Preview

Starbucks Case Study

Better Essays
Open Document
Open Document
1835 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Starbucks Case Study
MARKETING MANAGEMENT
MID TERM EXAM
STARBUCKS CASE STUDY

PROF. DIANA DERVAL
October 21, 2010 Authored by: STUDENT

MARKETING MANAGEMENT
MID TERM EXAM
TABLE OF CONTENTS ......................................................... ERROR! BOOKMARK NOT DEFINED. EXECUTIVE SUMMARY ....................................................... ERROR! BOOKMARK NOT DEFINED. PERSONAS VISITING STARBUCK USA ................................................................................ 3

STARBUCKS

POSITIONING MAP ..................................................................................... 5 WHAT COULD MAKE PERSONAS SWITCH TO COMPETITORS .............................................. 6 WHY STARBUCK WENT TO CHINA & DIFFERENCE OF PERSONAS..……………………………..7 HOW THE STARBUCKS ADAPTED IN CHINA ...................................................................... 8 CONCLUSION .............................................................................................................. 8 REFERENCES ................................................................................................................ 9

MARKETING MANAGEMENT | 10/21/2010

1

2
EXECUTIVE SUMMARY
In the past few decades, Starbucks Corporation has been the most successful coffee chain through its rapid expansion strategies of pushing out much of its competitors. Starbucks has been able to successfully create a meeting place where customers would socialize, read, enjoy music, spend time in leisure (between home and work) or browse the internet while enjoying premium coffee in a relaxing atmosphere. Founded in 1971 by three businessmen who were passionate about coffee and tea, Starbucks was created to produce premium coffee. During the first few years the company sold fresh roasted gourmet coffee beans and accessories for brewing coffee and roasting. This later transcended to the incorporation of coffee bars in the retail stores and further opening of multiple coffee shops. Through this
Continue Reading
View Writing Issues

You May Also Find These Documents Helpful

  • Best Essays

    The Distinctive Growth Tale of Starbucks
    • 4211 Words
    • 17 Pages

    The Distinctive Growth Tale of Starbucks

    .1. Introduction1.1 Distinctive Growth Tale of Starbucks 1.2 Strategic Deportment1.3 Starbuck as a Global Corporation 1.4 Impact on the international economy…

    • 4211 Words
    • 17 Pages
    Best Essays
    Read More
  • Good Essays

    Starbucks Case Study
    • 889 Words
    • 4 Pages

    Starbucks Case Study

    Overall, Starbucks’ performance has been mixed over the past six months. On April 13, 2012, its stock price reached a high of $61.67 per share and closed at $57.37 per share. Since April, the price of Starbucks’ stock fell on average in the following closing months of May and June before reaching a low of $43.16 in the opening days of August. The fall was correlated with the release of Starbucks’ third quarter annual report, which showed a less-than-expected performance for that quarter; the earnings per share were $0.43 compared to a market expectation of $0.45 (Baertlein). Since then, the price of Starbucks’ stock has gradually increased. Although market risk factors like decreased consumer spending may have impacted Starbucks’ recent performance, Starbucks has still remained profitable, and there are generally positive expectations for the next year.…

    • 889 Words
    • 4 Pages
    Good Essays
    Read More
  • Satisfactory Essays

    Starbucks Case Analysis
    • 434 Words
    • 2 Pages

    Starbucks Case Analysis

    From analysis of the Porter’s Five Forces above, it shows the biggest challenge for Starbucks are the company like McDonald’s, Dunkin Donuts and Peet’s Coffee & Tea, due to their ability of offering fast service and capacity of their stores. Therefore, the low…

    • 434 Words
    • 2 Pages
    Satisfactory Essays
    Read More
  • Powerful Essays

    Starbucks Case Study
    • 1545 Words
    • 11 Pages

    Starbucks Case Study

    a. Starbucks Corporation makes money in a few different ways, it’s highest revenue source are through the company-operated stores, here they sell things like different coffee brews, teas and pastries. Starbucks’ other revenue sources include product sales to licensed stores, this includes royalties and other fees paid to Starbucks for using it’s brand. Another source of revenue is consumer packed goods (CPG), food service and other, threw CPG, food service and other, Starbucks sells already packaged goods like coffee and tea to other retail stores like grocery stores, gas stations, warehouses, etc. Starbucks also holds short and long-term investments, which primarily consist of investment grade debt securities as well as certificates of deposits all of which are classified as available-for-sale. The last way Starbucks makes money through by investments is in it’s trading securities portfolio, this portfolio is comprised of marketable equity mutual funds and equity exchange-traded funds. Starbucks is also a public corporation so it also raises capital by issuing stock.…

