Starbuck’s was founded in 1971 by three men from Seattle, Washington. These three men were coffee fanatics that specialized in selling whole bean Arabica coffee beans in the world famous Pike’s place market. In 1982, Howard Schultz joined the. By the early 1990’s he had opened and operated over 150 stores in the Northwest United States and Chicago markets. Schultz decided to take the company public in 1993, by 2002, Starbucks had established Starbucks as the dominant specialty coffee brand and coffee house with over 5000 stores worldwide and 4500 of those are corporate locations. Starbucks Mission Statement

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The success of Starbucks in the early 1990’s can be attributed to Howard Schultz’s vision of the Starbucks brand. Schultz inspired of a company which would make the customer the centre of its success and would change the coffee drinking experience in the U. S. Starbucks was successful because it placed value to the customers first in its value proposition. As to Customer’s expectation in terms of Starbucks’ Beverage, we could refer to Starbucks’s Mission Statement under customer segment; “When we are fully engaged, we connect with, laugh with, and uplift the lives of our customers – even if just for a few moments.

Sure, it starts with the promise of a perfectly made beverage, but our work goes far beyond that. It’s really about human connection. ” Arguments Generally speaking, we categorize Starbucks’ Customer experience into 3 P’s: People – the baristas and their connection with customers. Partners were trained on both “hard skills” and “soft skills” when hired to work for a Starbucks retail store. This equal emphasis on the “hard” and “soft” skills further highlighted Starbucks strategy to make the experience pleasant for the customer.

The “soft skills” were a way to teach the partners on how to connect with the customer, by establishing eye contact, smiling and greeting them with their names when the customers were regulars. Place – their store design and atmosphere Schultz’s idea was to make Starbucks America’s “third place”. By recreating the Italian coffee culture he met in Milan,he managed to make Starbucks a place where people can enjoy their social interactions, relax, or just spent some time by themselves. In essence, the Starbucks idea changed the norm from “buying coffee as a drink” to “the experience of enjoying coffee”.

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People viewed Starbucks as a place theywanted to be at and they spent as much time as they could in the stores. It was an uplifting experience that was complemented with the layout designed to provide an inviting environment. Product – the beverages, food, and merchandise Starbucks strategy was to open only company? owned stores and avoid franchising. This enabled the company to keep full control of quality of its products and services. At the same, Starbucks tried to control as much of the supply chain as possible in order to keep the quality of coffee at high and consistent levels by working with growers and enforcing coffee standards.

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