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There are several reasons why taking CSR as seriously as Starbucks has its advantages:
Brand Differentiation Part of the Starbucks corporate social responsibility efforts are
on the website, Starbucks Shared Planet, where they state goals of investing in the future
of coffee growers, developing ways of recycling better and reducing greenhouse gas
emissions, and contributing hours to community service. It is highly likely that these
efforts have helped Starbucks to stand out from the rest! Who wouldnt want to buy from
or work for an establishment that does so much to give back to the community?
Ethical Consumerism Lets face it. The worlds population is growing, but natural
resources are dwindling. Consumers are now more aware that what they buy can also
affect society and the environment, and have thus, become more ethical when making
decisions related to their purchases.
Social Awareness and Education Consumers are aware, and so are more and more
people. Some have even set up organizations just to focus on saving diminishing natural
resources. These groups can put pressure on your business, but being socially and
environmentally responsible can definitely get you off the hook.
Advertising Its rare to see an ad about their coffee, but with the Starbucks corporate
social responsibility efforts, its advertising needs are mostly covered. Follow this link to
find out more about Starbucks Marketing Strategy.
Starbucks efforts in being responsible for society and the environment can be major inspiration
for many small businesses. This Starbuks Cooffee Company is an example of how any business
can take a huge part in making changes for the better in the world today, as well as effectively
use this participation to benefit the business.
have tried to detail why such techniques have worked for this company.
Many points can be attributed to the success of this innovative company from the holistically
slanted Starbucks Mission Statement to the environmentally conscious Starbucks Corporate
Social Responsibilty statement. But one thing is certain, if Starbucks comes up with a new viral
marketing campaign - others companies should start taking notes.
Uniquely Starbucks Coffee Company
The Starbucks marketing strategy is not one commonly seen in many businesses today. Did you
ever realize that its rare (if not none) for you to find a Starbucks ad in a billboard, ad space,
newspaper or poster in places where you can expect to see advertisements for most other
establishments, even huge ones like McDonalds?
Now, Starbucks Coffee Company didnt just go for unconventional marketing strategies for the
fun of it. They thought real hard about promoting their company, and have decided that
Starbucks is more likely to benefit if it employed unconventional strategies (see viral marketing
examples to see how others do "unconventional" successfully) that may be unique and seldomtried, but most perfectly matched the concept that the company wanted to portray.
Points to Learn from the Starbucks Marketing Strategy
Every business can learn from another, especially if a particular business is one that has
displayed tremendous success over the years. The Starbucks Corporation and its successful
marketing strategies are definitely something that anyone interested in business can learn about.
What sort of techniques did the company use, and how were these able to reach out and attract
millions of people worldwide? Some of their best strategies are outlined below.
Perfect Cup of Coffee Starbucks history has shown that they place a huge
emphasis on product quality. Their coffee, even if priced slightly more expensive than
expected, is notorious for satisfying customers with its rich, delicious taste and aroma.
Third Place From the very beginning, the Starbucks marketing strategy has focused
on creating the third place for everyone to go to between home and work. Creating this
unique and relaxing experience and atmosphere for people has been very important
for the company as they have realized that this is one of the strongest concepts attached
to the company, to which customers have been strongly attracted.
Smart Partnerships Starbucks Coffee Company has been known to create strategic
partnerships that demonstrate the fact that another way to grow your business is to
partner smart. Over the years, the Starbucks Corporation has greatly increased sales just
by using this strategy.
Innovation Through the years, the Starbucks Coffee Company has been known to
think up creative and innovative ideas to add to their products or services. Theyve added
different flavors to their coffee, more food on their menu, and even became one of the
firsts to offer internet capability in their stores.
Brand Marketing The Starbucks marketing strategy has always focused on wordof-mouth advertising and letting the high quality of their products and services speak for
themselves. For years, this has been uniquely Starbucks, and it has played a huge part
in making Starbucks Coffee Company a success. The definition of viral marketing speaks
to this new word of mouth that Starbucks has run with, and made their own.
