...CASE STUDIES Starbucks case study Utilizing brand assets and capturing consumer trends in the Japanese RTD coffee market Reference Code: CSCM0242 Publication Date: March 2009 DATAMONITOR VIEW CATALYST Starbucks has established itself not only as a coffee shop chain, but also as a provider of ready-to-drink coffee drinks. Its partnership with Suntory in Japan has seen the success of the chilled cup coffee drink Discoveries, and the experience could provide insights on how the company can succeed in expanding into the growing global RTD coffee market. SUMMARY • Starbucks has been offering the “Starbucks experience” beyond coffee based drinks. Its brand image has helped the launch of its first bottled ready to drink coffee drink, Frappuccinos, in the US through the partnership with PepsiCo. During the economic downturn, offering Starbucks-branded drinks and products via multiple retail channels could help the company capture more consumption occasions and increase its revenue. • Starbucks teamed up with Suntory to launch the Discoveries series in the cut-throat RTD coffee market in Japan. First launched in 2005 and positioned as a premium chilled cup coffee drink, the series is ranked second in the sector, holding an 18% market share after three years. • Right positioning and product design that effectively reflect the positioning are key factors contributing to the achievement of the Discoveries series. Suntory’s know-how of the market, plus its marketing and distribution...
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...INTERNATIONAL MARKETING Case Study Report How Starbucks Corp. should improve its business Syndicate Group Number 1 24/08/2007 The following group assignment report was prepared for a business unit at Macquarie University, Sydney. The information given does not need to be correct. The suggestions given and conclusions drawn remain (as the whole report in itself does, too) the intellectual property of the authors. Do not use this report for plagiarism. Do not copy this report. Do not print this report. Do not hand this report in as your own! Authors and Copyright: Tanya Shahi Jorge Omar Martin Aufschläger Timo Schmerling Stefan Gassner tanyashahi@gmail.com canogeorge@hotmail.com martinaufschlaeger@gmail.com timo_schmerling@web.de mail@stefan-gassner.de 2 Case Study Report: Starbucks Corp. Table of Contents Table of Contents ....................................................................................................... 2 1. Introduction ............................................................................................................. 3 1.1 Company Profile ................................................................................................ 3 1.2 Case Summary.................................................................................................. 3 1.3 Current Situation .................................................................................................
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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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...STARBUCKS IS COMING TO INDIA INTRODUCTION As we all may know, behind any successful achievement, there is a long story of withstanding hardship and endeavouring persistently behind any success. The Starbucks’ case of successfully bringing the brand into the Indian market is one example. This paper is to study the (3) reasons why Starbucks International decided to expand its market scale internationally and to figure out the initial criteria required for Indian Market. This is also to analyse appropriate circumstances at that time for Starbucks to be able to earn its foothold there provides us with valuable business guidance. Besides, this study by pointing out key factors which lead to Starbucks’ success in launching its brand in India demonstrates how Starbucks applied sustained competitive advantage and dealt with obstacles during the launching period, which created significant courage for Starbucks International to move next steps to fulfil its ambition for international expansion. COMPANY’S OVERVIEW Founded in 1971 in Seattle, Starbucks was started as a store to roast and sell coffee bean by three partners. Its name and logo were named after the famous novel Moby Dick. In 1987, Howard Schultz who is currently the company’s CEO acquired Starbucks and single-handedly converted it into a national, publicly owned company. Having more than 11,000 stores in 36 countries worldwide and over 10,000 employees in 2006 (Case Study), the company grew to about 17,000 stores (starbucks...
