Marketing Principles Starbucks

2146 WordsFeb 26, 20149 Pages
Marketing Principles Assignment FTDipMM13 Group Members: Krysten-Ann Vatsaloo CT0190453 Nurul FarahQuraishia Bte Andin J S CT0190883 Chua Zhi Yang CT0190392 Pek Zhi Ying Regina CT0190843 Cyrus Casper Francis CT0189281 Yolanda Teo CT0190745 Ranked 88th top brand in the world in 2012, and 91st in 2013 (Interbrand, 2013), Starbucks has come a long way from being a tiny shop selling an assortment of coffee beans and distributing coffee samples, to becoming a top global brand. Hence why we have picked Starbucks to be our chosen brand for this group assignment. The…show more content…
Political influences mainly affect Starbucks through government-imposed minimum wage fluctuations. Their workers are trained to perform few tasks such as coffee making, food preparation and cashiering. With such few job functions, there is hardly a need for highly experienced or educated employees. This would allow Starbucks to pay their workers at minimum wage or just slightly higher, making Starbucks very sensitive towards increasing the minimum wage of their workers as that would increase labour costs. Other political influences that can affect Starbucks’ profits are regulatory and licensing restriction, government rent control, tax base determination and labor laws. The increasing demand of food and beverage services causes Starbucks’ rapid economic environment growth. Starbucks’ greatest concern is its relationship with its coffee bean producers. Nations producing coffee are influential on coffee-purchasing companies. This is because coffee is the world’s second largest traded supply, and prices of coffee beans are being subject to significant market volatility. Starbucks demands for premium green coffee beans, resulting in irregular pricing and are usually sold at negotiated prices. Starbucks’ greatest concern is that the producers would ally and artificially make the coffee prices inflate (Diedrich, 1999). Social

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