Preview

Starbucks Marketing Mix

Powerful Essays
Open Document
Open Document
2750 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Starbucks Marketing Mix
Assignment No.1(Individual)

Capital University of Economics and Business
BTEC center

Unit Name: Quantitative Techniques for Business
Unit Code: 20746P
Unit level: H1
Unit Tutor: Lili Kang
Student Name: Lan Ma
Date of issue: Sep 3rd, 2007
Date of submission: Sep 25th, 2007

Content:

Abstract u Literature review-----------------------------------------3
Introduction
u Company Name £ºStarbucks Coffee-------------------3 u Background ------------------------------------------------4
Data description u Primary Data-----------------------------------------------5 u Secondary Data -------------------------------------------5 u Description ------------------------------------------------7
Result
----------------------------------------------------8
Reason for the investigation result
----------------------------------------------------8
Conclusion --------------------------------------------------------10
Reference
------------------------------------------------------11
Questionnaire
------------------------------------------------------12 l Abstract
This paper aimed to investigate customer¡¯s reaction for Starbucks Coffee¡¯s reform.
Recently, to be a company which has huge brand loyalty, Starbucks Coffee in China (SCC) held a large-scale reform to reduce the cost, rising the merchandise price. And it¡¯s object is to expand it¡¯s large scale cautiously. (http://www.businss.sohu.com)
Through an investigation which visit 120customers in the ¡®¡®Starbucks Coffee of Top Electronics City ¡¯¡¯ during 3 hours. We found that this great reform didn¡¯t reduce its brand loyalty. In fact, it will get success of launching more stores in china.

² Literature review
We find the literature review from>. ¡°Cost control and better service can let customer gain more interests, increasing the satisfaction of customer, and the company can

You May Also Find These Documents Helpful

  • Best Essays

    * Zack Higbee, Chen yee Liaw, Calvin Ting, Kelvin Tjho, Michelle Ton. (2008). the future of Starbucks. Available: http://www.mcafee.cc/Classes/BEM106/Papers/2008/Starbucks.pdf. Last accessed 29 September 20 11.…

    • 4211 Words
    • 17 Pages
    Best Essays
  • Good Essays

    This analysis Starbucks achieved allowed for them to quickly jump from Japan to other Asian countries, and most notably China, where its presence has been doubling on a yearly basis. Along with doubling the number of stores in these locations, Starbucks also doubled the number of stores in Korea over a two-year period due to a rise in demand. With the rise in demand it is clear that Starbucks should continue opening new stores in these areas, rather than pursuing growth…

    • 653 Words
    • 3 Pages
    Good Essays
  • Powerful Essays

    The Starbucks brand has evolved over the last decade and is now facing newer and more complex challenges in the way they do their business, such as:…

    • 1128 Words
    • 5 Pages
    Powerful Essays
  • Satisfactory Essays

    China has a tea-drinking culture, and tea has dominated for centuries. The coffee consumption in China is relatively low and although the coffee consumption is growing in some particular cities in China e.g. Shanghai and Beijing. The coffee market giant such as Starbucks has already had 500 shops in China and Chinese people are more attracted by the Starbucks image and experience than to the coffee itself. Michel’s may face the difficulties when operating in Chin in China. First, the key source of competitive advantage of Michel’s is about its successful franchising system, which prepared in a central bakery and then delivered to the franchisee’s stores and hence franchisees need only minimal preparations to start their business. However, this competitive advantage may blur because of the issues of logistic and bakery set up (localized central bakery). If Michel’s could not deal with those issues, which comprised with their competitive advantage, results in less attractive and profitable of the brand. Therefore, it is hard to Michel’s to maintain its competitive advantages to compete with other coffee giants in this case- Starbucks, which has invested heavily in the brand development as one of the key competitive advantage in China. In addition, the franchise system in China is not mature; the local managers don’t have much managerial skill to understand the franchise concept, and often they might do what they want to regardless the franchise agreement, which may cause the inconsistent brand image and operations between home and host country. Before Michel’s initial launch into…

