Starbucks - Project Selection

We would recommend Starbucks to focus doing advertisements and promotions on internet and television. In the high tech world, everyone has his or her own mobile phone or computer which can just read the news by clicking the certain website. So, Starbucks can attract their customers by decorating their own website and promote products to them. Starbucks should make different promotions. As an example, it can make a breakfast set which a cup of coffee comes with a piece of croissant. As Starbucks offered meals, it would be able to extend the product base greatly. Once the promotion has been shown in website or TVs, people may think of it and purchase the product. Starbucks can also make their brand more aggressively in order to convince people that Starbucks serves coffee which is superior to other coffee and beverages. Starbucks is not just stand for a cup of fresh coffee but it is about the passion for the soul of people, quality product and understanding the culture of coffee. Other than that, Starbucks may make a membership for customers to collect their points so that they can exchange gift. Hence, the customers can enjoy the rewards and they will choose Starbucks again for the next

This report is on the Starbucks coffee shop company. Starbucks was founded around 45 years ago in 1971. Its first store was located at 2000 Western Avenue in Seattle, Washington until 1976, when it moved its operations to Pike Place Market, Elliott Bay, Seattle, Washington, U.S. where they began selling espresso coffee in 1986. The three founders Jerry Baldwin, Zev Siegl and Gordon Bowker were former students of the University of San Francisco. Their plan was to sell high quality coffee beans and roasting equipment. They did not know at the onset the company would become so successful.

Starbucks is dominant coffee brand in North America, which also is well-known worldwide. Established in 1971 as coffee shop oriented to a niche of coffee purists, in late 1980’s it turned to be a constantly growing chain of stores that sold whole-beans and premium-priced coffee to mostly affluent, well-educated customers. In years 1992-2002 company was showing at least 5% annual growth. And by 2002 Starbucks was serving already 20M customers in 5886 stores (both operated and licensed) around the globe, had $3.3 billion net revenues and was opening 3 new stores a day in average.

Starbucks is rated as the number one World’s leading coffee distributor. Customers satisfactions are always be in the center of their business and the company works consistently to maintain it as customer look forward to a unique experience when visiting one of Starbuck stores. With over 12,000 stores worldwide, Starbucks has always aimed at achieving and maintaining competition in the industry.  Starbucks success reside in many factors :  the company is admire and respected worldwide,employees are recognized and respected for what they contribute to the success of the company. Open communication

* Starbucks expanded to pursue sales of products in a variety of distribution channels and market segments. Products were marketed to restaurants, airlines, hotels, universities, hospitals, business offices, country clubs, and select retailers. In the airline industry, Starbucks coffee was served in flights United Airlines and United Airlines. Packets of Starbucks coffee along with coffee making equipment were made available in each room in Hyatt, Hilton, Sheraton, Radisson and Westin Hotels. Coffee service was also provided in several Wells Fargo banks in California. Foodservice distributors such as Sysco

To put it simply, in financial terms, to maximize shareholders wealth means to maximize purchasing power. Throughout the years, we have learned that markets are most efficient when the company is able to maximize at the current share price. Every company’s main goal should be to strive to maximize its value to every single one of their shareholders. Common stock represents the value of the market price, and it also gives the shareholder an idea of the different investment, financing, and dividend decisions made by that particular firm.

Investment decisions companies make today will have a direct impact on their ability to reach financial objectives. Most companies are faced with questions such as: which projects should your company invest in, which returns are needed and what risks are the company willing to take to achieve company goals?

The company location is based at Penang, Butterworth Sunway Carnival Mall. The facilities such as free Wi-Fi, comfortable sofas and chairs, dimmed light and quiet relaxing music will help the customers to relax from the daily stresses and will differentiate Starbucks Coffee shop from incumbent competitors. To speed up the customer service, at least two employees will be servicing clients. Meanwhile one employee will be preparing the customer’s order, the other one will be taking care of the sales transaction.

a) Value of the company: With profitable growth, the value of the company increases and attracts more investors for investing and thus development of company.

The targeted industry is coffee shop for this business venture. According to the latest research from the NPD Group, the coffee shop industry continues to thrive in the evolving economy [1]. In the past years, out-of-home coffee servings have fallen by more than 3%, but while the visits in coffee shops remained flat. Even though the marketplace is challenged, the market is still huge [2].

As a well-established coffee retailer and over 35 years of success, Starbucks is at the maturity stage in the product life cycle. It is in this stage that Starbucks needs to shift gears and focus on marketing program modifications by increasing the number of customers and customer visits (Kotler, 2009, pg. 185). While improving service will attract first-time customers and retain current ones, further marketing modifications will need to be made if it wants to continue to grow. More advertising, distribution, sales promotions, and personal selling are a few of the ways to modify the marketing program.

Cognition gives the companies information on how consumers respond to different marketing stimuli they face for the products used. It has to do with customer’s thinking and how do they behave toward a particular product. To be more specific and also reading the book “cognition refers to the mental structures and processes involved in thinking, understanding, and interpreting stimuli and events.” (Peter & Olson, pg. 21)

In general the coffeehouse industry in the United States was experiencing an increase in coffee consumption per capita due to the “Starbucks effect”. At this time Starbucks was operating approximately 20,000 stores in the United States and was living a fast expansion strategy worldwide.

These days Starbucks owns more than 18,000 stores in 62 countries and is the premier roaster and retailer of exclusive coffee in the world. Back in 1971, when the first Starbucks opened, the company already had two intentions to give to people every single day till now: share specialty coffee with friends and help to make the world a little better.

Nowadays people like to have convenient, that is why the Alibaba online retailer was so successful until today. By catching customers' behaviour is one of the important factors to bring your business successfully. Therefore Starbucks also can consider to implement the delivery services to customer. I believe that this is quite benefit for officer group because it allows them to have a cup of coffee during working time. However Starbucks should not concentrate on this service because it will incur higher cost for company. Starbucks may consider to provide for only certain location, area and