BA440 WK 5 Marketing Strategy Starbucks Essay

While the leading drinks in 2004 were espresso-based beverages with sales averaging $50,395 per store, drip-brewed coffee beverages – which Expresso Espresso does not offer – came in second at $33,336 per store. It is understandable that Todd insists on providing quality products, but refusing to add drip-coffee beverages to his menu is the equivalent of refusing to cater to his customers’ needs. Unlike any of the local competitors, Expresso Espresso and the eventual Starbucks are the only Mobile coffee shops that offer a drive-through service. The drive-through contributes to 40 percent of Expresso Espresso’s total revenues, so needless to say, it’s a very important contributor to the business. If Todd hopes to stand a chance against Starbucks, his biggest competition, he will need to add drip-coffee beverages to his menu. Otherwise, it will be just as easy for a customer to drive off 400 feet east to Starbucks and request a drip coffee there instead.

As such a successful company, Starbucks has mastered the art of appeal. According to the Starbucks Coffee Marketing Plan 2010, the target market for Starbucks is young professionals. 40% of Starbucks’ market is composed of individuals ages 18-24, while 49% of the market is a 25-40 year old population. Rolling Stone, where Starbucks chose to publish this ad fits well with this target audience. Rolling Stone focuses on politics and pop culture, aiming to appeal to younger adults with 52% of their market between the ages of 18-34.

2) Garthwiate, Craig; Busse, Meghan; Brown, Jennifer; Merkley, Greg “Starbucks: A Story of Growth” Harvard Business Publishing, July 2012.

Starbucks positions itself as a place college students can hang out, study, write term papers and meet people. A Starbucks appeal to this consumer directly through introducing technology as soon as it comes available, focusing on social networking and actively cultivating a “cool” image. The young adult audience grows 4.6 percent each year (O’ Farrell).” However, the majority of the advertising is catered to Adults around the ages of 25 to 40. Adults seem to prefer a pick me up first thing in the morning on their way to work. Most Starbucks today have a drive thru to make it faster to grab and go.

McDonald’s, in addition to several other fast food vendors like Burger King, Dunkin’ Donuts, Panera Bread and independent coffee houses remain Starbuck’s toughest competition (Adamy). McDonald’s began introducing its espresso beverage products in 2001, and offers its product at a price between two and three dollars to compete with Starbucks between three and four dollars a cup coffee (Adamy). Similarly, Dunkin’ Donuts has recently implemented a plan to expand nationally (Adamy). On average, Dunkin’ Donuts coffee products cost approximately 20 percent less than Starbucks’ (Ball and Leung). In response, Starbucks has announced recent

Starbucks is a successful premium coffee retailer. Its target market sets as well-educated, white- color patrons between the ages of 25 and 44. There are three components of the brand, live coffee, service, and atmosphere. However, its brand image is losing while they focus on retail expansion.

"Grande mocha Frappuccino for Harper." Okay, so the barista didn 't hear me when I said "Heather," but all is amended as soon as I take a sip of that ice-blended coffee. When I finish my drink, I can go to Target, CVS, or Safeway to pick up a pack of Frappuccinos to enjoy in the convenience of my home. If I feel lazy, I can even go onto Amazon.com and order bottled Frappuccinos to be delivered to me two days later. The bottled Frappuccino and its placement have arisen from extensive research and development (R&D) by Starbucks partners. The crucial goal to satisfy customers ' wants and needs in a profitable and mutually beneficial manner drives this research, as discussed in Howard Schultz 's and Dori Jones Yang 's Pour Your Heart Into It: How Starbucks Built a Company One Cup at a Time.

In general the coffeehouse industry in the United States was experiencing an increase in coffee consumption per capita due to the “Starbucks effect”. At this time Starbucks was operating approximately 20,000 stores in the United States and was living a fast expansion strategy worldwide.

The going rate pricing is dictated by the real competitor's prices. The going rate pricing is the best pricing technique on the grounds that Starbucks isn't at present in the crystal drink mix business. This pricing technique would help them to set a price that would empower customer sales and keep Starbucks brand unwaveringness. The last price will be founded on the effect of price on different gatherings. Starbucks strawberry lemonade crystal drink mix price will affect the partners, competitors and customers. These components will be what decide whether the price is best for the organization. This price should make benefits, and also increment partner value. The brand expansion price will be adjusted utilizing the separated pricing technique.

Starbucks is the world’s largest coffee roaster and retailer of specialty coffee in the world. We have enjoyed great dividend returns over the past 5 years, and our growth has been on the rise. We are currently saturating the US market, while the emerging markets of developing countries offer many possibilities for growth and increased revenues. In our US market we should look at offering more items on the menu that complement our long-standing tradition of pleasing our customers. Exotic Juices, and snacks served with the same service could add a nice margin to the bottom line. In addition, the ability to offer a drive through service for the consumer that loves fine coffee but does not have the time to stop

The company has a focus on innovation through an emphasis of introducing new products and coffees such as “instant coffee” Via which generated a large sales growth of over 200 million. These new products consistently help Starbucks evolve as a

can order and pay for their drinks in a flash while stacking up rewards for each purchase made. This Strategy has significantly drawn people to Starbucks due to its highly anticipated services, products, and marketing strategies that differ from most fast food restaurants. The next service is the Starbucks webpage where the customers can go onto the site and view product and also make purchases. This service is quite excellent for those that want to checkout items online through the site, because it incorporates a similar process as the application on your smartphone. Starbucks also incorporates equipment and drinkware to their massive line of products. First their Drinkware consists of cups and mugs that are affordable to the customers. These cups come in many colors and aesthetic values, which make people interested in purchasing. Starbucks had the right idea when they decided to manufacture these cups out to their customers because not only were they a huge success for the business, but it also made Starbucks distribute more merchandise. Cold cups, which were from stainless steel containers. These containers made a rise once the popularity rose for other merchandise. These containers were sold very often to customers and once again made a surprise since it was from the same line of cups and mugs category. As more popularity grew in their products so did the equipment used to make customers coffee. First Starbucks decided to manufacture coffee makers, presses, and expresso

Starbucks have plans to launch a new product line for the domestic and international markets.

Every business can discover from another, especially if a certain business is one that has showed incredible success over the years. The victorious marketing strategies for Starbucks company are absolutely the anyone involved in business can learn about. What kind of techniques and plane did the company use what the promotion that company choice for its succeed. There are some of the promotion strategies for Starbucks.

Corporate Strategy fundamentally is concerned with the selection of businesses in which the company should compete and with the development and coordination of that portfolio of business.[1] In the case of Starbucks the corporate strategy they have implemented is unique to their industry which has allowed them to differentiate from their competitors and is summarized best by Howard Schultz CEO of Starbucks, “We’re in the people business serving coffee,[2]” high quality specialty coffee and related products in a European café environment. It is clear Starbucks is in a growth strategy utilizing three key techniques that support its Mission, “to inspire and nurture the human spirit – one person, one cup and