1.0 Summary of Marketing Audit – Starbuck Corporation U.S. Starbucks stores offer a choice of regular and decaffeinated coffee beverages such as, Italian-style espresso, cold blended beverages, iced shaken refreshments, premium teas, packaged roasted whole bean coffees, and a variety of Starbucks VIA Ready Brew soluble coffees. Starbucks stores also offer a variety of fresh food items, focusing on high-quality ingredients, nutritional value and great flavor. Each Starbucks store varies its product mix depending upon the size of the store and its location. In company-operated Starbucks stores in the U.S., Starbucks provide customers free access to wireless internet. Starbucks tried to position its products in such a way as to distinguish from the competitors and provide the greatest strategic advantage in the target market. Starbucks is focusing on what it calls its “core customers,” college educated, average age of 42, and average income of $90k. (Appendix 1) The company targeted small towns, rural communities, ethnic neighborhoods, highway rest stops, and even supermarkets. Starbucks has created a perception that it is focused not just on profits, but also on social responsibility. As Starbucks VIA awareness increases, the demand to enjoy premium coffee in a convenient way will expand. (Appendix 2) The U.S. accounts for 4% of the worldwide instant coffee market, or $700 million in annual sales. Fifty-five percent of Starbucks VIA customers surveyed are drinking it at home; 25 percent at work; and the remaining 20 percent while on the go, making Starbucks VIA a convenient way to get a great cup of Starbucks coffee anytime. Additionally, nearly 40 percent of those surveyed said VIA is additive to beverages they are currently drinking, rather than a replacement to existing Starbucks coffee. Starbucks could generate at least $150 million in U.S. sales from instant coffee sales by 2011 or 2012. (Appendix 9)
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2.0 Marketing Objective
Establish Starbucks as the premier purveyor of the finest coffee in the world while maintaining
uncompromising principles while market developing.
The following six guiding principles will help to measure the appropriateness of marketing decisions: A) Provide a great work environment and treat each other with respect and dignity. B) Embrace diversity as an essential component in the way do business. C) Apply the highest standards of excellence to the purchasing, roasting, and delivery of fresh coffee. D) Develop enthusiastically satisfied customers all of the time. E) Contribute positively to communities and environment.
F) Recognize that profitability is essential to future success.” Environmental Mission Statement
Starbucks is committed to a role of environmental leadership in all facets of business.
Starbucks fulfill this mission by a commitment to:
A) Understanding of environmental issues and sharing information with business partners. B) Developing innovative and flexible solutions to bring about change. C) Striving to buy, sell, and use environmentally friendly products. D) Recognizing that fiscal responsibility is essential to our environmental future. E) Instilling environmental responsibility as a corporate value. F) Measuring and monitoring our progress for each project. G) Encouraging all partners to share in Starbucks mission.”
Other points of importance to Starbucks:
A) Building customer loyalty around cappuccinos, lattes, and other fancy beverages,” (Overholt). B) Want to create a sense of community
C) Want to create a memorable experience for a customer that inspires the customer to return often, as well as to tell a friend. D) Striving to become the most recognized and respected brand in the world. E) Putting people before products
F) What a Starbucks store should be: “An authentic coffee experience that conveyed the artistry of espresso...
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