Starbuck's Service offerings

Topics: Coffee, Starbucks, Marketing Pages: 8 (1110 words) Published: July 23, 2014

Starbucks 1

Starbucks Service Offerings

Shiloh Newbound

Srv 301

Alex Hosch

December 28, 2013

Starbucks 2

Starbucks Service Offerings

Starbucks was established in 1971 and is now a multi billion dollar

a year company. Their mission statement is “To inspire and nurture

the human spirit-one person, one cup of coffee and one neighborhood

at a time” (Smith, 2013). This company has 20,891stores and is

located in 62 countries. Starbucks is the largest coffeehouse in the

world. They have taken the experience of coffee to a new level. On a

daily basis they offer coffee, lattes, fruit smoothies and more. Around

the holidays they bring out new beverages such as Gingerbread Latte

and Peppermint Mocha. Not only does Starbucks offer gourmet

beverages, they now offer a full breakfast and lunch menu. Starbucks

also offers free WIFI to their customers and their lounge area is set-up

with couches and lounging chairs to give their company the best

experience possible. Starbucks is a rapidly growing company and have

set themselves apart from other coffeehouses.

Starbucks is a well-established coffeehouse. They have recently

expanded their menu to include breakfast and lunch options. In

addition to this Starbucks offers an extensive beverage selection.

Some of these drinks include coffee, lattes and fruit smoothies. This

Starbucks 3

company prides itself in customer service. This company also provides

free WIFI for their customers. To make the customer more

comfortable their lounge include couches, lounging chairs and some

locations have fireplaces.

“ A target market is simply the market or submarket at which the

firm aims its marketing messages” (cahill, 1996). Starbucks primary

target market is people between the ages of 25-40. This is their target

market because this age group makes up 49% of the population. The

downside of target marketing is that not all individuals are alike. Not

all people between this age group will be attracted to Starbucks. If

Starbucks is only targeting 49% of the population, this leaves 51% of

the population untargeted. It would be beneficial to expand their age

range from 18 to 50. This will provide them with a larger percent of

the population. This may include changing up their marketing strategy.

One way they could improve their marketing strategies would be to

target the colleges.

“Competitive strategy is a long term action plan to help a

company gain a competitive advantage over their rival” (Smith, 2013).

Often times this strategy is used in marketing advertising campaigns. Starbucks 4

This technique is discrediting their competitions products or the service

that they offer. During the 1990’a Starbucks was competing with

McDonalds and Dunkin Donuts “Starbucks uses a fourfold competitive

strategy” (Forbes, 2012). The first step is right market segmentation.

This company takes pride in offering a comfortable atmosphere rather

than a convenience atmosphere. Their competitors include McDonalds

and Starbucks. Their competitors focus on convenience rather than

comfort. The second step is execution. Execution involves setting up a

game plan and then putting it into action. “ The company continues to

focus on its original product bundle that includes coffee, quality

service and a nice environment to hang around” (Forbes, 2012). Their

third strategy is superb leadership. Starbucks was founded by Howard

Schultz. Starbucks is still under his leadership and guidance. As a

leader he is always looking for ways to expand the companies

products. Their fourth strategy is China expansion. “As in the case with

the Japanese,...

References: Cahill, D. (1996). Hit target market with your best shot. Marketing News, 30(24), 7. Retrieved from http://search.proquest.com/docview/216329543?accountid=32521
Forbes. "Starbucks Winning Strategy." Starbucks and McDonalds Winning Strategy. N.p., 2012. Web. 28 Dec. 2013.
Smith, Jim L. "Strategicmanagement.com." Sstrategicmanagementinsight.com. Unknown, 2013. Web. 28 Dec. 2013.
Continue Reading

Please join StudyMode to read the full document

You May Also Find These Documents Helpful

  • Starbuck's Essay
  • Augmented Service Offering Essay
  • Essay on United Airlines Service Offering
  • Web Service Offerings Language Essay
  • Starbuck's and IMC Research Paper
  • Service Diary Essay
  • service sector Research Paper
  • Essay about Community Service

Become a StudyMode Member

Sign Up - It's Free