For instance, their instant coffee line VIA was a part of their differentiation and low cost leadership strategy. VIA is a low cost alternative to regular coffee and a... ... middle of paper ... ... market in US also can be a problem for the stores based in US. However this can be counterbalanced by adopting a diversification strategy and innovative product offerings to retain their customers in the US market. Opening stores in growing markets can give a big boost to Starbucks to regain its market leadership position. In spite of these challenges Starbucks still maintains a strong financial status which indicates that company still has many prospects for future growth especially with unexplored coffee markets in certain countries.
Starbucks isn’t only about the coffee, it’s also about a place where people can escape to enjoy music, reflect, read, or just chat. It is a total coffee experience. The retail outlet has been responsible for much of Starbucks growth and has contributed substantially to their brand equity. The Starbucks case doesn’t mention many weaknesses. The main one, however, is their supply chain operations.
The focus of this paper will focus on the environmental factors that impact the organization’s marketing decisions. In addition, it will explain how technology impacts Starbuck’s marketing decisions and analyze the importance of social responsibility and ethics as they relate to Starbuck’s marketing. Starbucks is a leading company of the finest coffee in the world. Starbuck uses high quality whole bean coffee, and sells a variety of pastries, other unique beverages, and coffee-related accessories and equipment. As a part of their mission, Starbucks strives to provide a work environment treating the customer, as well as employees, with respect and dignity.
Job order cost system about customization in that company. An important feature of job order cost system is that each job or batch has its own distinguishing characteristics. (Paul D. Kimmel) Coffee Bean and Tea Leaf stated that their representative creates flavors, “we work directly with tea growers in these regions in handcrafting varieties of tea that meet our exacting specifications” (coffee Bean and Tea Leaf). The main competitor is Starbucks, but Starbucks is using process cost system, which rely upon to manufacture its products. An example is when a guest orders the “iced dark roast with two pumps of caramel syrup with soy milk.
With careful planning, and dedication to its products Starbucks now leads the pack, and remains #1 to coffee consumer?s nation wide. By staying in touch with the public, and their changing tastes, the Management team at Starbucks was able to capitalize on trends. Pair this with the ability to recognize possible weaknesses, and work around them, Starbucks was able to avoid failure. Now caffeine- seeking consumers no longer wonder where to go for that morning kick, but instead ponder, tall or Grande at the counter of their neighborhood Starbucks.
Backward vertical integration through direct purchase agreements with coffee growers, established company owned and operated coffee bean roasting plants, warehousing and distribution facilities 4. Forward vertical integration through Starbuck’s retail stores 5. Forward vertical integration through joint ventures, and licensing agreements to market and distribute Starbucks’ products in new channels 6. Horizontal integration through acquisition of Ethos Water to expand and diversify Starbucks’ line of beverages in their retail stores 7. Diversify Starbucks’ product offerings to include music CDs, coffee making equipment, mugs, and accessories, as well as develop new coffee related products through partnership agreements with other food and beverage manufacturers Starbucks’ Mission Statement Establish Starbucks as the premier purveyor of the finest coffee in the world while maintaining our uncompromising principles while we grow.
Through procurement, Starbucks has been able to reorganize its supply chain, reduce costs, improve execution, and lay the foundation for future supply chain capability. Starbucks’ primary activities lead to the creation of the product and excellent service they provide. Through inbound logistics, they select the finest quality coffee beans and do not outsource procurement to ensure quality. They operate and provide their great customer service in over 65 different countries and use outbound logistics by selling all of their products in licensed stores only. Finally, they focus on superior marketing and sales to sell their products
All things considered, Starbucks has created different products that should capture different segments of the market and increase sales. Further adding to the product mix is Starbucks new licensing agreements for its products with a number of other companies. Generally, the main purpose of creating the licensing agreements is to improve distribution and production methods of Starbucks products. The agreement with Pepsi-Cola Company to produce and distribute bottled Starbucks products in grocery and warehouse club stores is an excellent example of this type of licensing agreement. This new product mix should ... ... middle of paper ... ...stic with today’s market, catering towards diversity by stating that the company, “embrace diversity as an essential component in the way we do business.” All things considered, the mission statement has most, if not all, of the characteristics of a good mission statement.
Illustrate your answer by providing supporting examples. "The PEST analysis examines the broad environment in which the organization is operating" (Johnson, 1999). "A companys marketing environment consists of all the factors that are external to its own marketing system and that impinge on a successful exchange process with its customers" (Hannagan, 2005). There are the four key areas in which to consider how current and future change can affect the business of Starbucks Coffee.
From the “click” of a button you can shop for Starbucks merchandise or check the balance on your Starbucks Card, the Starbucks website has got their customers needs in mind. Advertisements are the key to gain business and promote a company’s product or services to its consumers. Starbucks is no exception. The coffee giant is “out there;” from television ads to it own line of entertainment.