...Mr. Howard Schultz, the chairman and CEO of Starbucks Corporation is faced with some immediate and long term challenges in the year 1996. He needs to keep up the brand image of Starbucks, beat the competition, foray into new horizons for expansion, improve on the real estate strategy while maintaining the ‘coffee ‘ experience Starbucks is known for. Immediate issues 1. MacDonald is petitioning for a contract to serve Starbucks coffee. Mr. Howard is sceptical that granting this contract will dilute the brand image of Starbucks. While this can boost revenue in the shorter term, this can also lead to loss in clientele and reputation. Should Mr. Howard agree to the proposal? 2. Starbucks has a goal of having 2000 stores by the year 2000. The number of ‘A’ sites in market has decreased and the task of “street sniffers” is becoming increasingly difficult. The immediate challenge is to expand in different regions of the city. Should he put laser focus on Doppio strategy ? Basic Issues 1. Given Mr Howard’s bad experience at the University store , Starbucks needs to take an active look at the speciality agreements with retailers , restaurants and service providers. They are a big source of revenue generation but any compromise either on the coffee quality or coffee ‘experience’ could lead to loss in clientele, loss of brand and a hard earned niche market segment. 2. The regional competitors such as Second Cup in Canada and Best coffee in Seattle are eating the Starbuck’s...
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...on Integrated Marketing Starbucks Coffee Starbucks History Jerry Baldwin, Zev Siegl and Gordon Bowker created Starbucks; they met coffee roasting entrepreneur Alfred Peet who inspired the three novices to open a coffee shop to sell roasted coffee at their first location in Pike Place, Seattle. Their goal was to sell high quality coffee beans. This venture has certainly paid off, as Starbucks has become a well-known name brand both locally and internationally. They met Howard Schultz an entrepreneur who suggested the idea of selling coffee drinks in European style cafes. He later went on to purchase Starbucks and expanded the coffee chain. Starbucks Corporation (NASDAQ: SBUX) is a global coffee company with an Italian-style coffeehouse which started its chain in Seattle, Washington. Starbucks is the largest coffeehouse company in the world, with 19,972 stores in 60 countries, including 12,937 in the United States, 1,273 in Canada, 971 in Japan, 790 in Great Britain, 657 in China, 453 in South Korea, 356 in Mexico and 276 in Taiwan. Starbucks sells drip brewed coffee, espresso-based hot drinks, other hot and cold drinks, coffee beans, salads, hot and cold sandwiches and Panini, sweet pastries, snacks, and items such as mugs and tumblers. Through the Starbucks Entertainment division and Hear Music brand, the company also markets books, music, and film. Many of the company's products are seasonal or specific to the locality of the store. Starbucks-brand ice cream and coffee...
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...Strategic Initiative Paper: Starbucks Starbucks Corporation (Starbucks) is known as one of the selling leaders of roasted and specialty coffee in the retail industry. Starbucks has been focusing on creating a detailed strategic and financial plan that will aid the company in surpassing its competitors. The purpose of this paper is to investigate Starbuck’s actions upon creation of strategic and financial plans, the strategic initiatives associated with this plans, and the impact initiatives have on cost and sales as well as associated risks. Strategic Planning Process and Strategic Initiative In 1971 the birth of Starbucks began, three partners Jerry Baldwin, Zev Siegel and Gordon Bowker opened the first location in Pikes Place Market in Seattle with $1350 a piece and an additional $5,000 borrowed from a bank making their initial investment $9,050. In 1981 Howard Schultz joined the team during their first encounter Baldwin told Schultz, “We don’t manage to business to maximize anything other than the bean” the Part of Starbucks Strategic plan was once it turned public in 1992 was to grown the number of locations from 165 in 1992 to 1,381 by 1997. Part of Starbucks strategy was to place the first location a large city and then branch out from there until eventually now where there are Starbucks everywhere. The rapid growth Starbucks created a new position of zone vice presidents, the zone vice presidents became responsible for the overall operations of the area, it recruit...
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...the SMART principles, are outlined below: New Product The company intends to launch new products that suit the younger client, regarding the content, quantity and appropriateness of the products for our young customers ( NBCNews, 2007). Awareness Our plan is to increase levels of awareness of our brand among young populations between the age of 7 and 18.The plan involves achieving a 25% increase in knowledge of the products that our company offers, geared towards children and teenagers, in a period of 6 months from the commencement of implementation of this plan. Satisfaction This marketing plan is geared towards increasing the satisfaction of our young consumers by 15% for the products offered by Starbucks in 12 months. Stimulating sales The company intends to raise the sales of the newly developed products by a margin of 20% in the first half of the rollout of the products on the market. 2. Risks and SWOT Analysis Risks The risks posed by the new objectives of the firm include increased costs associated with adding new products. Moreover, adding too many extensions to existing products poses the danger of cannibalizing the sales of the original products. SWOT Analysis Strengths The company has the advantage of a new market for the products created which is provided by the high number of young clients that visit our outlets alone, in the company of their friends, or their parents and adults. Moreover, the addition of new products that are more suited and appropriate...
