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Starbucks corporate strategy
strategies adopted by Starbucks Corporation in order to remain relevant in the business of selling coffee
Starbucks corporate strategy
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Brand Identity Planning of Starbucks Coffee Chain
The starbucks brand has been credited with changing the way Americans drink coffee, the way they perceive it & how much they are willing to pay for it. It has been a dream run for starbucks coffee once its brand identity became well known, understood & liked. But the process of building a successful brand is slow, tedious, resource consuming & risky. I have in the following report outlined the starbucks branding strategy on the basis of the brand identity model.
Phase I :
Phase one entails a complete brand analysis. Analyzing a brand means that it must be assessed in terms of its strengths, weakness the possible opportunities & associated risks. A Brand cannot form an identity without knowing if the resources will support it or if the competitor can easily replicate it or if the customer doesn't feel emotionally connected to it. Thus the three parts or perspectives within which brand must be analyzed are
a) The self-analysis -
This indicates understanding the internal strengths & weaknesses of the product, the company. Only after carefully assessing the resources available can the brand strategy be planned. Also the product features must justify the core identity that is being considered for the product. Nike could position itself as the worlds best shoe for athletes because its engineering & design boasted of that kind of excellence. Branding & advertising will work well only if the product itself support the image.
Starbucks Internal analysis -
The Starbucks coffee corporation is a Seattle, Washington based coffee company. It roasts & sells whole bean coffees & coffee drinks through an international chain of retail outlets/ restaurants. The concept...
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... revolutionize coffee drinking form a mundane experience to one that is similar to wine tasting and drinking. For this the position of coffee in the minds of the consumer had to be elevated to a higher level. This was sone through education of the consumers about various coffee blends & their properties and the art of roasting and even the art of drinking the coffee. The coffee stores became social destination where people could meet and relax, since they were sleek yet comfortable.
The brand was positioned as a premium brand meant for a rich consumer ready to pay upwards of $2 for a cup of coffee. Coffee bars also provided a "politically correct" alternative to traditional bars & baby boomers were joining the "black turtleneck" crowd in the numerous cafes sprouting up allover America.
Starbucks is now recognized as one of the best coffee houses in the world
Starbucks in today’s date is the world’s largest coffee chain. The brand which was founded in 1971 has established itself as the world’s leading specialty coffee brand with its more than 13000 outlets in 39 countries. The company has had an impressive record of sales and growth also. Something that differentiates Starbucks from others is its coffee as well as the special Starbucks experience. Starbucks serves more than just coffee. It is also known for the relaxing ambience where the customers can relax and sip with their friends. Starbucks is famous for its genuine service, inviting atmosphere and of course superb coffee. The company is committed to quality and it is due to its commitment to quality that its product pricing is also premium. However, despite the premium prices of its products the brand is loved around the world by the customers for the quality of products that it serves.
Starbucks Corporation engages in the purchase, roasting, and sale of whole bean coffees worldwide. It offers brewed coffees, Italian-style espresso beverages, cold blended beverages, various complementary food items, coffee-related accessories and equipment, a selection of premium teas, and a line of compact discs, through its retail stores.
“Coffee has become more than just a shot of caffeine. It 's a $30 billion-a-year national industry, a foodie fixation, an affordable luxury, a boost of disease-fighting antioxidants, a versatile ingredient, an intoxicating aroma and a beverage that brings people together.” Because of all these factors, Starbucks has a very diverse audience and numerous competitors in the industry. As of 2011, coffee shops have maintained an average growth rate of 7% a year, and Starbucks alone is the third most recognized restaurant chain in America. The specialty coffee industry will continue to grow because of the variety of drinks and the appeal of specialty coffee
Coffee, one of the world’s most known beverages. Seen being drinking at work places, colleges, or in the convenience of your own home. There are a variety of companies that provide us the people with coffee. It can be your local market, bakeries, or even fast food places. 3 places that stand out and our known very well for supplying Americans with coffee is Starbucks, Dunkin Donuts, and McDonald’s. From their strategic advertising, deals, and even straight down to the design of their cups, they meet the definition of marketing. We will be examining these 3 companies using the marketing mix which consist of product, price, place, promotion and also cover value based marketing and see how these companies meet these definitions and how they satisfy their customers as well.
Starbucks is one of the largest coffee franchises in the world. With over 26,000 stores in 64 countries, the company has the right to brag about this. One of the problems which Starbucks is currently being faced with is the brand being watered down by over expansion and a too diverse product mix. With McDonalds and Dunkin Donuts entering into the specialty coffee market, Starbucks needs to alter the path which it is going in order to remain competitive in this industry.
