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Starbucks coffee case study
Business analysis of Starbucks coffee company
Starbucks expansion history
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2.1Background research
Starbuck has entered the coffee market in Malaysia which has gained some market share in the market. In the culture of Malaysia, the people always prefer instant coffee brand with Nestle and others brand. Starbuck has offered the premium coffee to the market that has popular in Malaysia. In Malaysia, Starbucks Coffee company has joint with the Berjaya Group Berhad that has operated by Berjaya Starbucks Coffee Company Sdn Bhd and it has expand more than 140 outlets in January 2012(Starbucks, 2014).
In the research, we have chosen Malaysia specific branches of Starbucks PLUS Drive-Thru in Kajang. The address is Stesen Minyak Petronas, KM 305 Plus ARAH Selatan, Mukim Kajang, Daerah Hulu Langat, 43300 Serdang, Selangor.
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2.2SWOT Analysis
2.2.1Strength
Starbuck is a market leader in Malaysia and built the brand image in the market that can expand the product extension by offer some lunch and dinner meal to target more customers in the market. In the other hands, employee trained by the Starbuck that has helped Starbucks to create a good image in the market (Starbuck, 2014). Starbucks also maintain a good relationship with the supplier to ensure the quality of raw material with provided the suitable environment of its outlet interior design. 2.2.2Weakness
Consumer is elastic about the price, Starbuck has offer the concept of premium coffee that has set with a high price and it was difficult to attract customer with their higher price of the product. Besides that, Starbuck has difficult to serve the customer with Malaysia culture and the famous domestic company OLD TOWN which is a restaurant that serve with customer in Malaysia culture food and drinks of coffee with the reasonable price that can compete with Starbucks. In the others hand, Starbuck also lack of experience in distribution channel with its instant coffee bean only offer in the outlets.
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The objective of advertising is the goal of advertising is to increase customer attention and deliver the updated information to customer of Starbucks and its coffee product from 15 to 20 percent within 12 months. Starbucks are less using advertising on TV commercial, radio or newspaper to create customer attention and it was influence consumer lack of information about the company and product such as majority of the people unknown Starbucks has Drive -Thru service or where is the location of Drive-Thru service. In order to increase the customer attention, advertising objective has been set to achieve it in the
When people walk into a coffee shop the powerful aroma of coffee beans and delicacies fill their nostrils. The monotone walls and chestnut brown tables fill their sight. Soft hushed whispers heard above smooth jazz music fill their ears. Millions of people enter a coffee shop in the morning to function throughout the day. Amongst the shops where the coffee lovers go to, Dunkin Donuts and Starbucks are by far the most popular. Dunkin Donuts and Starbucks are two largest chains that specialize in coffee. They have many competing factors that compel customers to purchase coffee and food items at each place. Overall, Dunkin Donuts is less superior in its products, appearance, and services compared to Starbucks.
The book revealed why Starbucks is one of the fastest-growing companies in recent years. Starbucks ' story is endlessly fascinating because of the unusual way the company has built a global chain and a global brand, explains Joseph Michelli, a Colorado Springs, Colorado, consultant and author of The Starbucks Experience: 5 Principles for Turning Ordinary Into Extraordinary. Moe, CEO of ThinkEquity Partners in San Francisco and author of Finding the Next Starbucks: How to Identify and Invest in the Hot Stocks of Tomorrow, says Starbucks ' early leaders were also distinguished by their exceptionally highflying entrepreneurial visions. "What Starbucks does magnificently well is treat employees not as pawns, but as partners," says John Moore, an Austin, Texas, marketing consultant, former Starbucks marketer and author of Tribal Knowledge: Business Wisdom Brewed From the Grounds of
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.
Starbucks is the world’s largest coffee roaster and retailer of specialty coffee in the world. We have enjoyed great dividend returns over the past 5 years, and our growth has been on the rise. We are currently saturating the US market, while the emerging markets of developing countries offer many possibilities for growth and increased revenues. In our US market we should look at offering more items on the menu that complement our long-standing tradition of pleasing our customers. Exotic Juices, and snacks served with the same service could add a nice margin to the bottom line. In addition, the ability to offer a drive through service for the consumer that loves fine coffee but does not have the time to stop and visit should be on our “trial” market plan for the next few years.
With that store being there to help support new stores that would be entering the region. The goal was to have around 20 stores after two years of entering a market and have those stores expand even further into smaller cities and suburban locations. They also started to add drive-through because it made it more convenient for parents with small children. Some of the drawbacks of drive-through were that it took away from impulse buys and sometimes created bottlenecks in the line. Licensing the brand was also a great way that they expanded their business; by putting Starbucks in airports in malls they create a lot of foot traffic lead to successful stores. Starbucks carefully considered their image and the image they wanted to uphold when choosing licensees. The international market is now where Starbucks has the most potential to grow. As of right now Starbucks has plans to open 1,400 new stores in China. That’s more than half of the store it already has in China. The growth technique that I was most impressed with was that having two locations so close to each other would not saturate the market. The first store would see a drop in sales at first but would bounce back and the new store would grow. I notice we have that here, at Target in uptown you can actually see the Starbucks across the street while you are in line. Both seem pretty busy most of the time too.
