Starbucks Marketing Study

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Table of Contents
I.Title Page
II.Table of Contents
III.Executive Summary
IV.Situation Analysis
1.Economic Conditions and Trends
2.Cultural and Social Values and Trends
3.Political and Legal Issues
4.Summary of Environmental opportunities and threats
1.Classification and Definition of Industry
2.Analysis if Existing Competitors
3.Analysis of Potential New Entrants
4.Analysis of Substitute Products
5.Analysis of Suppliers
6.Analysis of Buyers
7.Summary of Industry Opportunity and Threats
1.Objective and Constraint
2.Financial Condition
3.Management Philosophy
4.Organizational Structure
5.Organizational Culture
6.Summary of Firms Strengths and Weaknesses
D.Marketing Strategy
1.Objective and Constraints
2.Analysis of Sales, Profits and Market Share
3.Analysis of Target Market(s)
4.Analysis of Marketing Mix Variable
5.Summary of Marketing Strategy Strengths and Weaknesses
V. Problems found in Situation Analysis
VI. Strategic Alternatives for Solving Problem
VII. Selection of Strategic Alternative Implementation
VIII. Summary

Executive Summary
Starbucks Corporation is an international coffee and coffeehouse chain based in Seattle, Washington. It is the largest coffeehouse company in the world. The first outstanding Starbucks was opened in Seattle, Washington, on March 30, 1971 when three young men decided to try their hand in selling gourmet coffee. The three partners are: English teacher Jerry Baldwin, history teacher Zev Siegl, and writer Gordon Bowker. Entrepreneur Howard Schultz joined the company in 1982 as Director of Retail Operations and Marketing, and after a trip to Milan, Italy, advised that the company should sell coffee and espresso drinks as well as beans. Starbucks product line includes more than 30 blends of single-origin coffees, handcrafted espresso, and blended beverages, Tazo teas, Frappuccino coffee drinks and Starbucks Double shot. In addition, they offer an exclusive line of Starbucks Barista home espresso machines, coffee brewers and grinders, freshly baked pastries, a line of super premium ice cream, a line of premium chocolate, sandwiches, salads, coffee mugs and accessories, compact discs and assorted gift items. They offer a reloadable stored value card which allows the customers to prepay their products. Starbucks was fourth-rated on Fortune list of Most Admired Companies in 2004 and was awarded a gold medal from the World Environment Center for its work in setting coffee-guidelines that are environmentally, socially, and economically responsible. The company continued its phenomenal growth into 2005. There were more than 9000 Starbucks coffee houses in 35 countries worldwide. Howard Schultz became the chairman of the company and he believes that the company has created a third place between work and home where people can go for personal time out or relax with friends. Unlike before these people would rather go to bars and order some beer. The company has 96,700 employees and each employee is given guidelines for maintaining and enhancing self esteem, learning how to listen and acknowledge customer comments and knowing when to ask for help. Concern for employees is one of the Starbucks guiding principles. Eligible employees qualify for a comprehensive benefits package, including stock options and health, medical, dental, and vision coverage.

Cultural Social Values and Trends
A recent Study found out that there are over 166 million drinkers in the United States, and the number of them has increased steadily since the mid 1990’s. A significant trend to US coffee drinking has been the increase in the amount of coffee drinking in out of the segment. Out of home segment, the biggest increase was among those who drink their coffee at work but they are increasingly getting the coffee from outside of their office. This means the percentage of outwork coffee being soured from...
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