Starbucks Service Offerings
December 28, 2013
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
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
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
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.
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