    • 402 Words
    • 2 Pages
    Satisfactory Essays
  • Satisfactory Essays

    Starbucks Corporation is an international coffee and coffeehouse chain based in Seattle, Washington. Starbucks is the largest coffeehouse company in the world,with 17,009 stores in 50 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. Starbucks sells drip brewed coffee, espresso-based hot drinks, other hot and cold drinks, coffee beans, salads, hot and cold sandwiches and panini, pastries, snacks, and items such as mugs and tumblers. Through the Starbucks Entertainment division and Hear Music brand, the company also 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. From Starbucks' founding in later forms in Seattle as a local coffee bean roaster and retailer, the company has expanded rapidly. In the 1990s, Starbucks was opening a new store every workday, a pace that continued into the 2000s. 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.…

    • 654 Words
    • 3 Pages
    Satisfactory Essays
  • Better Essays

    Who doesn’t like great tasting Coffee? One must contend that when it comes to a good cup of coffee, Starbucks has it figure out. The company has come a long way from when it was first founded in Seattle, Washington in 1971. Starbucks vision to become a global player in the coffee business has been at its forefront. The company went public in 1992 and hasn’t looked back since. It seems that any where you go; you are a few minutes away from a Starbucks. The company aggressively campaign to become the coffee leader in the United States. It’s not hard to imagine that Company executives believed in market saturation in order to dominate the market place. Now, there is a much need for Starbucks to span outside the United States and it is looking into global markets to keep its expansion plans. The best choice is the overpopulated country of China.…

    • 746 Words
    • 3 Pages
    Better Essays
  • Satisfactory Essays

    Starbucks believes that conducting business ethically and striving to do the right thing are vital to the success of the company. Starbucks closed more than 200 coffee shops in the U.S because they felt that the business in China had not felt the impact of the global economic slowdown and that they might eventually rival with the United States. While they closed unprofitable stores in the U.S., Starbucks has also downsized its plan for the number of international stores from 900 to 700 for fiscal year 2009. Two-thirds of the stores are expected to be licensed, which usually involves less cost to operate than self-owned stores. Starbucks remains highly respectful of the culture and traditions of the countries in which we do business. We recognize that our success is not an entitlement, and they work hard to continue to earn the trust and respect of their customers every day.Some of the decision factors that Starbucks assesses when attempting to market globally with different countries would be; how they choose partners. This factor is very critical to maintaining the success rate that the company enjoys. Shared values, strategic fit, good leadership and a strong track record are among the most important qualities that they look for when choosing partners. The most pressing decision factor for Starbucks in opening a coffee shop in China is that the "Chinese are mainly tea drinkers and are unfamiliar with coffee. China offers an immense market potential for Starbucks, since it constitutes one-fifth of the world population. Starbucks opened its first store on the Chinese mainland in 1999 and now has more than 350 outlets in 26 cities. It has become one of the, if not the, most popular coffee brands among Chinese white-collar workers. Starbucks buys coffee beans from China and roast in the U.S. and…

    • 612 Words
    • 3 Pages
    Satisfactory Essays
  • Good Essays

    The consumer coffee experience that Starbucks helped create could eventually lead to a need for a company brand redesign. Because coffee connoisseurs are now very knowledgeable about coffee products they expect continuous evolution. Starbucks has expanded their product line to include in-home coffee brewing products and stores located in supermarkets. This could lead…

    • 696 Words
    • 3 Pages
    Good Essays
  • Good Essays

    Global Strategic Planning

    • 554 Words
    • 3 Pages

    According to Paul S. Biederman, the most pressing decision factor for Starbucks in opening a coffee shop in China is that the Chinese are predominantly tea drinkers and are unfamiliar with coffee: (2005, p. 288). Thus one of the strategic choices and entry strategies that Starbucks adopted is to upwardly mobile, predominantly young, and interested in consumer products, especially foreign items that have previously been unavailable (2005, p. 288) who belong to a middle class which have been appearing in coastal areas and China 's capital.…

    • 554 Words
    • 3 Pages
    Good Essays
  • Powerful Essays

    This paper will focus exclusively on analyzing the retail coffee shop side of the Starbucks business, and will not evaluate the current supermarket, online, or group sales channels.…

