Starbucks History
Starbucks History
Starbucks History
TYPE OF BUSINESS:
Starbucks is a corporation based business. It works in market
by the name of Starbucks coffee. Starbucks is the largest
coffeehouse company in the world.
OFFERING OF BUSINESS:
Starbucks offers service as well as products. Their service has
satisfied their consumers needs. The product that they are
famous for coffee, 75% of Drinks, 19% Food, 4% whole bean and
solution coffees, 2% coffee making equipment and other
merchandise. Starbucks also markets its products mix with other
brand names within its portfolio of companies, which include
Teavana, Tazo, Seattles Best Coffee, Starbucks VIA.
DRINKS/beverages OF STARBUCKS:
Iced tea.
Bottled drinks.
Evolution Fresh.
Freshly Brewed Coffee.
Espresso Beverages.
2
Bakery.
Starbucks Petites.
Bistro Boxes.
Hot breakfast.
Evolution Harvest.
Yogurt and fruit.
Sandwiches.
Paninis & salad.
Starbucks marketing:
The company has created greatly individualized marketing
techniques to fit the promotion of the Starbucks brand as it
applies to the unique concept it was built on. Starbucks
employees keep an eye on the market and consumers need that
change time to time. Starbucks is famous for its unique flavor and
thats what attracts consumers, as many branches Starbucks
coffee house has it offers the same flavor.
Environmental Analysis:
PEST Analysis:
Political:
Industry-specific rules and regulations
The level of relationships between USA and countries that
produce coffee beans.
The level of political stability within a country.
Economical:
Buying power of consumers.
Local currency exchange rates.
Local economic environment within each market Starbucks
operates.
Taxation level.
4
Social-culture:
Consumer preferences.
Changes in lifestyles of population.
The level of education of population in local markets.
Changing values among people.
Technology:
SWOT Analysis:
Strength:
Weakness:
Expensive Products.
Self-Cannibalization through overcrowding.
Negative large corporation image.
Threats:
Increased Competition.
Price Volatility in the Global Coffee Market.
Developed Countries Economy.
Changing Consumer tastes and lifestyle choices.
Developed Countries Market Saturation.
Market Segmentation:
Demographic & Psychographic:
Starbucks does not have a particular group to target. Its
products are for all ages. Starbucks mainly targets well educated
men and women with children. The coffee house created a mature
and high prestige image and also provides beverages and food
that appeal to children in order to appeal to their ideal segment.
ADULT: Starbucks primary target market is men and women
aged 25 to 40.Customerstend to be urbanites with relatively high
Pricing approaches
Value-based pricing(good service, quality); Not CostBased Pricing(mark-up too high)
Competition-based.
Comparing with competitors
Similar price ranges
More benefits to impress consumers
Promotion:
Advertising
Reminder e.g. location of new outlet.
Informative e.g. new flavors of drinks.
Public relation
Community relationship.
Invited celebrities.
Place
Number of channel levels
Uses direct marketing channel (Starbucks outlets).
Also uses indirect marketing channel (bottled
Frappuccino).
Consumer responses on Starbucks place
Convenience of Starbucks.
Starbucks to be intensive or selective distribution.
Product
Brand positioning
Product attribute: organic coffee.
10
11