Case Problem Analysis
BACKGROUND OF THE CASE
The case happened back in the 90’s where a lot of coffee shop is being operated in the business industry; one of this is the Starbucks a very well-known coffee shop nowadays. The Starbucks coffee maintained its clients or customers due of the new technique in marketing mix and to evaluate the kind of coffee and tea they were offered by the customers. The management also offered a promotional campaign by the use of advertisement in different media such as on television, radio, and printed media to remember the name of Starbucks. And now the said store or coffee shop has been created his own name here in the Philippines. (Source: Sunday Inquirer Magazine, Margaux Salcedo, 2007)
The first Starbucks location opened in 1971. The name is inspired by Moby Dick’s first mate. This name and the mermaid logo were inspired by the love of the sea, from Starbucks original location in Seattle Washington in the heart of Pike Place Market. Starting as a single shop specializing in high quality coffee and brewing products the company grew to be the largest roaster in Washington with multiple locations until the early 80’s. In 1981, current CEO Howard Schultz, recognized a great opportunity and began working with the founder Jerry Baldwin. After a trip to Italy to find new products, Schultz realized an opportunity to bring the café community environment he found in Italy to the United states and the Starbuck’s brand we know today began to take form. Selling espresso by the cup was the first test. Schultz left Baldwin to open his own Italian coffee house Il Giornale which found outrageous success and in 1987 when Starbucks decided to sell the original 6 locations, Schultz raised the money with investors and purchased the company and fused them with his Italian bistro locations. The company experienced rapid growth going public in 1992, and growing tenfold by 1997, with locations around the United States, Japan and Singapore. Starbucks also began expanding its brand. According to George Garza in his article The history of Starbucks the following product lines were added:
Offering Starbucks coffee on United Airlines flights.
Selling premium teas through Starbucks’ own Tazo Tea Company.
Using the Internet to offer people the option to purchase Starbucks coffee online.
Distributing whole bean and ground coffee to supermarkets.
Producing premium coffee ice cream with Dreyer’s.
Selling CDs in Starbucks retail stores.
Starbucks uses minimal advertising and has grown on word of mouth and brand recognition. According to Garza by 2004 Starbucks had reached 1,344 locations. (Source: Kathleen lee) ; (Source: Garza 2004)
The view point on this case is the manager, staff, customers of Starbucks and their perception regarding the said company.
Statement of the Problem
The foregoing case analysis is about Starbucks Generation, the researcher will answer the problem stated as: • What will be the best strategy to make their products and services be accepted by people when there is an increasing number of competitors. Statement of the Objectives:
This case analysis aims the following:
• To be able to determine the marketing strategies or techniques on how the Starbucks will be able to make their company click in the business industry. • To be able to see the problems that they may encounter in the operation of the business and have their action plan here. • To determine the wants of consumer in terms of product, services and facilities of the Starbucks • To improve the taste and qualities of the products. To increase the number of customers and the increasing of income; and • To compete other competitors to have a better ideas of how to compete such other coffee store or restaurants.
Areas of Consideration
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