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.

Starbucks Corporation is a coffeehouse chain that began in Seattle in 1971. Since that time, Starbucks operations have grown; there are now over 22,000 retail stores throughout 67 countries. Starbucks strives to offer customers a comfortable, “home-like” environment while remaining conscious of ethical behaviors and social responsibility. It can be argued that Starbucks dominates the coffeehouse market, and much of this may be due to a grand strategy with a focus on growth. Using a growth strategy, Starbucks attempts to increase its market share and revenues by increasing the number of its stores and the number of locations it serves. So far, Starbucks has enjoyed much success with this strategy.

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

Cameron’s coffee has been able to grow tremendously since 1999. However, the times are changing and it is time for the company to branch out of their comfort zone and tap into new market places. To accomplish this task the company will need to utilize different application to expand the company’s vision, values, and goals to their consumers. Getting the company’s products, visions, and future goals out to the consumers is imperative to the success of the company. Being that the company was founded in 1978 and transitions during a time that the internet was just starting to develop its only natural to notice a need to upgrade the company’s software as well as increase their internet presences. Therefore, Cameron’s Coffee will need to boost their social media presence as well as utilize other marketing tools within the cloud computing, and the data collected via marketing surveys that is brought in through the applications to make changes to their products, shipping, and other issues that may hinder the sale of the coffee. Cameron’s coffee will need to branch out and create social media accounts to be able to reach the other areas of the market place and get a feel of what products would work best within those markets.

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.

Seeing a Starbucks sign reminds a person of the tantalizing flavors that are brewed from the store that sells millions of people their first cup of coffee every morning. Upon walking into the store, it is inviting and welcoming. The staff is friendly and helpful and the crowd is eager to enjoy that bittersweet java on the taste buds. When an order is made, the staff prepares each individual cup of coffee fresh, and exactly to the customer’s preference. Starbucks Corporation is the leading retailer, roaster and brand of specialty coffee in the world. Starbucks Chairman Howard Schultz has built a booming empire, with 13,500

In 1971 Starbucks started as a small coffee shop that specialized in selling whole arabica beans in Seattle’s Pike Place market. After being inspired by Milan’s coffee culture - especially the role it espresso bars played in the Italians’ everyday social lives - Starbucks opened an espresso bar in the corner of their shop. Their ideal was to create a ‘third place’ - besides home and work - where people could relax and enjoy a good cup of coffee (Moon & Quelch, 2006). Over two decades the company enlarged and served over 20 million unique customers in over 5,000 stores around the world. Their brand strategy could best be described as ‘live coffee’, which meant creating an ‘experience’ around the consumption of coffee that fitted into people 's everyday lives (Moon & Quelch, 2006). Three components were fundamental for their branding strategy. First of all, the coffee itself which should represent the highest-quality coffee in the world, derived from Africa, Central and South America, and the Asia-Pacific regions (Moon & Quelch, 2006). Secondly, the atmosphere should be inviting and make customers feel comfortable. The ambiance in stores should make customers want to stay (Moon & Quelch, 2006). Thirdly, service - customer intimacy - is a key factor within their brand strategy, which aims to create an experience for the customers, and aims at building customer loyalty (Moon & Quelch, 2006). The employees - called ‘partners’ - are

The Starbucks marketing strategy has always focused on “word-of-mouth” advertising and letting the high quality of their products and services speak for themselves. For years, this has been uniquely Starbucks, and it has played a huge part in making Starbucks Coffee Company a success. The definition of social media viral marketing speaks to this new word of mouth that Starbucks has run with and made their own.

By analyzing the qualitative aspects of Starbucks, the reader can gain a better understanding of the why and how of the organization. This report will examine the company through four integrated lenses: company history, leadership, culture, and strategy. These four components of the company build off one another and help to provide a holistic view of the Starbucks Empire and the health of the company. The history of Starbucks provides understanding of how the company has evolved into a global brand and the direction of future direction. The Starbucks company culture offers insight into the values that drive the company and how members of the organization interact with each other, customers, and other stakeholders. Starbucks’ evolving strategy incorporates the company’s history, both successes and failures, to refine approaches that worked in the past and improving those that no longer serve the company well. Additionally, the innovation and commitment to consumer experience embody the corporate culture,

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.

Two shots of espresso, a dash of white chocolate flavored sauce, 16 oz. of steamed milk, a swirl of sweetened whipped cream, and one happy customer. Coffee has become the crutch that millions of Americans have held on to in order to get through their day. However, Starbucks has become the most successful brew in the business. On any given morning, it is guaranteed that a large line of groggy human beings will be impatiently waiting to get a hold of their precious grande white mocha described above. In fact, “more than 70 million people worldwide enter a Starbucks café every week”(Lorenzetti). But is it just the beverages that keep the customers coming back? The Starbucks coffee company has found a way to not only sell drinks, but also a lifestyle. They have created a brand power that even a non-coffee drinker is willing to see value in. A small shop in Pikes Place market has evolved into a global company. On one street corner in Washington, the green and white cup is sold on each side of the street. Although there are a variety of coffee shops to choose from, Starbucks separates itself from its competitors in a variety of ways due to its effective organization. The way they run their stores has guaranteed millions of loyal customers. Overall the organizational coordination and structure of the Starbucks Company has differentiated them from the other competitors, and has satisfied millions of customers throughout the process.

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.

Starbucks provide a large in store seating with free wi fi and a take-out service which only a few retail shops offer. The main target customers for Starbucks are office workers, with enough income, whom are able to afford the high prices of their products (Gaudio, 2003). The company has worked hard to establish itself as the brand leader with its branding as the most frequently drank coffee and noticeable brand logo. Introduction of promotions like the Starbucks Card, allows a more convenient way for a person to
pay for
your
drinks
and
earn
rewards
for
your purchase (Starbucks Coffee Company, 2011).
Furthermore, in‐store
promotions
accompanied
by
new
products and
amenities like free internet use are all strategies that Starbucks use to maintain their position in the market (Vasudha, 2011).

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

Starbucks also deployed the use of social media and online marketing to communicate with their target audience. The social media platforms allow Starbucks to build a brand and promote their products in hopes of spreading awareness through word of mouth (WOM). To promote seasonal beverages Starbucks will post creative content on Instagram. Consumer’s then take the wheel by posting photos of their favorite drinks and tagging the Starbucks account. According to Naylor, Lamberton, and West viewers who see consumers similar to their own demographic supporting a particular brand will lead to a greater affinity for that brand. (p.106). Kotler