MARKETING EXAMINATION AND STRATEGY RECOMMENDATION INTENDED FOR STARBUCKS COFFEE COMPANY
The purpose of this report is to conduct marketplace analysis and recommend suitable marketing strategies pertaining to Starbucks Caffeine.
In the report, we will first look into Starbucks's target, its item and market segments. Then we all will look into the key activities and decisions that lead to the success of the company. After that, we is going to discuss the problems that Starbucks is facing in this competitive global industry. For each ideal issue, suitable marketing recommendations for the company are manufactured respectively.
BACKGROUND SITUATION EXAMINATION
Starbucks Espresso starts in 1971 with a sole store in Seattle's Pike Place Marketplace. Today, they may be privileged to welcome almost 35 , 000, 000 customers over a weekly basis, in more than 12, 000 stores around the world. (www.starbucks.com)
Starbucks's goal should be to become the leading retailer and brand of espresso in every single of it is target markets by selling the optimum quality espresso and related products and by giving each client a unique " Starbucks Experience". " Starbucks Experience" is known as a third place after residence and use superior customer service, clean and very well maintained stores which echo the people of the neighborhoods in which they operate. Starbucks strategy for increasing its full business is usually to increase the market share largely by beginning additional retailers in existing markets and open retailers in new markets. In support of this strategy, Starbucks opened one particular, 040 new company controlled stores in fiscal 2006. (www.starbucks.com)
During fiscal 2006, Starbucks Espresso Company managed retail stores accounted for 85% of total net revenues. (Starbucks Annual Statement 2006) Additionally to firm operated shops, Starbucks works with certain carefully chosen organization to operate certified stores in various places. Their strategy is usually to reach buyers where they will work, travelling, shop and dine simply by establishing romance with people that share you’re able to send values and commitment to quality. These relationships take various forms, including licensing arrangements, foodservice accounts and other initiatives associated with the Company's business. Licensed and Foodservice retailers can be found about college campuses. Customers can enjoy their Starbucks in choose supermarkets, resorts and military bases through foodservice venues around the world. During fiscal 2006, specialty revenues accounted for 15% of total net profits. (Starbucks Gross annual Report 2006)
Starbucks likewise recently has strategically offered coffee and tea products through various other channels just like supermarkets, or non-traditional full channels including United Air carriers, Marriott International, Holland-American Cruise Line, and Shops.
To attaining growth and making profits, Starbucks started to proceed international since 1996. International links can develop a strong overseas presence which will helps to boost brand recognition and also increase the domestic organization. The more retailers Starbucks offers around the world, a lot more loyalty and familiarity may be built amongst its existing and potential customers.
The following are the macro environmental variables which can be likely to effects Starbucks once going international: -
Starbucks has thoroughly analyzed different strategies for the placement of it is stores. They may have developed cost-saving options for anyone stores to fulfill the need to adjust to each geographic region. Additionally, they need to consider the likes and tastes of each region. For example , consumers in Fresh Orleans like their bagels toasted and people in Atlanta require even more seating for a " social" coffee break.
Starbucks come from US, which can be the sector we are evaluating for demographics. As of September 2005, the population of the U. S. was estimated in 295, 734, 134 (CIA World Factbook). Population facts are important to Starbucks because they can give...
http://geography.about.com/library/cia/blcusa.htm (CIA World Factbook)
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