The Marketing Strategy Of Starbucks

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.

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.

At present, the coffee house market in India is estimated to be over INR 10 billion with an annual growth rate of almost 30%. This market space is characterized by a few known competitors like Barista and Costa Coffee in the competitive landscape for CCD. CCD is the market leader based on the annual turnover. It also has the largest number of outlets in India leaving Barista as the distant second in the Indian market.

Founded in 1971, Starbucks has taken the coffee industry by storm. With thousands of licensed stores around the world, Starbucks is arguably the largest coffee company around. They’re well known for their handcrafted premium coffees and teas; which are also sold in many retail and grocery stores like Wal-Mart and Metro respectively. They also serve a variety of original and fresh food items to further their brand and help satisfy their customers. This ensures that Starbucks has the greatest opportunity to dominate the market; as they are saturating every area available. Higher exposure and customer loyalty leads to increased growth and profit for the company. Starbuck’s approach is heavily focused on the differentiation strategy; which requires the company to develop products and service that are unique in their market. Companies who use this strategy must serve customers at an exceptional level; with all departments being high quality. Instead of following the industry’s main competitors, Starbucks recognized that they could take advantage of the missing products in the coffee industry. Instead of following chains like Tim Horton’s and Dunkin Donuts, seeks to provide exclusive that are admired by their audience. Differentiation is incredibly attractive as it allows the company to be more flexible with their products and has the highest potential to be very sustainable – especially at a low cost. Starbuck’s specializes

The company competes with other sellers, like Dunkin Donuts and McDonalds, in the coffee market, but ultimately is overwhelmingly dominant. In the monopoly, Starbucks has had to create a unique identity and brand image for itself in order to succeed amongst competitors. Starbucks has been able to successfully differentiate itself from its competition by priding itself in quality assurance to its customers as well as its distinctive brand marketing strategy, which includes a large number of stores and little to no paid advertising; the company feels their high quality products speak for themselves and a high presence of storefronts allows customers to purchase their products at their own

Starbucks started its journey back in 1971, and has since grown to serve millions of sociable coffee-goers from around the world. With more than 16,800 locations across the globe as of 2009, Starbucks is still the dominant player in the field of upscale coffee houses for mainstream customers. You ask: “How can they be ‘upscale’ but cater to mainstream customers at the same time?” To make a comparison to the fashion industry, upscale brands does not mean that mainstream customers cannot afford it, it means the pricing is within reach, and the urge to purchase a Starbucks coffee over a Tim Horton’s cup of coffee is in the branding. Would a woman rather carry a Guess handbag over a Gucci one? Would men prefer a Toyota Corolla over a Maserati

Financial viability, or being able to generate sufficient income to meet operating payments, debt commitments and, where applicable, to allow growth while maintaining service levels, is essential for Starbucks’ continual growth (Falconer, 2009). Generating cash flow, building strong relationships with shareholders and stakeholders, and accurately estimating expenses and sales are all vitally important for financial viability. In recent years, Starbucks has generated top market revenues resulting in sufficient cash flow (Hill, 2015).

This particular case starts off by telling the background of Starbucks as it is today. 30 years ago, Starbucks was a single store in Seattle 's Pike Place Market selling premium roasted coffee. They decided to change their traditional customer experience in the 1980s. When the company 's director of marketing, Howard Schultz, came back from Italy, he felt enchanted with the coffee house experience of Italy. Mr. Schultz wanted to duplicate this experience in his own coffee stores.  The new strategy consisted of selling their already proven products in a tastefully designed coffee house setting. With this strategy, Starbucks became one of the best-known brands in the country in a decade. There stores became places for relaxation, reading the newspaper, holding business meetings, or even browsing the web.

While the competition in coffee market is intense, Starbucks aims to satisfy more customers in order to increase its profits. On Sep 2014, CEO of Starbucks announced that they are planning to open the express stores in New York in 2015. The problem is which channel should Starbucks use to increase the profit in a long term?

Starbucks is the best example to show any business marketing strategies have done successfully because it is one of the biggest companies over the world. Becoming the biggest business happened quickly with exceeding expectation. The case of Starbucks informs how Howard Schultz, CEO of Starbucks, can make his business from domestic to overseas and presents several key strategies which are external, such as location, customers, and reputation and are internal, such are product mix and employees. First of all, Starbucks has to concern places that when and where customers want coffee because it involves all the business activities with storing and transporting its products, so it can serve customers efficiently. For example, the original Starbucks store is still located in Pike Place, Seattle because it is a tourist attraction, so he tested opening in Chicago because it is the main location of Midwest culture and considered floating population near retail store, so it can have a potential growth broadening out the national brand as his dream. Later, he could expand his company to Los Angeles; fortunately because the Los Angeles Times introduced Starbucks as the best coffee shop. Therefore, Starbucks became the symbol of the best coffee shops in America. Next, it values customers’ experiences and connection, so Schultz does target to two generations, which are old and young, in order to connect and satisfy both of

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

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?

I have been given this opportunity to explore and analyze a remarkable American company, Starbucks, and particularly how they produce and market their own brand of coffee worldwide. I have discovered and wish to convey to you some remarkable ways that Starbucks uses specific marketing strategies based upon the countries where Starbucks are located. Specifically, in this critique I want to explore how Starbucks changes their coffee product in terms of level of sweetness in various countries, how Starbucks packages the coffee product to maximizes the attractiveness of the brand offering, and how Starbucks brands the product differently in various countries based on the promotion medias most attractive to the population of that specific

Starbucks was established in 1971 to sell high quality whole beans coffee. Starbucks air is to provide high quality of coffee to its consumer and aim to achieve product innovation, retail expansion and provide service quality for long term. Within a couple of years, the company grew from a regional and small business into the undoubted leader of the coffee industry.

Starbucks is viewed as one of the world’s most valuable brands and creates a product experience beyond coffee. Taking coffee into a multinational revolution has led to their success. This all started in Seattle’s Pike Place Market back in 1971. The name of the company was derived from the famous American classic novel Moby-Dick. Starbuck was the 30 year old chief mate in the story. In the early 90’s, Starbucks expanded outside of Seattle and then international at an exponential rate. Today there are over 21,000 Starbucks coffeehouses in the world.