Marketing Analysis : Starbucks Inc.

Starbucks Coffee Company, which is commonly known as Starbucks or Starbucks Corporation, is the dominant world-leading roaster as well as retailer of specialty coffee in the 21st century. Until now, it has over 20,000 stores in the world, which shows a huge number difference between Starbucks and the following competitor - Dunkin’ Donuts, which has just around 10,000 stores (Statista, 2014). The annual revenue of Starbucks skyrocketed in comparison with the last past decades in 2014, reaching around 16.45 billion profits U.S. dollars (Statista, 2014). Starbucks roasts its specialty Arabica coffee beans and retails a selection of beverage products, consisting of fresh brewed coffees, hot and cold espresso beverages, non-coffee blended beverages. In addition, it sells food items such as sandwich or muffin, along with beverage-related equipment. Starbucks main strategies for publicizing business depend on a combination with company-owned and licensed stores as well as joint venture to expand across the globe with its local partners. For the most part, Starbucks applies the same basic collection of products and customizes few additional products depending on customer’s preferences from different countries.

Starbucks has been a brand that consumers have been able to identify with for quiet some time. By doing so, Starbucks would be able to ensure that their clientele is satisfied and forget about the barriers in which the company has had to face but still manage to continuously expand in the marketplace. With that being said, all customers are valuable, but those customers that meet specific criteria within an organization; such as, placing large orders and or buying products that are at a high profit margin, these are the customers that are not only profitable but are also the ones that are the highly satisfied with the product and its brand recognition. If

Starbucks’ lead in the specialty coffee industry exemplifies the result of deftly executing a well-planned business strategy. Moreover, Starbucks is well positioned for what is expected to be a continuing rise in the popularity of specialty coffee products. The question before Starbucks’ leadership, however, is what avenues will lead to Starbucks’ goal of remaining true to its core, the highest quality coffee products while providing a “total coffee experience” for its customers?

The purpose of this report is to be able to identify and discuss two of the most recent innovative activities of the world’s biggest and well-recognised retail coffee company, Starbucks Corporation. Starbucks has introduced numerous innovations over its long history. From its signature terms (like barista, venti, chai, Frappuccino®) (Michelli 2007), the drive-thru café concept, the Starbucks Card, the digital app ‘shake to pay’ to the corporate culture that overall makes the Starbucks Experience are some of the reasons why Starbucks has maintained its dominance in the coffee industry. This report will look in to its activities involving innovation and map each of them in the 4P framework of innovation space. Furthermore, the innovation identified will be analysed to understand its strengths and weaknesses in order to come up with new strategies for innovation.

These products, as well as the company’s Ready-to-Drink product line (bottled coffee and tea available in sizes and locations similar to what one would find Gatorade or Naked Juice), has allowed it to move beyond the simplistic produce-and-sell business model found at its stores and into the retail market. Having focused on the retail market for the better part of the last decade while still maintaining its store operations (now with more than 20,000 stores worldwide), Starbucks has seen its market share increase exponentially while its competitors, such as Dunkin Donuts, have seen far less success. (As an example, Starbucks has a market cap of $84 billion while Dunkin Donuts has a market cap of less than $5

1.Analyze the business-level strategies for the corporation you chose to determine the business-level strategy you think is most important to the long-term success of the firm and whether or not you judge this to be a good choice. Justify your opinion.

Starbucks primarily operates and competes in the retail coffee and snacks store industry. The industry itself hit financial drawbacks in 2009 due to the economic crisis and changing consumer ideals. The industry, since then, has continued to grow, and in 2015 the industry was reported as having a revenue of ”$19.163 billion, which was a 16.5% increase from 2014 at $2.068 billion” (Starbucks SWOT Analysis 2016) . This growth would be due to an improving economy, and an increase in consumer confidence. Starbucks currently dominates the industry with a market share of 36.7%, Dunkin Brands with 24.6%, and other competitors taking up the rest.

