...Starbucks is a international store of coffee. Its business operation is all over the world. Therefore, we choose two counties, U.S.A. and Taiwan to explore Starbucks’ business operation and its marketing development issue. During the project, we would like to discuss about Starbucks their product marketing development and quality control management. For the product marketing development, we would like to through the questionnaire to know about what the customer’s preferences in the Starbucks coffee beverage. For the quality control, how to ensure that the products or services that are provided meet specific requirements and characteristics, such as being dependable, satisfactory, and safe. Furthermore, we would find out the product develop plan in several years of Starbucks from survey counties. In survey, we would like to put into practice what has been learned in the marketing, international marketing and quality control management. And, we hope that we can use the presentation skills and communication skills learnt in Higher Diploma and have a good performance. Starbucks' have three target audiences in USA and Taiwan: Adults Starbucks’ primary target market is men and women aged 25 to 40. They account for almost half (49 percent) of its total business. Customers tend to be urbanites with relatively high income, professional careers and a focus on social welfare. Young Adults Young adults aged 18 to 24, total 40 percent of Starbucks' sales. Starbucks positions itself...
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...Strategic Marketing Plan for the Starbucks Coffee Company Table of Contents Introduction and background 3 Company mission, company objectives 3 Market definition and product or brand background 4 Evaluation of results and conclusion about problem 5 Situational Analysis 5 Internal analysis 5 Customer analysis 7 Industry analysis 8 Competitor analysis 11 Distribution and supplier analysis 11 SWOT analysis – Confrontation Matrix 12 Choice of option 13 Marketing objectives/ expected results 13 Marketing strategy 13 Target audiences 14 Brand and product position 14 Decisions regarding marketing mix elements 15 Objectives for marketing mix elements 15 Strategies and tactics for marketing mix elements 15 Financial indicators and budges 16 Evaluation criteria 16 Sources 16 Introduction and background Company mission, company objectives The first Starbucks café was opened in 1971 in Seattle’s historic Pike Place Market. It was only a small café, but it offered some of the world’s finest fresh-roasted whole bean coffees. The company’s name derives from Moby Dick, the novel was written by the American author Herman Melville in 1851. Starbuck is the first mate on a whaling ship named ‘Pequod’, he is an intelligent Quaker (religious group) and he is from Nantucket. The name evoked the romance of the high seas and the seafaring tradition of the early coffee traders. Starbucks chairman, president and...
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...Marketing Plan for Starbucks Coffee BMM 364 Assessment-Part A Written by: Tianyi Wang (WAN12383771) Written for: Leo Billington 2012/10/19 * Table of Contents 1.0 Executive Summary 3 2.0 Introduction 4 3.0 Current External Marketing Situation 4 3.1 External/General Environment analysis and Trends 4 1 Demographic Segment 4 2 Economic Segment 5 3 Political/Legal Segment 6 4 Social-Cultural Segment 6 5 Technological Segment 8 3.2 Detailed Market Analysis and Projected Demand 8 1. Market Size 8 2. Market Growth Rate 9 3.3 Industry Analysis Including Porter’s Five Forces 9 1. Threat of New Entrants 9 2. Bargaining Power of Supplies 10 3. Bargaining Power of Customers 10 4. Power of Substitutes 11 5. Intensity of Rivalry 11 3.4 Competitors Analysis 11 4.0 Current Internal Analysis 12 4.1 SWOT of the Business and the Product/Service 12 1. Strengths 12 2. Weaknesses 13 3. Opportunities 13 4. Threats 14 4.2 Issues and Risk Analysis 14 1. Strategic Risk 15 2. Operational Risk 15 3. Political Risk 15 4. Country Risk 15 5. Technological Risk 16 6 Environmental Risk 16 4.3 Ethical and Corporate Socially Responsible Behavior 16 5.0 Identify a Commercially Viable Market Opportunity 17 5.1 Market Opportunity Including Potential Segments of the Market and Justification 17 5.2 Define the Value Provided 17 5.3 Positioning statement 18 6.0 Marketing Plan Objectives 19 7.0 Conclusion...
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...Starbucks Market Segmentation Market segmentation is a common marketing process that divides a large group of an audience into a certain criteria with consumers that have similar needs, according to the online Business Dictionary (WebFinance, 2013). Once a market segment is developed, companies can use the marketing mix to individually approach the most profitable markets with messages specifically designed for them. This makes marketing investments more efficient. If successful, the benefits are higher profit margins, possible market share and revenue growth (Tobak, 2008). Starbucks uses demographic segmentation markets by: age, gender, income, ethnic background, and family life cycle; as well as geographic segmentation markets by: region of a country or the world, market size, market density, or climate; and psychographic segmentation, which can link with demographics. The company positions the business as a highly respected brand, and as such, that can distinguish their products from competition, which gives them an advantage. Starbucks practices a concentrated targeting strategy by focusing only one segment, which is the gourmet coffee drinker. This is how Starbucks defined its niche and labels the company as a high quality product. After establishing their niche, Starbucks continually expanses its product line to their specific segment more enthusiastic (Cachola, 2012). According to the article: “Starbucks and McDonald’s Winning Strategy” by Panos Mourdoukoutas, it...
