1.

0 Introduction
1.1 Starbucks Company Introduction
1.1.1 Starbucks Companys Background
Starbucks Coffee Company was founded in 1971. The first store of this company
was in Seattles Pike Place Market. At that time, this company was roaster retailer of
whole bean and ground coffee, tea and spices.

This company established over 55

countries with 17,000 retail stores and serves the uncountable customers. It was count in
2011. This companys name was built after the first mate in Herman Melvilles Moby
Dick.
In 1982, Howard Schultz was the director of retail operations and marketing, and
Starbucks began to provide coffee to those fine restaurants and espresso bars. Since 1983,
Howard was travelling to many countries and he was finding out the population of the
certain countries such as Italy, Canada, and so on. He found those countries population
had the potential market to develop the coffeehouse culture. Furthermore, Starbucks
Coffee Company had provided full health benefits for the employees no matter those
employees were full-time or part-time employees.
Today, many international airports have Starbucks Coffee Company. This market
was developed since 1991; which the first licensed airport store was at Seattles Sea-Tac
International Airport.
In 2000, Howard Schultz was promoted as chairman and chief global strategist
and Orin Smith was the president and chief executive officer. In the same year, they had
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deal with an agreement about issued a license of TransFair USA to conduct the business
of Fairtrade certified coffee in U.S. and Canada. Over the years to extend Starbucks
Coffee Companys market, in 2010, there have started to provide service of free unlimited
Wi-Fi.

1.1.2 Starbucks Mission

Mission Statement: To inspire and nurture the human spirit one person, one cup and
one neighborhood at a time.
Based on the mission statement above, it has the own meaning. This mission
means to ensure the products can satisfy customers. Customer satisfaction is the main
point to make the company to achieve their goal. They are always ensuring the finest
coffee bean are imported and roasted. Furthermore, from the mission statement, they are
making customers feel empathy to have a cup of drink, sitting down in their Starbuck
retail stores and enjoy the Wi-Fi service.

1.1.3 Starbucks Coffee

Starbucks Coffee Company always purchases the high-quality and roasted whole
bean coffee. This is their goal which the coffee is grown by ethical sourcing practices.
Starbucks Coffee Company can bring out the enriched flavor of the coffee bean in the
trademark of Starbucks Roast. Those coffee beans are selected from Lat in America,
Africa and Asia to have the finest and highest quality Arabica beans.

1.2The Coffee Beans & Tea Leaf Introduction

1.2.1 The Coffee Bean & Tea Leaf Background
Since 1963, The Coffee Bean & Tea Leaf was founded in Southern California.
The founder of this brand was Herbert B. Hyman. In United States, his brand is the oldest
and largest of coffee and tea retailer. The first caf was open up in Brentwood, California.
Today, this company has established over 800 stores in 20 countries and above.
The Coffee Bean & Tea Leaf has a very good relationship with the high quality
of private coffee farms and tea estates throughout the world and only select the top 1%
Arabica beans which is finest hand plucked. There have more than 30 varieties of coffee
and 20 varieties of tea and those teas are hand blended from tea master.
This company has their senior management. From the management, there have
the organizational chart and everyone who involve in the organization must hold their
own position.

1.2.2 Company Culture

From the year this company conducted the business, they are providing
environment where you may feel interesting to serve the customers. With the extension of
the company, the company is offering the opportunity for the advancement of career.
The company is hiring for FROTH and choosing the potential candidates who
meet the requirements of the Guiding Principles. Other than that, the company is always
makes customers have great satisfaction. This is their reason to provide the great products

to keep their loyal customers. For the regular customers, they provide them Total Quality
Experience and hire Simply the Best.

