Coffee and Starbucks

Topics: Starbucks, Coffee, Dunkin' Donuts Pages: 9 (2068 words) Published: December 3, 2013

Starbucks: The best coffee, for the best YOU.

Marketing Assignment DT398/1
Lecturer: Dr Daire Hooper
Student: Tatiana Petruskova
Student No.: C13337431

1.0Table of contents2
3.0Current marketing situation3
3.1Starbucks’s current position in global markets3
3.2Main competitors 4
4.0Environmental factors4
4.1Micro Environment4
4.1.1Main Competitors4
4.2Macro Environment6
4.2.1Economic Factors6
4.2.2Technological Factors6
4.2.3Political Factors7
5.0SWOT analysis7
6.0Product and Branding Strategies8
7.0Pricing Strategies9
8.0Promotional Strategies9
9.0Distribution Channels9

2.0 Introduction
The first Starbucks opened in 1971 by three partners: Jerry Baldwin, Gordon Bowker and Zev Siegl. The whole company was back then only a single store in Seattle’s historic Pike Place Market. Under the leadership of Howard Schultz, President and CEO, the company has not only grown in the United States but world-wide expansion has been spectacular (Forbes 2013).  Today, Starbucks is the largest coffeehouse company in the world with more than 18,000 stores in over 60 countries. Starbucks serve hot and cold beverages, whole bean and microground instant coffee, full-leaf teas, pastries and snacks. Starbucks verifies the social and environmental performance of all manufactured products that end up in their stores. By the end of fiscal 2009, Starbucks had assessed the performance of over 114 factories around the world and assisted in over 37 performance improvement programmes (Starbucks).

3.0 Current Marketing Situation
Starbucks continues to expand overseas and most of the new additions will be in Asia Pacific and China’s regions. China will be a key part of its global expansion as the company looks to grow the store count in the nation to 1,500 by the end of 2015 (Forbes 2013). Starbucks utilises license agreements, strategic partnerships, and many other business activities and agreements. Starbucks’ latest acquisition of La Boulange and Evolution Fresh play some role in the company’s growth as there is more food for breakfast and lunch including more baked goods coming soon. Starbucks also agreed to purchase tea retailer Teavana Holdings Inc. for $620 million. It is its largest acquisition to date. When it comes to buying, Starbucks is well known for its commitment to quality products. The company increased their purchases to 40 million pounds, making it the largest purchaser of the Fair Trade Certified coffee in the world (Starbucks Corporation). 3.1 Starbucks’ current position in the world market

A recent survey by American Express/SAP ranks Starbucks 49th among the Top 100 global retailers (Forbes 2013). Starbucks Corp. raised its profit forecast for the current fiscal year after sales in its top market U.S. topped expectations. The company set its new earnings per share forecast for fiscal 2013 at $2.06 to $2.15, up from $2.04 to $2.14 per share, previously. It also raised its target for global net new stores to 1,300 from 1,200 on accelerated expansion plans for China. 3.2 Starbucks and its main competitors

Starbucks’ primary competitors are quick-service restaurants and specialty coffee shop. Starbucks’ major competitors are Dunkin Donuts and McDonald’s. McDonald’s recently introduced McCafe campaign in which it sells coffee beverages at a slight discount to Starbucks. McDonald’s priced their drinks between $1.99 and $3.29. By comparison, Starbucks’ comparable drink versions were priced between $2.65 and $4.15, a premium of approximately one-third. Dunkin Donuts...

Forbes (2013, January 1)
Trefis (2013, July 23) Starbucks U.S
Boone, L. E. & Kurtz, D. L. (2010, p. 379) Contemporary Marketing. Natorp Boulevard Mason, OH: South Western Cengage Learning.
Kotler, P
Moon Y., & Quelch J. (2004). Starbucks: Delivery Customer Service. HBS No. 9-504-016, Harvard Business School Publishing.
Moskowitz M., (2001). Business & Society Review. Company Performance Roundup, Issue 95, p73
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