...America especial in America with 11,962 stores which kept increasing from 2011 (Statista , 2014). Starbucks is proving that it is a master of using model marketing, specifically in term of consumer behavior, and to establish their position in customer mind. Since the first coffee shop of Starbucks was settled down in Seattle, America in 1971 by English teacher Jerry Baldwin, history teacher Zev Siegl, and writer Gordon Bowker. It had been 43 years which is a long time to create a brand loyalty, a brand awareness, brand image for Starbucks which becomes a national brand, “In fiscal 2013, Starbucks had more than 3 billion customer visits to our more than 19,000 stores in 62 countries” (Starbucks, 2013). The truth about Starbucks have paid a lot of money to do research on international consumer behavior are paid off with a thousand of franchise stores have been spread out the world. In business perspective, Starbucks can be called a master of Marketing, and why that term is made up for Starbucks. In this project, our group would like to figure out the best marketing strategy of Starbucks based on the consumer behavior aspect which are in store environment element, product line extension, image of company, customer service, staffs’ communication way, using customers’ ego such as environment friendly, and sponsorship for local community. Store Environment When consumer think about Starbucks, the first mage which comes to consumers’ mind is the fresh coffee smell mix with the fresh...
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... Starbucks buys and roasts premium whole bean coffees and markets them along with original, Italian espresso beverages, a mixture of pastries and other bakeries, and products of coffee and tools. All of those products reach the hands of the customers through its Starbucks operated retail stores. Starbucks do not offer any franchises for general public. All of its stores are company owned or joint ventured. Starbucks joint venture only if the market is not accessible to them without partnering up like university campuses. Other then the Starbucks operated retail stores; the company offers whole bean coffees through big retails and supermarkets. Also, Starbucks makes and offers its customers bottled Frappuccino coffee drink and a line of high quality ice creams through its joint venture partnerships and presents a line of high quality teas created by its completely owned sister company which is Tazo Tea Company. The Company's goal is to have its customers, stockholders and investors recognize Starbucks as the most established and appreciated brand in the word. In order to reach this objective, Starbucks needs to grow on so that the company can quickly increase the number of retail shops, produces its specialty sales and other operations. They also carefully come up with new product ideas and innovative new products. As far as the competitors of Starbucks go in this aggressive coffee industry, other coffee sellers are keeping up with Starbucks by being innovative...
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...The Branded Customer Experience … touching lifestyles, desires, and emotions. Whitepaper #5 In this marketing-centric economy of instant e-mail offers, hyped CRM, and endless competing media images [aka: noise, noise, noise] … some, very-select brands actually break through the clutter and create genuine interest, excitement, and loyalty in the marketplace. Beyond simply selling a product … a location … or a service, these “experiential brands” excel at merchandising and selling a relationship. They “connect” with their customers. They engender emotional loyalty. They go beyond transactions and establish true differentiation and value in the customer’s mind. Power brands like Southwest Airlines, MTV, Starbucks, Harley-Davidson, ESPN, Victoria’s Secret, IKEA, Nickelodeon, Disney, Martha Stewart, and Target … and up & comers such as JetBlue, REI, Sephora, and American Girl … deliver visionary and well-conceived “experiences.” They’ve reinvented otherwise intangible, commodity products and services. They’ve got personality. They know how to image, package, and merchandise themselves as experiences. They’ve succeeded in building real trust and connectivity. And, on some level … each is a celebration. As such, intangible brands suffer from a higher perception of “personal risk” in both the purchase decision and bonding processes. As seen in the recent tanking of air travel – United and Delta’s soft under-belly contrasts greatly with Southwest and JetBlue’s structural momentum...
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...Strategic Marketing Abstract This paper takes a closer look on the brand Starbucks, a world-wide known brand in the coffee industry. The Starbucks brand, which also stands for a certain lifestyle, will be analyzed and broken into three different parts. The first part of the paper will create a brand personality profile for the brand Starbucks. The second part will focus on the brand mantra of the product. The last part will analyze the brand equity. Brand Personality Starbucks is a company started in 1971 in Seattle, Washington by Jerry Baldwin, Zev Siegel and Gordon Bowker. They named it “Starbucks Coffee, Tea and Spice”. Their main product was to offer exceptional coffee drinks, coffee beans and coffee related equipment. As of today Starbucks is represented in over 60 countries with more than 20,000 stores. Starbucks runs with their mission statement: “To inspire and nurture the human spirit – one person, one cup and one neighborhood at a time.” Before analyzing the brand Starbucks this paper takes a look at how Starbucks sees themselves first. According to their website Starbucks offers main priority in offering coffee is quality. Their passion is about ethically sourcing out the finest coffee beans, roasting them with great care and improving the lives of people who grow them. Starbucks does not just care about the coffee product itself but also what is around it. For Starbucks, they start interacting with the customer with a promise of a perfectly made beverage...