Cup by cup, Starbucks has changed the way people from different continents drink coffee. More remarkably, the
company successfully transformed a pedestrian commodity into a high-end accessory. It has created a
Starbucks lifestyle that more people continue to embrace in the United States and abroad.
From tasty beverages to proprietary whole bean coffee blends to strategic relationships, small businesses have
so much to learn from Starbucks. You may not have the resources that Starbucks has in its arsenal, but there are
a number of things you can emulate from this company and apply to your own business, albeit on a significantly
smaller scale.
More than the taste of its coffee, there are a number of factors that propelled Starbucks latte to the forefront.
Below are some of the things that you can learn from Starbucks a company that started small, dreamed big
and grew to be a gigantic global corporation:
2. Think big.
Starbucks opened its first store in Seattles Pike Place Market in 1971. The company started small, but even
early on it always had big ambitions. The company was made public in 1982, almost a decade after it started.
From its humble beginnings, the company currently holds about 40 percent of the specialty coffee market, and
the anticipated growth in this category will offer the company considerable opportunities for further growth and
expansion in the future. In fact, it can be said that Starbucks is just at its early stages to colonize the globe.
Starbucks used the slow-but-sure approach to business growth. It was certainly not an overnight success. But
through perseverance, patience, management and financial smarts, the company became a formidable global
presence. If Starbucks did it, then surely other small businesses can replicate its success (who knows, it may be
yours).
4. Partner smart.
Starbucks has demonstrated that even a large company needs help to achieve its goals. In fact, a key reason for
Starbucks success is its strategic partnership initiatives. In 1993, the company partnered with Barnes and Noble
bookstore in the United States to make its coffee available to bookstore customers. Continuing its strategy to gain
a foothold in the bookstore segment, Starbucks formed an alliance with Canadian bookstore Chapters Inc. in
1995.
Starbucks entered into a partnership with Pepsi-Cola Company in 1996 to start the business venture called North
American Coffee Partnership, which then sold a bottled version of Starbucks Frappuccino blended beverage.
During that same year, the company also partnered with Dreyers Grand Ice Cream, Inc. and introduced
Starbucks Ice Cream and Starbucks Ice Cream bars, which quickly became the best selling coffee ice cream in
the United States. In 2001, the company entered into a partnership with Hyatt Hotels Corp.
To demonstrate and pursue its social commitment objectives, Starbucks has also partnered with a number of
organization such as Conservation International, the international relief and development organization CARE,
Earvin Magic Johnsons Johnson Development Co., JumpStart, among others.
Starbucks was able to achieve its objectives, break new markets, and increase its bottomline by entering into
strategic alliances with the right companies. For your small business to succeed, you need to realize that you
alone cannot fill the gap in serving the needs of your target market. You will need the help of another
entrepreneur or another company who is willing to work with you and share financial risks. It may not be Hyatt
Hotel or Pepsi, but your partner may help you enter new markets, and get products and services to market faster.
Strategic partnerships will be your way to enhance your competitiveness in the marketplace and keep pace with
the rapid changes of technological innovation, just like Starbucks.
The product innovations and store ambiance that the company created are all intended to promote an
environment that would enhance and complement the customers coffee drinking experience. The end result is a
pleasurable experience for the customer a unique Starbucks experience that is consistent from Seattle to
Washington D.C.
9. Good management.
Starbucks has a well-seasoned management team that continues to develop winning strategies for the company.
One of its best decisions thus far is its strategy of foregoing franchisees and making sure that its stores are
company-owned. This strategy allowed the company to maintain a tight grip on its image and provide a
consistent quality of excellent service.
Starbucks management is also judicious in its use of resources. It fuels expansion with internal cash flow. Unlike
other companies of its size that spend upwards of $300 million per year in marketing, Starbucks only spend 1
percent of its revenues, or roughly about $30 million in marketing and advertising. Instead, the company relies on
word-of-mouth and mystique of its brand to market itself. Marketing expenses are poured on product launches
and introduction of new coffee flavors.
The depth of management resources is one of the main differences between Starbucks and small businesses.
Starbucks has the money to hire the best minds to work on various facets of its operations, whereas many small
businesses have less than 10 employees, if at all. Some small and home-based businesses are even run by a
single person expected to do everything for the business.
