Starbucks Business Model

1813 WordsOct 20, 20148 Pages
Specialty Coffee Retailer As the number one specialty coffee retailer, Starbucks offers hot and iced drinks, breakfast and pastry items, as well as boxed meals and sandwiches to customers in over 18,000 coffee shops in 60 countries. Also known as the premier roaster, Starbucks has created a high level of brand reputation because of its top quality services they prove to their customers. Starbucks wants to create top quality for their customers as well as create unique customer experience for each individual customer. They use premium coffee beans that they roast with great care to ensure a great, bold taste in their coffee. Starbucks also makes sure that each store is more of a community feeling, rather than a store establishment, and…show more content…
Because they utilize more than one distribution design, Starbucks participates in multi-channel retailing. Starbucks imports its coffee and then sells it under their brand name in their own stores, providing a direct channel to its customers, which helps build relationships. Therefore, it is a direct retail system by selling in its own company stores, a direct marketing system by offering products on their online website and then selling through direct mail, and a single-party selling system by selling through shops and places such as grocery stores. Starbucks are set up and sells its products in supermarkets and shopping centers as well. On top of that, Starbucks has distribution agreements with office coffee suppliers, hotels, and airlines. All of these channels allow the company to reach a wider market. However, while doing so, Starbucks needs to be careful with this approach due to the potential for channel conflict. What helps Starbucks stay away from conflict is that most of the stores are company owned. Since their stores aren 't franchised, they don 't have to worry about necessarily alienating the franchisee. Also, the many locations are needed in order for Starbucks to keep up with its mission of offering a great quality coffee at a quicker pace to its customers so there are no long lines. By offering
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