    • 3563 Words
    • 15 Pages
    Powerful Essays
  • Satisfactory Essays

    MKT 421 - Marketing (Plan) Mgmt Student: GalVal Instructor: Mr Tom Wall Section #: _25___ Assignment #2: Actual Case Study - Starbucks Coffee 1. The main or primary product that Starbuck's sells or distributes is coffee beverages but, according to this article or company analysis, it also now offers a whole line of complementary products - from sandwiches to CD's! Yet essentially, Starbucks product was the de- velopment of the ultimate, out of home (OOH) coffee-drinking experience; also referred to as the "third place" which the com- pany's chairman, Howard Schultz, defined as a spot between home and work where people are able to go for some personal "down- time" or just to relax and get together with friends or like-minded business associates.…

    • 1038 Words
    • 5 Pages
    Satisfactory Essays
  • Satisfactory Essays

    Starbucks

    • 690 Words
    • 3 Pages

    China contains large number of population. For Beijing’s Forbidden City, which is China’s top tourists attraction, as a destination of choice for both Chinese and foreign visitors, hosts millions of visitors each year. As evidence of the potential of the coffee market in China, domestic and international companies are selling high-priced reports on demand forecasts, trends, and development in the Chinese coffee market. Because the North America Market has been saturated, Starbucks continues to look farther afield for potential markets, highlighting an international focus in its mission. Chinese consumers want a Western experience. They have interest on and become excited about the environment, atmosphere and the fresh-brewed process brought by Starbucks.…

    • 690 Words
    • 3 Pages
    Satisfactory Essays
  • Best Essays

    Starbucks Marketing Analysis

    • 3443 Words
    • 14 Pages

    In 1971 three partners Jerry Baldwin, Gordon Bowker and Zev Siegl opened up a small coffee shop called Pequod, but this name was rejected by some of the current stakeholders and renamed Starbucks.…

    • 3443 Words
    • 14 Pages
    Best Essays
  • Good Essays

    STARBUCKS: SELLING COFFEE IN THE LAND OF TEA Starbucks has been doing business in China since 1999 when they opened their first coffee shop in Beijing. Today, hundreds of Starbucks stores sell coffee in the land of tea, including one at the Great Wall. It has become one of the most popular brands among the country’s 20 – 40-year-old upwardly mobile Chinese, or “Chuppies”, as they’re called, but so far China accounts for only about 10 percent of Starbucks’ sales. Nevertheless, Chairman Howard Schultz believes the country will someday be the company’s largest market outside North America. “The market response,’ he says, “has exceeded our expectations.” This may seem surprising when you consider the fact that the majority of China’s one billion-plus population are tea drinkers who didn’t know what coffee was until Nestle introduced a powdered version on store shelves in the 1980s. But Starbucks is betting that it can win the new generation over by marketing its signature product as an emblem of modern china’s new sophistication. “Coffee represents the change,” says Wang Jinlong, president of Starbucks Greater China. “The disposable income in concentrated on the young people, and this is the place they want to come.” Success in China could depend on how well Starbucks markets itself to what Wang calls the “little emperors.” China’s one-child law has spawned a generation that isn’t interested in collective goals, he says. Instead, they embrace the Western belief in individually that Starbucks embodies. After surveying Chinese consumers, Starbucks compiled a list of the top reasons they go to cafes. Surprisingly, the number one reason was “to gather with family and friend,” while “to drink coffee” lagged behind at number six. Living spaces are generally small and cramped there, making place to congregate important to the Chinese. Da Wei Sun, manager of outlets in Beijing, believes that Starbucks found success in China because it took this idea of a place…

    • 1702 Words
    • 7 Pages
    Good Essays
  • Powerful Essays

    Starbucks strategy

    • 7024 Words
    • 23 Pages

    The strategy adopted by the company to open up several stores in a very small area has also been critically examined by analysts before. In 2007 it was estimated that Starbucks was self-cannibalizing at the rate of 30%. But at that time the coffee market in the US was still growing so it continued to open up new stores. This study thus analyses the decision making process that goes into the expansion strategy of a premium brand. [1]…

    • 7024 Words
    • 23 Pages
    Powerful Essays