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Marketing Analysis and Strategy Recommendation for Starbucks Coffee Company

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Introduction

Marketing Analysis and Strategy Recommendation for Starbucks Coffee Company 1. Introduction The purpose of this report is to conduct market analysis and recommend appropriate marketing strategies for Starbucks Coffee. In the report, we will first look into Starbucks's goal, its product and markets. Then we will look into the key actions and decisions that lead to the success of the company. After that, we will discuss the issues that Starbucks is facing in this competitive global market. For each strategic issue, appropriate marketing recommendations for the company are made respectively. 2. Background and situation analysis Starbucks Coffee starts in 1971 with a single store in Seattle's Pike Place Market. Today, they are privileged to welcome nearly 35 million customers on a weekly basis, in more than 12,000 stores around the world. (www.starbucks.com) Starbucks's goal is to become the leading retailer and brand of coffee in each of its target markets by selling the finest quality coffee and related products and by providing each customer a unique "Starbucks Experience". "Starbucks Experience" is a third place after home and work with superior customer service, clean and well maintained retail stores which reflect the personalities of the communities in which they operate. Starbucks strategy for expanding its retail business is to increase its market share mainly by opening additional stores in existing markets and to open stores in new markets. ...read more.

Middle

Starbucks strives to create a unique culture with a passionate interest in changing a simple commodity into an addictive gourmet delicacy and meet individual market wants and needs without compromising Starbucks's brand image and culture of the company. 4. Strategy Recommendations Starbucks's competence in the style of stores and creative coffee drinks has propelled it to the front among coffee retailers. Starbucks is not just stands for a cup of fresh and nice coffee. Starbucks is about the passion for the soul of people, quality product, excellent customer service and the experience and understanding of the culture of coffee. In the following paragraphs, we are going to analysis the 4Ps (i.e. Product, Price, Place and Promotion) of Starbucks, followed by appropriate marketing strategic recommendations. Product Premium Product Strategy Starbucks has been committed to sourcing the highest quality coffees around the world. It only purchases coffees that have been grown and processed by suppliers who meet strict environmental, social, economic, and quality standards. Starbucks is well-known for its exceptionally high quality coffees, care in selection, and expertise in roast (www.starbucks.com). Broad Product Differentiation Depending upon competence and innovation, Starbucks establishes its long lasting and profitable competitive advantages by broadly differentiating its coffee and coffee related products. Brand Image Starbucks combines its merchandizing strategy with its marketing programs to create and reinforce a distinctive brand image for its coffees. ...read more.

Conclusion

This indicates that as long as Starbucks maintains quality products and superb customer-service, individual consumers are unlikely to be able to exert their buying powers. Therefore, it's good for Starbucks to maintain its prevailing high-end coffee prices. 5. Conclusion It is no doubt that Starbucks is one of the most successful company in the world. They used a simply strategy, "connecting links between treating employees with dignity and respect and producing a good product and services." That was the major factors that differentiate Starbucks from others and bring the successful to Starbucks. The future of Starbucks, which is in a fast-growth phase, is apparently to be successful and promising. However, those keys of success may not be applicable to tomorrow's environment and in global market. Defending and growing a competitive position requires firmly built strategies based on its unique, valuable and leading capabilities and resources, rather than the products and services themselves, proactively responding to ever changing internal and eternal environment to keep fending off its competitors. Although currently there are no formidable competitors for Starbucks leadership in both international and domestic markets, it should not take it for granted for good. Tomorrow's destiny of Starbucks should depend on its strategic capability to preserve and sustain its strengths, offset weaknesses, avoid threats and capitalize on opportunities. If Starbucks would correctly identify and deal with the issues under current and near future circumstances, it could remain excited about further growth and continues to be prosperous. ...read more.

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