The Marketing Strategy Of Starbucks

The Starbucks former strategy was centered in offering a high quality product to a narrow consumer segment (coffee lovers), therefore, a

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 Corp., an international coffee and coffeehouse chain based in Seattle, Washington, has expanded rapidly since its opening in 1971. These outrageous success was due to its well-developed strategy vision which lay out the company's strategic course in developing and strengthening its business. Starbucks is a global corporation that sells authentic coffee in 30 countries, reporting revenues of nearly $5.1 billion in 2006. The main goal of Starbucks is to embrace diversity by applying the highest standards of excellence. Starbucks strives to perfect the relationship with the working class by making the service as fast as possible because they believe that every customer has their own personal rate. One

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 Global Consumer Products Group (CPG) strives to extend the Starbucks Experience to their customers outside the retail store environment through a number of channels and products. Originally, Starbucks’ smart marketing strategy is to continue to target the young, more educated working class of ages 18-34. Starbucks has positioned its brand as cool, trendy, healthy, and the premium experience of coffee drinking. Starbucks’ strategy for expanding its retail business was to open stores in new markets, while geographically clustering stores in existing markets.

A.   CASE  ANALYSIS       “Growing  Big  while  Staying  Small:  Starbucks  Harvests  International  Growth”     by  IAN  E  NIS  TIRYAKI                                         DATE         April  28,  2011  Thursday                                             A.  EXECUTIVE  SUMMARY   1. Situation  Overview   Globally  recognized  coffee  house  and  coffee  brand  Starbucks  has  changed  its  targeted   markets  more  towards

Starbucks is a worldwide coffee industry that is making the world a little better one cup at a time. Established in 1971, the company was just a single store in Seattle’s Pike Place Market. Since then it has grown into a global industry and one of the most ethical businesses in the world. Starbucks is known for customers expecting more than just coffee. This is why they have such a wide customer base. Their customers range from children to older adults. The primary target is adults from ages 25 to 40. This age range alone makes up almost half of its total business. Starbucks grabs the attention of this age group through its contemporary design and constant advertising. Most of

Starbucks is a successful premium coffee retailer. Its target market sets as well-educated, white- color patrons between the ages of 25 and 44. There are three components of the brand, live coffee, service, and atmosphere. However, its brand image is losing while they focus on retail expansion.

In the north, Starbucks entered a joint-venture with Beijing Mei Da coffee company. In the east, Starbucks partnered with the Taiwan-based Uni-President. In the south, Starbucks worked with Hong Kong-based Maxim’s Caterers. Each partner brings different strengths and local expertise that helped Starbucks gain insights into the tastes and preferences of local Chinese consumers.

Starbucks is known for selling and roasting its famous whole bean coffees made of Arabica beans, and also sells teas, baked goods, and even merchandise worldwide. Customers can now order what they want directly online, in a supermarket, and other food service markets too. The company has reached success and keeps growing over the years. Considering market demand, as a consultant, I will evaluate the trends in demand over time and the impact on the firm and industry. Starbucks invests in trendy advertisements and décor that attracts their customers and keeps their products well known. Their central target market is “men and women aged 25 to 40” (O’Farrell, 2016). These customers are about half of their entire business. The company also target “young adults, aged 18 to 24, total 40 percent of Starbuck’s sales” (O’Farrell, 2016). This target market focuses on college students, because their business place is usually an area these customers go to study, hang, or have meetings. Finally, Starbucks targets 13 to 17 year olds, which consists of two percent of sales (O’Farrell, 2016). Although Starbucks does not target market kids they do offer kids drinks, which parents tend to buy for their kids. Starbucks sells to a particular demographic. The majority of their customers are from the city or “upscale suburban areas” (O’Farrell, 2016). The target market focuses on well-established people with high incomes. By having this specific target audience Starbuck is able to grow and

Starbucks was initially not very famous choice but with a little change in strategy it entered into small and large enterprises and hit the market saturation. Today Starbucks is the total coffee supplier and retail market in United State. The company is popular because of being user friendly as it organizes the music and book events and with Wi-Fi connection, which is available at all the outlets just like a home or office. Originally Starbucks target market was white collared, sophisticated people. But with the passage of time new strategies evolved and low budget and class friendly outlets were established, while maintain its initial strategy in its real form, which is to inculcate the desire of having the Starbucks experience in its customers with its affordable luxury, which on the other hand allowed premium for Starbucks products. The company revenue is generated by the sale of whole bean coffees, which are 76%, and secondarily through equipment by

Targeting adults and young adults is a good mechanism for Starbucks because this age level has the same interests as the foundation that promotes arts, culture, education, and the environment (starbucks.com). The company satisfies their customers through their advertising, support programs and, of course, their coffee.

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

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

A marketing plan for Starbucks Coffee Company for the introduction of a new line of tea to the beverage menu includes a multi faceted approach. Beginning with an organizational overview, and following with the new product description, SWOTT analysis, marketing research, segmentation, differentiation and positioning, product life cycle, the marketing mix, budget, and finally, control mechanisms, the marketing plan comes to life.