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Starbucks Coffeehouse Industry

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Starbucks has remained the undisputed leader in the coffeehouse industry. The company first opened in Seattle and has since expanded to more than seventeen thousand coffee houses in the world. There are more than eleven thousand retail outlets in the United States. Starbucks now operates in global scale being present in more than forty countries even expanding in Europe and other emerging markets. Starbucks was originally founded in Seattle, Washington in 1971 by Zev Siegl, Gordon Bowker and Jerry Baldwin. They specialized in selling high quality coffee made from Arabica beans.
They have since initiated product expansion selling a diverse array of coffee beans, salads and sandwiches. The company has also capitalized on their brand name selling …show more content…

Their rivals on the other hand had invested millions in marketing schemes to increase market share. This negatively impacted their brand recognition wherein the company became inconsistent in delivering their marketing message. Primarily, Starbucks began with the luxury market and their brand image was exclusivity. However, they soon lost their luster as they rivaled against the middle class market. More importantly, the company’s marketing activities were all short term that did not exhibit any continuance. This was important in brand development and marketing wherein these served as the foundation of their leadership in the industry. The company made the mistake of overexpansion both in their product and retail outlets. These were only short term activities that did not help in their brand’s development (Scultz and Gordon 2012, p. 97) …show more content…

Starbucks was one of the first to embrace social media as a marketing strategy. It also coincided with the development of their green marketing strategies since the use of online tools also meant a reduction in traditional advertising and marketing expense. The company already had a tradition of allocating a small amount to marketing efforts wherein this medium suited their tactics. Significantly, the company was successful in positioning themselves as an environment friendly company by strategically marketing their outlets as part of the community. The building of a community atmosphere helped the company establish green marketing strategies that sustained their growth during the recessionary periods in the United

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