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...Marketing Plan Phase II MKT/421 November 25, 2013 Pareesa Naveed Marketing Plan Phase II Starbucks Corporation's new services recently announced to the public received a warm welcome. Catering and home delivery services selected by this organization in addition to services already provided by Starbucks to customers received nice reviews. Working on how best to get others in the community to begin using the services is part of phase two of this marketing plan. According to smallbusiness.chron by Fraser Sherman, Demand Media, “Market segmentation breaks customers down into categories based on income, age, race, lifestyles, location, and other factors to craft marketing strategies tailored to each segment.” There are different, sufficient techniques to run an operation smoothly. One key step is to understand the customer base. That is simply gathering the information on the consumers who may be in a particular area of where the business will be. The market is to target individuals who share special preferences through advertising and campaigning. The selected locations of Starbucks stores take careful consideration and planning also. The focus is primarily on selling delicious coffee and pastries while providing remarkable service. The corporation has to stay on top of their goals and constantly create new strategies aiming to fulfill the needs of each customer. It is very important to carry out each step of is process thoroughly because each plays a critical...
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...1 Obtain the information about marketing strategies that are currently being considered by your organization. Marketing strategy is a process that can allow an organization to concentrate its resources on the optimal opportunities with the goals of increasing sales and achieving a sustainable competitive advantage. Marketing strategy includes all basic and long-term activities in the field of marketing that deal with the analysis of the strategic initial situation of a company and the formulation, evaluation and selection of market-oriented strategies and therefore contributes to the goals of the company and its marketing objectives. Therefore I would like to discussion current marketing strategies of Starbucks. Starbucks is particularly proud of their commitment to maintaining quality, integrity, and great taste of coffee through the course of its growth, and coupled with that commitment is the high value placed on the employees (partners) worldwide. "We realize our people are the cornerstone of our success, and we know that their ideas, commitment and connection to our customers are truly the essential elements in the Starbucks Experience." Starbucks' value for people goes beyond the employees, however. The relationship between the strength and vitality of the communities and the success of Starbucks is highly valued: investing in communities is not only the right thing to do, it has become part of the tradition of the Starbucks culture, to help produce social, environmental...
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...Affect Cost Strategic and financial planning is evident at every level of the Starbucks organization. Howard Shultz left Starbucks for 8 years, but now upon his returning he brings new ideas and alternative management styles. The task upon his return was increased sales and in any business this can be daunting, but with his clear vision using the right motivation and establishing a concise goal for the organization his plan is to triple yearly sales over the next 5 years. To no surprise in the financial industry, Starbucks has faced accusations of rapid growth, or growing too fast within industry standards. To concur with increased sales goals and to appease the financial gurus, Howard’s strategy is to continuously cut unwanted or unnecessary cost or spending within Starbucks. The largest action taken against spending cuts was to close 676 locations within the United States, resulting in a saving Starbucks hundreds of millions of dollars. It is no surprise that the economy has made it difficult for most industries and their growth efforts, but one of Starbucks strategies is to increase operating and store efficiencies resulting in long-term growth. Howard Schultz’s plan for Starbucks is to maintain their goals, core values, and principles. “We generate strong cash flow, have solid liquidity and are executing rigorous cost-containment initiatives to improve our bottom line. Starbucks will continue to take actions to improve our United States business and take...
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... 3. McKinsey: 16 D. Competitive Advantage: 17 E. Analysis Conclusion: 17 V. MARKETING STRATEGY: 18 A. Where do we want to be? 18 B. Segmentation, Targeting and Positioning: 18 1. Segmentation: 18 2. Targeting: 19 3. Positioning: 19 C. Competitive Strategy 20 D. Marketing Mix: 21 1. Product 22 2. Price 22 3. Place: 23 4. Promotion 23 5. People 24 6. Physical Evidence 24 7. Process 25 VI. IMPLEMENTATION: 26 A. Product development and diversification 26 B. Price 27 C. Internationalization and distribution networks: 28 D. Promotion: 28 E. People: 28 F. Budget: 29 VII. CONTROL AND MONITORING: 30 VIII. APPENDIXES 31 EXECUTIVE SUMMARY: Starbucks Corporation, currently the global leader in the coffee business, started off as a coffee bean roaster and retailer in 1971 in Seattle. Since then the firm has established 20,891 stores across 64 countries under the leadership of Howard Schultz. In the last decade, Starbucks has resorted to aggressive expansion making it the leader on the coffee shop market. However, increased domestic competition, recession and rise of commodity prices have led them to shut down 128 stores in 2013. Hence, arises the need for a novel marketing plan. An analysis of the current situation reveals that Starbucks’ biggest strengths are its brand image and store appeal. However, Starbucks’ reliance on the U.S markets for its revenue is highly unsafe in the long run. Hence it is advisable...
