Starbucks Case Study

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Starbucks analysis
A good innovator
Global Marketing

Contents

1. Introduction | 3|
2. History| 4|
3. | 5|
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4. Conclusion| 12|
5. References | 13|

1. INTRODUCTION

The company founded Starbucks has experienced rapid growth since its first store opened in Seattle in March 1971. The impressive expansion over recent years has left it penetrate within the market of the top 100 best global brands of 2012, according to Interbred, and also it has been considered by Fortune magazine as one of the 500 largest companies in the world. Starbucks is now the largest coffee retailer in the world. The present document will analyze the above mentioned company and pretends first of all brings a general overview of the firm and furthermore breaking it down according with its reaction in the context of the global marketing such as: SWOT analysis, Marketing mix (4 p’s) and, follow for the expansion to Asia and main issues.

2. history

Starbucks was founded in April 1971 by Jerry Baldwin, Zev Siegl and Gordon Bowker in Seattle, Washington, (see photo1). Initially it was just a shop that offered some of the world’s finest fresh-roasted whole bean coffees. Its name was inspired by Movy Dick which for Starbucks The name evokes the romance of the seas and the tradition of sailors to trade coffee” (strabucks.com).

Starbucks was founded in April 1971 by Jerry Baldwin, Zev Siegl and Gordon Bowker in Seattle, Washington, (see photo1). Initially it was just a shop that offered some of the world’s finest fresh-roasted whole bean coffees. Its name was inspired by Movy Dick which for Starbucks The name evokes the romance of the seas and the tradition of sailors to trade coffee” (strabucks.com).

By 1982, Howard Schultz (Starbucks chairman, president and chief executive officer) joined Starbucks and was the man who would change the market's coffee. It was only that in 1983 the idea of the new business model would begin to make history, thanks to a trip to Italy, Schultz had the vision to bring the Italian coffee culture to United States. “A place for conversation and a sense of community. A third place between work and home” Howard Schultz says. The concept was successful but the owners were not agree to keep developing the project. Therefore in 1985 Schultz left the company and started his own business Il Giornale coffee. Convinced with Starbucks, two years after he brought the company. Now there are more than 17,000 stores in 60 countries.

3. swot

The following SWOT is the first approach to the company and it has identified the corresponding internal and external factors of Starbucks:

3.1 STRENGTHS| 3.2 WEAKNESSES|
* Global presence * Industry market leader * High brand recognition * Product diversification * A discipline innovator * Established logo| * Starbuck’s products appear to be relatively expensive * Low frequency and exposure among advertising channels * Lack of roasting plant in Asia * Cannibalization| 3.3 OPPORTUNITIES | 3.3.1 THREATS|

* Continued domestic and international expansion/domination of segment * Brand extension * New distribution channels * Technological advances * New products * Asian rim markets | * Susceptible to rises in dairy prices and coffee bean prices. * Stagflation (recession + inflation) * Market saturation * Cultural and Political issues in foreign countries * Consumer trends toward more healthy life style * Multiple competitors|

4. marketing mix

4.1 Product
Starbucks offers a width, large and depth variety of products (see annex 2). From a whole variety of bean coffees to: chocolate beverages, espresso beverages, Frappuccino blended beverages, kids drinks, Tazo tea, smoothies, ice coffee, hot breakfast, salads, sandwiches, wraps, ice cream, yogurt parfaits and other Starbucks products such as: Drink ware,...
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