...2 PROBLEM STAEMENT 3 SITUATION ANALYSIS 3 Background 3 Objectives and Goals 3 SWOT Analysis 4 MARKET ANALYSIS 4 Marketing Mix 4 COMPETITION ANALAYSIS 5 External Environment (PESTE) 5 CONSUMER ANALYSIS 6 Positioning Map 7 CASE KEYS 7 ALTERNATIVES – need more pros and cons 8 RECOMMENDATIONS 8 ACTION PLAN - TBD 9 CONTINGENCY PLAN -TBD 9 APPENDIX A – Competitor’s strength and weakness 10 APPENDIX B – Segmentation 11 REFERENCES 12 EXECUTIVE SUMMARY Founded 1971, Starbucks started off as a bean roasting company. After a visit to Italy by Howard Schultz, he was determined to open an Italian style espresso bar. For the next 20 years, after the name had been purchased by Howard in 1987, there was a vast growth and expansion. With little competition, Starbucks was able to open a total of 15,011 stores in globally in which two-thirds were in the USA. In 2007, Starbucks was hit with a financial crisis that plunged its shares around $19-$20. With a negative working capital caused by increase financial debt both short and long-term, the sharp expansion due to strategy shift may have caused targets in 2007 not to be met. As shareholders expectations were high, Shultz reclaimed is seat as CEO with intentions to steer the company back to focus on the customers and commitment to its community. During the years of great success for Starbucks, there was little competition globally. Its direct competition in Canada was Second Cup and in the US was Pete’s Coffee &...
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...1. Joe Holiday has the opportunity to operate a business renting beach umbrellas next summer. He will operate the concession for 3 months. Looking at weather patterns, Joe observes that rain is frequent along this stretch of beach, and on average, there are only 60 rentable days in a summer. In each of these days, Joe believes he can rent 40 umbrellas per day at $7 per rental. Joe will run the concession by himself day, and must pay Beachcomber Enterprises $9,000 for the concession (the use of the umbrellas and for the beachfront rental location). Suppose Joe could earn $4500 working construction. a. What are Joe’s Accounting Profits for undertaking the business? What are his Economic Profits (A = TR - TCEX = 60(40($7) - $9,000 = $16,800 - $9,000 = $7,800 (E = TR - TCEX - TCIM = $16,800 - $9,000 - $4,500 = $3,300 b. Can Joe expect economic profits from the venture? If so, to what are these profits attributable? Yes, he can expect positive economic profits. This is a return to his risk-taking (it might, after all, rain all summer!) or to locational rents (he may have the only stand on the beach) 2. The American Bagel Co. is considering opening a Bagel bakery and coffee shop near Campus. In an effort to predict the profitability of this venture, their in-house consulting team estimated that the daily demand for Bagels in the area to be the following Q = -5P + 20Pp - 30Pc +5I Where P = the price of bagels, Pp = the...
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...Starbucks Financial analysis 2005 Douglas Lilly Strategic Management and Business Policy Professor Turk April 11, 2012 Over the past twenty five years, Starbucks has been leading the coffee revolution and turned a dying industry upside down by mainstreaming their stores and creating a public fascination. From the beginning of Starbucks stores through 2006, they have opened stores all over the U.S. and will be taking it overseas. Starbucks is leading the coffee revolution and has expanded their reach all over the world. With this much growth, it is easy for the company to lose their edge by forgetting the reasons they have become so large from the beginning. In this analysis, I am going to go over an economic assessment, marketing assessment plan, a financial plan, and an organizational structure recommendation. With all of these analysis in place Starbucks should have some good solid evidence on what their next moves will be to keep their status as king of the coffee revolution. Starbucks was opened in 1971 by three business men who were longing for a place where they could go sit, relax, drink a cup of coffee and enjoy the company of good friends. Most places that where like this were bars and lodges. These environments usually involved rowdy and loud crowds, places where you couldn’t enjoy yourself. At the same time, all three gentlemen where coffee drinkers, fascinated with both the taste and makes of different coffees. With this in mind they went ahead and...