    • 1545 Words
    • 11 Pages
    Powerful Essays
    Read More
  • Better Essays

    Starbucks Case Study Analysis
    • 2285 Words
    • 10 Pages

    Starbucks Case Study Analysis

    Many factors accounted for the extra-ordinary success of Starbucks in the early 1990’s. Starbucks owns nearly one-third of America’s coffee bars, which is more than its next five biggest competitors combined. Almost all of Starbucks’ locations in North America are company-owned stores located in high-traffic, high-visibility settings such as retail centers, office buildings, and university campuses. This made Starbucks a very convenient coffee bar because of the many different locations. Starbucks also worked to add more depth to their product in the coffee shops. In addition to selling whole-bean coffees, these stores sold rich-brewed coffees, Italian-style espresso drinks, cold-blended beverages, and premium teas. Product mixes vary depending on the stores size and location; however, most stores offer a variety of pastries, sodas, juices, coffee-related accessories and equipment, CDs, games, and seasonal novelty items.…

    • 2285 Words
    • 10 Pages
    Better Essays
    Read More
  • Satisfactory Essays

    Case study: Starbucks
    • 461 Words
    • 2 Pages

    Case study: Starbucks

    Starbucks was quite concern to maintain their brand image in spite of threatening issue by Global exchange (Argenti, 2013, p. 140). First, Starbucks was reluctant to go for any agreement with fair trade since they were not confirmed whether fair trade could assure to provide the quality beans to meet the Starbuck's standards or not. The company never compromised with the quality and hesitates to pay higher prices for it. Second, the another significant concern was that how the current suppliers of Starbucks would respond if they found that other suppliers are getting the same price for the product which is not being testified by Starbucks (Argenti,2013, p. 141). Third, Starbucks also concerned about the fact that if the coffee from fair trade is not good enough compared to their other coffee line, it will affect their brand value negatively which in turns results customer's dissatisfaction (Argenti, 2013, p. 141).…

    • 461 Words
    • 2 Pages
    Satisfactory Essays
    Read More
  • Good Essays

    Starbucks - Case analysis and problem solving
    • 1136 Words
    • 33 Pages

    Starbucks - Case analysis and problem solving

    Starbucks Corporation is an international coffee company and coffeehouse chain based in Seattle, Washington. In October 2006, Starbucks was the largest global roaster and retailer of coffee with more than 12,000 retail stores in 60 countries, some 3,000 of which are to be found in forty countries outside the United States. Looking forward, the company expects 50% of all new store opening to be outside the United States. In 2006, Starbucks closed a decade of astounding financial performance with increasing sales from $697 million to 7.8 billion, net profit from $36 million to 40 million and ROIC was 25.5%. These superior financial performances resulted from the excellent coffeehouse format with designing stores to create a relaxed, informal, and comfortable atmosphere and selling premium roasted coffee, freshly brewed espresso-style coffee beverages, a variety of pastries, coffee accessories, teas, and other products in a coffeehouse setting. This also resulted from superior customer services through highly trained and progressively compensated employees; the strategy of owning stores rather than making franchising arrangement for the basic formula. Sophisticated location strategy, and successful exploration of foreign opportunities also contributed to the Starbucks financial performance.…

    • 1136 Words
    • 33 Pages
    Good Essays
    Read More
  • Better Essays

    Vertical Integration in Starbucks
    • 1003 Words
    • 5 Pages

    Vertical Integration in Starbucks

    Raw Materials (Coffee Beans): Coffee bean farming is not vertically integrated into Starbucks; the company purchases coffee beans from farmers. Starbucks choose to outsource farming due to the low potential hold-up problem. For its coffee, Starbucks uses only high-quality Arabica beans, instead of regular commodity and lower quality robusta beans. Since there are a lot of market participants trading Arabica beans (i.e. farmers & Arabica beans buyers), there is an established market price. Moreover, farm land has a low degree of asset specificity, and therefore farmers’ investments do not depend only on Starbucks as their buyer. Both of these allow both parties to contract without high transaction/bargaining cost.…

    • 1003 Words
    • 5 Pages
    Better Essays
    Read More
  • Powerful Essays

    Case Study for Starbucks
    • 1575 Words
    • 7 Pages

    Case Study for Starbucks

    In assessing Starbucks Social responsibility strategy, one would have to look at certain key elements of the strategy and what makes it a good strategy, a great strategy or even a poor strategy. One would have to ask question such as;…

