Our largest opportunity for growth lies in the emerging economies of China, India, and Thailand. A modest growth in stores in the US, and Europe (2%), while increasing efforts to expand by 10% a year in China, Thailand, and India while offering new menu items in the stores we currently have in place is projected to increase our revenues from $14.9 billion per year to $26.46 billion per year over the next 4 years. This plan will increase our indirect labor force, by adding select marketing teams, commodity managers, and a VP of construction. Section 2: Company Description Starbucks Corporation was an American company founded in 1971 in Seattle, WA. In the beginning, it wa... ... middle of paper ... ...lect cheeses, and fruits could draw a new customer base.
Starbucks is highly aggressive in the retail market and will have an enormous impact on future sales and profit of Green Mountain Coffee. Starbucks is already the leading retailer, roaster, and brand name coffee in the world. In 2002, sales were at $3.3 billion up 90 million dollars since 2001. With the help of the retail market, Starbucks may soon have a bigger share in the wholesale market. Our market portfolio is narrow in a sense we only supply the wholesale market.
This well documented growth of disposable income amongst Chinese consumers puts forth a very advantageous space in the regional market as global beverage manufacture. An in-depth research on Chinas fastest growing soft drinks from 2010-2013 gives a strong signal that with right kind of marketing and featuring beverages with a targeted function can lead to exponentially growth. Our energy drink by Illy fits this bracket very nicely. Illypower has a narrow focus and gives the prospective consumers a drink with a function rather than the flavour alone. It is full of anti-oxidants and is made from recyclable coffee capsules used in making coffee in our Illy’s Italian coffee manufacturing plant.
Our largest opportunity for growth lies in the emerging economies of China, India, and Thailand. A modest growth in stores in the US, and Europe (2%), while increasing efforts to expand by 10% a year in China, Thailand, and India while offering new menu items in the stores we currently have in place is projected to increase our revenues from $14.9 billion per year to $26.46 billion per year over the next 4 years. This plan will increase our indirect labor force, by adding select marketing teams, commodity managers, and a VP of construction. Section 2: Company Description Starbucks Corporation was an American company founded in 1971 in ... ... middle of paper ... ...esearch Report. (2014, Feb).
Expanding their products onto larger stores has its positives and negatives because although by providing their customers with their products at a convenience they also risk the security of being able to handle their products. A positive is that their packaged goods make up 8 percent of Starbucks total revenues. One particular Starbucks product sold in supermarkets that has gained popularity is its K-cups it is convenient pre-packaged they come in a variety of flavors for Teas and Coffee. K-cups have achieved 40 percent margins for Starbucks in one single serving that is sold in K-cups.In 2014 the company set up a five year goal in which they would double their sales on their food items, the company plans on focusing on their lunch and dinner food items in the coffee
They can sit for hours. "In Hong Kong and China, coffee is still more of a social event than a daily necessity," said Michael Wu, 34, the managing director of Maxim's Caterers, Starbucks' joint venture partner in Hong Kong, Macau and southern China. "People come to meet their friends and talk." Wu said that Starbucks has increased the size of the stores he oversees in Hong Kong and in China to around 2,000 square feet, to accommodate all of the lollygagging chatters. It is a testament to the "Third Place" concept, often used by Chairman Howard Schultz to describe Starbucks -- that home away from home where, for a premium, the host serves you coffee and offers up CDs and candy, too.
Starbuck’s executive also understood the importance of social media to help keep the brand identity alive by noticing the link between “social engagement and financial performance” (Rubel, 2009). Starbuck’s have also marketed this brand very well, as everyone has heard of or seen a store in their neighborhood by now. I will admit I am not a die-hard loyalist who purchases a cup of coffee daily because that is way too expensive.
Starbucks coffee has price elasticity, but not to the point in which the demand will be significantly affected by small changes in the price. Since Starbucks is a dominant player in the competitive coffee market, it has significant pricing power as it has acquired a relatively loyal crowd of customers over the past years. Starbucks was designed as a place where people could meet that was between home and work, which is a social strategy secured with the sale of an addictive product, giving it pricing power. Therefore, Starbucks does have control over the prices they are able to charge for their product, which is relatively higher than most other coffee sellers such as Tim Horton 's and McDonald 's. The reason that Starbucks is able to charge higher prices for coffee is that they have differentiated their product from all others by not only offering premium coffee, but also providing a complete coffee experience.
Starbucks is an excellent example of a successful business gone global. It not only does business in over 50 countries but also exports its supplies from around the world. Not only is it an international business but it is also investing more and more into the world of tomorrow. Its first foreign direct investment was roughly $10 million. It then went on to purchase “Seattle Coffee a British coffee chain with 60 retail store for $ 84 million” and that was just the start.
Infact, some observers give Starbucks 2 years maximum before U.S. market gets saturated. Now 1200 outlets are operating internationally in the chain, from Beijing to Bristol----Aug 2002,this gives huge room for grow. Infact approximately 400 or its planned 1200 new stores in this year would be constructed overseas, which will represent a 35% rise in its foreign base. Starbucks hopes to double the quantity of its stores globally, to about 10,000 in 3year period. Consolidation and product market development alternatives for Starbuck: Starbuck with its more 7500 shops throughout the world from the united states of America to the Asia and middle east is one of the very well known brand which deal is retail business especially famous for its Coffee.