Starbucks Marketing Analysis Essay

Starbucks is the premier corporation involved in the manufacturing and selling of tea and coffee (Starbucks Corp.). Starbucks Corporation is currently traded as common stock under NASDAQ-GS. Starbucks officially went public on June 26, 1992 at a price of $17 dollars later closing that same day at $21.50 per share (Starbucks Company Profile). Starbucks historical data indicates a decrease in stock price since April 2016. At the start of April, the stock price opened at 61.10 and the latest price index currently stands at 58.37 in April of 2017.

Starbucks Coffee Company Stock prices during this time span rose from the $30 per share in November 2005 to $35 per share a year later. The stock prices then began a steady downward slide to $23 per share as of November of 2007 (BUCX- Historical Prices for Starbucks Co –Yahoo! Finance 2009). Ronnie and Sandy both agreed that shareholders did not seem to agree with

The current mission statement is ¡§Establish Starbucks as the premier purveyor of the finest coffee in the world while maintaining our uncompromising principles while we grow.¡¨ This mission statement fits well with the general direction and the future strategies of Starbucks Corporation.

d.     Starbucks went public on June 26, 1992 at $17 per share, or a split adjusted price of $1.0625 for the company’s four subsequent 2-for-1 stock splits (wwww.starbuckscoffee.com).

This a large market that Starbucks should seriously consider exploiting. The specialty coffee market is stable and will be around for a long time. This is supported by the stats that once people appreciate a high quality coffee they don’t go back and the lifestyle need these coffee bars fill. It has become a community-gathering place.

As for other coffee consumption facts, brewing coffee at home declined from 2006-2011 with 75% of total coffee sales made “away from home” (High Beam Business, 2012). Furthermore, an interesting study revealed the growth in this target market: “another new and large growing target market within the coffee industry is college-age students and post graduate individuals residing in urban areas. These two segments account for the largest portion of coffee drinkers” (Scribd, 2012, Marketing

Starbucks advertises two essential mission statements. First and foremost, it strives to “establish [ourselves] as the premier purveyor of the finest coffee in the world while maintaining our uncompromising principles while [we] grow(s).” (Starbucks) Reflective of its mission, Starbucks bases its strategic campaign and communications on six indispensable philosophies; structuring a pleasant work environment in which employees are treated with “respect and dignity,” incorporating diversity in all business aspects, purchasing, roasting and delivering fresh coffee, retaining satisfied customers, giving back to the community and environment, and developing

Starbucks kicked off the new year with the launch of it’s first-ever line of VIA lattes. Starbucks introduced a new Caramel Flan latte and a fresh line of Starbucks VIA Ready Brew lattes that are now available in Starbucks stores throughout the United States and Canada. Simply add water to Starbucks' new VIA Vanilla Latte and Caffe Mocha Latte packs and voila -- instant gratification. Perhaps more important, these new products underscore the wild success Starbucks has achieved with it’s VIA format. With it’s VIA, K-Cups, and Verismo platforms, Starbucks has a stronghold on the $8 billion-and-growing single-serve coffee category these days. Moreover, the company should gain even more market share in this space as it rolls out new products to complement its recent line of VIA lattes. As it stands, Starbucks is nearing $300 million in sales from it’s VIA format. That's a 200% rise in sales from four years ago (Walsh, 2014).

Two shots of espresso, a dash of white chocolate flavored sauce, 16 oz. of steamed milk, a swirl of sweetened whipped cream, and one happy customer. Coffee has become the crutch that millions of Americans have held on to in order to get through their day. However, Starbucks has become the most successful brew in the business. On any given morning, it is guaranteed that a large line of groggy human beings will be impatiently waiting to get a hold of their precious grande white mocha described above. In fact, “more than 70 million people worldwide enter a Starbucks café every week”(Lorenzetti). But is it just the beverages that keep the customers coming back? The Starbucks coffee company has found a way to not only sell drinks, but also a lifestyle. They have created a brand power that even a non-coffee drinker is willing to see value in. A small shop in Pikes Place market has evolved into a global company. On one street corner in Washington, the green and white cup is sold on each side of the street. Although there are a variety of coffee shops to choose from, Starbucks separates itself from its competitors in a variety of ways due to its effective organization. The way they run their stores has guaranteed millions of loyal customers. Overall the organizational coordination and structure of the Starbucks Company has differentiated them from the other competitors, and has satisfied millions of customers throughout the process.

In the last ten years, the annual revenue has more than tripled being reported at $16.5 billion in 2014 (S&P Capital IQ NetAdvantage, 2014). Over the last four years, Starbucks has an annual growth rate of approximately 11.1%. If this continues, Starbucks is expected to jump in revenue from $14.89 billion up to $20 billion in 2017. Looking in the future five years from now, analysts have predicted that Starbucks will grow earnings at an annual rate of 17.99% (Sharma, 2014: see appendix 3).

In the restaurant industry, a restaurant prepares and serves food, drink and dessert to customers in return for money. Meals are generally served and eaten on premises, but many restaurants also offer take-out and food delivery services. Restaurants vary greatly in appearance and offerings, including a wide variety of the main chef 's cuisines and service models. While inns and taverns were known from antiquity, these were establishments aimed at travellers, and in general locals would rarely eat there. Modern restaurants, as businesses dedicated to the serving of food, and where specific dishes are ordered by the guest and generally prepared according to this order. A restaurant owner is called a restaurateur; both words derive from the French verb restaurer, meaning "to restore". Professional artisans of cooking are called chefs, while preparation staff and line cooks prepare food items in a more systematic and less artistic fashion.

“Starbucks is known as one of the foremost retailers, roasters, and brands of speciality coffee in the world after working hard in getting succeed.” They are obligated to offering customers the premier quality coffee and the highest coffee familiarity, while functioning in techniques that generate social, environmental, and economic advantages for the society in which they do their business. (Super brands, 2012) Similarly, “they are functioning and authorization beyond than 8,500 coffee shops in more than 30 countries. (Starbucks, 2013). Furthermore, they offer a variety of regular or decaffeinated beverages, comprising at least one coffee of the day with our own choice of Italian-style espresso beverage, cold blended drinks, and a variety of finest teas and packaged roasted high quality of entire bean coffees.” (Starbucks, 2013) They also offer a variety of fresh pastries and confectionaries, sodas, juices and coffee making accessories. Furthermore, they wholesale their whole bean coffees via famous trade group and supermarkets. (Starbucks, 2013) Additionally, they manufactures and wholesales bottled Frappuccino Coffee drink and a finest ice creams via its joint ventures, partnerships and proposals by its entirely owned supplementary, Tazo Tea Company. The company’s main attempt is to touch the success and become the famous and respected brand in the world.

A. Many people would assume that Starbucks has reached, or is fairly close to its saturation point. In just about any city, suburb, train station, or college campus, there’s a Starbucks location to meet coffee drinkers needs. With Starbucks expanding, a likely investment would be to continue expansion worldwide. Not only should Starbucks concentrate on expanding its footprint, but also continue to alter its stores. Rather than opening more dine-in restaurants, Starbucks should concentrate on drive-thrus in urban and suburban areas.

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

RFID technology is not only used at gas stations, restaurants, and department but also at