However, it should be noted that it took Starbucks several years before it had the resources to hire the team that
propelled it to success. It current chairman, and the chief architect of the many winning strategies of Starbucks,
was hired only in 1982, almost a decade after Starbucks started.
Why is customer service important? It is, because statistics say so. An article published last
September, 2007 reported results from the US News and World Report. According to this report,
the average American business loses 82% of its customers because of matters pertaining to
customer service. The same report revealed that the Harvard Business Review found out that if a
business can avoid losing 5% of its customers, the bottom line profit can increase by 25-95%.
Customer service is important, because the amount of profit that a business earns depends
much on it.
According to a Business Case Study published on The Times 100, gaining one new client costs
the same as keeping 5 regular and existing customers happy. It is so evident that a business with
high quality customer service is more likely to keep up the profits and even increase it, than one
without. Instead of spending much on reeling in new customers, use that money to keep regular
customers happy and earn 5 times more!
Effective & Free Advertising
We all know how powerful word-of-mouth advertising is. Most people will go to places
recommended and will avoid places with bad reputation. The most effective way of gaining that
popularity and having those mouths mentioning your business is by excellent customer service.
When customers are treated right, they spread the word. That in itself is free and effective
advertising.
Our Coffee High quality has always been the passion of Starbucks coffee, and hard
work has been done to maintain and improve that.
Our Partners Everyone who works for Starbucks are partners because they all share a
passion to create a place where everyone is treated to a standard that includes respect
and dignity.
Our Stores The Starbucks mission statement also focuses on making their stores a
haven for people to go to whenever necessary.
Our Neighborhood Starbucks considers their stores as part of the community it is in,
and are very passionate about doing their part and being responsible about it.
Our Shareholders Starbucks believes that actions towards success rewards everyone
involved in the company. Therefore, Starbucks is fully accountable to uphold its principles
to the benefit of everyone connected with Starbucks.
Onward The Starbucks Mission Statement page leaves this without an explanation
but for good reason. The future may be unknown, but Starbucks regards it as important,
and all decisions and actions have to contribute to making a better future for Starbucks
and all its partners.
With this carefully thought-out list, Starbucks made sure not to leave anyone or anything behind.
They have wholly considered what matters most to the company, and have made sure that
everyone is aware of this and is passionately working towards the perpetuation of these
principles. Starbucks history has shown that having values, and practicing those values, will lead
to success.
leadership in all aspects of the business by a number of ways, including understanding and
sharing information about environmental issues, using environmentally friendly products, and
encouraging all partners to share in their mission. The complete list of the Starbucks
commitments to the environment is available on their website.
A Holistic Purpose
It might be that the company owes some part of its success to a wholly-aware and responsible
Starbucks mission statement. By being passionate about everyone and everything involved and
affected by the business, Starbucks and its partners work twice as hard to uphold their principles,
and show their customers and the public that they are honest and sincere, not only about
providing the best coffee experience around, but also in truly caring for people and the
environment.
Business Ethics and Compliance is a programme that supports Our Starbucks Mission and helps protect
our culture and our reputation by providing resources that help partners make ethical decisions at work.
The programme develops and distributes awareness materials, including the Standards of Business
Conduct; facilitates legal compliance and ethics training; investigates sensitive issues such as potential
conflicts of interest; and provides additional channels for partners to voice concerns. Partners are
encouraged to report all types of issues or concerns to the programme through their choice of the
offered communication channels.
The majority of reports received by Business Ethics and Compliance involve employee relations issues.
This trend is consistent with other companies retail or otherwise that provide alternative reporting
mechanisms as part of a comprehensive ethics and compliance programme.
For more information about our commitment to Global Responsibility, visit Starbucks Shared
Planet.
For more information about Starbucks Business Ethics and Compliance, please
emailEthicsAndCompliance@Starbucks.com.
Standards of Business Conduct
The Standards of Business Conduct booklet is a resource distributed to all partners to help them make
appropriate decisions at work. The standards are a brief statement of some of the company's expectations
of how we are all to conduct Starbucks business, consistent with our Mission and core values.