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...environment, a large number of corporations attempt to expand their markets oversea for seeking more business opportunities. In order to achieve a successful outcome in the foreign countries, it is undeniable that localization is a significant contributing factor. Localization is defined as “a process of adapting products and associated materials for specific markets… ” (Dunne, 2006, p.223). It requires the corporations greatly tailor to a new or growing local contexts to run and compete feasibly and effectively (Layden, 1997). The economy of East Asia especially in China, has grown vigorously and attract a massive amount of global corporations, such as Starbucks to invest by adapt their localization strategy. The diversity of regional culture such as lifestyle, value, religions are complicated, the essay will refer to Starbucks stores and their successful localized marketing campaigns illustrating examples within China. Localization plays an essential role to help business gain access to the local market, catering customer’s tastes, adapting local culture in order to boost profitability, improve brand identity, retention, prestige and brand loyalty, as well as better customer service. These localization strategies result in successful prospects for the global corporations. Firstly, localization mainly helps the business to increase in profitability through customizing the corporation’s products and services so that appeal to the local tastes. The higher the local demands matches...
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...Professor Ashby Brame Component Lifestyles What are my component lifestyles, you ask? What exactly is a component lifestyle? What do I like or what am I interested in? What makes me tick, per say? I guess at this point in my life I can narrow it down to three things, besides being in school full time. Those three components happen to be Caffeine, Cars, and Music. Why these three? Well, caffeine helps me cope with something called the morning, cars are fun and very fast sometimes, and music is just awesome. I’m writing this paper to describe why I like these things and how they are marketed to me. Oh, and thanks for taking interest because my life is actually pretty awesome. The first component I am going to cover is Caffeine. I work for a company; you may have heard of it, it is kind of popular. They are all over the world in fact. And in New York City, there is one on every street corner, literally. You probably drink their products every day. Ringing any bells? Yup, it is Starbucks. I have been a “partner” with them for nearly seven years. I drink their coffee every day too. I guess you can say I am and addict. Oh well. And the best part is that I rarely have to pay for their products. But, what exactly are their products? Their biggest product is obviously their coffee. Starbucks also produces mugs, tumblers, brewers, grinders, French presses, and so on. But it all comes back to the coffee itself. Almost all the other products Starbucks produces are things in which to...
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...Company Background The first Starbucks opened in Seattle,on March 30, 1971, by three partners Jerry Baldwin, Zev Siegl, and Gordon Bowker. The three were inspired to sell quality coffee beans and equipment. The first Starbucks cafe was located at 2000 Western Avenue from 1971–1976. This cafe was later moved to 1912 Pike Place Market. In 1987, the original owners sold the Starbucks chain to former employee Howard Schultz, who rebranded his Il Giornale coffee outlets as Starbucks and quickly began to expand. In the same year, Starbucks opened its first locations outside Seattle in Canada. The first Starbucks location outside North America opened in Tokyo, Japan, in 1996. Currently Starbucks has over 20,000 stores in 65 countries. Starbuck’s growth Starbucks started off as a shop selling coffee beans and equipment in this section we will analyze Starbuck’s concept for growth and how it has become one of the biggest coffee shop in the world. After, Schultz acquisition of Starbucks in 1987, he made his dream became a reality by expanding Starbucks worldwide. Initially Schultz planned to open 125 stores in 5years. 1. Company owned store (No franchising) 2. Store design and ambience (Created its own in-house team of architects and designers to ensure that the store will have the right image) 3. “Starbucks everywhere” - Cannibalization (centralized buying) Management believes although blanketing cities with Starbucks store, new store might draw 30 percent of...
