Starbucks Financial Analysis

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Recommended: What are the key current issues Starbucks is facing

Starbucks is known for their Frappuccino’s; unfortunately they are on a downward spiral in sales due to competitors such as McDonalds. In 2008 Starbucks admits to its losses due to their competitors. “Company executives now freely admit that such thinking is largely to blame for the woes that led to Tuesday’s announcement that Starbucks will close 600 U.S. stores and eliminate thousands of jobs. The coffee giant’s missteps have come at a spectacularly bad time, hitting as the economic slump deepens and consumers are seeing their discretionary spending eaten up by rising gas prices and grocery bills (Linn).”
Starbucks is going to continue losses unless they come up with a new marketing strategy to promote their products. There could be several reasons for why this is happening. However, the firm needs to take a step back and analyze the market. Starbucks must continue to research and produce new products to stay ahead in sales. Moreover, looking at today’s economy is should there should be a way to apply a different type and approach to their advertising.
Segmentation
When it comes to franchises such as Starbucks, one needs to evaluate the market. There are different brackets to which each is put in. For instance take McDonalds their marketing department is known to appeal to kids. Building play areas outside and inside with slides and play houses. Moreover, using a clown “Ronald McDonald” to attract youngsters is quite brilliant. This type of marketing is setting the bar for the next generation to keep customers for generations to come. Starbucks needs to take a step back and reevaluate their advertising market. There should be an analysis to see where the “Frappuccino” lost its appeal.
Target Marketing
Is the younger crowd th...

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...use. : Chapter 6: Consumer Decision Making. Retrieved April 30, 2014, from http://cacholajennifermar100.blogspot.com/2012/10/chapter-6-consumer-decision-making.html
Linn, A. (2008, July 2). Struggling Starbucks’ woes could get worse. msnbc.com. Retrieved May 1, 2014, from http://www.nbcnews.com/id/25498374/ns/business-us_business/t/struggling-starbucks-woes-could-get-worse/#.U2f-X1ehHlc
Farrell, R. O. (n.d.). Who Is Starbucks' Target Audience?. Small Business. Retrieved May 1, 2014, from http://smallbusiness.chron.com/starbucks-target-audience-10553.html
Starbucks. (n.d.). Forbes. Retrieved April 29, 2014, from http://www.forbes.com/companies/starbucks/
Wang, H. (2012, August 10). Five Things Starbucks Did to Get China Right. Forbes. Retrieved March 30, 2014, from http://www.forbes.com/sites/helenwang/2012/08/10/five-things-starbucks-did-to-get-china-right/

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