new products is not necessarily guarantee the growth of a company.

Starbucks' Stategic Planning

After closing 900 stores, Starbucks is trying to reach the magic it had before.

Howard Schultz , chairman, president and CEO of the company said that Starbucks is working on reaffirming their place as "the world's coffee authority", by recreating the emotional connection with costumers.

The strategic plans for a long term period are:

• providing the revolutionary Clover Brewing System in all Starbucks locations;
  
• establishing the new state -of-the-art espresso by using Mastrena espresso machines;


• making the Starbucks Card Reward Program more efficient;

• creating MyStarbucksIdea.com - first Starbucks community online. The purpose of "the new comunity" is to maintain a closer relationship with the customers and to get new idea that will help the company to go on.
  

All of the innovations and transformations Starbucks makes are focused on recreating and maintaining the costumers satisfaction.

Starbucks Current Status

After becoming the largest coffee house in the world with 16,000 store in over 49 countries, Starbucks announced the closing of 600 under performing stores across 44 states in USA on July 2008.

On January, 2008 the company brought back its top representative, Howard Schultz to help the business turn around. Howard Schultz said in a conference "We lost the focus on what we once had, and that is the customer."

On January, 2009 Starbucks announced the closure of 300 more stores and cutting of 6,700 stores in order to improve their financial outlook.

All the cost-cutting helped Starbucks. In 2009, the company earned $ 151.5 million in the third quarter , compared with a loss of $ 6.7 million a year earlier. Sales improved each month during the quarter. Howard Schultz said that quarter results showed "positive momentum."

Starbucks has introduced instant coffee, changed its food recipes and begun a multimillion dollar ad compaign to keep costumers from defecting to lower-priced competitors.

A Short History of Starbucks Logos

The original logo was created after a 15th century Norse woodcut, the image of a two-tailed mermaid siren. According to Greek mythology the mermaid was an irresistible female figure. The symbolism of the logo was to represent the irresistible and seductive quality of the coffee. This logo was used from 1971-1987.

In 1987, when Howard Schultz bought the company, the Starbucks logo changed. It became green, and the mermaid breasts were covered with her hair, but her belly button was still visible. The text also changed into "Starbucks Coffee". This logo was used from 1987-1992

The last logo gives a closer view to the mermaid; the navel is no longer visible and the tails are more obscure creating a mystery.

In 2002,with introducing of the new Pike Place Roast blend ,the company made a recall to the first logo. The only difference being the phrase around the perimeter that says "Starbucks-Fresh Roasted Coffee". The marketing purpose was to connect to the campaign slogan "Roasted coffee since 1971.The best cup then. The best cup now."

HISTORY OF STARBUCKS

Starbucks was founded in 1971 by three partners: English teacher Jerry Baldwin, history teacher Zev Siegel, and writer Gordon Bowker. They opened the company in Seattle, Washington as a local coffee bean roaster and retailer. The primary focus of the company was selling high-quality coffee beans and equipment. Therefore, when the Director of Marketing,Howard Schultz came with the idea of selling coffee,espresso drinks as well as beans, the owners rejected. This made Howard Schultz open Giornale coffee bar chain.

In 1987 the owners sold Starbucks chain to Schultz's Giornale. He renamed the Giornale chain as Starbucks and started to expand. The first locations opened outside the Seattle were: Waterfront Station in Vancouver, British Colombia and Chicago, Illinois. Starbucks had grown to 162 outlets till 1992.

In 1996 Starbucks extended internationally. Japan was the first country Starbucks entered, then followed U.K . By November 2005 London had more outlets than Manhattan, a sign that Starbucks became an international brand.
Starbucks has become the largest coffeehouse in the world with 16,120 stores in 49 countries.