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Introduction to Starbucks and its strategy
Introduction to Starbucks and its strategy
Introduction to Starbucks and its strategy
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Starbucks Overcoming the 2008 Recession Lana Jones Park University ABTRACT Many Americans suffered financially suffered from the 2008 recession, from the surge of gas prices to millions of Americans losing their jobs, and the foreclosure of homes. Many companies turned to the government for help to bail them out from going out of business and from further loses in revenue, while their expenses continued to pile up. Many Americans might wonder how a company like, Starbucks survived. Although still remaining a very successful company today, despite the adversities of an economic crises. Many individuals might look back and thank their higher power on how they survived such a difficult time. So, how did Starbucks survive? …show more content…
Like, their competitor, McDonald’s who adopted under pressure to provide healthier choices in their kid’s meals, by offering vegetables and fruits, instead of fries. According to Starbucks SWOT Analysis (2017), Starbucks saw an opportunity with the health food market with the opening of it’s first Evolution Fresh store in Washington in the year of 2012 (pg. 9). It’s recommended for a company like Starbucks, to not only adopt an app for electronic rewards, but to provide a way for consumers to provide submissions to see what they want as far as flavors goes, to stay ahead of its competition, in knowing what consumer’s want should always be on the top list of providing great tasting products. Lays once conducted a survey for its customers, to introduce possible new flavors for chips, it not only gained media attention, in 2012, but had a great slogan for its campaign. They called “Do US a Flavor, “ and it was a …show more content…
Contemporary Strategy Analysis. Wiley, 2012. Starbucks Corporation. (2014). Starbucks Corporation - Accelerated Growth Plan, 1-21. Starbucks Corporation SWOT Analysis. (2017), Starbucks Corporation SWOT Analysis, 1-9. Analysis, 1-9. Starbucks Customer Profile; Relationship Marketing Customer Analysis | Strategic Driven: http://www.strategicdriven.com/marketing-insights-blog/starbucks-customer-profile-relationship-marketing-customer-analysis/ Starbucks recalls 2.8MILLION metal straws after children are left with cuts | Daily Mail Online: http://www.dailymail.co.uk/news/article-3720528/Starbucks-recalls-2-8MILLION-metal-straws-children-left-cuts-mouth.html Starbucks Recalls Stainless Steel Beverage Straws | Starbucks Newsroom: https://news.starbucks.com/news/starbucks-recalls-stainless-steel-beverage-straws Starbucks Reusable Plastic Cups — Green or Greenwash? - We Hate To Waste: http://www.wehatetowaste.com/starbucks-cup/ With Tastes Growing Healthier, McDonald’s Aims to Adapt Its Menu - The New York Times: http://www.nytimes.com/2013/09/27/business/mcdonalds-moves-toward-a-healthier-menu.html What Lay's "Do Us a Flavor" Campaign Says About Marketing:
Starbucks Financial Analysis Company Overview Starbucks is the world’s largest specialty coffee retailer, with more than 16,000 retail outlets in more than 35 countries. Starbucks owns more than 8,500 of its outlets, while licensees and franchisees operate more than 6,500 units worldwide, primarily in shopping centers and airports. The outlets offer coffee drinks and food items such as pastries and confections, as well as roasted beans, coffee accessories, teas and a line of compact discs. The company also owns the Seattle's Best Coffee and Torrefazione Italia coffee brands. In addition, Starbucks markets its coffee through grocery stores and licenses its brand for other food and beverage products.
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.
The improvements to coffee brewers and the innovation of Keurig has allowed for Starbucks to repackage their products and distribute it as a home product. Many of the flavors consumers could only get from the Starbucks espresso machine in the store can now be duplicated in the home. The opportunity for continued expansion is present. Coffee is quickly being consumed in almost every country in the world, Starbucks has a legitimate opportunity to influence those countries without the Starbucks brand to open their doors.
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.
Schultz, H. (2011). Onward: How Starbucks fought for its life without losing its soul. New York: Rodale.
The menu at McDonald's typically consists of hamburgers, chicken sandwiches, salads, drinks, shakes, and a recent influx of healthier alternatives. McDonald's also is widely known for their breakfast menu, which consists of sandwiches, pancakes, French toast, hash browns, and breakfast drinks. Since McDonald's appeals to such a wide audience, it must constantly re-evaluate its menu depending on feedback and market research. McDonald's expends considerable resources to update its menu and introduce new products in order to be more in tune with its target audience (The Times 100).
