Assignment 1-3 Journal Article Analysis

Who doesn’t like a cup of “joe” in the morning? Whether it’s just a cup of coffee, an espresso or latte and whether it’s hot or cold; your favorite drink has most likely been influenced by Starbucks. Starbucks has become a sign of pop culture. Coffee shops with entertainment, free WI-FI and a comfortable atmosphere have become a nightly hang-out for many Americans and global citizens. Where did coffee come from and how does it influence the global marketplace? Where and when did Starbucks begin and how do they target their customers? The answers to these questions and more were discussed in the article, “For the Love of Joe; the Language of Starbucks”.

Where did coffee come from? When many of us think of coffee we first think of the lands in South America (Brazil, Columbia, etc.); but is this where it all started? Coffee was first brewed in Ethiopia and then became popular in the Islamic world in the sixteenth century (Ruzich 2008). During this time coffee was thought to be a dangerous stimulant. By the late 1600’s, Europeans had stolen seedlings for their own colonies and plantations, so that the monopoly on coffee by the Islamic world was eliminated. Coffeehouses began opening in London in the 1800’s and so came the accompanying conversations.

Although coffee improved the lives of many by encouraging evening conversations and changing the drink of choice from liquor to coffee; even more it improved the lives of those who obtained control of the coffee. Not the individuals growing the crops or harvesting, but those who controlled the production and distribution. By the 19th century coffee became an international commodity and developing nations were able to gain a market share. Coffee has been a key crop to many nations for centuries.

The number one most valuable trading commodity in the world is oil; but did you know that coffee is second (Ruzich 2008, 431). The numbers aren’t clear but somewhere between 20 million and 125 million depend on growing coffee for their livelihood (Ruzich 2008, 431). Sales in the coffee industry are estimated at $55 Billion a year with the four major players in the market being Nestle, Philip Morris, Sara Lee and Procter & Gamble (Ruzich 2008, 431).

In 1966 a gentleman by the name of Henry Peet opened one of the first businesses in America that sold whole-bean coffee for home-use and tried to educate Americans about specialty coffees (Ruzich 2008, 431). Peet is credited with getting American’s excited about coffee again. The most successful specialty coffee outlet has been Starbucks, although Dunkin Donuts still sells more coffee than Starbucks, but is not considered a specialty outlet. The first Starbucks store opened in Seattle in 1971. At the time this article was written Starbucks was opening three to four stores a day and their stock prices were up 3,028% since 1992 (Ruzich 2008, 432). Starbucks had over 7,500 locations in 28 different countries as of 2004 (Ruzich 2008, 428). According to some studies, the average Starbucks customers come in five times a month, the heavier users 18 times a month and the Starbucks loyal and estimated 10% come in twice a day (Ruzich 2008, 432).

The founder of Starbucks, Howard Schultz, describes his stores as, “an extension of people’s front porch” and has also been heard saying, “We aren’t in the coffee business serving people. We are in the people business, serving coffee” (Ruzich 2008, 432). Starbucks have become a second home to many individuals. People go to Starbucks to enjoy a terrific cup of coffee, a relaxed atmosphere and calming music. They go to Starbucks to have meetings and continue with work using the Starbucks WIFI service. Coined, “the third place”, the coffeehouse has become the “hang out” of Americans, who look for somewhere to go between work and home.

How did they get to be so popular? Starbucks has targeted most of their customers, not by advertising, but simply word-of-mouth. In fact, over the first twenty-five years Starbucks spent less than $10 million in advertising (Ruzich 2008, 433). They have grown simply by creating a comfortable environment where people can relax, have a meeting or just enjoy a great cup of “joe.” Starbucks strives to treat coffee not just as a beverage, but with the criteria as a fine wine. When you head to Starbucks, you’re in for a calming experience with an enjoyable treat.

Personally, I’ve only been to a Starbucks a couple of times, but the environment is wonderful. If makes it easy to have a meeting and to just relax after a long day. I’m sure if I were to take more time for myself, Starbucks would quickly become one of my favorite places.


References
RUZICH, C. M. (2008). For the Love of Joe: The Language of Starbucks. The Journal of Popular Culture, 41(3), 428-442.