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...company that I have chosen which is the Starbucks company. We will study the environmental analysis of Starbucks Company as well as the customer and competitor analysis. On top of that, we will also analyze the company’s industry analysis which includes the Porter Five Forces, PESTLE analysis and SWOT analysis to study the company’s position in the industry. Furthermore, this report will discuss the marketing objectives and marketing strategies of Starbucks Company and how the company uses the marketing plan to promote the company’s new product in order to grow their business. In the last part of this report, the company’s budgeting will be shown and the evaluation of control and mechanism will be clearly explained. Objectives The company’s objective is to establish Starbucks as the most recognized and respected brand in the world by providing and offering the best quality of coffee to a wide range of customers (Fellner, 2008). Mission The company’s mission is to inspire and nurture the human spirit – one person, one cup and one neighborhood at a time. Starbucks also wants to establish their brand as the premier and the finest coffee in the world while maintaining their uncompromising principles as they expand. On top of that, the company is passionate about ethically sourcing the finest coffee beans to improve the lives of people who grow them (Starbucks Coffee Company, 2013). Environment Analysis Company Analysis Starbucks Coffee is the largest coffeehouse company...
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...| Starbucks | Case Analysis | | | What factors accounted for the extraordinary success of Starbucks in the early 1990s? What was so compelling about the Starbucks value proposition? What brand image did Starbucks develop during this period? Describe the original target market. After joining Starbucks’ marketing team in 1997, Howard Schultz traveled to Italy. He was very impressed by the Milanese coffee culture and the way of its services. He really liked the espresso bar that had attracted a lot of customers. Upon his return he suggested that Starbucks set up an espresso bar in the corner of their downtown shop. His idea was to make it a place where people go to relax and enjoy others, or just be alone - a third place in people’s lives besides home and work. When given the opportunity, Schultz purchased the company from the original founders and began opening new stores. At a time when the market was flooded with cheap, 50 cent coffee, Schultz decided to sell whole beans and premium-priced coffee beverages by the cup. His primary market was affluent, well-educated, white-collar patrons (skewed female) between the ages of 25 and 44. Starbucks branding strategy was divided into three components: coffee, service, and atmosphere. The company prided itself on offering the highest-quality coffee in the world, sources from Africa, Central and South America, and Asia-Pacific regions. The second component, service, refers to the company’s personal relationship...
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...Skyline University Collage Case 1-1 - Starbucks International Marketing class – Dr. Shivakumar Alaeddin Khader Answers to the case study questions: 1. In Its journey to the top of international success in coffee stores, Starbucks has faced a lot of controllable and uncontrollable challenges. Starbucks started in Seattle in the United States where the people there love coffee and have a lot of coffee shops to visit. That was the first uncontrollable challenge facing the company as it started in nearly saturated environment with lots of competition. When operating in international market they need to operate through local partner who will cut from their profit so that they will keep only 20 to 50 percent of the profit. Expansion to international market poses with huge risks. While spreading out they have faced cultural challenges. Below picture shows the protesters against the globalization attaching Starbucks as they see it as a symbol for the free market international company and represents the globalization. For the controllable challenges that Starbucks have faced, the company growth largely in the United States as they have participated themselves of saturating the market of coffee shops as their crowding of so many stores so close to each other has become a national joke. Such as the headline in the Onion (a satirical publication): “A New Starbucks opens in restroom of existing Starbucks”. Opening so many stores near to each other will cut...
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...Strategic Marketing Plan ------------------------------------------------- Lecturer: Erik Kostelijk Student: Parisa Taghipoor Class: ICV4C Date: 19 November, 2010 ------------------------------------------------- 1.0 Introduction & Background ------------------------------------------------- 1.1 Background Established in 1985, Starbucks Corporation is today’s premier roaster and retailer of specialty coffee in the world. Starbucks purchases and roasts high-quality whole bean coffees and sells them, along with fresh, rich-brewed coffees, Italian-style espresso beverages, cold blended beverages, a variety of complementary food items, a selection of premium teas, and beverage-related accessories and equipment. The international coffeehouse has built one of the most powerful and recognizable brands in the world upon high-quality coffee and the unique "Starbucks Experience." Starbucks has sought to capitalize on its growing popularity through expansion; the addition of over 1500 stores in just over a year brought its total store count to over 16,600 in 2008. In fiscal 2008, the company's stores (retailer and licensed) generated US$ 10.4 billion in revenue. Starbucks first revolutionized the coffeehouse industry by marketing expensive, high-quality coffee as well as a "third place" between work and home - a warm, clean, and inviting environment where customers go to escape...
