It is development society and environment responsibility (Coffee Sourcing). Furthermore, in Starbucks website, we can find out many Corporate Social Responsibility annual reports. They are actively involved activities likes social and environmental. For example, for each year, they are encouraging Starbucks employees and customers to contribute more than one million hours of community services. The Starbucks Community Service Program including improving hiking trails, conducting park clean-ups in conjunction and mentoring students at an after-school program with local non-profit organizations.
The way people like to suggest each other some good music to listen to or a great book to read, same is done with careers and Starbucks uses this opportunity in its employer branding strategy. As per its twitter, YouTube, Instagram or Facebook account. 1.1 Twitter Its Twitter account is ‘Starbucks Jobs’ with #sbuxjobschat.
The Industry demand has changed due to a shift in consumers’ attitudes towards healthier products. This placed Starbucks’ coffee culture at risk and threatened the company’s future. Starbucks has tailored their menu to include more organic and healthy product mixes, venturing into tea, bread and fresh juice products (Geereddy, n.d). Starbucks’ cornerstone product differentiation strategies and Human Resource Management are the main impacts to strategy formulation. Starbucks’ is a premium valued brand; costly to imitate.
They ensure to get the best coffee beans that grow at higher altitudes, where they are denser and have deeper and more complex flavors, tasted in each cup of Starbucks coffee. According to (Linn, 2014) "there is a lot of specialty coffee out there; it's just a matter of finding it." Starbucks employs a wide range of specialized agricultural engineers to grow coffee beans in a better way, where they deal well with crop production and soil management. Starbucks collaborates with them to promote growing practices and improve the quality and size of their crops. To improve productivity and sustainability, Starbucks has established farmer support centers on four continents.
Customers appreciate its ethical sourcing of raw materials and are happy to pay more for Starbucks products. Even though the company does not hold the first place in the UK market, which is held by Costa Coffee, they have acquired a strong customer base of students, as well as their normal target group of working class. Based on the findings from the Marketing Mix, Starbucks has successfully created value for their customers. (Shubber, 2015) They have succeeded in growing their cafes into experience and a place for people to meet to spend their time. In the recent years Starbucks has expanded their sales channels from cafes to smaller pop-up units inside shopping areas, bookstores, college campus and airports.
Assignment 1 1) Firm’s orientation Starbucks is a market orientated company that delivers what customers want and the drawback for that is high prices when compared to other coffee shops. In Starbucks the customer is expected to have the chance to customize his/her order according to his/her needs. Moreover, for more customer satisfaction Starbucks have provided a secret menu for even more compatibility with customer needs. 2) Mission statement “To inspire and nurture the human spirit – one person, one cup and one neighborhood at a time.” 3) Objectives + critique the objectivies Objectives Starbucks objectives are categorized in different standards and scales. Coffee purchasing – That ensures 100% of the coffee is sourced.
Originally, Starbucks was a trendsetter with its unique brand positioning and differential values. It offers not only food and services, but most importantly, experiences. Starbucks can gain high customer motivation to pay with relatively low cost and earn reasonable profits. Its "non-brand" decisions, such as licensing arrangements, store locations and drive-through service, may financially make sense over a short period of time (Ferrell and Hartline, 2014, p. 527- 528). However, such short-term financial growth is in sacrifice of brand positioning and equity in the long term.
It company’s mission statement is “To inspire and nurture the human spirit – one person, one cup and one neighborhood at a time.” Starbucks brand message is that they value each customer specially. For a long time, the company has been committed to providing the highest quality coffee and service to customers, creating a unique “Starbucks experience”. Customer experience is the core demands of its brand equity. They want the brand to bring friends together, set up the conversation and foster the relationship. Starbucks goal is to become the ‘Third Place’ in the customer’s daily lives, a place away from work or home (Starbucks, 2016).
The main reason for this is the fact that it operates in the Food and Beverages space which means that despite the recession, consumers cut down on the consumption to a certain extent and not completely. Therefore, the task before Starbucks is to lower costs and increase the value so that it retains its consumer base and attracts consumer
They now serve more than just coffee and beans, including various types of coffees, teas, snacks and even specialty drinks around the holidays 3. According to a recent article on Fortune.com titled World 's most Admired companies 2015, "Operating in 66 countries with nearly 22,000 retail stores, the coffee chain shows no signs of slowing down." B. With so many stores it’s also not surprising to see Starbucks on many college campuses and in bookstores 1. Starbucks is a great place for college students and avid readers to go because it offers a warm environment to sit down, plug in that laptop and study or just spend a day with your nose in a book 2.