Starbucks Coffee, Tea, and Spice opened its first store in April 1971 in the Pike Place Market in Seattle, by owners who had a passion for dark-roasted coffee that was popular in Europe, but hard to find in the U.S. (Harrison et al., 2005; Venkatraman & Nelson, 2008). The company’s mission was to provide Seattle with the best access to dark-roasted coffee, and sought to educated customers about the product. As a matter of customer education and acceptance of the product, Starbucks grew and expanded into the successful domestic market it is today. Much of this success can be attributed to a focus on the total customer experience and s...
In addition to being best-known supplier of the finest coffee and promising only the highest quality products, Starbucks emphasizes firm values, provides guidelines to enhance employee self-esteem. This is to ensure continued customer satisfaction. Moreover, diversity has become a priority to providing an inviting environment to all consumers. Starbucks continues to abide by a strict, slow growth policy in which they set out to dominate a market before moving on to expand, thus history has shown this strategy to be successful for Starbucks, making them one the fastest growing companies nationwide.
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).
With clear core values towards providing quality coffee, the best service, and atmosphere, Starbucks has enjoyed great success since it was founded 30 years ago. The company has being doing very well for last 11 years with 5% or more store sales increase, even with the rest economy still reeling from the post-9/11 recession. However recent research, conducted to Starbucks, have showed some concerns regarding company’s problem meeting customers’ expectations.
The business also seeks to capture consumers or those in restricted environment or where refreshments stands are an integral part of the environment. One of the strategies the business will use to penetrate this markets will include deploying Drive- thru facilities and mobile cafes in the most logical and accessible locations. Moreover the Drive-thru facilities are designed to handle two-sided traffic and dispense customer designed , specially ordered cups of premium coffees in less time than required for a visit to the locally owned cafés
Starbucks is a worldwide company, known for is delicious brews of coffee and seasonal varieties of tasty drinks for any occasion. Starbucks opened with two main goals, sharing great coffee with friends and to help make the world a little better. It originated in the historic Pike Place Market of Seattle, Washington in 1971 by Jerry Baldwin, Zev Siegl and Gordon Bowker. The creation of Starbucks’ name came from the seafaring tradition of early coffee traders and the romance evoked from Moby Dick. At the time, this individual shop specialized in the towering quality of coffee over competitors and other brewing services enabling its growth to becoming the largest coffee chain in Washington with numerous locations. In the early 1980s, the current CEO Schultz saw an opportunity for growth in the niche market. After a trip to Italy he brought back the idea of a café style environment of leisure and social meetings to the United States we now see in Starbucks locations today. Schultz ultimately left Starbucks to open his own coffee shop, Il Giornale which turned out to be a tremendous success. Fast forward a year later, Schultz got wind that Starbucks was going to sell all their components of Starbucks including their stores and factories, he immediately acquired the funds to buy Starbucks and linked both operations. Within five years he was able to open more than 125 stores starting in New England, Boston, Chicago, and gradually entered California. He wanted Starbucks to be a franchise system based on the mission of telling the truth and emphasize the quality,
One of the major corporations today that is trying to control a large portion of the supply of coffee is Starbuck. Starbucks Corporation is the leading retailer, roaster and brand of specialty coffee in the world. Starbucks purchases, roasts, and sells whole bean and rich-brewed coffees, espresso beverages, cold blended beverages, an assortment of food items, coffee-related
With the availability of coffee in many other places, many of which offer a drive through window, we felt that we should additionally provide this service to satisfy the coffee to go needs of our customers and enhance our competitiveness with other retail outlets. We strive to elevate the level of service, amenities, and the quality of coffee to differentiate our products and business from the competitors by providing a place they look forward to coming to.
They are located almost by each block. Starbucks has managed to bring a cultural experience of coffee to various individuals
Starbucks has offer many promotions to retain customers loyalty especially during festival day. Recently, Starbucks offer a "buy-1-free-1" Ramadan promotion when you purchase any promotional beverage. This promotion is available in every Starbucks store in Malaysia. However, it is only available on Wednesday and Friday from 5pm to 8pm (berbuka puasa). Hence, customers can enjoy the premium coffee at the discount price where there are provide free WIFI, unique and relaxing atmosphere. Through the promotion offered by Starbucks, they can raise customer awareness