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...3 2.0 STRATEGY IDENTIFICATION 4 2.1Marketing Mix 4 2.11 Product 4 2.12 Price 4 2.13 Place 5 2.13 Promotion 5 3.0 ENVIRONMENTAL ANALYSIS 8 3.1 SWOT Analysis for Starbucks 8 3.2 PEST Analysis for Starbucks 10 3.21 Political 10 3.22 Economic 10 3.23 Social 11 3.24 Technological 11 4.0 E_MARKETING PLAN 14 4.1 E-Marketing Strategic Planning 14 4.11 Segmentation 14 4.12 Targeting 15 4.13 Differentiation 15 4.14 Positioning 16 4.2 Objectives 18 4.3 E-marketing Strategy 18 4.4 E-marketing Tactics 19 5.0 IMPLEMENTATION 22 5.1 Implementation Plan 22 5.2 Evaluation 24 6.0 CONCLUSION 25 7.0 REFERENCES 26 8.0 APPENDIX 30 1.0 INTRODUCTION Starbucks is a well known brand established 1971 at Seattle by Jerry Baldwine, Zev Seigle and Gorden Bawker. The company operates in approximately in 17,000 retail stores over 49 different countries including Malaysia. With the mission statement of “to inspire and nurture the human spirit-one person, one cup and one neighbourhood at a time” Starbucks have been expanding rapidly. Other than the world premium coffee Starbucks offers tea, cold beverages, complementary foods such as sandwiches and salads. (A. Mettlach, 2010) Starbucks has invested highly on IT to target their products and services to market segments. As a result Starbucks has attracted a large number of customers and established a high-tech image. Using e-marketing techniques and traditional marketing techniques Starbucks has influenced...
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...Starbucks New Product Marketing Plan Shanna Cobb-Adams, Terri Corona, Antony Coumans, Andrea Garcia, Mary Hale, Paula Warren MKT 421 April 30, 2012 Mark McClintock Starbucks New Product Marketing Plan When a firm is developing a new product it is important to create a marketing plan for that product. The plan begins by researching the products competitors are offering and the products competitors are lacking. The new product should meet the needs of consumers not currently met in the market. This offers the new product a greater chance of success. The next step in developing the plan should include an analysis of the strengths, weaknesses, opportunities, and threats that the new product will face. The plan should also include the marketing approach and implementation to bring the new product to market. The market approach includes product, price, place, and promotion. Each item is carefully considered because they are important to the products success. A detailed marketing plan is outlined below for Starbucks new product, the peanut butter cup Frappucino. Organizational Overview Starbucks opened its first store in 1971 in Seattle, Washington, at Pike’s Place Market. Starbucks is known for outstanding coffee, tea, and treats as well as a warm, inviting atmosphere. Starbucks’ Mission is “to inspire and nurture the human spirit – on person, one cup and one...
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...Marketing Plan Phase I: Starbucks MKT/421 November 18, 2013 Pareesa Naveed Marketing Plan Phase I: Starbucks Marketing is an essential part of a business’ strategy for long-term success. Different business can have different views of what marketing means and how to create an effective marketing strategy specifically to meet the customer needs and the needs of the company. A marketing plan must have a defined goal and a vision on how to obtain that goal. The team is tasked to define a marketing plan to introduce Starbuck’s new Home Delivery and Catering Services. This marketing plan will provide an overview of the existing organization and describe the new services being considered. Additionally, the marketing plan will analyze the Strengths, Weaknesses, Opportunities, Threats, and Trends (SWOTT) of these new services. Finally, the plan will describe the research approach the team will use to develop the strategy and tactics to introduce the new Home Delivery and Catering Services. Starbucks opened the first store in the Seattle, Washington Pike Place Market in 1971. Starbucks always wanted to be a different kind of company by celebrating the rich tradition of coffee and by providing a feeling of connection. Starbucks has more than 18,000 stores in 62 countries. The company is the premier roaster and retailer of specialty coffee in the world and strives to bring the company’s heritage and an exceptional experience to life, (Starbucks Corporation, 2013)....
