Starbucks Marketing Analysis Essay

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Starbucks Marketing Analysis Starbucks Coffee Company is the leading retailer, roaster and brand of specialty coffee in the world. The goal of Starbucks is to establish the company as the premier purveyor of the finest coffee in the world while maintaining the organization’s uncompromising principles. In addition, Starbucks wants to develop its brand beyond being the preferred outlet from which to purchase coffee to becoming the preferred consumer brand. The coffee company has capitalized on the new found popularity of specialty coffee with its addition of coffee bars globally. Starbucks Common Stock increased from $3.31 per share in 1994 to $10.00 per share by the mid 1990’s. Despite the success of Starbucks, the company is…show more content…
Dependent upon equity & debt financing (p20). 5. Effectively leveraging its brand-name and size (p20). Opportunities 1. Reinforcing its brand-image (p8). 2. Global expansion. a. Higher coffee consumption in foreign markets than in the U.S. b. Already has contact with foreign exporters. 3. Marketing in higher echelon restaurants and day-part chains (p16). 4. “Concretely defining its brand-image” (p20). Threats – 1. Adequate number of “A” sites in “A” markets nationally (p13). 2. Individual and small chain competitors overshadowing Starbucks’ brand in local markets. Issue Analysis 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? A review of the estimated growth in retail sales of coffee over the next four years indicates that while sales of non-specialty coffee products are expected to decline, sales of ground specialty coffee products and whole bean coffee should rise. Further, sales of ready-to-drink products are projected to rise almost 50%.
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