Starbucks : Target Market And How Was Starbucks

Several key success factors exist for Starbucks, a leader in the coffee industry. They include

When Howard Schultz first experienced Starbucks Coffee, Tea and Spice he was immediately smitten by the operations and business culture, and actively pursued a job with them. At that time, Starbucks Coffee, Tea and Spice was an 11 year old coffee shop with six stores in Seattle specializing in high-quality coffee beans. Starbucks Coffee, Tea and Spice desired to bring fine coffee to their customers, so to that end, they imported quality coffee beans, roasted them to their own exacting specifications and sold the beans and high-end coffeemakers to their customers, so customers could make superb coffee at home. The only coffee brewed onsite was the sampling of a roast, in order for a customer to determine if they wanted to buy that flavor,

A challenge that Starbucks faces is the competitive market in the industry that shares the similar interest of coffee. With many competitors that serve coffee, Starbucks standouts than your typical fast food world of coffee. With a higher end that delivers a café atmosphere, Starbucks offers their customers more than you average cup of Joe. Staying competitive is imperative to organizations that share the same industry. With relatively higher cost, customers want to spend less and still have the quality of the coffee. Coffee lovers want the lower cost, quality product and the ease of getting their product without too much hassle. “The chains have been playing up their un-Starbucks features — like fast service, easy-to-pronounce sizes and, that all-American mainstay, the drive-through. Then there is the price: an average 12-ounce cup of McDonald 's Premium Roast coffee is 99 cents, well under Starbucks 's standard price for drip coffee and a far cry from some of its drinks that can cost upward of $4” (Bossman, 2006).

High pricing from the competitors create a pricing war by driving down the profit margins when increasing the market share.

The Starbucks Corporation has enjoyed phenomenal growth since its early days in 1971 as a quaint coffee shop in Seattle, Washington. The rise of Starbucks can be directly attributed to the following factors; the emphasis placed on product quality, high employee standards, and creating the perfect cup of coffee.

The purpose of this report is to be able to identify and discuss two of the most recent innovative activities of the world’s biggest and well-recognised retail coffee company, Starbucks Corporation. Starbucks has introduced numerous innovations over its long history. From its signature terms (like barista, venti, chai, Frappuccino®) (Michelli 2007), the drive-thru café concept, the Starbucks Card, the digital app ‘shake to pay’ to the corporate culture that overall makes the Starbucks Experience are some of the reasons why Starbucks has maintained its dominance in the coffee industry. This report will look in to its activities involving innovation and map each of them in the 4P framework of innovation space. Furthermore, the innovation identified will be analysed to understand its strengths and weaknesses in order to come up with new strategies for innovation.

This paper examines strategic management, which encompasses business decisions and actions that: define the organization 's mission and objectives, determine the most effective utilization of organizational resources, select best courses of action to meet its mission, and seek to assure the effectiveness of the organization within the environment. This case study evaluates the strategic management process, and applies those concepts to a practical case study of Starbuck’s mission statement.

The team sought out true customer needs through “My Starbucks Ideas”, which is a link on the Starbucks website for consumers to propose ideas to the corporation, from product involvement to experience ideas. We found an overwhelming amount of input for gluten free and healthier food options. The most important target customer factors that the team decided to take action on are people’s dietary restrictions and lifestyle choices. These two ideas directed our choices to present gluten-free options in the four most popular pastries and highly nourishing smoothie bowls, all of which are less than 300 calories.

The Starbucks card has been very popular. For the company there can be many advantages. The first advantage is that they are receiving money for items that haven’t actually been sold yet. 27 million cards in use and 400 million dollars in sales in the first quarter in 2008 alone. This card has been so successful for the company that it has been launched internationally. This helps to also build brand loyalty by having consumers to keep returning and filling their cards. This card is convenient for consumers because it can be reloaded easily at the Starbucks website or at the Starbucks store. It is easier then rummaging through a wallet for cash and it doesn’t have identity theft worry as credit cards do, also no credit is required for these cards since they are prepaid. These also can be great for gift giving to others also. They are the gift that can keep giving.