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...[pic] INTRODUCTION TO BUSINESS PROCESSES (BUSI 1333) [pic] ASSESSMENT GUIDE 2012-13 NB The assessment details contained in this document are the definitive details of your assessment for this course 2012-13. Please follow this guide and disregard information on assessment from any other document. Contents Page |Recommended texts |2 | |Course schedule |3-4 | |Assessment 1 |5-6 | |Assessment 2 |7-14 | |Generic Assessment criteria level 1 |15-16 | Recommended Course Texts: |Blythe, J. |2009 |Essentials of Marketing / 4E (4th Ed) |Pearson Education ltd | | | |E BOOK |978-0-273-7173-2 | |Slack, Johnson & |2011 |Essentials of Operations Management |Pearson Education ltd | |Brandon-Jones | |E BOOK |978-0-273-75242-4 | Course Schedule ...
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...describe the elements of the marketing mix. Starbucks is the organization that will allow a description of how all four elements affect developmental marketing strategy. An explanation of how each part of the marketing mix is implemented and what industry that Starbucks exist is present. Marketing Mix Starbucks originated in 1971 in Seattle. Today there are over 17,000 stores across 55 countries all over the world. The mission; “inspire and nurture the human spirit one person and one cup at a time” (Starbucks Company Profile, 2011, p. 1). Starbucks got its name from a story; Moby Dick and logo is a Greek mythology siren. This company views employees as partners. Products include coffee; more than 30 blends, handcrafted beverages; such as Frappuccino’s and ice coffee, merchandise; cups, mugs, music, books, fresh food; cookies, salads, and sandwiches. Marketing mix A plan, that is controlled, including four elements; product, price, place, and promotion. The company makes adjustments of these four elements until the right combination meets consumer needs. The ultimate goal, when using this tool, is to make a profit (Marketing Mix, 2012). Product is the central part of the marketing mix. One has to figure out how to make it, how the product line is going to run and set it up. One also has to decide the range of products the company will offer consumers (The Times 100 Business Case Studies, 2012). Price creates revenue. The...
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...Abstract This paper is a case analysis of coffee market. The purpose of this paper is to study the supply and demand mechanism through the case analysis of Starbucks in coffee market. This paper has three main sections. The first two section states the problems in coffee market and its ramifications. The first main problem is that Starbucks being the price maker in the oligopolistic coffee retail market, Starbucks exerts its market power to set its coffee retail price much higher than other coffee sellers. The second problem facing by the coffee retail market is unsteady supply of coffee beans. The third section states the proposed solution to the above two problems. Possible solutions for the first problem include introducing more sellers into the market, branding and product differentiation campaign by other coffee sellers and government intervention. Possible solutions for the second problem include backward integration and product diversification. Case Analysis Problem Definition 1 – Oligopolist Exerts Market Power over Prices Starbucks buys coffee beans at low prices but sells the coffee in retail market at relatively higher prices than other coffee retail sellers. This is what described as “buy low sell high” (Keat; Young, P. 61). Starbucks is able to buy low because of coffee beans prices goes down as a result of overproduction of coffee beans in 2000-2003. Starbucks is able to sell high because of its market position in coffee retail market as being an...
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...Starbucks Case Study 1. Based on the case information and personal experiences, list at least five things that you know about Starbucks. This list offers you some idea about your cognitions concerning the coffee shop chain. After reading the case information, I have a greater amount of knowledge about Starbucks as a business aside from my personal experiences as a customer. I am a regular at my local Starbucks and feel that this company does attempt to cater to their customers. Specifically from reading the case study, I know that Starbucks is a fortune 500 company since 2003. The company has expanded to over 14,000 stores worldwide including multiple locations within popular cities such as New York and San Francisco (Peter and Olson, 2010, p. 32). Starbucks is trying to expand internationally and are trying to have 500 stores operating in Asia. In China only, Starbucks outlets have increased from 8 in 1999 to just less than 70 today (Starbucks-taking on the world, p. 13). Starbucks is expanding in order to develop sight recognition for customers in order to persuade customers into thinking Starbucks is a great product, offered in many locations, and everyone is drinking it. Each additional store only adds to the chances of more people seeing their store and also remembering Starbucks every time you want a coffee. Another thing I know is that Starbucks has recently attempted to gain food sales as they have begun to sell hot sandwiches, bakery items, and other...