    • 1575 Words
    • 7 Pages
    Powerful Essays
    Read More
  • Satisfactory Essays

    Starbucks Case Study
    • 518 Words
    • 3 Pages

    Starbucks Case Study

    It was November of 2001 when Starbucks first started its prepaid debit cards. This debit card can hold anywhere between $5 and $500 and can be used at any Starbucks location. In 2002, there was a 7% same store increase in sales and its believed that the card was the reason for the increase. Starbucks wants to be able to profile frequent visitors to a Starbucks store. The following information used in doing so includes age, income, and number of cups of coffee per day.…

    • 518 Words
    • 3 Pages
    Satisfactory Essays
    Read More
  • Good Essays

    Starbucks Case Study
    • 809 Words
    • 4 Pages

    Starbucks Case Study

    2011 was a lucrative year for Starbucks. Overall sales increased to $11.7B, there was a 22% increase in profitability, and its stock price increased 43%. How was this possible? Well, in 2011 there were approximately 17,000 stores open worldwide, and about 10,800 solely in the United States. Having more stores than ever provided Starbucks with more customers and supporters therefore, increasing sales. With the rising amount of customers in outside countries, Starbucks continued to gain worldwide recognition, also influencing on the major increases in sales, stock price, and profitability.…

    • 809 Words
    • 4 Pages
    Good Essays
    Read More
  • Best Essays

    Starbucks, Case Study
    • 2084 Words
    • 9 Pages

    Starbucks, Case Study

    Based on the curriculum studied throughout the module and the undertaken research on Starbucks, this essay will analyse, examine and assess the competitive strategies pursued by Starbucks over time and how it has achieved (or not) aligning its competitive strategy with its corporate growth ambition of market penetration in the US.…

    • 2084 Words
    • 9 Pages
    Best Essays
    Read More
  • Powerful Essays

    Case Study: Starbucks
    • 1666 Words
    • 7 Pages

    Case Study: Starbucks

    Thib, Mikael. "View Idea - Better Reward Program!" My Starbucks Idea. 30 Jan. 2012. Web. 30 Jan. 2012. .…

    • 1666 Words
    • 7 Pages
    Powerful Essays
    Read More
  • Better Essays

    Starbucks Coffee Case Study
    • 2386 Words
    • 10 Pages

    Starbucks Coffee Case Study

    What factors accounted for Starbucks extraordinary success in the early 1990’s? What was so compelling about Starbucks value proposition? What brand image did Starbucks develop during this period? Starbucks captured a tremendous amount of success in the early 90’s by opening European-style coffee houses targeted toward affluent, well-educated clientele. Howard Schultz, the CEO that bought the company from the original owners, envisioned creating a ‘third place’ for people to meet. Rather than just treating the home and office as the primary places people spend their time, the company introduced Starbucks as a ‘third place’; customers were encouraged to linger and socialize at their locations. The company did not rely on a formal marketing strategy, but rather used the atmosphere of their stores to create a ‘coffee experience’ for customers. The company’s value proposition was used as the focal point of their brand strategy. Their goal was to make coffee consumption a part of everyday life. The proposition had three components: Coffee quality: the company had direct involvement in every aspect of coffee production, from working directly with the farmers growing the beans to the roasting process. This approach emphasized a strong commitment to product quality. Customer intimacy: the company aimed for employees, or “partners”, to provide a high level of personal service. Partners were trained that customer requests are to be encouraged and are to be met with a smile. Partners were encouraged to get to know repeat clients and reach out to new customers to make outstanding service a part of the purchase. Atmosphere: unlike most retail stores selling food and beverages, Starbucks created an atmosphere where customers could linger. They understood that human nature draws people to each other, so the company provided a casual environment for customers to meet up. As a result of their value proposition, Starbucks’ brand image was…

    • 2386 Words
    • 10 Pages
    Better Essays
    Read More
  • Better Essays

    STARBUCKS CASE STUDY Final
    • 975 Words
    • 4 Pages

    STARBUCKS CASE STUDY Final

    The paper will also look at how the changing competitive landscape is affecting Starbucks’ marketing opportunities. And finally, how external circumstances can affect Starbucks’ marketing opportunities,…

    • 975 Words
    • 4 Pages
    Better Essays
    Read More

Related Topics