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...Starbucks: Going Global Fast Ronnie Deaver MKG400 International and Multi-Cultural Marketing Colorado State University – Global Campus Dr. Michael E. Ricco June 19, 2016 Starbucks: Going Global Fast Starbucks is a fast growing and well known US based company focused on penetrating international markets. When entering a new market, there are always associated risks, problems, controllable/uncontrollable elements, and process optimizations. Below is a discussion on the factors contributing to Starbucks expansion into international markets such as Japan. Controllable Elements For any company expanding to a new market, there is a plethora of controllable and uncontrollable elements to consider; some new and some similar to those faced in domestic markets. Interestingly, the controllable factors that Starbucks encountered when entering the global market were similar to those faced in their domestic market; product, price, place and promotion. The Starbuck’s brand name and image connect with millions of customers globally. Starbucks can control and adjust its product to meet the cultural needs and expectations of a market; including price, availability, and their marketing strategy. Using appropriate market research, Starbucks can pre-emptively make certain that their product is the right fit for each of its international locations. According to Starbucks (n.d.), they maintain a high level of success internationally by working with international partners who understand...
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...Abstract In continuation with my Business Analysis on Starbucks this week, I will review the strategic initiative that Starbucks has taken to adapt in the changing market. I will examine how the recent economic trend as affected the business, how they used or could use a strategy for adapting to the changing market with the recession going on. I introduce tactics that Starbucks has implemented or could implement to achieve their goals. I will also include a section on how their human resources management plays an important role in making sure Starbucks achieves their goals. In the end I will make my final decision whether or not, I want to invest my money into Starbucks Corporation. There will be a review on the analysis from my last two papers that I did and will show support for my conclusion. Business Analysis Part III Because of the recession Starbucks has had to make many changes to keep itself in the competitive market while trying to retain the authenticity of its brand. The Corporation has had to make some adjustments to its upscale formula to address a growing demand for a high quality product at an affordable price. Starbucks has to conform to keep their existing customers by outlining a twofold growth strategy, first to focus on profits in their existing stores and by making a new strategic investment in key initiatives (Barnes, 2011). Starbucks prides itself by offering more than just a cup of coffee, they...
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...Starbucks has a strategy in production to create the perfect coffee, which is done by its Employees/Baristas, in its outlets across the world. These Baristas are trained directly by Starbucks on multiple aspects from creating a coffee to promoting and selling it, in its originality, as it should be and also delivering it to make for a very good experience for the customer. Starbucks has its own university where there employees are trained, Starbucks is looking to leverage its brand value to be able to sell premium coffee beans and coffees, premium teas and a host of other merchandise items such as mugs, coffee machines etc., all of which are original to the label to the Starbucks coffees. Starbucks spends more on training and developing their Baristas then in marketing. Starbucks’ Strategy includes expanding their store internationally, as well as, domestically. They plan to continue tracking and recognizing their employees. The strategy also includes real estate and store design as well as planning and construction. Starbucks strategy includes expanding their domestic store in three years – have Starbucks coffee houses everywhere in the USA. The International Strategy, will continue as it has always been a company owned and operated or licensing. Starbucks is considering a new subsidiary internationally. Starbuck has a strategy, which includes expansion of stores, their original Product Line, and even coffee purchasing strategy. Starbucks main location where...
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...A Caffeine Giant: The Growth of Starbucks Abstract This paper examines Starbucks’ plan for rapid and thoroughly aggressive expansion in order to become the premier coffee ship in the United States and further, the World. Building upon a brand name that is recognizable worldwide, Starbucks continues to defy expectations, as it claims the title of the fastest growing fast-food company in the world (Horovitz, 2015). This paper provides a comprehensive analysis of Starbucks 7-year plan for growth (Tobey, 2014), and compares it to Quelch’s periodical on the demise of Starbucks (2008); suggesting that Quelch’s assessment that Starbucks growth destroyed its brand is misguided and inaccurate, while the opposite is then true. A Caffeine Giant: The Growth of Starbucks As the premier marketer of coffee and coffee products in the United States, Starbucks, an American corporation founded in 1971, is reaching new peaks as a global powerhouse, a seemingly unprecedented achievement following a slump in sales from 2008 to 2009. What makes this climb more magnificent is that it does so while competing against fast food giants such as McDonalds, Subway, and Burger King (Horovitz, 2014), dominating its competitors within its respective industry. John Quelch surmised that the slump Starbucks faced in 2008 was due to over expansion and a turn away from those consumers who wanted premium coffee with a personal experience (2008), when in reality...
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