6/8/11
1:16 PM
Page 2
ONLINE VIDEO CASE 7.1
Naresh K. Malhotra, Basic Marketing Research: Integration of Social Media, 4e. Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall.
STARBUCKS: Staying Local While Going Global Through Marketing Research
Named after the first mate in the novel Moby-Dick, Starbucks is the largest coffeehouse company in the world. As of 2010, there were more than 16,700 stores in over
50 countries including more than 8,850 company-operated stores and more than
7,850 licensed stores. The company’s objective is to establish Starbucks as the most recognized and respected brand in the world. It expects to achieve this by continuing with rapid expansion of retail stores and growing its specialty sales and other operations. It will also continually pursue other opportunities to leverage the
Starbucks brand through new products and new distribution channels that meet consumer needs determined by marketing research. Over the last two decades,
Starbucks has revitalized the coffee industry. The inspiration behind Starbucks was conceived when CEO Howard Schultz visited Italy. At that time, Starbucks was a coffee company, and people were very passionate about the coffee, but in Milan
Howard saw the passion around the coffeehouse experience. In Milan, Howard went from one espresso bar to the next and saw how people at the coffeehouses knew each other. These people were getting their daily coffees, but they also were making daily connections with other people, with the baristas, and with the artistry; the folks making the drinks were connecting with their customers and knew them personally.
From this experience, Howard recognized that although Starbucks was passionate about the coffee, it also had the opportunity to be equally passionate about the coffeehouse experience.
Marketing research determined four strategic pillars for expressing the Starbucks brand. The four pillars are (1) the coffee, which is
References: 1. www.starbucks.com, accessed February 15, 2011. 2. Steven Gray and Kate Kelly, “Starbucks Plans to Make Debut in Movie Business,” Wall Street Journal (January 12, 2006): A1, A8. 3. Bob Keefe, “Starbucks to Offer CD-Burning Capabilities at Stores in Future,” Knight Ridder Tribune Business News (June 28, 2004): 1.