The case was about the product objectives and strategies associated with Starbucks. The author went further by providing the audience with some history of the arrival of this particular coffee brand within the United States. The company’s vision was to be a coffee shop initially out of Seattle Washington. However, the growth within the business sector flourished becoming one of the largest retail coffee shops in the world. Starbucks provided Americans with a rich brand of coffee. When analyzing the issues that Starbucks was encountering one must understand product selection. Some of the key elements of this process are to have the ability to figure out that creating anything one must plan and be willing to put forth the effort for implementing those plans into action. For example, Starbucks started off with the idea of making a profit like most businesses. Their original vision was slightly altered due to the decline in company sales and stock. Proving that more stores does not always reflect a higher rate of success. Instead of being known for their contributions to the industry, the company quickly became known for their lack of ability to stay afloat and a prosperous business. This notion tarnished the company’s reputation. These factors caused Starbucks to go through several changes to re-establish their reputation in the public’s eyesight. Therefore, they begin this process by making disciplined expansion decisions. Instead of trying to open new stores, the

1) Please expand on the various marketing strategies that were implemented in Starbucks at this time and comment on whether you think these strategies worked, and why?

Ever since they opened, Starbucks has become a 3.3 billion dollar company growing from two hundred and seventy five stores opening to over fourteen thousand stores worldwide. Data suggest that people purchase over ten billion dollars worth of starbucks beverages! It also explains how Starbucks makes their own coffee brand and how they depend on getting these coffee beans that grow in seventy tropical nations around the world in altitudes between three thousand to six thousand feet. This is what makes their coffee very dense in flavor. This is targeted to people who drink what hey describe as a very hard bean coffee. The CEO of Starbucks describes the taste that they are trying to make in their coffee product as a “warm day and cool night”. The two different types of coffee that Starbucks makes are Raffaka and Robusta, but they use Raffaka mostly in their product. It also illustrates the trouble of getting these coffee beans from these countries. Because of the demand to get these coffee beans, prices fall 50% to get a pound of coffee beans. Starbucks solves this issue by buying the coffee beans from the farmers so that this can create a fair trade between Starbucks and the farmers. Then they tell the farmers that they need them. That makes a strong relationship between the two and helps to give back to the communities where farmers live. This also helps

The factors for the extraordinary success of Starbucks is all due to the vision of Howard Schultz. Schultz wanted to change the coffee drinking experience by establishing benefits to create value in the coffee drinking experience. One of his vision was to recreate the coffee culture in Italy where people can come to relax and socialize. Schultz’s idea changed the American people’s perspective and experience of drinking coffee in an inviting environment. Starbuck’s main strategy was to be known as a company owned shop which allowed Starbucks to have a full control of the coffee quality. They work with their suppliers to control the supply chain and enforce their coffee standards to keep the quality high. This strategy resulted in establishing their high brand image for Starbucks. Employees of Starbucks were trained to make the customer service pleasant for customers and that created a welcoming experience which made the customers feel special. Schultz believed that happy employees would result in higher customer satisfaction so Starbucks employees are very well paid along with stock options and healthcare benefits. Employee turnover rates are low due to Schultz’s strategy. What was so compelling about the Starbucks value proposition is that customer service and customer

Companies are continuously translating their policies according to the rules and regulations of each country that they operate in. For instance, American company Starbucks which is coffee house chain, which is producing goods like; coffee, beverages, tea, smoothies, and baking goods. Jerry Baldwin founded Starbucks. Starbucks revenue is$16.447 billion. Starbucks continues its legacy as a global brand, but prior to launching stores of Starbucks in new countries, the purpose of any organization is to increase its profits and sales through satisfying the needs of its consumers. The escalating change in technology drastically affects the businesses of many organizations. Due to stiff and cutthroat competition, the companies that did not enhance their business functions with the rapid change in technology may be easily wiped-out from the market. Localization is the process of modifying the features of the product according to the language, culture and taste of the desired population. This strategy is also known as adaption strategy. The concept of globalization has originated from the word “Global” in which, people from different social, cultural and economical backgrounds live together. During globalization national boundaries are reduced, which results in a larger customer base for companies and hence, an increased revenue and profits. The marketing strategy of an organization is a comprehensive plan that encompasses overall market goals. A good marketing strategy can be

Starbucks has both types of resources include tangible and intangible. It 's tangible resources include financial, physical and technological, while, intangible include innovation, human and reputational.