The brand identity building process is complex. This is especially true for organizations that offer a range of services and products. The process entails extensive research, including market research, marketing audit, competitive audit and usability, and a clear branding strategy. Furthermore, a brand identity is only truly successful when customers closely identify with the brand. This happens when a brand caters to customer requirements and preferences. Marketers have to keep this in mind and ensure that the brand identity is aligned with, and relevant to, its customers.
Try taking a walk in New York without bypassing a Starbucks. Seriously, try– I dare you! Starbucks coffeehouses are so ubiquitous this task would almost certainly be impossible. The truth is, this is not just a New York thing, I was just trying to make the point relevant. Starbucks is the largest coffee distributor in the world and exist all over cities across the country as well as a global expansion. Before getting to the company’s origin, branding and success, a closer look will be taken at the company’s most simple, unique and important graphic representation: the logo.
A5 Consulting Group. 26 Jan 2004. Starbucks: "The Non-Coffee Treat". Fortune. Retrieved 20 Jan 2008 from www.carmean.net/papers/Starbucks%20Marketing.doc
When Starbucks started their target market were people who enjoyed coffee not just for the energy boost that they got from the caffeine, but people who enjoyed sitting down and drinking a well-prepared cup of coffee. Upon visiting Italy and falling in love with the coffee bars and the experience that they offered, Schultz envisioned a place between home and work where you could just sit and enjoy your coffee. Starbucks wanted to control their coffee from “raw green bean to the steaming cup” this meant that they had to talk with their farmers to make sure the quality was up to their standards. They
The brand “Starbucks” is one of the most recognizable brands in the coffee industry. Not only is it considered a great workplace, but it is also ranked 91st in the best global brands.
Starbucks is an international coffee house and it was created in 1971 when they opened the first store in Seattle, Newcastle. Currently, they own 21,000 stores in 65 different countries of the world, and their passion for the great coffee, excellent service and community interaction exceeds cultures and languages (Starbucks, 2014). This company is the number 1 brand coffeehouse chain in the world due to the best roaster, marketer and seller of speciality coffee. Its main slogan: “Our mission: to inspire and nurture the human spirit – one person, one cup and one neighbourhood at a time” (Jurevicius, 2013).
Caf? Expresso, as the first mover in the coffeehouse marketplace, which has expanded quickly and become one of the ?big three? players in the global coffee shops chain. However, recently this company is continuously facing a lot of problems in terms of its staff, easy-copied business model and product range, resulting this company lost its leading position to the number three. Therefore, its adjusted visionary goal is ?return Caf? Expresso to the number one position in the marketplace? (Beardwell, 2010). To achieve this goal, Caf? Expresso identifies ?the coffee drinking experience? is significant to achieve competitive advantage and customer value-added, which was delivered through three key elements (graph 1),
I chose to place focus on Starbucks because I personally don 't like this particular coffee shop and I think it 's overpriced. but I was also fascinated by their marketing strategies which is one of Starbuck’s strengths. The marketing strategies Starbucks uses is their monopolistic advantage among its competitors, because of its popularity has kept its monopoly, and also because of it the company has found its way into
In 2002, unexpected findings of a market research showed problems regarding customer satisfaction and brand meaning for Starbucks customers. The situation was unacceptable for a company whose overall objective is to build the most recognized and respected brand in the world. Starbucks was supposed to represent a new and different place where any man would relax and enjoy quality time, alone or with others. But the market research showed that in the mind of the consumers, Starbucks brand is viewed as corporative, trying to expand endlessly and looking to make lots of money. This huge gap between customers' perception and Starbucks' values and goals called for immediate action.
Founded in 1971 at Seattle’s Pike Place Market, Starbucks Coffee, Tea and Spices, as it was originally called, has been “brewing-up” its famous blends in over 43 countries, including the United States. Now called Starbucks Coffee Company, business isn’t just about the coffee and tea anymore. Starbucks has its own line of bottled water, handcrafted beverages, fresh food, entertainment, merchandise and a Starbucks Card. The company has received numerous awards for their outstanding business practices. Fortune Magazine has ranked them as one of “The Best 100 Companies to Work For” in 1998, 2000, 2002, and 2008 (Starbucks, 2008). The Starbucks Experience provides consumers and the general public a direct line a of business communication. From friendly baristas to press releases from CEO Howard Schultz, Starbucks keeps its “partners” informed.