The Marketing Strategy Analysis of Starbucks Corporation

As the world’s number one specialty coffee retailer, Starbucks sells coffee drinks, food items, coffee beans, and coffee-related accessories and equipment. In addition, Starbucks sells whole-bean coffees through a specialty sales group and grocery stores. Starbucks has grown beyond coffee into related businesses such as coffee-flavoured ice cream and ready-to-drink coffee beverages. The purpose of this paper is to analyze Starbucks business strategy, customer value proposition, company’s operations and the risks to financial results and reporting in the short term.

Within the coffee industry Starbucks Corporations has grown from a small shop to a leading coffee distributor, proving to have financial strength and determination to continue growth. With the weakening economy the continued success of Starbucks

In the current business environment, companies must take strategic initiatives to prevent the losses and overcome the rough economy we are currently facing. Starbucks Corporation (furthermore, Starbucks) is known as one of the leaders for the retail sales of roasted and specialty coffee. Starbucks is focused on creating a detailed strategic and financial planning that can take the company to the next level. The aim of this paper is to investigate Starbucks’s actions upon creation of strategic and financial plans, and its impact on cost and sales and risks associated.

Starbucks is no doubt a phenomenon in the United States, but the brand wants to expand globally. Opening chains in various global locations such as Japan, Vienna, England; Starbucks wants to reach out to the coffee loving fans everywhere. Nevertheless opening chains globally is not that simple. There are many uncontrollable factors Starbucks need to focus on to make sure they are making profit as well has abiding by the country’s laws and regulations. Going global takes a lot of market research to make sure that the brand will be successful even with uncontrollable factors. Controllable factors can be tailored to fit the needs of each country. Starbucks has to find the happy medium so they don’t lose their identity overseas.

Starbucks, the leader of the Beverage Industry is known by its franchises around the world. Therefore it has known as a global company in Beverage Industry. This part of essay will indicate company’s external environment via PESTEL analysis. To understand how political, economical, social, technological, environmental and legal issues can affect company’s external environment.

When Howard Schultz launched Starbucks, its main targets were the competitors and the customers. Schultz’s brand aimed at gaining dominance in the coffee industry in addition creating a Italian coffee shop feel in the United States (Buchanan & Simmons, 2009). The strategy of Starbucks was based on new products, listening to customers wants and ensure future expansion (Buchanan & Simmons, 2009). In creating convenience for customers, Starbucks created stores almost on top of eachother. They hinged on the idea that, they did not want to lose out on a sale if a line was too long. This action, of placing stores in heavy populated areas, basing need on projected growth of an area caused some decline in sales during economic trouble with the economy. The 2007 recession, failure of subprime mortgages, increased competition from McDonald 's McCafe brand, and Dunkin Doughnuts all led to a decline in sales for Starbucks in the fourth quarter of 2007 (Buchanan & Simmons, 2009). To attempt to regain market share and recover after the

Starbucks strategies have successfully made them one of the biggest names in the coffee market globally. Starbucks has been able to survive the high competitive market and to differentiate themselves from other coffee shops by producing high quality coffee. Also, Starbucks successfully create a huge numbers of loyal customers worldwide by providing great services and high quality products. Starbucks was able to survive 2008 financial crisis successfully. In 2008, Starbucks net income was -53% that means Starbucks was losing so much many yet, 2009 Starbucks was able to not only stop their losses but also to gain a profit of 24%. However, Starbucks should be worry from the possibility of another financial

Starbucks is a strong competitor in the service sector and a leader in the gourmet coffee industry. With a continued growth rate in store openings and maintaining successful profitability of its operations, Starbucks has demonstrated its ability to sustain a reliable and steady growth. Starbucks’ ability to contend with the vulnerability to current financial threats such as economic recession, higher interest rates, and global competition, is constantly proven by its incomparable brand image, its continual product innovations, and its exceptional customer service. This

Since January 2008, Starbucks has taken steps to address the deterioration in the US retail environment revitalize its global support structure. These steps have been designed to structure the company’s business for long-term profitable growth. Because of the continued weak economy and decreased customer traffic, as well as the cost associated with the store closures and other actions in its transformation strategy, the company’s fiscal 2008 results were impacted negatively in the following ways:

Starbucks is a corporation well known for roasting, marketing and retailing of crafted quality beverage that is based on coffee. Starbucks started its operations in Seattle’s Pike place market with Howard Schultz helping in its marketing and retailing efforts. The company is extremely successful and focused on the development of positive company-customer relationships. Starbucks uses company-customer relationships and a customer-centered approach as its key business strategy. The customer-centered approach allows the company to maintain its current position in the market.

1.Analyze the business-level strategies for the corporation you chose to determine the business-level strategy you think is most important to the long-term success of the firm and whether or not you judge this to be a good choice. Justify your opinion.

The marketing mix plays an important part in marketing. The purposes of the marketing mix are to use a combination of tools to satisfy customers and obtain company goals. The marketing mix is referred as the four P’s: product, price, place, and promotion. Stated by Kelly and Williams “The blend of marketing strategies for product, price, distribution, and promotion.” Today we will cover how Starbucks utilizes the four P’s in their commercial Starbucks – A Year of Good that introduces the new tagline of "Be Good To Each Other." "The holidays are about remembering what it means to give love and put goodness out into the world," Starbucks Executive Creative Director Leanne Fremar said in a statement. "We loved the idea of celebrating the good in each other this holiday season."

Starbucks is the worlds leading specialty coffee retailer. The company produces a wide range of beverages as well as various confections and pastries. With over 17,000 stores world wide one would have to wonder why a successful company like this would need to form a strategic plan. In this world there are no guarantees of success for businesses. Each company must be able to form a successful marketing strategy and must be able implement their plan effectively. In this highly competitive global environment the overarching

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

The study of strategic management, through the use of various frameworks, gives organizations the possibility to identify their position in the industry in respect to its competitors. Moreover this allows them to set realistic goals to pursue