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...Team Case Study Analysis Raghuvarma Pasupuleti Narasimha Vangari BUSM5463 Dr. Larry A. Walker Northwest University-Kirkland Author Note Raghuvarma Pasupuleti, MBA College of Business Management, Northwest University. This research was written in context with the Operations Management course within the MBA program at Northwest University. Correspondence concerning this article should be addressed to Raghuvarma Pasupuleti, MBA Program, Northwest University Kirkland WA 98033. Contact: r.pasupuleti15@northwestu.edu Team Case Study Analysis Starbucks – Delivering Customer Service Starbucks – one of the fastest developing companies has its objective to be the “most recognized and respected brand in the world “. The company has built its position in the market by envisioning and creating “third place” beside home and work, where people could go to relax and enjoy others, or just be by themselves. Living up to the long term vision of founder Howard Schultz, who inspired the company to make the customer as the center of its success, company has become the giant of the coffee world. This success can be attributed to Schultz commitment who changed the coffee drinking experience in the U.S. With core values towards presenting quality coffee, atmosphere, and the best service, Starbucks has enjoyed...
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...Brand Management Brand Value Chain - The below diagram is a typical model of brand value chain. It follows the process of developing a brand. There are two lines in this model, first line shows the various stages of developing the value of company and the second line consists of the multipliers which strengthen the relationship between the stages. Generally there are four value stages and three multipliers in a brand value chain model but for explaining the case of Starbucks we have excluded the fourth stage and the subsequent multiplier. Marketing Program Investor Customer Mind-set Market Performance Marketplace Conditions Multiplier Program Quality Multiplier Value Stages Multipliers * Product * Location * Advertising * Employee * Clarity * Distinctiveness * Relevance * Consistency * Price Premiums * Price Elastics * Market Share * Expansion Success * Cost Structure * Profitability * Awareness * Attitude * Association * Attachment * Activity * Competitive Reactions * Channel Support * Customer Size & Profile Marketing Program Investor Customer Mind-set Market Performance Marketplace Conditions Multiplier Program Quality Multiplier Value Stages Multipliers * Product * Location * Advertising * Employee * Clarity * Distinctiveness * Relevance * Consistency * Price Premiums * Price Elastics * Market Share *...
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...Development Analysis Two Mini Cases 1 21 June 2012 Final Project: Development Analysis Two Mini Case Studies DeVry University Professor Mozinski, BUS412 Business Policy Development Analysis Two Mini Cases 2 Mini Case 1: Bikes for the World (BfW) Challenge or Problem: The Bikes for the World organization was formed to offer valid solutions to the transportation problems facing the poor around the world. Lack of affordable and eco-friendly transportation system led founder Keith Oberg to create BfW. Oberg states he did so in order to solve two problems: to help address the developing world’s lack of affordable, eco-friendly transportation, and to help find a better use for the glut of unwanted bikes in the United States (Thompson, 2010). (Pictured above a young boy from Nyariga, Ghana receives a Bikes for the World bicycle. Photo courtesy of the Shape Lives Foundation) Oberg’s mission was simply to “assist poor people overseas to become more productive through providing affordable bicycles for personal transport to work, school, and health services. Secondarily, provide satisfying community service opportunities to Americans—collecting bikes and spare parts--towards realizing this primary goal of helping others overseas” (BfW, 2012). Through a goal to achieve a sustained impact both here and abroad BfW has partnered with over 600 volunteers, donors, and agencies worldwide who all share a common concern for reducing waste and helping the poor earn, learn,...
