Starbucks strategy - 7015 Words

Introduction The first Starbucks store was set up in 1971 by three individuals who had a common liking for coffee and exotic teas- Jerry Baldwin, History teacher Zev Seigel and writer Gordon Bowker. The store was named Starbucks Coffee, Tea and Spice in the tourist’s Pikes Place Market in Seattle. However, later the name was changed to Starbucks Coffee Company. The logo was designed to be a two tailed mermaid encircled by the store’s name. The name was inspired from the coffee loving character in Herman Melville’s Moby Dick The store was a success with excellent sales records and thus several Starbucks stores mushroomed in several parts of the US. Howard Schultz later joined the company as a marketing executive and then†¦show more content†¦The balance between ‘localization’ that Starbucks tested in China to suit the life style of the locals and the aspirational brand that one associates with it is something that can be studied and adapted to fit the Indian context. This customization to reflect the local culture of the neighborhood is a very appealing idea but needs to be analyzed as far as its long term sustainability is concerned. We have also tried to understand what kind of competition do other coffee store outlets like Cafà © Coffee Day and Barista that have been here longer pose to Starbucks. The hiked prices is something Starbucks can pull off because of the ambience it offers to its customers but whether it will be enough to keep them interested for long is questionable. Methodology The methodology that can be adopted is that of decision trees with listing the various alternatives, their payoffs and then making a decision on the basis of the choice with the best payoff. Drivers of Growth and rationale behind Expansionist Strategy 1. Retail Expansion The ambitious growth strategy was adopted by Starbucks in 2002 which was a time when the coffee drinking culture in the US was gaining popularity. The people drinking specialty coffee was identified to be a profitable segment to focus attention on. It was also identified that majority of people drank coffee not at home but outside, in offices, restaurants and coffee shops. ThereShow MoreRelatedStarbucks Strategy1531 Words   |  7 Pages Running head: STARBUCKS’ STRATEGY1 Dr. Shavers Assignment 1: Starbucks’s Strategy Modern Management Strayer University October 21, 2014 Submitted by: RUNNING HEAD: STARBUCKS’ STRATEGY2 Starbuck’s Coffee is a multi-billion dollar company. It was founded in 1971 in Seattle, Washington. It was a single store located in the Park Place Market area of Seattle. The idea started with three friends, Jerry Baldwin, Zev Siegel, and Gordon Bowker. They opened a small shop and beganRead MoreStarbucks Marketing Strategy For Starbucks1429 Words   |  6 Pages MARKETING CA1 Dylan Nolan â€Æ' Contents Starbucks Marketing Strategy 2 Starbucks SWOT Analysis 4 Starbucks Macro-Environment Forces 5 Starbucks Target Market Segmentation 6 Starbucks Social and Digital Media 7 Bibliography 8 References 8 Table of Figures 8 DECLARATION 9 â€Æ' Starbucks Marketing Strategy 1) Please expand on the various marketing strategies that were implemented in Starbucks at this time and comment on whether you think these strategies worked, and why? ‘To inspire and nurture theRead MoreStarbucks Marketing Strategies For Starbucks Essay2159 Words   |  9 PagesBeginning in 1971, Starbucks started as a roaster and dealer of whole bean and ground coffee along with tea and spice in Pike Place Market in Seattle. The company quickly grew and became what it is today. Currently, Starbucks serves millions of customers every day and has more than 24,000 stores in 70 countries (Starbucks Coffee Company, 2016). By now, Starbucks is a well-known company around the world. Beyond having a good core product, their marketing strategies are strong. As communication marketingRead MoreStarbucks Strategy2815 Words   |  12 PagesSTARBUCKS: AN INTERNATIONAL PRODUCT BRANDING ANALYSIS An internationally recognized brand with over 16,800 locations worldwide and is valued at $5.23 Billion as of 2005 (source: cafemakers.com/brand_recognition.html) Prepared by Florence L [Fashion Marketing Critic] LOVE COFFEE. Starbucks started its journey back in 1971, and has since grown to serve millions of sociable coffee-goers from around the world. With more than 16,800 locations across the globe as of 2009, Starbucks is still the dominantRead MoreStarbucks s Marketing Strategy For Starbucks860 Words   |  4 Pagesby telling the background of Starbucks as it is today. 30 years ago, Starbucks was a single store in Seattle s Pike Place Market selling premium roasted coffee. They decided to change their traditional customer experience in the 1980s. When the company s director of marketing, Howard Schultz, came back from Italy, he felt enchanted with the coffee house experience of Italy. Mr. Schultz wanted to duplicate this experience in his own coffee stores.   The new strategy consisted of selling their alreadyRead MoreStrategy Clock: Starbucks803 Words   |  4 PagesIn 1970s, the first Starbucks coffee shop opened. After 30s years developed, Starbucks Coffee Company become the leading retailer, roaster and brand of specialty coffee and owned more than 5000 coffee shops all over the world. Why Starbucks can work so successfully? I will analyze Starbucks and its strategies with the Strategy Clock . The Strategy Clock is based on the work of Bowman. It s a suitable way to analyze a company s competitive position in comparison to the offerings of competitorsRead MoreThe Marketing Strategy Of Starbucks2046 Words   |  9 Pages3.0 Marketing Strategy Starbucks is ensuring that its marketing strategy never goes too far outside it s culture. Composed of two key points. The first key point is Starbucks image. When an individual walks in to Starbucks, there is a friendly face to greet customers, color scheme is very cool and earthy, and same thing goes for smell too. Starbucks is ensuring that customers feel relaxed and comfortable in the coffee house. The second key point is the individual himeself/herself. AccordingRead MoreStarbucks Marketing Strategy980 Words   |  4 Pages1) CHINA: If there is one company that should have failed in China, it would be Starbucks. China has thousands of years of history drinking tea and a strong culture associated with it. No one could have guessed that Chinese would ever drink coffee instead of tea. Yet, Starbucks has successfully opened more than 570 stores in 48 cities since it first entered China twelve years ago. Building on this momentum, it plans to open 1,500 stores by 2015. What did the Seattle-based coffee company do rightRead MoreStarbucks Operation Strategy1490 Words   |  6 PagesSTARBUCKS OPERATIONS STRATEGY STRATEGIES IMPLEMENTED I. Expand its product offerings and enter new market segments   Ã‚  Ã‚   * Starbucks expanded to pursue sales of products in a variety of distribution channels and market segments. Products were marketed to restaurants, airlines, hotels, universities,  hospitals, business offices, country clubs, and select retailers. In the airline industry, Starbucks coffee was served in flights United Airlines and United Airlines. Packets of Starbucks coffeeRead MoreStarbucks - Corporate Strategy4629 Words   |  19 PagesCorporate Strategy Table of Contents Question 1 3 1.1 Introduction 3 1.2 Howard Schultz s performance in the five tasks of strategic management 3 1.2.1 Developing a strategic vision 3 1.2.2 Setting the objectives as standards for measuring the company s performance and evolution 5 1.2.3 Crafting a strategy to achieve the desired outcomes 6 1.2.4 Implementing and executing the chosen strategy efficiently and effectively 6 1.2.5 Monitoring developments and initiating corrective adjustments