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...are using this love of pets and creating exciting new businesses ventures. Asian countries such as Japan and Korea have created a new and trendy way for those without a pet to satisfy their urge to encounter fluffy f friends. First the Kitty Cafe became a big phenomena in Japan and Korea. The service offered gourmet coffee along with the entertainment and comfort from playful rescue cats and kittens. After moving to the City of Angels from South Korea, where dog cafes are popular, animal lover Sarah Wolfgang, 21, has launched a crowd funding campaign to open a pooch-friendly parlor called The Dog Cafe where patrons can get a cup of Joe, followed by cuddle time with adoptable pups. This marketing plan will analyze what actions will need to be taken to successfully bring the Asian concept of a Dog Cafe to the American people. Situational Analysis Strengths The business will receive positive views because of the support of sheltered dogs that can end up getting euthanized. The consumers will have a high sense of charity when contributing to animal shelters with their purchases of service and coffee items. Promotion for this company is also well thought out. This café uses multiple channels including social media to attract new consumers to the business. There were many consumers expressing their anticipation for the opening of the café. Weaknesses This a relatively new concept for a coffee shop inhabited by rescue animals in the United States. Visits to the café are...
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...A. Current market situation (SWOT) Strengths * Successfully promoted Blonde Roast in Canada along with the “Name Your Blend” promotion (Maloney, 2013) * Customers proven to be loyal to starbucks through Loyalty programs, with a majority of 63% saying they would return just for the rewards program (Horn, 2013) * Digital storefront promotion for teas proved to be successful (Laird, 2011) * Partnership with evergreen encourages Canadians to “go green” (Starbucks Encourages Canadians to Pledge to do some Green, 2010) * Partnership with AT&T Inc. to include free and paid wireless internet coffee shops in the united states (Associated press, 2008) * Partnership with Bell Canada to include free wireless internet in over 650 locations in Canada (Laird, 2008) * Leads specialist coffee shop sales in most countries (Starbucks Corp. (food), 2012) Weaknesses * Share price fell by 43% due to commercializing the business (Passikoff, 2008) * Price senstaive customers choosing other places to get their coffee (Starbucks Corp. (food), 2012) * Overall weak performance in the UK (Starbucks Corp. (food), 2012) * Starbucks cut back on new store openings in the United states (Janet, 2007) * Risky TV camping (Kang, 2007) * Competition from McDonald’s and Dunkin Donuts caused profits to decline in the United States (Lynn, 2008) * Overpriced coffee causes consumers to not purchase during recession. (Bryson, 2009) Threats * Fast food...
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...2015 in ireland, reaching a new high of €152 million. 12% 10 8 6 4 2 0 Onside estimates an upli in investment in the area of 12% in 2015 in Ireland. €152 Reaching a new high of €152 million. M Looking Back 2014 delivered significantly better than expected results for the irish sponsorship industry, with 47% of sponsors increasing their spend last year, and 61% of rights holders in the market reporting an increase in their sponsorship revenues (7% more than had planned). onside estimates sponsorship spend rose by 9% to €136 million last year, with the annual onside sponsorship industry survey 2015 showing that 73% of sponsors in ireland are now spending more than 10% of their overall marketing and communication budget on sponsorship. events such as the FiFA World Cup, breakthrough new initiatives such as the Coke Zero dublin bikes partnership, major deals such as the iRFu’s new kit deal with Canterbury and strong performances from certain rights holders in Rugby, GAA and Broadcast sponsorship, all helped fuel the largest annual growth so far this decade. the Question was asked of sponsors & Rights Holders: How do you think 2014 sponsorship spend / income within your organisation compared to 2013 overall? SPONSORSHIP SPEND / INCOME SPONSORS inCReAsed RemAined tHe sAme deCReAsed RIgHtS HOlDERS inCReAsed RemAined tHe sAme deCReAsed PlaNS 37% 34% 29% PlaNS 54% 30% 14% 2014 aCtUal 47% 40% 13% aCtUal 61% 31% 8% onside outlook 2 0 15 1 INtO tHE FUtURE...
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...Article Analysis Angela B. Bradford October 29th, 2012 ECO/365 Ashok Padhi Trends often have patterns weather they are because of marketing, consumer needs or changes in culture. I was interested in the product many in this country love to drink and it is coffee. Coffee is something I do not consume therefore I was interested in the trends and what made coffee so popular. I will be describing what occurs to make the demands of the good and its market and equilibrium prices, assuming the supply remains the same. I will then describe the change that has occurred with the supply of the product and its market and equilibrium prices, assuming demand remains the same. Lastly I will give my opinion on this products demand price if it is elastic or inelastic and what that implies about how consumers respond to changes in the price of the product. Coffee is the second largest commodity on the world followed by petroleum. Why is the demand so high? With the growth of coffee houses and coffee bars their came a shift in the specialty coffees and express coffees. The demand of specialty coffees has grown from 12 percent to 16 percent this year alone and that number is not prejudice to any age group gender or race. The consumption is now soaring again this year based on a growing economy and younger consumers getting into the mix. Supply on the other hand is in a shortfall and is approaching their lowest levels in 11 years. We currently have a big demand and a dwindling supply...
