As Starbucks drove to achieve their goals, they developed their marketing strategy in response to these trends. The brand they would build as a result would then be leveraged to enable them to grow on a global scale. Starbucks Strategy In their quest for growth, Starbucks initial focus was on becoming the leading retailer of specialty coffee. Howard Schultz, Chairman and CEO of Starbucks, wanted to achieve this goal by creating the "Starbucks Experience". Specifically, the vision was to create more than just the store to purchase specialty coffee, the intention was to develop "a kind of third place' where [people] can escape, reflect, read, chat or listen."
Coffee making equipment include: coffee grinders, coffee brewers and espresso machines. The newest product portfolio of Starbucks includes music, books, packaged goods and gift items. The best performing product category is the beverage group while the single-serve category has recorded the highest growth in the past few years. The single-serve packaged category has helped to offset the decreasing coffee sales and rising costs of coffee beans experienced in the beverage industry in recent years. The recent trends in the coffee industry have made coffee making machines rather obsolete and
Coffee Crafters manufactures fluid bed coffee roasters using a patent pending chaff extraction system that allows for low temperature venting and easy installation. Mission: to manufacture the world's best coffee roaster in its class. The global coffee industry generates combined revenue of close to $10 billion a year. Approximately 25 million people depend on the coffee industry worldwide for their livelihood. The coffee industry is very concentrated at the top and fragmented at the bottom with the top 50 companies taking up to 70% of the sales.
The company started selling coffee by the cup and opened new stores in various locations. There were 140 stores in the Northwest and Chicago by 1992, and it was at that time that Schultz decided to take the company public. This allowed him to raise $25 million and open stores across the nation. Starbucks was the dominant specialty-coffee chain in North America by ... ... middle of paper ... ... with their customers. The program will be free, however; customers will have to provide their name, physical address, email address, select an age and income range, as well as identify their favorite Starbucks beverage in order to participant.
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.
Starbucks strategically positions each store with hopes of matching the specific location, helping to create a unique atmosphere. Throughout this paper, I will analyze Starbucks’ current domestic and international marketing strategy through SWOT (strengths, weaknesses, opportunities and threats) analysis, to provide new ideas, leading to market segmentation. Starbucks is a global corporation that sells authentic coffee in 30 countries, reporting revenues of nearly $5.1 billion in 2006 (Starbucks Marketing Plan). The main goal of Starbucks is to embrace diversity by applying the highest standards of excellence. On average, Americans drink 3 cups of coffee per day, though it is hard to make an accurate guess because every customer has their own personal rate.
With a down economy, the challenge for any business is to reach current and potential consumers. The motivation behind Starbucks’ “Coffee of the Month” Program is to offer a premium product, for a special discounted rate, each month to give back to our loyal customers plus attract potential coffee drinkers to our establishment. However, to implement this program, market research is needed to evaluate the program’s general effectiveness and return on investment. For this next section in our marketing plan, Marketing Team A looks at available secondary research, including accessible Internet studies. Additionally, our marketing team looks to utilize two decided upon marketing tools: customer research panels and data mining.
Through symbolic text and visual art, Starbucks ‘To Each Their Own Latte’ ad campaign sells us a culture, a way of live instead of just a simple cup of coffee. In order to sell a product, a company must transform a product and turn its use value into an exchange value. The company needs to make their product seem more valuable than it is actually
Analyze the business-level strategies for the corporation you chose to determine the business-level strategy you think is most important to the long-term success of the firm and whether or not you judge this to be a good choice. Justify your opinion. Starbucks began their journey in 1971 with one store. They are a company that offers a variety of products specializing in coffee. Today they are one of the largest coffee establishment in the world with more than 24,000 stores spanning over 70 countries.
The company began to create its own in house architects and designers to design Starbucks locations. Locations are designed for customers to meet, relax or simply enjoy a peaceful interlude in their day. Each location was designed to signal ?best of class? and to reflect the personality of the community and the neighborhood. c. Product Line: The Company has a vast product line and is constantly engaging in efforts to develop new ideas, new products, and new experiences for their customers.