Starbucks : A New Market

Starbucks is a “premier roaster, marketer and retailer of specialty coffee” (Marketline 2012). This company is globally recognized because of their vast amount of stores, consisting of more than 17,000 retail stores in over 55 countries. Most retail stores are in highly populated areas, like “downtown and suburban centers, office buildings, university campuses and in select rural and off-highway locations” (Marketline 2012).

Have you ever been so tired during the day you need a wake up call? I have and Starbucks gives me an extra boost of energy to complete my day. Many consumers buy the product thinking it will help you get energy, find their true love, that it will help your day get better or that it’s all natural. It does this by using pathos, logos and perceived value.

The survey questions mostly consisted of multiple choice questions, two open-ended questions, allowing written responses, and one qualitative response question. These questions were chosen to establish consumers differences and comparative perspective of Starbuck’s competitors, their daily usage of the social media platforms, the coffee shops visited frequently, and their opinions on consumers who frequent Starbucks. The survey contains one matrix/rating scale question ( Appendix I, Question 5) based on how important qualities are when choosing a coffee shop. Lastly, there were two demographic questions. The demographic questions are for a general understanding on consumers behavior based on age group and gender. For an overview of the survey, see appendix I.

* In order to satisfy demand for more wholesome food and beverage request for non-coffee drinkers, Starbucks started offering fruit cups, yogurt parfaits, skinny lattes, banana walnut bread, a 300-calorie farmer’s market salad with all natural dressing and a line of “better-for-you” smoothies called Vivanno Nourishing Blends. Lower-calorie selections were added to the bakery cases and food items on the Starbucks menu were

Smoothie Café Bar will have a niche for those consumers that can get a healthy meal replacement as well as delicious coffee. This is convenient for families where one person in the car wants a smoothie and another person wants hot coffee. This will be one-stop shopping for the entire family. There is a growing demand for gourmet coffee, which is exactly what Smoothie Café Bar will have. There is competition for coffee houses, such as Starbucks, Panera Bread, and Dunkin Donuts, but what sets the Smoothie Café Bar apart from the others is that it will have healthier options such as organic milk, Coconut milk, and always organic fresh fruits and vegetables to be added to their smoothies. One study reported that “34%of adults are drinking coffee every day and the overall trending suggests sustained momentum for specialty consumption growth in the last five years”.

The population of consumers surveyed showed favorable responses to the idea of launching a new product line of lunch and dinner foods. Starbucks will continue to analyze the data further to determine the best strategic plan for the launch. Furthermore, additional research will classify these findings in order of power and will solidify the decision.

Starbucks is an organization that is known for being one of the largest coffee chain stores in the United States. They focus on serving delicious coffee to the customers at affordable prices while giving them an amazing experience at their store. Recently the CEO of Starbucks has announced that he will be implementing a new strategic planning initiative to his company to ensure that the customers and employees are getting the full experience of Starbucks Coffee. In his annual report he mentioned these strategies, “A proprietary and revolutionary in-store Clover® brewing system that delivers the best cup of brewed coffee available anywhere; A complete reinvention of brewed coffee in-store, that will be brought to life by baristas across the U.S., who will scoop and grind a new unique coffee blend, connecting customers to the early days of Starbucks; The introduction of a new state-of-the-art espresso system that provides the perfect

The label “gluten-free is everywhere, annual sales of these products were estimated at $10 billion in 2014, and are expected to reach $15 billion by 2016 (Bowden). In growing numbers, the world’s biggest food makeers and restaurant chains are retooling recipes and labels to tap into the concern, creating a multibillion-dollar out of gluten-free products

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?

As our society becomes increasingly more health conscious and aware of what ingredients are being put into potential products for consumption purposes, Starbucks from an entire organizational perspective should be just as aware of the ingredients that they are inserting into their various product lines. Starbucks currently is under a tremendous amount of scrutiny and pressure to serve milk that does not contain any traces of genetically modified organisms. The excessive use of these chemicals has a potentially negative effect on the human body along with the environment; therefore, customers are constantly demanding healthier alternatives.

Nutrition Selections & Indirect Competition: A cultural shift towards natural and organic products has led to consider alternatives such as nutritional waters, smoothies, and other healthy beverage options. Starbucks and Dunkin’ Brands Group offer customers healthier alternatives, customer loyalty rewards, and unique choices that are not easily matched by Coca-Cola. Industry data suggests potential customers have a higher tendency to opt for customizable options that have greater nutritional benefit compared to basic

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

Starbucks first opened its doors in Seattle’s Pike Place Market with the name being coined from that of Moby Dick’s first mate (Schultz & Yang 1999). It has spread its shops across North America, all over Europe, the Middle East, Latin America as well as the Pacific Rim with an estimated 35 million customer weekly (Michelli, 2008). With tremendous growth from a small time coffee shop, the company has matured to an international icon that today it is one of the world’s leading retailer, roaster and brand specialty coffee (Story, 1971). The company offers whole bean coffees, espresso beverages, and confectionery and bakery items.

The purpose of this study is to identify the factors that led to Starbucks’ success and decline over the last ten years. Starbucks has to compete with other coffee retailers in the world, most of which have a diverse product

Javita Coffee Company was founded in July 2011 as an independent coffee distributing organization. In today’s market, coffee is considered a hot commodity, literally. Coffee is currently a $120 billion dollar global industry, being the second most consumed beverage, alongside water. Presently, there are 190 million coffee drinkers in North America, with a continuously growing amount of coffee drinkers worldwide. With that being said, that leaves the instant coffee market open for huge growth potential. Their product strategy to entice consumers and also new employees by offering naturally healthy products, infused with all natural herbs that are gluten free. Javita Coffee Company decided to expand their organization to coffee drinkers