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...Experiential Marketing – A case study of Starbucks Abstract We extend our heartfelt thanks to our instructor, Ling-Hui Hsu, Ph.D., the assistant professor of Department of English at Ming Chuan University who herein her expertise and always provide support and opinion for our study at the leisure time, and with her professional skill and experience shared for us. Her valuable suggestions helped all of us to apply and comprehend the theories and help us to get more details for our paper. Starbucks is the top to become the most famous coffee chain store in the minds of customers. These researchers attempt to find out why Starbucks has been able to gain a lead in coffee chains. This research aims at verifying that the experiential marketing is not only a theory, but a practical strategy which can help an international coffee chain stabilize the repurchasing rate of customers and reach operational success. Table of contexts Abstract…………………………………………………………………………….......1 Chapter One: Introduction 1.1 Background…………………………………………………………………….3 1.2 Motivation……………………………………………………………………...4 1.3 Purpose of This Study………………………………………………………….5 1.4 Value of This Study……………………………………………………………6 Chapter Two: Literatures review 2.1Coffee Chains…………………………………………………………………..7 2.2Marketing Strategies…………………………………………………………....7 2.3Customer Relationship Management…………………………………………...8 2.4Schmitt’s 5-Stages Experiential Marketing...
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...the world. Since 1996, coffee consumption witnessed a steady rise reaching 85,000 tons in 2005. According to the statistics show that, although tea is famous in India, but also the world's fifth largest coffee exporter. All these facts prove the Indian coffee market has the potential for Starbucks to explore. 2. Political effects The Indian economy has been experiencing more stability as far as the Government and political scene is concerned. There had been reduced internal turmoil resulting from political influences and this has created a better working environment for industries and business in India. 3. Lifestyle trend Similar to China, India is also a mainly tea drinking country. However, Indians regard drinking coffee and experimented with various flavors as a fashion statement. It’s more like a lifestyle attitude, which is just accord with Starbuck’s concept of ‘selling a experience’. Threats: 1. Competitor intentions There are many competitors in the Indian coffee market as case stated. All these competitors entered Indian market before Starbucks, thus they have established a certain degree of basis already. Besides the coffee market, Starbucks also has to compete with other traditional Indian tea companies. 2. Joint-venture Model 3. Diseases |External Factors |Weight |Rating |Weighted Score |Comments | |Opportunities ...
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...assignment – starbucks a. market segmentation : lifestyle segmentation, income segmentation - hanging out in a starbucks, grab and go coffe, brew i tat home coffee - income : high quality expensive coffee and instant low-budget high quality coffee, for 1.2 $ - wealthy, well educated (demographic), gender, age - concentrated marketing – small segmentation - loyalty – behaviour – heavy user (psychograpfic) b. The Starbucks experience changed first. They extended the target market by inenting new products and opening new stores. First they targeted the upper class – higher income, more educated. After opening new stores, their customer scale extended, and they had to target both groups. Maintain the value by satisfying both target market’s needs and wants. they wen from concentrated to differentiated c. new segmentations : grab and go coffee, brew it at home, the traditional starbucks experience – lifestyle, income and attitude toward product segmentation. a. geographical segmentation – they targeted in other countries assignment – absolut vodka behavioral segmentation: - occasions: regular vodka drinkers - benefits: they look for a high-quality vodka - user status - loyalty status - usage rate demographical segmentation - age : everyone from the age of 21 (int he US) and from the age of 18 ( europe) - income : affordable price - religion psychographical segmentation: - social class : middle class, upper class - lifestyle : party, - personality ...
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...rate of 8.7 percent from 1990 to 1996 but has since slowed down significantly. The man sector that was hurt by this slow growth was the manufacturing industry, which grew by less than 3 percent, down from 10 percent in 1995. In addition, the commerce sector grew by less than 4 percent, down from 9 percent in 1995. Analyst claim that weak economic growth, global competition, and a very slow tourist season made Singapore’s retail industry very sluggish. The restaurants and hotels also recorded weak growth. ECONOMIC FORCES – ASIA The company felt that Asia offered more potential than Europe. According to one executive, “the region is full of emerging markets. Consumer’s disposable income is increasing as their countries Western Lifestyles. Finally, coffee consumption growth rates...