It’s a known fact that Starbucks is one of the leading brand in the market.When we analyse the market we find that Mcdonald 's and Dunkin are the competitors in the same product segment. So comparing Starbucks with these competitors will throw light on its grey areas, process and competitive edge in the market.

Starbucks does not use direct advertising such as commercials, ads or other promotion. They do however; have one of the largest social media networks with one of the highest customer contact percentages on a daily basis. This is one way they continue to promote their brand with customers who have been with the company for a long time. At the same time Starbucks has made quality choices in generating “alliances” with companies who have a similar market segment or customer base. Some of these alliances have been with “Barnes and Noble, I-tunes, Green Mountain, Tata Coffee”. These have allowed Starbucks to differentiate their product in India, Canada, USA and China. They can provide their quality product in hotels, bookstores and specific markets that relate to their direct customer base.

In the restaurant industry, a restaurant prepares and serves food, drink and dessert to customers in return for money. Meals are generally served and eaten on premises, but many restaurants also offer take-out and food delivery services. Restaurants vary greatly in appearance and offerings, including a wide variety of the main chef 's cuisines and service models. While inns and taverns were known from antiquity, these were establishments aimed at travellers, and in general locals would rarely eat there. Modern restaurants, as businesses dedicated to the serving of food, and where specific dishes are ordered by the guest and generally prepared according to this order. A restaurant owner is called a restaurateur; both words derive from the French verb restaurer, meaning "to restore". Professional artisans of cooking are called chefs, while preparation staff and line cooks prepare food items in a more systematic and less artistic fashion.

IntroductionMicro environmental factorsThe micro environmental factors are the forces close to the company that affect its ability to serve its customers. The factors are also known as the internal environmental factors such as the company itself, marketing intermediaries, its suppliers, customers ,competitors and publics which are within or close to the company that have an impact of the organization strategy.

In a world where consumers value convenience, price, service and quality, Starbucks has become a major identifiable brand and competitor worldwide. Starbucks operates under the retail coffee and snack shop industry and relies heavily on consumer confidence, spending, preferences and overall economic climate, making the industry highly volatile. The hiring and use of employees to perform the daily operational tasks and duties to provide service and various industry products become an important element in this industry. Because the skill set of the individuals hired in this industry are relatively low, the cost in wages are minimal. The industry reportedly has generated over $30.2 billion in revenue,

Market positioning and growth strategies play an instrumental role in sustaining the competitive advantage in the highly competitive global beverage industry (Frigenti, 2012). By analyzing the strategies adapted by the Starbucks, one of the leading global coffee retail chains in the world, this report will provide insights about the latest trends and the key factors that play an influential role in beverage industry (Dermot, 2013). This report will also discuss various opportunities that case study organisation can look into to improve its profitability and will also outline the key threats it needs to tackle in the future to remain competitive in the market.

How responsive is your company to difference among nations? Does it vary its products and marketing message from country to country? Should it?

Starbucks Corporation, generally known, as Starbucks Coffee is the leading retailer and a brand of world’s forte coffee in the world, with more than 15,000 retail locations in North America, Latin America, Europe, the Middle East and the Pacific Rim, wherever in this world where premium quality coffee is in demand. Starbucks is the largest coffeehouse company in the world ahead of UK rival Costa Coffee, with 20737 stores in 63 countries and territories, including 11910 in the United States, 1496 in China, 1442 in Canada, 1052 in Japan and 772 in the United Kingdom. The first Starbucks was open in 1970. The name was inspired from Herman Melville’s Moby Dick, a definitive American novel regarding the 19th century whaling industry. The nautical name matches seamlessly for a store that imports the world’s finest coffees to the cold thirsty people of Seattle. In May 1998, Starbucks have finally successfully entered the European market through its acquirement of 65 Coffee Company stores initially originated from Seattle in the UK. Both companies shared a common culture, focusing on a great commitment to customized coffee, similar company values and a mutual respect.