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...Starbucks is considers the one of the most famous coffee store brand in the world, based on the case we can find that it is on the leading position of coffee market, it has a significant sales growth compare other brand in the market. But in recent year it seems start to facing more challenges from different aspect and these challenges had became a resistance of its business expansion. 1. Financial Analysis Income statement: Based on the case we can find that there is a huge net income increase from 1994 to 1999. It is more than 10 times different within 6 years. On the other hand, the retail and specialty sales has sharply growth in these years. Net Earning |Year |1994 |1995 |1996 |1997E |1998E |1999E | |Net Earnings (US$ Thousands) |10206 |26102 |42128 |57700 |84900 |113000 | [pic] Total Sales | |1997E |1998E |1999E |2000E | |Year | | | | | |Total Sales (US$ Millions) |9 |30 |73 |150 | [pic] Balance Sheet: a. Working Capital = Total Current Assets – Total Current Liabilities | | | | | | ...
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...challenges facing Starbucks in 2010 Motives of Starbucks’ internationalization Exploring internationalization motives of Starbucks represented by a number of factors, including proactive and reactive factors, provides a better understanding of the reasons for the company’s decision to expand to foreign markets. Proactive motives are related to the firm’s motivation to take advantage of new market opportunities. While reactive motives represent that the firm responds to environmental changes and pressures in its domestic market or in foreign markets and adjusts the activities over time. (Hollensen 2011; Czinkota et al. 2009) Seeking growth and exploring new market opportunities are major proactive motives of Starbucks’ internationalization. Moreover, decision-makers are likely to explore first those overseas market opportunities perceived as having some similarity with the opportunities in their home market. At a later stage of internationalization Starbucks strived to make use of economies of scale which enabled the company to rise more rapidly on the learning curve and reduce production costs. (ibid) Major reactive motive for initial stage of Starbucks’ internationalization is represented by physical and psychological closeness to Canada that was the first foreign market for the company. Another reactive motive of Starbucks’ international expansion is saturation of the domestic market. The case study mentions that Starbucks expanded to foreign...
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...Mr. Mahbub Hossain Course Instructor Brand and Product Management, sec-A Subject: STARBUCKS CORPORATION: Managing high growth brand. Dear Sir, We are grateful to you for giving us the chance to work on this case study. We would also like to express gratitude to you for your gracious cooperation and valuable guidance for preparing the report. Sincerely, Khan Samara Salsabeel (07-09162-2) Sadia Rezwana (07-09013-2) Kazi Masum (08-09933-1) Mohammad Abdul Kader (08-11783-2) In 1971, Seattle entrepreneurs Jerry Baldwin, Gordon Bowker and Zev Siegl first opened Starbucks in Pike Place Market. At that time, Country’s major coffee brands were engaged in price war, therefore they were forced to use cheaper beans in their blends to reduce costs. As a result there was a decline in coffee consumption. To harness the potential of the gourmet coffee trend in the Seattle area, the founders of Starbucks experimented with the new concept of a store dedicated to selling only the finest coffee beans and coffee brewing machines. This emphasis on quality whole-bean coffee retail was fairly unique. Starbucks placed quality as its top priority. The Starbucks management dedicated a great deal of their time and financial resources to establishing strong relationships with coffee growers from around the world....
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...Potential solutions………………….…………………….…… .. 3 * Critique Starbucks overall corporate Strategy ..…… 4 * Starbucks improve profitability in Bangladesh………4 * Recommendation and conclusion……………………………………….…………………… 5 * Reference…………………………………………..……………….. 5 Abstract Global market is immensely accumulative now a days, with the vigorous effects of globalization which effecting firms of all breeds to expand the business across the borders. This report is generally bases on the answers to the provided case study of Starbucks growth story and its international expansion plans. Starbucks being the producers of one of finest coffee and premium drink beverages manages its major markets within USA and abroad. The report will accumulate Starbucks potential strategic options with substantial vision of the management to expand business internationally while understanding the escalating aspects of ethical and cultural values which Starbucks owns as an influential organization. Introduction This report is ultimately based on critical analysis and evaluation of the case study provided for one the leading coffee and Beverages Company. With the expanding international business and continued globalization policy of Starbucks, this report will help to comprehend the various International market strategies and options, ethical and cultural values and anticipated problems with the ongoing international expansions of Starbucks Company Identify the controllable and uncontrollable elements: ...
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