Starbucks Case Study

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Starbucks analysis
A good innovator
Global Marketing

Contents

1. Introduction | 3 | 2. History | 4 | 3. | 5 | | | | | | | | | | | | | 4. Conclusion | 12 | 5. References | 13 |

1. INTRODUCTION

The company founded Starbucks has experienced rapid growth since its first store opened in Seattle in March 1971. The impressive expansion over recent years has left it penetrate within the market of the top 100 best global brands of 2012, according to Interbred, and also it has been considered by Fortune magazine as one of the 500 largest companies in the world. Starbucks is now the largest coffee retailer in the world.
The present document will analyze the above mentioned company
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They are classifying in: tall, grande and venti. Prices vary according with the locations but a regular coffee can star from 1.50 USD dollars. Generally the price is high due to the value added generated by the brand.
4.3 Place
The company currently has more than 17,000 stores operating in 60 countries (nasdaq.com). They are allocated in high traffic areas; located in-store of various large chains, according with Starbucks the “store is named after the street it is located on”. Also there is a web page that can show The World-Wide Starbucks Map (see map 1), here you can find all the stores across the world, and even this map proves the Starbucks’ cannibalization (see map 2). http://www.loxcel.com/sbux

Starbucks around the world
Starbucks around the world

Starbucks Manhattan, USA.
Starbucks Manhattan, USA.
Map 1. Source: http://www.loxcel.com/sbux
Map 1. Source: http://www.loxcel.com/sbux

Map 2. Source: http://www.loxcel.com/sbux
Map 2. Source: http://www.loxcel.com/sbux

4.3.1 Promotion
Advertising for Starbucks remains mainly by word of mouth, generally before they did not used to invest too much in advertising, however it has been increased slightly with the past of the years but still being a little bit low, but still being low comparing with other global brands for example they just spent 1.4% of the revenue in advertising while Coca-Cola is more than 10 percent.
Some of the Starbucks promotions are: advertising in

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