Starbucks Marketing Essay

1582 Words7 Pages
Starbucks opened in Seattle’s Pike Place Market in 1971 with hopes of creating a "third place" between home and work. Starbucks was created to produce premium coffee, while adhering to various core principles during economic growth. "The company has realized that people don’t only come for coffee; they come for the atmosphere," (Kembell). Customers are able to socialize, read, study or enjoy music while drinking coffee. Starbucks strategically positions each store with hopes of matching the specific location, helping to create a unique atmosphere. Throughout this paper, I will analyze Starbucks’ current domestic and international marketing strategy through SWOT (strengths, weaknesses, opportunities and threats) analysis, to…show more content…
Starbucks does however buy holiday-season advertising as well as weekly full page ads in The New York Times, focusing on environmental awareness. In 2005, Starbucks spent $87.7 million on advertising, or 1.4% of revenues. In the same year, Coca-Cola spent $2.5 billion and Nike $1.7 billion on advertising, each about 11% of revenues. The macroeconomic opportunities and threats that the Starbucks Corporation handles on a daily basis include: sociological forces and demographic factors. The porters five forces model will help identify where improvements can be made through the current competitive force, threat of potential entrants, bargaining power of buyers, bargaining power of suppliers and the threat of substitute products. Starbucks makes it clear in the mission statement that sociological forces are important through the improvement of environmental issues present in today’s society. "Starbucks doesn’t just rest on its laurels, it demonstrates it through participating and organizing activities such as neighborhood clean-ups and walk-a-thons. Once again, the company’s image is strengthened by its actions and shows that it is able to actively contribute with the right focus behind its activities," (Kembell). Starbucks also plans to reduce energy usage, by doing store audits to become as efficient as possible. These sociological efforts

More about Starbucks Marketing Essay

Open Document