Starbucks engages in a wide range of distribution including partnership, its company-owned stores and licensed products. Since Starbucks is a well-known brand, they use the third party relationships to attract other companies and expand their business. While licensed product part is not a large portion of the company’s revenues (4% in 2008), these items are an integral part of familiarizing customers with the Starbucks name and developing brand loyalty. (Crowe Remle, 2010) Starbucks not only sells coffee and some simple food to consumers, it also sells beans and ground coffee to businesses such as airlines, supermarkets, department stores, and ice-cream makers. In a complex distribution network, information technology helps a lot.
Starbucks is adding drive thru for the on the go consumers and professionals. Comparing the data of existing and recent opened stores, Starbucks strives to increase productivity of the units. Value Discipline Actual value determined by the production and delivery of the company’s goods and services. The middle class citizens of mainland China consider Starbucks coffee a luxury. China is a fast changing market and it has paid off for Starbucks.
The company had to raise their price in drinks in order to compensate the increase in price of their products. 2) The company should change advertising channels. Most of the company’s advertisement is by word of mouth because customers are very content with the product or service. VIII. Conclusion: Currently Starbucks Coffee Corporation is a public company that has been highly profitable while maintaining international market share.
Typically their offerings are more expensive than rival coffee offerings which may deter the price conscious customer. This makes the competitors viable replacements. The company has to walk the line between affordability and high end image while trying to appeal to the market. This leads into another issue the firm encounters which is exclusion due to high class image. The perception of a fancy drink retailer may prevent an “average joe” from purchasing a RTD beverage.
It was proven that after the people start trying lattes and mochas, Seattle quickly becomes coffee-crazy. Now Howard Schultz is the chairman and the main philosopher of the probably the best retail coffee company in the world. In Starbucks their employees are called partners'. This was to avoid any form of discrimination among employees. Another reason is because Starbucks also provides share options to even the part-time partners'.
They are currently operating in a worldwide captaincy extent in the Americas; Europe, Middle East, and Africa; China/Asia Pacific; and Channel Development. Starbucks has gain the international market. If Starbucks can start their cooperation in Italy, it is now going to become an open market to any country in the world. We will begin to look at Honduras as a next global expansion. Starbucks currently offers their customers a variety of coffee, teas, packaged roasted whole bean or ground coffees, single serve products, juices and bottled water.
Although Starbucks Company has managed to pass 2008 crisis successfully that is proven by stock market indicators (Starbucks Corporation (SBUX) stock price), some specialists predict loosing marketing positions due to economic troubles and rise of competitors such as McCoffee or DD. Small coffee stores and other competitors all over the world started to copy Starbucks model (interior, music, etc.) so wherever you go to drink coffee the place will look alike. Moreover, modern coffee machines brew excellent drinks so the taste will also be very similar. In such situation the company needs to look for new ways of keeping consumer.
The more locations they have, the more people see there iconic logo, and swarm in for the morning cup of joe. Starbucks is not just pouring up any regular cup of coffee. They purchase and roast only high quality coffee beans hand picked from Latin America, Africa, and Asia-Pacific. Starbucks just this year purchased its own coffee farm, thus allowing them to experiment and in the future produce new bold flavors of coffee. Over the years the company has found ways to become Eco-Friendly.
Starbucks is generally more expensive than the alternative, which gives the buyer the power to decide whether to spend the extra money and shop at Starbucks. Although buyer power is high, Starbucks holds the largest share of coffee sales worldwide. Starbucks also holds many coffee related partnerships and subsidiaries making it the largest purchaser of coffee beans from c...
During the year of 1983, while in Italy, he became fascinated with Italian coffee bars. His vision was to bring the Italian coffeehouse tradition back to the US. • When returning from Italy, he opened II Giornale coffeehouse. By the year of 1987, Shultz had returned to Starbucks in August, which was when the three owners sold Starbucks to Howard. • After receiving ownership of Starbucks, Shultz renamed his former coffeehouses from “II Giornale” to “Starbucks.” Starbucks Today • Starbucks is created to be a different type of company in which: • Celebrates coffee and the rich tradition • Brings a feeling of connection • Starbucks mission is “to inspire and nurture the human spirit- one person, one cup, and one neighborhood at a time.” • It is located in 62 countries with more than 18,000 stores.