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...Introduction of the Starbucks Starbucks Corporation is an American global coffee company. It is the largest coffeehouse chain in the world, with 19,972 stores in 60 countries which headquarters based in Seattle, Washington. Starbucks is named after the first mate in Herman’s Moby Dick. It was founded on March 30th in 1971 by Gerald Baldwin, Gordon Bowker and Zev Siegl. And the Starbucks’ CEO is Howard Schultz nowadays. The company’s logo is also inspired by the sea-featuring a twin-tailed siren from Greek mythology. Until 2012, the company has an annual turnover of ＄13.29billion. Initially, Starbuck only sells high-quality bean coffee, drinks, salads, sandwiches and baked food through their company-operated retail stores, with the rapidly development of Starbuck, the company also offered bottled beverages in locality stores and grocery stores. In 1991, Starbucks established a relationship with CARE an international humanitarian organization and establishes a line of premium ice creams and offers a line of premium teas in the market, which was the beginning of the company’s international expansion effort. In 1992, Starbucks successfully listed. And in the later several years, this company has already acquired some small business. Then, Starbucks begin to expand its global marketing. The Company’s objective is to establish Starbucks as the most recognized and respected brand in the world. In realizing and achieving this goal, the Company plans to continue to rapidly...
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...Starbucks Marketing Plan Group H National University Table of Contents Executive Summary.………...….….……….………....…..…………...……………...………..…3 Situation Analysis…..……………………………………….……...……………...……………...3 Marketing Strategy……….…………………………….………………..……….........………….9 Financials……………………………………….…………………………….…….…….…...…12 Controls…………………………..…………..……….……..………….………….………..…...16 Appendix………………………………….………….……………………………….…….……17 References………………………………………………………………………..…………........18 Starbucks Marketing Plan Executive Summary Starbucks Coffee Company’s reputation is so exceptional; the company must maintain its outstanding brand reputation. Starbucks has been and continues to increase demand; therefore, we need to maintain exceptional customer service by decreasing the long lines during peak hours. If the standards are not the same Starbucks jeopardizes their excellent reputation. If the standard of quality were to drop, consumers would be less likely to choose to pay the premium price, resulting in a significant loss of market share. With such rapid demand, Starbucks must also ensure that its standards are met throughout the world. Recommendations: * Introduction to Starbucks new ordering application (app) to ensure high quality customer service in every aspect of the Starbucks brand. Situation Analysis Starbucks has been a leader in coffee and other beverages and is a well-known brand. Starbucks offers a variety of products to meet customers’ needs and has expanded...
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...COMPANY DESCRIPTION Starbucks is the largest coffeehouse company in the world. It was founded by three very unusual entrepreneurs, an English teacher Jerry Baldwin, History teacher Zev Siegel and a Writer Gordon Bawker. They came with this brilliant idea of getting into the coffee business inspired by an entrepreneur who sold high quality coffee beans and equipments, named Alfred Peet. The first Starbucks store was opened in Pike Market Place in Seattle on March 30, 1971. It is a for profit company. In the 1990’s the company grew at a very fast pace. Studies show that Starbucks opened a new store every working day. From one store by its founders Starbucks grew to more than 8,000 stores in the United States itself and over 4000 stores around the world today. All this was due to the marketing strategies after Howard Schultz took over the company in 1982 as a marketing executive. His experiment to open a coffee bar in downtown Seattle made the mark for the company. First the espresso coffee bars were named Il Giornale used Starbucks high-quality coffee beans to make their coffee. The espresso coffee bars didn’t take time to gain popularity, with backing of local investors; Il Giornal acquired Starbucks assets and changed its name to Starbucks. It offers a very wide variety of products other than coffee beans and coffee beverages. The varieties include handicraft beverages, merchandise, fresh food, Starbucks entertainment, Starbucks card and Global consumer...
