Forecasting also enables Starbucks to adjust their operations in order to eliminate low market services or increase others that have high demands. In its effort to create new market, Starbucks has developed new products that target certain countries in the worlds like India to meet customers’ specific needs for that region. Starbucks has noticed that many people make their own coffee at home, so they are targeting these customers by providing and selling Starbucks branded coffee beans and coffee-maker machines. Therefore, forecasting and analyzing new needs has provided Starbucks the opportunity to attract more customers and penetrate new
Starbucks business strategy was to offer customers a unique experience in high-end specialty coffees and beverages as well as better customer services. First, the company revamped its in-store technology and sought to integrate its business processes with wireless technology and the mobile digital platform. Second, Starbucks pursued a more aggressive product differentiation strategy, intended to emphasize the high quality of its beverages and efficient and helpful customer service. Lastly, Starbucks also focused on becoming ‘lean’, like many of its competitors, eliminating inefficiency wherever possible. Starbucks implemented a technology that allows customers to pay using a smartphone application which was integrated with the Starbucks Card System.
Even with Starbucks strong marketing brand on coffee its will experience cultural, sociocultural, local market competition, pricing challenges since its trying to sale its coffee product at a premium to patrons. In my opinion, Coffee shop are excellent social event ideal locations whether going by yourself or with friends or family. However, in international markets local coffee shops have their own branding, pricing and high quality service to its communities unless it’s not established in that market yet. In my personal experience while overseas I experience local coffee shops and a Starbucks coffee retail store. Here what I Found was the marketing strategy they were using and Starbuck was popular in South Korea, the first coffee shop I went to was in a popular area in Seoul where the back patio below patron can observe live musical and art events below at no extra cost and still have a high-quality coffee at a fair price.
b. Starbucks re-creating its uniqueness by showed many new products such as instant coffee. The baristas do not have the multitask so they can focus on a customer’s specific tastes as well as how they like their coffee made. However, the price for a Starbucks coffee is so high for “to-go” customers and the number of people who want to have a comfortable atmosphere with a quality cup of coffee are in a minority. Hence, Starbucks started to open new format of store-Express to serve another customers. As a result, Starbucks is successful in creating its uniqueness again.
Starbucks should ensure prices in international market are not inhibitive to customers and will allow them to have an increased market share and augment sales. This will also allow the company to face threats from other brands that have taken advantage of Starbucks high-pricing mainly McDonalds through McCafe. Innovation and addition of new products at Starbucks to augment the Starbucks experience and increase client loyalty is the other recommendation for Starbucks. This is aimed at overcoming increased competition from Dunkin Donuts and McDonalds. The threats in the operating environment can also be overcome by differentiating products offered at Starbucks from those of the competition in terms of better quality, impeccable service delivery, and augmenting customer service and quick response to queries.
Starbucks’ primary goal is to provide total customer satisfaction by affording a perfectly made coffee at reasonably affordable price. The company is well known for its efficient and effective way in controlling operations. Starbucks Operations management Two main points will be discussed here; material flow to explain how the beans flow from suppliers to Starbucks retail stores, and purchasing systems to explain the way Starbucks manages the purchase of large volumes in global market. Material Flow The process of selecting the finest quality of coffee beans starts from procuring the green or unroasted beans directly from the farms and then transport them to the storage points after being roasted and packaged. Beans are now ready to be sent to the distribution centers located across six continents, and managed by one centralized system.
The first of three components to the branding strategy component was the quality of the coffee. Starbucks offered the highest-quality coffee in the world and controlled much of the supply chain as possible to help and maintain the assurance of high quality coffee. Starbucks sourced its coffee from the Africa, Central and South America, and Asia-Pacific regions and it controlled distribution to retail stores around the world. The second brand component was the customer service, or what was also referred to as "customer intimacy." This included simple things such as remembering customers ' name and knowing their drink or customize their drink just the way they like it.
In this regard, novelty will become a good tool for promoting Starbucks. In the introduction of the revolutionary and novel product developed by Starbucks, the firm should beginning by offering free product samples for a restricted period. Based on the consumers ' response to the new product, the firm should then introduce it into its stores. By introducing innovative tea and coffee products, Starbucks will be able to provide these products at the same premium prices based on the perceptions of the high quality of the firm’s products. Through
CRM is frequently achieved using customer loyalty programs and these programs ultimately result in an upsurge in business profits by focusing on customer relationships. An understanding of how to manage customer relations also permits a retailer to gain a competitive advantage over their competitors and thus, Starbucks aims to maintain their CRM to remain as the market leader. Starbucks recognizes that consumer satisfaction is subjective and therefore it is challenging to measure. So, one way to gain access to customer information is to offer programs such as feedback programs (Appendix A) which enable customers to voice out questions, comments and feedbacks of their opinions on Starbucks. This empowers Starbucks to progress with the help of customer responses consequently resulting in higher level of overall satisfaction.
Usage of elasticities and revenues in the Starbucks Business How could Starbucks use elasticities to maximize its revenue? Word count: 3956 Abstract Starbucks is a coffee house company that is famous for its high pricing and still the good amount of fans it has. Till this day Starbucks keeps raising its prices and people still tend to visit often. This scenario is probably due to the fact that Starbuck’s elasticities are relatively low, meaning that changes in price won’t lead to big changes in demand. Therefore this situation interested me and led me to focus the research question on “How could Starbucks use elasticities to maximize its revenue”.