International Marketing Strategy of STARBUCKS Corporation
“We’re not in the coffee business serving people…We’re in the people business serving coffee.” Introduction
• Is an international coffee and coffeehouse chain based in Seattle, Washington. • Is the largest coffeehouse company in the world, with 17,009 stores in 55 countries, including over 11,000 in the United States, over 1,000 in Canada, over 700 in the United Kingdom, and over 150 in Turkey. • Sells brewed coffee, espressos, other hot and cold drinks, coffee beans, salads, hot and cold sandwiches and paninis, pastries, snacks, and items such as mugs and tumblers. • The company markets books, music, and film. Many of the company's products are seasonal or specific to the locality of the store. Starbucks-brand ice cream and coffee are also offered at grocery stores. • Through the 1990s and 2000s Starbucks has expanded rapidly and was opening a new store every workday. The first store outside the United States or Canada opened in the mid-1990s, and overseas stores now constitute almost one third of Starbucks' stores. • The company planned to open a net of 900 new stores outside of the United States in 2009, but has announced 900 store closures in the United States since 2008. Mission Statement: “Establish Starbucks as the premier purveyor of the finest coffee in the world while maintaining our uncompromising principles while we grow.” International Marketing Environment Analysis
A. Demographic Factors:
- Urban dwellers
- Ages: 15-60
- Gender: Men & Women
- Income: Depends on life-stage, but relatively high
- Occupation: Depends on life-stage, ranges from college students, faculty members, as well as persons in managerial, executive, and professional positions. - Values: People who care about their employees, global issues, and the environment for example. They also care a great deal about having a high standard for customer service B. Economic Factors
• In 2003 Starbucks closed all six of its locations in Israel, due to "on-going operational challenges" and "difficult business environment.“ • 2008 - 2009, Starbucks terminated an estimated 18,400 U.S. jobs and began closing 977 stores worldwide: o In 2008, the company closed 600 underperforming company-owned stores and cut U.S. expansion plans among growing economic uncertainty. o In 2008, Starbucks also cut almost 1,000 non-retail jobs as part of its bid to reenergize the brand and boost its profit (550 of the positions were layoffs and the rest were unfilled jobs.) o In 2009, Starbucks announced the closure of an additional 300 underperforming stores and elimination of 7,000 positions. C. Competition
• Competitive coffee shops (independent / local)
• Franchise/Large Companies: generally well-recognized names (McDonald’s, Krispy Kreme, Dunkin’ Donuts, etc.) • Copy cat brands
• Street carts
• ƒCompetition could enter the market at any time:
- The U.S. specialty coffee market continues to grow, and an increasing number of firms are looking to enter. - At any time, a company with greater financial, marketing, and operating resources could enter the market and compete directly with Starbucks. D. Socio-cultural factors
• Environmental Mission Statement: “Starbucks is committed to a role of environmental leadership in all facets of our business” • Principles that further outline the company’s willingness to make sure that its affect on the environment is a positive one: 1- Understanding of environmental issues.
2- Sharing information with our partners.
3- Developing innovative and flexible solutions to bring about change. 4- Striving to buy, sell and use environmentally friendly products. 5- Recognizing that fiscal responsibility is essential to our environmental future. 6- Instilling environmental responsibility as a corporate value....
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