The Latte Macchiato target markets are coffee drinkers throughout the United States and Canada and in most markets in Latin America. Starbucks’ objective is to achieve similar success obtained by the Flat White beverage in Europe, Australia, and New Zealand. This potentially brings Starbucks increased sales volume and simultaneously boosts its credibility among espresso lovers in the U.S., Canada, and Latin America (Taylor, 2016).
Marketing Mix
Product
The new Latte Macchiato features steamed whole milk that is perfectly fizzy and free-pouring. This creates dense foam, and the beverage is completed by adding a slowly-poured full espresso shot, creating a signature espresso dot. Starbucks’ baristas will highlight the espresso in the beverage by utilizing a carefully crafted technique to draw out an intensely bold and roasty flavor. Additional flavors such as carmel or hazelnut can be added to the Latte Macchiato to create a delicious dessert (Starbucks Newsroom, 2016).
The Latte Macchiato joins the Starbucks core expresso family which includes Doppio Espresso, Caffé Americano, Flat White, Cappuccino and Caffé Latte. These are beverages that contain espresso, water, and foamed or steamed milk. Strength and richness range from the pure Doppio Espresso to the super-creamy Caffé Latte which is a shot of espresso in steamed milk, topped with foam. The Latte Macchiato flavor falls in the middle of the espresso family (Starbucks Newsroom, 2016). Figure 2 shows
If you never had a Caramel Macchiato you are missing out. It is the combination of salty/sweet caramel with smooth milk and a warm/cold coffee finish. It’s basically heaven in a cup - no questions asked. Dunkin’ Donuts while doesn’t have the Caramel Macchiato however, they do have caramel flavored coffee. It’s nothing to compare to the Starbucks Macchiato but, it is a close second.
If someone claims they are a coffee drinker and go to Starbucks every morning, chances are they do not know much about coffee and they are more likely to get an espresso drink rather than a cup of coffee. Why? Because Starbucks is not known or praised for their coffee like they use to be. Their signature trademark is their latte macchiato’s, caramel frappucino’s, and random coffee themed objects and items that have turned this once original coffee shop, more into an expensive superstore full of gifts and three month old vacuumed sealed beans. Order a medium, excuse me, I mean “grande” coffee, and the barista will look at you as if you just got out of the loony bin. Peet’s Coffee and Tea, a corporate
North of Manhattan, a good cup of coffee is hard to come by; the taste is lacking in strength and not much thought is put into its production. Profit-seeking coffee chains like Dunkin Donuts and Donut Delight are widespread and lack in quality. More often than not, coffee is a $3 afterthought of dessert, rather than a delicacy in itself. Lorca cafe, situated in downtown Stamford on Bedford Street, appreciates the artistry and skill that must be employed to brew a decent cup of coffee. Spanish and western-Mediterranean influences are uniform throughout the flavors and venue. The chic, modern atmosphere is equipped with ample power outlets to provide the perfect workplace for the productive
Introduction: So it’s that time of year again; fall is upon us with Halloween and Thanksgiving just around the corner. One of my favorite things to do this time of year is to go to Starbucks and order a warm latte.
Starbucks also sells pastries, sandwiches, yogurts parfaits, salads, fruit cups, and oatmeal. Of course they also make (which is what they are known for) the infamous Frappuccino.
When I actually started learning, it was hard, there’s more to it than I thought, more technique. One of the first things I did was researched what kinds of designs there are. I watched a video named “Different types of latte art” by Howcast. I learned by the man talking that any time you try to mix the milk in a purposeful way you are creating latte art. Also, he talked about the different types of latte art that there is. Another very important thing that I learned is that the milk can’t be too foamy, nor too liquidy. The milk has too look creamy. Also, I learned from my boss that if it is too foamy, the foam tends to just sit on top of the coffee, rather than make a
There isn’t a very large market for regular coffee anymore; consumers want to see different products and experience different flavors. The point of this is that Starbucks adapt to this trend by constantly trying to innovate their brand with new products, but at the same time they stay true to their brand and they don’t compromise on quality; that is what made their success.
Provide a taste blender will offer high quality coffee, cappuccino, tea and frozen cappuccino and coffee at a very reasonable price. All drinks are made with high quality ingredients.
Coffee drinkers all have one thing in common; they want their coffee made to their specification. Most soft drinks, milkshakes, and draft beer are ready made. Coffee has many flavors and that can be an operational nightmare. Starbucks has 10 different types of coffee beans, 12 blends of flavors and loads of special toppings.
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’ 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?
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 extends their coffee experience to everyone: kids, teenagers and adults. Part of their success comes from their ability to create new products that fit the culture of the country. In Japan, for instance, Starbucks launched green tea lattes, which later became popular in other countries (Allison). Starbucks is well established in countries like Canada, Japan, and the United Kingdom. In the US alone, Starbucks sells 4 million cups of coffee per day (Horovitz). Their products and services have transformed the way customers view coffee. Changing the way customers order, Starbucks makes it very chic to purchase custom drinks. Starbucks is like no other coffee shop: the dimmed lights
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
The core product is a premium cup of coffee. The auxiliary features include the well-educated baristas that can help select the right cup of coffee and help customers learn how to reproduce the experience at home or the office with fresh coffee bean or grounds they can purchase in store. Along with the coffees available there are also Tazo teas, hand crafted espresso and blended drinks a little something for every taste. To go with the drink