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...STARBUCKS Case Study Alex Cochran May 2003 Starbucks – A Case Study. Table of Contents Alex Cochran 2003 Executive Summary..................................................................................................................................3 Market Segmentation ...............................................................................................................................4 Methods of Segmentation................................................................................................................4 Lifestyle Segmentation in the Specialty Coffee Market ..............................................................5 Segments ................................................................................................................... 5 Identifiable ................................................................................................................ 6 Sizeable...................................................................................................................... 6 Actionability .............................................................................................................. 6 Accessibility ............................................................................................................... 7 Sustainable Competitive Advantage......................................................................................................8 The Path to Protection. ...............................
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...Contents Introduction 3 Background 4 Starbucks in Global 4 Starbucks in Hong Kong 4 PESTEL Analysis 6 Political Factors 6 Economic Factors 6 Socio-cultural Factors 6 Technological Factors 7 Environmetal Factors 7 Legal Factors 7 Competitor Analysis 9 Competitive rivalry in industry 9 Starbucks vs McCafe 9 SWOT ANALYSIS 11 Strengths 11 Weaknesses 11 Opportunities 12 Threats 12 Objectives and Goals 14 Marketing Strategy 15 Market segmentation 15 Positioning 15 Market mix: 7P’s 16 Action Plan 18 Provide training to the staff 18 Increase 10% profit rate 18 Acquisition of outlets and warehouse space 18 Setting up supply channels 18 Recruit employees 18 Creating Brand Awareness through advertising via Social Media and Billboards 18 Create new series of limited edition products 19 Official launch 19 Promoting the Starbucks products to the restaurant, bar and convenient store 19 Customizing Products to cater to local customer tastes 19 Opening 18 branches in overseas 19 Conclusion 20 Appendix A 21 References 21 Introduction In this marketing plan, the background information of Starbucks is reviewed. Standard marketing analysis is applied to analyse the performance and opportunities of Starbucks in Hong Kong. Recommendations are given in the view of increasing the annual revenue by 10%. Background Starbucks in Global Starbucks Corporation, generally known as Starbucks Coffee, is an American global coffee...
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...Starbucks Keeps It Brewing in Asia Changing Habits: Barrier’s facing Starbucks Starbucks is a household name across North America and many different parts of the world. Coffee drinkers are loyal to the brand and trust new products that are presented to the market. Although Starbucks has loyal followers who continually buy a specific blend, either whole bean or ground, there are a number of consumers from different cultures who prefer the convince of tea and instant coffee as a part of their morning routine or as a general habit. In 2008, coffee consumption in North America was respectively 10.7kg while Asia consumed 6.2kg respectively (www.earthtrends.wri.org). North American culture is often derived from an on the go mentality and that philoisy is applied the way people drink coffee. Coffee, a universal demand, is marketed to the businessperson running late for a meeting, or the on the go mom picking up her kids from soccer practice, to friends getting together after work. With this on the go mentality, consumers don’t have the time or want to take the time to brew coffee at home or stop by a coffee shop, stand in line, and wait for their coffee to be made. Tea and instant coffee offers the consumer their daily caffeine fix in a relatively short amount of time. Asian consumers are much more concerned about the health and philosophical benefits that tea offers as apposed to coffee. Tea has been apart of the Asian culture for centuries and is a big part of its...
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...When Starbucks entered China in 1999, many were skeptical that Starbucks had a chance. Given the fact that Chinese people have traditionally favored tea, it seemed impossible that Starbucks would be able to break into this market. However, Starbucks did not let this skepticism stop it. A careful market study revealed that as the Chinese middle class emerged, there existed an opportunity for Starbucks to introduce a Western coffee experience, where people could meet with their friends while drinking their favorite beverages. Starbucks literally created that demand. Now you can find a Starbucks almost on every major street of the coastal cities in China. Even my 90-year old father in China began to tell me how he drank coffee after meals, rather than tea, to help his digestion. Starbucks has revolutionized how Chinese view and drink coffee. Position Smart Once Starbucks decided to enter China, it implemented a smart market entry strategy. It did not use any advertising and promotions that could be perceived by the Chinese as a threat to their tea-drinking culture. Instead, it focused on selecting high-visibility and high-traffic locations to project its brand image. The next thing Starbucks did was to capitalize on the tea-drinking culture of Chinese consumers by introducing beverages using popular local ingredients such as green tea. This strategy has effectively turned potential obstacles into Starbucks’ favor. Chinese consumers quickly developed a taste for Starbucks’...
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