1.2.3 Services
The Coffee Bean & Tea Leaf is providing different kind of services to
customers. This company has provided specialty sales services. They are provided the
interest form for those who are interested for the sales of product in their special website.
Secondly, there have the grocery retail program. It means that supplier can supply
to the customers with the right option of offer to them. This company brings the products
with high-quality, taste and varieties of option to the customers.
As a reward for employees and show impression to the clients, The Coffee Bean
& Tea Leaf has provided Office Coffee Service Program which are variety of coffee
bean with the premium standard and the ground portion pack coffees which can feature
the new pack coffees with FlavorLock Valve. Other than that, this program includes the
premium all-natural exotic teas, branded merchandisers and marketing materials.
The other service provided by The Coffee Bean & Tea Leaf is Food Service.
This program is keeping the loyal customers and highly satisfies customers wants with
the compliment menu. With this program, this company is able to provide the varieties of
premium coffee bean, natural exotic iced and hot teas, green environmental idea with The
Coffee Bean & Tea Leaf paper products and branded merchandisers.

2.0 Discussion
2.1 Product Personality of the Brand
2.1.1 Starbucks Coffee Company Logo History
Today, when people look at the logo of Starbucks, they may feel proud of this
brand because the retail stores of Starbucks almost can be found everywhere.

The original logo was started in 1971.

It was the image of mythical two-tailed
mermaid siren. The objective of this image was
meant seducing the seagoing mariner with
enticing song. The logo was look-alike a cigar
band label.

This is the logo which was used in 1987 - 1992.

The mermaid inside the logo was with a close-up view.
The mermaids tails were obscured and created
mystery.

This is the current logo of Starbucks. This

was started used since April, 2008. It is slightly
similar to the cigar motive of the first logo they
established.

2.1.2 Brand Personality of Starbucks Coffee

When comes to study the brand personality of Starbucks Coffee Company, this
brand is more referring to the competence dimension. Competence is refers to the
characteristics of reliable, intelligent, and successful.
When we look at the brand of Starbucks, we may know it is a successful
company. It is so successful because this company has build up a great relationship with
the customers and provides high-quality of coffee. The employees are well-trained and
helpful. Other than that, Starbucks Coffee Company is provided the premium standard
quality of coffee to the reach the satisfaction of customers. This is how can this company
keeps their loyal customers and become successful in their business.
From the brand personality of Starbucks Coffee Company, it can relate to the
ruggedness which involves the characteristics of outdoorsy and tough. From the
marketing research, Starbucks Coffee Company is always an active and vigorous
company. Furthermore, this company is more involved in charity and the arts activities;
which means it is more concerned about the environmentally responsible of the company.

The company is not only focusing about their own business, but they want to put effort to
influence the society by associate the company itself with the societal activities.

2.1.3 Brand Personality of The Coffee Bean & Tea Leaf

People look at the logo of this company may
feel the logo is towards classical design. The brand can
relate The
to brand
the competence
is older thanandthe sincerity
Starbucks brand
Coffee
personality.
Company
to come in the market. The logo never being
renewed or modified before. Other than that, the logo is
telling us they provide the varieties of tea and coffee
drinks. They have their own tea farm and they supply the tea leaf to other countries.
When we look at the logo, it shows us sincerity of the brand which is telling us to
have some time go to their retail caf and have a cup of brewed coffee or fresh tea to
relax our mind. Besides that, when we sit down in the retail caf, we may feel like back
to the country home due to the design and the colour of the wall painting.
Te Coffee Bean & Tea Leaf is a very successful company. It has the intelligent
idea to develop the market. This company has its own marketing strategy to conduct the
business. This brands franchise market is in the high traffic and mostly in foreign
countries.

2.2 Positioning of Products

Positioning implanting the brands unique benefits and differentiation in customers

minds.