In 1971, three young entrepreneurs began the Starbucks Corporation in Seattle Washington. Their key goal was to sell whole coffee beans. Soon after, Starbucks began experiencing huge growth, opening five stores all of which had roasting facilities, sold coffee beans and room for local restaurants. In 1987, Howard Schultz bought Starbucks from its original owners for $4 million after expanding Starbucks by opening three coffee bars. These coffee bars were based on an idea that was originally proposed to the owner who recruited him into the corporation as manager of retail and marketing. Overall, Schultz strategy for Starbucks was to grow slow. Starbucks went on to suffer financial losses and overhead operating expenses rose as Starbucks continued its slow expansion process. Despite the initial financial troubles, Starbucks went on to expand to 870 stores by 1996. Sales increased 84%, which brought the corporation out of debt. With the growing success, Starbucks planned to open 2000 stores by year 2000.
Serving Up Healthy Choices in New Franchise Opportunities. (2011). Retrieved from Fresh & Healthy Brands: http://www.freshandhealthybrands.com
Starbucks is currently the industry leader in specialty coffee. They purchased more high quality coffee beans than anyone else in the world and keep in good standings with the producers to ensure they get the best beans. Getting the best beans is only the first part, Starbucks also has a “closed loop system” that protects the beans from oxygen immediately after roasting to the time of packaging. They did this through their invention of a one-way valve which let the natural gasses escape but keeping oxygen out. This gave them the unique ability to ensure freshness and extended the shelf life to 26 weeks. Starbucks isn’t only about the coffee, it’s also about a place where people can escape to enjoy music, reflect, read, or just chat. It is a total coffee experience. The retail outlet has been responsible for much of Starbucks growth and has contributed substantially to their brand equity.
Overall, how satisfied are you , with [PRODUCT/SERVICE]? Please answer using the rating scale where (5) means "extremely satisfied" and (1) means "very unsatisfied."
In 2003, Starbucks was listed as one of the Fortune 500. Despite the ongoing recession, the company had managed a 31% increase in net revenues for the year. This was reasonable, considering they only spent about 1% of total sales on marketing. All of this, coupled with the fact that they were popular with customers and employees, was a sure recipe for success.
Starbucks Corporation. (2006, February 8). Starbucks Annual Meeting of Shareholders Starts over a Cup of Coffee; Company's Impact Now Extends Well Beyond Stores' Four Walls. [Financial release]. Retrieved from http://investor.starbucks.com/phoenix.zhtml?c=99518&p=irol-newsArticle_pf&ID=814454&highlight=
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).
Preliminary Starbucks – one of the fastest growing companies in the US and in the world - has built its position on the market by connecting with its customers, and creating a “third place” beside home and work, where people can relax and enjoy themselves. It was the motto of Starbucks’ owner Howard Schultz and, mostly thanks to his philosophy, the company has become the biggest coffee drink retailer in the world. However, within the new customer satisfaction report, there are shown some concerns, that the company has lost the connection with customers and it must be taken some steps to help Starbucks to go back on the right path regarding customer satisfaction. I will briefly summarize and examine issues facing Starbucks. Starting from there, I will pick the most important issue and study it from different positions.
When I saw this discussion, I couldn’t help but think of Starbucks and the impact they’ve made throughout their 45 years of establishment. I worked with them for about 7 years and saw how unique they were from your everyday coffee and latte spots. A retail company with thousands of coffee shops in the US as well as in other countries, this particular retailer has been able to catch the eyes of all ages as well as locations throughout the world. For example, today college students utilize Starbucks locations to study rather than go to a nearby library. Starbucks is also known for its best coffee and espresso drinks (Latte or Frappuccino) and with one of its delicious espresso 's any student or just a person stopping in to enjoy its lounge area where there is free Wi-Fi is awesome! Starbucks lifecycle has made a 360 turn around and been revamped twice to accommodated the growing market. Customizing their brand to fit more in with everything and not just one thing. By doing this they’ve created multiple product lifecycles within their own lifecycle as a corporate company.