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...no. 1-0023 Starbucks Coffee Company* On an overcast February afternoon in 2000, Starbucks CEO Orin Smith gazed out of his office window in Seattle and contemplated what had just occurred at his company’s annual shareholder meeting. In prior years, the meeting had always been a fun, all-day affair where shareholders from around the country gathered to celebrate the company’s success. This year, however, Smith and other senior Starbucks executives heard an earful from the activist group Global Exchange. A human rights organization dedicated to promoting environmental, political, and social justice around the world, Global Exchange criticized Starbucks for profiting at the farmer’s expense by paying low prices and not buying “fair trade” beans. Not only did the activists disrupt the company’s annual meeting to the point that the convention hall security police asked the activists to leave, but they also threatened a national boycott if the company refused to sell and promote fair trade coffee. Although Smith strongly disagreed with using the shareholders meeting as a public forum, he knew there was a strong likelihood his company could face serious reprisals if it did not address the issues raised by Global Exchange. Fair trade began after World War II as religiously–affiliated, non-profit organizations purchased handmade products for resale from European producers. During the 1970s and 1980s, the concept evolved further into buying crafts from low-income, third-world producers...
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...Research on the Marketing Strategies of Coffee Chain Business- A Case Study of Starbucks in China 姓 名 （中文） 李佩琪 （拼音） LiPeiQi 学 号 20100301336 所在学院 国际商务英语学院 年级专业 国际商务管理 指导教师 侯香勤 职称 讲师 完成时间 2014 年 2 月 28 日 A Research on the Marketing Strategies of Coffee Chain Business --- A Case Study of Starbucks in China Li Peiqi School of English for International Business Abstract In this article, the writer summarizes the marketing strategies of Starbucks by applying the basic theories of marketing, the SWOT analysis method with the theory support from a lot of reading and information searching. This article argues that the factors which distinguish Starbucks from its competitors in the market positioning are: the pursuit of coffee quality, the well-trained staff, the enthusiasm for making the world better, the attention to it pays to the community and the environment, innovation and the one and only “Starbucks Experience”. Starbucks puts coffee business in primary place, its core competiveness is its culture and values. Since the company locates the business in inspiring human’s spiritual beauty, it is necessary for their marketing means to come from the mental and psychological level. One innovative side of this article is that in addition to using the most basic marketing theory to the analysis of Starbucks' marketing strategy, the...
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... Introduction Starbucks has been leading the coffee shop market in more than 40 years now. It has always been the place to find the world's best coffees. Its first store was founded at Pike Place Market in Seattle, Washington, United States. It has given a positive outcome so they serve consumers all over the world. The success of Starbucks coffee had come this far because they expand their operation and services and didn't limit their products. They sell not just coffee but tea, pastries, frappuccino, beverages and smoothies as well. Starbucks is the largest coffee house company in the world ahead of UK rival Costa Coffee, with 22, 551 stores in 65 countries and territories, including 12, 739 in Canada, 1,117 in Japan and 830 in the United Kingdom. From Starbuck' founding in 1971 as Seattle coffee bean roaster and retailer, the company has expanded rapidly. Between 1987 and 2007, Starbucks opened on average two new stores every day. Starbucks had been profitable as a local company in Seattle in early 1980's but lost money on its late 1989's expansion into the Midwest and British Columbia. Its fortune did not reverse until the fiscal year of 1989-1990, when it registered a small profit of $812, 000. By the time it expanded into California in 1991 it had become it trendy. The first store outside the United States or Canada opened in Tokyo in 1996, and overseas stores now constitute almost one third of Starbucks' stores. The company planned to open a net...
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...Case 29 Starbucks’ Global Quest in 2006: Is the Best Yet to Come? Arthur A. Thompson The University of Alabama Amit J. Shah Frostburg State University Thomas F. Hawk Frostburg State University n early 2006, Howard Schultz, Starbucks’ founder, chairman of the board, and global strategist, could look with satisfaction on the company’s phenomenal growth and market success. Since 1987, Starbucks had transformed itself from a modest nine-store operation in the Pacific Northwest into a powerhouse multinational enterprise with 10,241 store locations, including some 2,900 stores in 30 foreign countries (see Exhibit 1). During Starbucks’ early years when coffee was a 50-cent morning habit at local diners and fast-food establishments, skeptics had ridiculed the notion of $3 coffee as a yuppie fad. But the popularity of Starbucks’ Italianstyle coffees, espresso beverages, teas, pastries, and confections had made Starbucks one of the great retailing stories of recent history and the world’s biggest specialty coffee chain. In 2003, Starbucks made the Fortune 500, prompting Schultz to remark, “It would be arrogant to sit here and say that 10 years ago we thought we would be on the Fortune 500. But we dreamed from day one and we dreamed big.”1 Having positioned Starbucks as the dominant retailer, roaster, and brand of specialty coffees and coffee drinks in North America and spawned the creation of the specialty coffee industry, management’s long-term objective was now to establish...
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