2.2.1 Positioning of Starbucks and The Coffee Bean & Tea Leaf
Products
Perceptual Map of Starbucks And It's Competitors (Coffee Shop Market)
The graph below illustrates customer perceptions regarding various brands:

Starbucks

TheCoffeeB
ean

The perceptual map above is showing that Starbucks and The Coffee Bean & Tea
Leaf for the price, quality and comfortable environment. Both of these two companies are
at the high price. However, when look at the quality and comfortable environment, The
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Coffee Bean & Tea Leaf has the more higher percentage than Starbucks which according
the research had state Starbucks has a little lower of luxurious for relax and
comfortable environment.

2.3 Social Class Targeted

Social class is the individuals or groups which classify based on the economic standard,
accumulation of wealth and personal status. It can be divided into upper class, middle
class, working class and the lower class.

2.3.1 Starbucks Social Class Targeted

Starbucks Coffee Company has its own social class targeted in the market. They
are more focus on the working class and the middle class of customers. Their stores
mostly may nearby the working company areas and offices. Therefore, they can have
large customers who are working adults. Those people who are working nearby
Starbucks, they can use this opportunity to meet up with friends. Besides that, working
class of customers can afford to allow Starbucks to charge a premium price for its
products.
Moreover, Starbucks Coffee Company can target young people who are college
students. They may afford to purchase coffee and share with their friends. Over the years
of social class targeted of Starbucks, this company has the growth expansion of their
stores.

2.3.2 The Coffee Bean & Tea Leaf Social Class Targeted
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This company is targeted the working class and middle class of customers. In this
companys strategy plan, they are more targeted the market on youth and working class of
people who are between 18-35 years old.
Furthermore, this company is more focusing foreign countries market. Their
retail stores mostly are placed on the high traffic city which is large population. They
want to have this kind of target market because they find that concentrate the large
populations countries can help them to keep achieve and expand their market.

2.4 Strength and Weakness of the Brand

Strength and weakness are the research which must be done for each of the
company. This is because it is the analysis and reference for a company to find out the
way to improve the company.

2.4.1 Strength and Weakness of Starbucks

There have strength based on four factors which include retail expansion, product
and service innovation, observation of the store hygiene and niche market of the gourmet
coffee. Starbucks Coffee Company has owned 30% and above of U.S. coffee bars in
2002. There have provided high speed of wireless services for more than 2000 stores. The
growth of market is between 9-10% of annual growth rate. This is the opportunity for this
company to lie in the real market.
For the weakness, Starbucks Coffee Companys market profile has shift to
characteristics which means the brand is not originally marketed. The market target they
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set is younger and less educated people. Since the packaging of Starbucks Coffee
Company was targeted towards a high-end market. However, it seems like the lower
growth rate in the market that may shift to low-end. In the potential market, this company
does not concern about the needs of market. It can be observed through the company
provides the products and services which were not really meet the market they targeted.

2.4.2 Strength and Weakness of The Coffee Bean & Tea Leaf
This company has the regional office in Singapore. It is the first strength can be
found from the SWOT analysis. This strength can provides the recruitment and training
programs to the regional countries which have the retail caf.
Second, this company has its own marketing strategy to attract the customers and
well-known from the customers through the different location. The strategy used by The
Coffee Bean & Tea Leaf is franchising and company own-stores. Besides franchise
strategy, franchise communication is another marketing strategy. This company
communicates between franchisee and franchisor to allow franchisor collect information
and find out what is the problem facing by the franchisee.
Other than marketing strategy, there have the business strategy too; which is
standardization. Due to the regional countries might have the different cultures, The
Coffee Bean & Tea Leaf must keep the standard level which can keeps the image of the
company in the market. Besides to keep the image in the market, the company must also
keep the higher standard of the products quality.

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The weakness of The Coffee Bean & Tea Leaf is the company is more focus to
youth and working adults as their target market. This may causes the company has some
lose of the potential market. Besides that, the share of market for this company is very
limited.