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...Starbucks Coffee Brand Audit Simon Mc Nally Simon Mc Nally Table of Contents Starbucks Brand Audit May 10th 2010 Company Analysis ..................................................................................................................................3 Market Analysis ......................................................................................................................................3 Brand Analysis ........................................................................................................................................4 Consumer Analysis .................................................................................................................................5 Competitor Analysis...............................................................................................................................6 Strategy .....................................................................................................................................................7 Key Fact .............................................................................................................................................................. 7 Target Group ..................................................................................................................................................... 7 Proposition...............
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...Case Study: Labatt Blue When preparing a case solution it is expected that students will conduct additional secondary research. The capture of good information will enhance the quality of the analysis and the recommendation. Marketing Communications Plan Model Use the following model for completing a marketing communications plan. These points should be addressed in your presentation (20 minutes). Marketing Background SWOT analysis: External Influences • Economic Trends • Social and Demographic Trends • Technology Trends • Regulatory Trends Market Analysis • Market Size and Growth • Market Segments (Product Classifications) • Seasonal Analysis Competitor Analysis • Market Share Trends • Marketing / Marketing Communications Strategy Assessment Product (Brand) Analysis • Sales Volume Trends • Market Share Trends • Image and Reputation (questionnaire/ quantitative research) Marketing Communications Plan Target Market Profile • Demographic • Psychographic • Geographic etc Target Market Analysis • Consumer Behaviour (Loyalty) • Consumption patterns Positioning Strategy • Positioning Strategy Statement • Positioning Grid Budget • Budget Available for Plan Advertising Objectives (whatever is relevant to plan) • Awareness • Preference • Trial • Image Creative Plan ...
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...itself as well as its stakeholders. They act as the glue that binds organizations together through the guidance of strategic and day-to-day operational decisions. An effective mission statement indicates how a firm is unique in its scope of operations and its products or service offerings. In addition, it proclaims corporate purpose, what the organization tends to accomplish, the market in which the firm intends to operate, and the philosophical bounds that are to guide their actions. The coffee industry has boomed in recent years. While fast food chains are growing at a rate of 2% each year, coffee shop chains grow more than 10% annually. According to the National Coffee Association Annual Drinking Trends Survey, “Even though 75% of the cups of coffee brewed daily are consumed at home, 66% of Americans buy their coffee outside of their homes.” This creates a strong demand in the coffeehouse market. Statista defines coffeehouses as “small establishments selling prepared coffee, tea, and other hot beverages.” In recent time, many coffeehouses started competing with other restaurants in the limited-service category by offering baked goods, sandwiches, salads, and other snack items. For instance, Starbucks has been battling Dunkin Donuts and McDonald’s for the top position as coffee king. In order to compete, each company has expanded their menu options and...
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...STARBUCKS COFFEE Hospitality Organizational Management I. History The history of Starbucks starts back in 1971 when the first store opened in Seattle, Washington. Jerry Baldwin, Zev Siegl and Gordon Bowker got the idea from Alfred Peet (of Peet's Coffee fame). The store initially sold just coffee beans and coffee making equipment rather than the drinks they have become so famous. After about 10 years, Howard Schultz was hired as Director of Retail Operations and came to the conclusion that they should be selling drinks rather than just beans and machines. He couldn't convince the owners, so he went his own way to start the Il Giornale chain of coffee bars in 1986. The next year, Baldwin and the others sold Starbucks to Schultz who then renamed his Il Giornale locations to Starbucks and quickly started to expand. After conquering Seattle, the chain spreads across the United States and then internationally. The first location outside of North America was in Tokyo and they still have a sizable presence in Japan today. Over the course of its history, Starbucks has bought or acquired companies like Peet's and Seattle's Best Coffee, and took over many locations of Coffee People and Diedrich Coffee stores. In the 1990s, Starbucks was offering stock options to employees and went public. Today, Starbucks has expanded to more than 17,000 stores in 55 countries around the world. Their biggest presence is still in the United States, with 11,000 locations. You can find a...
