Marketing Analysis : Starbucks Inc.

Within the coffee industry Starbucks Corporations has grown from a small shop to a leading coffee distributor, proving to have financial strength and determination to continue growth. With the weakening economy the continued success of Starbucks

Despite the challenges, Starbucks is a well-known coffeehouse chain which roasts and sells coffee, drinks and snack foods; in fact, it is a leader of this industry. Starbucks has many competitors including eateries, retail stores, and fast food chains. Its primary competitors, however, include

Starbucks Corporation, generally known, as Starbucks Coffee is the leading retailer and a brand of world’s forte coffee in the world, with more than 15,000 retail locations in North America, Latin America, Europe, the Middle East and the Pacific Rim, wherever in this world where premium quality coffee is in demand. Starbucks is the largest coffeehouse company in the world ahead of UK rival Costa Coffee, with 20737 stores in 63 countries and territories, including 11910 in the United States, 1496 in China, 1442 in Canada, 1052 in Japan and 772 in the United Kingdom. The first Starbucks was open in 1970. The name was inspired from Herman Melville’s Moby Dick, a definitive American novel regarding the 19th century whaling industry. The nautical name matches seamlessly for a store that imports the world’s finest coffees to the cold thirsty people of Seattle. In May 1998, Starbucks have finally successfully entered the European market through its acquirement of 65 Coffee Company stores initially originated from Seattle in the UK. Both companies shared a common culture, focusing on a great commitment to customized coffee, similar company values and a mutual respect.

It’s a known fact that Starbucks is one of the leading brand in the market.When we analyse the market we find that Mcdonald 's and Dunkin are the competitors in the same product segment. So comparing Starbucks with these competitors will throw light on its grey areas, process and competitive edge in the market.

These products, as well as the company’s Ready-to-Drink product line (bottled coffee and tea available in sizes and locations similar to what one would find Gatorade or Naked Juice), has allowed it to move beyond the simplistic produce-and-sell business model found at its stores and into the retail market. Having focused on the retail market for the better part of the last decade while still maintaining its store operations (now with more than 20,000 stores worldwide), Starbucks has seen its market share increase exponentially while its competitors, such as Dunkin Donuts, have seen far less success. (As an example, Starbucks has a market cap of $84 billion while Dunkin Donuts has a market cap of less than $5

Starbucks has been a brand that consumers have been able to identify with for quiet some time. By doing so, Starbucks would be able to ensure that their clientele is satisfied and forget about the barriers in which the company has had to face but still manage to continuously expand in the marketplace. With that being said, all customers are valuable, but those customers that meet specific criteria within an organization; such as, placing large orders and or buying products that are at a high profit margin, these are the customers that are not only profitable but are also the ones that are the highly satisfied with the product and its brand recognition. If

IntroductionMicro environmental factorsThe micro environmental factors are the forces close to the company that affect its ability to serve its customers. The factors are also known as the internal environmental factors such as the company itself, marketing intermediaries, its suppliers, customers ,competitors and publics which are within or close to the company that have an impact of the organization strategy.

Starbucks’ lead in the specialty coffee industry exemplifies the result of deftly executing a well-planned business strategy. Moreover, Starbucks is well positioned for what is expected to be a continuing rise in the popularity of specialty coffee products. The question before Starbucks’ leadership, however, is what avenues will lead to Starbucks’ goal of remaining true to its core, the highest quality coffee products while providing a “total coffee experience” for its customers?

In the restaurant industry, a restaurant prepares and serves food, drink and dessert to customers in return for money. Meals are generally served and eaten on premises, but many restaurants also offer take-out and food delivery services. Restaurants vary greatly in appearance and offerings, including a wide variety of the main chef 's cuisines and service models. While inns and taverns were known from antiquity, these were establishments aimed at travellers, and in general locals would rarely eat there. Modern restaurants, as businesses dedicated to the serving of food, and where specific dishes are ordered by the guest and generally prepared according to this order. A restaurant owner is called a restaurateur; both words derive from the French verb restaurer, meaning "to restore". Professional artisans of cooking are called chefs, while preparation staff and line cooks prepare food items in a more systematic and less artistic fashion.

For   many   years   Starbucks   has   been   dominating   the   U.S.   market   however   with   emerging   new   competitors   as   well   as   existing   competitors   with   larger   market  shares  are  threatening  the  strong  position  of  Starbucks.     Starbucks  competitors  in  the   coffee   beverage   sales   include   7-­‐Eleven,   Dunkin   Donuts,   BIGGBY   Coffee,   Caribou   Coffee,   McDonald's,  Panera  Bread,  and  Einstein  Bagels.   The  biggest  threat  is  Dunkin’  Donuts,  who  is  the   world’s  largest  coffee  and  baked  goods  chain.

Starbucks primarily operates and competes in the retail coffee and snacks store industry. The industry itself hit financial drawbacks in 2009 due to the economic crisis and changing consumer ideals. The industry, since then, has continued to grow, and in 2015 the industry was reported as having a revenue of ”$19.163 billion, which was a 16.5% increase from 2014 at $2.068 billion” (Starbucks SWOT Analysis 2016) . This growth would be due to an improving economy, and an increase in consumer confidence. Starbucks currently dominates the industry with a market share of 36.7%, Dunkin Brands with 24.6%, and other competitors taking up the rest.

1.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.

In terms of competition and the forces, which could limit the success of Starbucks it is important they stay ahead or even with other companies concerning innovative products. Many more micro companies are coming up with new products with a similar quality and a lower price/cost. It is important that Starbucks continues to search for innovative products to continually satisfy their customers. At the same time “rivalry” amongst Starbucks and smaller providers of coffee will continue to increase as the demand for coffee continues. The buyers bargaining power is significant as they can determine the cost, type of product, quantity and ultimately

The purpose of this report is to be able to identify and discuss two of the most recent innovative activities of the world’s biggest and well-recognised retail coffee company, Starbucks Corporation. Starbucks has introduced numerous innovations over its long history. From its signature terms (like barista, venti, chai, Frappuccino®) (Michelli 2007), the drive-thru café concept, the Starbucks Card, the digital app ‘shake to pay’ to the corporate culture that overall makes the Starbucks Experience are some of the reasons why Starbucks has maintained its dominance in the coffee industry. This report will look in to its activities involving innovation and map each of them in the 4P framework of innovation space. Furthermore, the innovation identified will be analysed to understand its strengths and weaknesses in order to come up with new strategies for innovation.

Starbucks Coffee Company, which is commonly known as Starbucks or Starbucks Corporation, is the dominant world-leading roaster as well as retailer of specialty coffee in the 21st century. Until now, it has over 20,000 stores in the world, which shows a huge number difference between Starbucks and the following competitor - Dunkin’ Donuts, which has just around 10,000 stores (Statista, 2014). The annual revenue of Starbucks skyrocketed in comparison with the last past decades in 2014, reaching around 16.45 billion profits U.S. dollars (Statista, 2014). Starbucks roasts its specialty Arabica coffee beans and retails a selection of beverage products, consisting of fresh brewed coffees, hot and cold espresso beverages, non-coffee blended beverages. In addition, it sells food items such as sandwich or muffin, along with beverage-related equipment. Starbucks main strategies for publicizing business depend on a combination with company-owned and licensed stores as well as joint venture to expand across the globe with its local partners. For the most part, Starbucks applies the same basic collection of products and customizes few additional products depending on customer’s preferences from different countries.