3.0 Summary

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Each company has its own way to conduct business. Either business or marketing
strategy, company must apply those strategies in order to keep their business in the
market.
Starbucks and The Coffee Bean & Tea Leaf have conducted in the same business;
which are selling coffee and beverages. Both of the companies have established many
stores over hundreds of years.
Although both of these companies have the competitive advantage, there still have
the weaknesses which the companies must find and solve it. If not, then there will be
more competitors come in the potential market and attacks both of these companies.
The research for Starbucks and The Coffee Bean & Tea Leaf are telling us the
scope of the market and the effort the companies had put into it to keep their image and
brand alive in the market.
An analysis had been done which can be found from Website is the Porters five
forces using by Starbucks. There are the treats of substitution, new entry, competitive
rivalry, the bargaining power of suppliers and bargaining power of buyers.
There are some suggestions for Starbucks to renew the brand name through
advertising and promotion and product differentiation. Besides that, the strategies to keep
the loyal customers which are provide the privilege card and rewards program and
Starbucks Drive-Through.

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Generally, Starbucks and The Coffee Company & Tea Leaf are successful
companies. Today, the stores they established are uncountable. Both of these two
companies have their own loyal customers. This is why they must continue to improve
their business either customer services, product line, pricing system, management system
and so on. These are the basic elements which companies must always concern about it.

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4.0 Reference
1. Starbucks Coffee Company, 2011. Starbucks Company Timeline Viewed on 26
June 2012. Available from:
<http://assets.starbucks.com/assets/576b394e057542a5bc78618bef7d15e3.pdf>
2. Starbucks Coffee Company, 2011. Starbucks Company Profile Viewed on 26 June
72012. Available from:
<http://assets.starbucks.com/assets/5739ef83a25444af98bd14ba1034eb50.pdf>
3. G Serrano, n.d. The Starbucks strength Viewed on 29 June 2012. Available from:
<http://trendsupdates.com/the-starbucks-strength/>
4. G Serrano, n.d. The Starbucks Weakness Viewed on 29 June 2012. Available from:
<http://trendsupdates.com/the-starbucks-weakness/>
5. International Coffee & Tea, LLC. 2012. About Us Viewed on 26 June 2012.
Available from: <http://www.coffeebean.com/About-Us.html>
6. Starbucks is in The House blog, 2010. Re definition of Starbucks
Mission Statement Viewed on 29 June 2012. Available from:
<http://harriscassie.blogspot.com/2010/02/re-definition-ofstarbucks-mission.html>
7. International Coffee & Tea, LLC. n.d. About Us Viewed on 1 July 2012. Available
from: <http://www.coffeebeanhawaii.com/about_us/index.php>
8. International Coffee & Tea, LLC. n.d. Specialty Stores Viewed on 3 July 2012.
Available from: <http://www.coffeebean.com/Specialty-Sales.html>
9. Gourmet Coffee Zone. 2008. The Starbucks Logo A Visual Twist of Starbucks
History Viewed on 9 July 2012. Available from: <http://gourmet-coffeezone.com/starbucks-logo.html>

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10. AWI Licensing Company, n.d. Case Study The Coffee Bean & Tea Leaf Viewed
on 10 July 2012. Available from:
<http://www.armstrong.com/commflooringna/coffee-bean-case-study.html>
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12. WordPress.com, n.d. Starbucks Case Study: Great Customer Relations + Good
Coffee = Success! Viewed on 10 July 2012. Available from:
<http://marketingmonster.wordpress.com/2006/04/28/starbucks-case-study-greatcustomer-relations-good-coffee-success/>
13. Bhaskar C. 2009. Starbucks Target Market Viewed on 12 July 2012. Available
from: <http://blogs.indews.com/marketing/starbucks_target_market.php>
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Available from: <http://www.oxbridgewriters.com/essays/marketing/the-coffeebean-and-tea-leaf.php>
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<http://cuppacoffeebean.wordpress.com/assignment-one/brand-positioning/>
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Viewed on 15 July 2012. Available from:
<http://www.mcafee.cc/Classes/BEM106/Papers/2008/Starbucks.pdf>

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