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...Management 431 Dr. Sopo June 4, 2013 Starbucks Strategic Analysis Project Jared Hall Monica Diederich Brandy Putman Management 431 Dr. Sopo June 4, 2013 Starbucks Strategic Analysis Project Jared Hall Monica Diederich Brandy Putman Stage 1: Developing a Strategic Vision, Mission, and Values Starbucks is a high quality coffee empire that is composed of a host of café’s and shops that sells many different roasts of coffee and coffee drinks to an array of on-the-go customers bustling about during the course of the day throughout the entire world. To say that Starbucks is merely a coffee shop is an enormous understatement. The chain is composed of over 20,500 stores located in 62 countries. Precisely 13,279 of them are located in the U.S. alone. (Starbucks Company Profile, 2012) The company features an array of hot and cold drinks as well as sandwiches and pastries. One of the overall goals of Starbucks is also to be a home away from home featuring comfortable couches, friendly barista’s, and an inviting atmosphere. Various paintings hang on the darkly painted walls. The newest, coolest, and relaxing music is always playing in the background. In a roundabout way, the entire store is designed to help one wind down after a long day’s work, mindlessly grab a cup of very expensive Joe, and engage in deep conversations with friends and total strangers in order to forget about the stressful elements of the outside world. For the most part the Starbucks...
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...MKTG 340 Starbucks Marketing Plan Non-fat Caramel Macchiato Company Overview Starbucks Coffee was in the business since 1971 and is based in Seattle, Washington. Because of the innovative and high-quality products and all-dimension business strategies, Starbucks Coffee becomes the leader in the global coffee industry, which owns 21,878 stores in more than 60 countries all over the world (Starbucks Coffee Company, 2015). Starbucks offers a variety of products so as the serve the customer wherever and whenever they are, including fresh foods and beverages, coffee machines and travelling muds, and ready-to-drink beverages. Company Mission “To inspire and nurture the human spirit – one person, one cup and one neighborhood at a time” is the mission statement of Starbucks (Starbucks Coffee Company, 2015). Starbucks aims as to serve premium coffee, excellent customer service and valuable experience to the customers. Starbucks values the customers, suppliers and also the society. Starbucks tends to create the warmth and belonging culture, so that their customers can enjoy an energetic and wonderful day from the start of the Starbucks coffee. Starbucks keeps improving the quality of products and services; also, the growth of the company and the sustainable future of the community and environment. S.W.O.T. Analysis Strengths * Well-known developed company that been around since 1971 (Starbucks Coffee Company, 2015). * There are more than 20,000 stores...
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...I. Strategic Profile and Case Analysis Purpose Starbucks has always been the famous coffee shop in the world. When people smell coffee the first thing that came into their minds is “Starbucks”. Starbucks starts in 1971 in Pike Place Market in Seattle, Washington. It wasn’t always about selling coffee drinks, before Howard Schultz was selling coffee beans and coffee machines not the coffee drink itself. Then for about 10 years he thought of a way of selling coffee since it became famous, with that he came up of opening a store named II Giornale. After a year, Jerry Baldwin, Zel Siegl and Gordon Bowker sell the name Starbucks to Schultz and quickly renamed II Giornale to Starbucks and started to expand across America. Now Starbucks has more than 11,000 stores in the United States alone and more than 17,000 stores around the world. Having so many stores, it became more available to the public. You can buy their coffee almost anywhere. With this kind of availability, the long lines where nowhere to be found. Coffee serving and production was fast. But having so many stores can make a huge impact. The convenience of the costumers was met, but the sales might make a huge loss. That is why the main purpose of this Case Study is to identify how having so many stores can make a huge impact on Starbucks’ demands and to prevent it from happening with making an action plan. Another purpose is to identify the latest perception of consumers that will make Starbucks innovate and focus on other...
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...most purchased items every morning in the United States. Some people feel that cannot start their day until they have had their “cup of joe”. Starbucks not only supplies this morning necessity but has found a way to make consumers feel that their cup of coffee was made specifically for them. Upon entering any Starbucks, one is greeted with a variety of drinks in three different sizes and a assortment of pastries and snacks to pair with them. Every order is accompanied by the customer’s name, which makes calling out an order much easier and friendlier.. That feature alone helps to build a community between the company and its patrons. Suggestions like these and others have helped to contribute to the success of Starbucks. The success of Starbucks is not only local but also a global success. Success of any company has a foundation in the organizational culture of a company. Overview of Starbucks The first Starbucks opened in Seattle, Washington in 1971 (“Our Heritage”). Starbucks prided themselves on fresh brewed coffee from the world’s best and freshest coffee beans. Ten years later, Howard Shultz became the CEO of Starbucks. Howard Shultz was born and raised in Brooklyn, NY. He attended Northern Michigan University on a football scholarship. After graduating, Shultz sold kitchen appliances before landing a job with Starbucks as a marketing representative (“Forbes 400”). A year after joining the Starbucks, Shultz visited Italy where he was exposed and inspired to a coffee...
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