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Demographic changes affecting starbucks
Marketing mix on marketing success
Starbucks environmental efforts
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Did you know that Starbucks was started by three former students at the University of San Francisco? For my paper, I decided to choose Starbucks. There are many reasons why I chose it, some of the reasons I chose it is because it is tangible- meaning that you can go out and get it. Also, it has a simplified, condensed Marketing Mix which I will partly talk about in my paper. Throughout this paper, it will cover the Marketing Mix, how Starbucks markets for its customers, the environmental issues, its position in the marketplace, how they implement different marketing techniques, and if their marketing works or does not work. Throughout the semester, we talked about the Marketing Mix. It has four separate components, these are Product, Price, Place, and Promotion. Starbucks incorporates all four of these components throughout their company. For the first part, I will talk about their …show more content…
Starbucks, like any other company has different types of markets. Since Starbucks is the third largest coffee seller in the United States behind McDonald’s and Dunkin’ Doughnuts. Starbucks classifies their target audience by three different groups, adults, young adults, and kids and teens. First, we will discuss the adults, and for Starbucks this is nearly half of its total revenue. Now, I will talk their young adults target market audience. Their young adults is primarily college students between ages eighteen to twenty-four. This generation generates about forty percent of their total sales. Lastly, the kids and teens target market is ages up to seventeen. This attracts a large percentage of their total target audience. However, Starbucks this specific age group does not have a large percentage of the sales. Only two percent of the total sales is from this age group, because Starbucks views it as the adult purchasing the product for their teen or
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 primarily operates in the retail coffee shop market. The UK coffee shop market alone is estimated at over 16,000 outlets and showed a strong growth of 6.4% in sales during 2013 (FDIN, 2014). The branded coffee chain segment recorded a turnover of £2.6 billion, delivering a higher than market sales growth of 9.3% (FDIN, 2014). The coffee shop sector has seen a considerable growth in the past 15 years and Allegra Strategies (as cited in FDIN, 2014) forecasts that UK’s branded coffee shop market will grow at 10% compound over the next five years.
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.
Koehn, N., Besharov, M., & Miller, K. (2008). Starbucks Coffee Company in the 21st century. Boston, MA: Harvard Business School Publishing. Retrieved from http://custom.hbsp.com/b02/en/implicit/viewFileNavBeanImplicit.jhtml?_requestid=36673
When people think of coffee, they think about Starbucks. The Starbucks Corporation has been around since 1971 when the first store opened in Seattle, and continues its phenomenon into the 2000’s with more than 15,000 locations world-wide. (Starbucks Corporation, 2009) In 2006, “Starbucks ranked fourth among the ‘World’s Most Influential Brands’ by Brandchannel.com” (Starbucks Coffee Company, 2008). The physical appearance of the Starbucks brand can be attributed to their siren logo which hangs outside their stores and is printed on all their carry-out cups, coffee mugs, bags of coffee beans, and other merchandise they sell. The siren logo has evolved over the years, and currently is depicted as a green circle with the words STARBUCKS COFFEE and a cropped image of the “more attractive stylized siren” (Deadprogrammer’s Café, 2005) than that depicted in the original Starbucks logo back in 1971. This logo is a major part of Starbuck’s advertising because they do not participate in conventional advertising techniques such as television and billboard ads. Starbucks Chairman Howard Schultz believes that experience actually beats advertising, and “the store experience has defined the brand” (Holmes, 2001). People go to Starbucks because they know they are going to get an exceptional cup of coffee or other beverage, high-quality customer service, and an inviting atmosphere.
A marketing mix is all aimed at selling a product, a company will create a marketing mix around a product to make sure it is advertised, in the correct price grange, is what the customer wants and is accessible for people to purchase.
As with all good marketing strategies, the heart of the plan was a vision of how they wanted to position Starbucks in the coffee market. In addition to remaining the quality leader, they wanted Starbucks stores to appear more like local cafes than a national chain and more like a sanctuary from daily stresses than just a take-out coffee store. Other goals included boosting stagnant sales in older stores, establishing a central focus for all Starbucks products, and developing national advertising that would convey a consistent image. Achieving these objectives required making changes in products, distribution, and promotion.'
The Starbucks Corporation has enjoyed phenomenal growth since its early days in 1971 as a quaint coffee shop in Seattle, Washington. The rise of Starbucks can be directly attributed to the following factors; the emphasis placed on product quality, high employee standards, and creating the perfect cup of coffee.
By way of example, this case study focuses on a request by McDonalds to serve Starbucks coffee at its' restaurants in order to discuss the marketing strategy and the underlying competitive premise that Starbucks has adopted to achieve both of their goals. The study also describes the role the internet potentially can play in developing Starbucks as a global brand.
Vishwanath, V, & Harding, D 2000, 'The Starbucks Effect', Harvard Business Review, 78, 2, pp. 17-18, Business Source Complete, EBSCOhost, viewed 10 May 2014.
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 brands 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
Despite having small beginnings in Seattle, Starbucks has quickly become a worldwide icon of the growing coffee culture. Some Starbucks locations around the world have even added their own cultures into the drink flavors; one example of this is Japan and their famous spring season Sakura (Cherry Blossom) drink. No matter where I travel, I can always count on the fact that there will always be a Starbucks around the corner ready to supply its loyal consumers with a caffeinated boost. One of the reasons why I choose to do my paper on this topic is because I have many friends who are frequent customers and often pause our Disneyland outings for a Starbucks break. I also picked it because I know very little about Starbucks “lingo” despite the huge
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.
Starbucks should use some strategies to continue its success in growing sales and profitability. Generic strategy of being the best-cost provider and grand strategies which are product development and market...
In the marketing world, before releasing a product onto the market a company would carry out research in all spectrums to investigate the targeted audience. Once market research is completed, marketing or advertising is carried out so that the targeted consumers can purchase and the company receives an earned profit from sales. Marketing is the management process responsible for identifying, anticipating and satisfying customer requirements profitably (Chartered Institute of Marketing, 2009). Marketing strategies need to tick off consumer needs and demand. Companies follow a set of marketing strategies to be able to achieve their set mission goals. Strategies like segmentation, targeting and positioning of the market is used to analyse the company’s brand in order to satisfy and improve consumer needs. In order for Starbucks to remain stable, the company is utilizing effective marketing strategies (Larson, 2008). For example reliance on retail expansion as well as product and service innovation to enable long term growth (Willmott, 2010). In this essay, I shall make an attempt to analyse Starbucks’ segmentation, targeting and positioning strategy of their brand and products as well as how it follows the 4Ps; Product, Place, Promotion and Price.