In contrast to that, Starbucks always try to integrate to local cultures in different country. For example, they sell dragon dumplings and mooncake in China. Besides, they offer different mugs and tumblers in different countries to an extent that collecting Starbucks mugs has become a hobby for their customers or travelers. As a result, Starbucks is still ranked 1 in the
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.
They offer great customer satisfaction; employees do their best to please the customer. Starbucks is also environmentally friendly. The products they use are made from recycled materials like there tissues and cups, other coffee shop does not do that. Key competitors Starbucks main competitors are Caribou Coffee, Coffee Bean & Tea Leaf, Costa Coffee, and Dunkin Donuts. 6) Some ways to better compete in the market International
Case: Starbucks Starbucks was founded on a vision of a coffee community or “third place” where friends could meet to talk, work, or just hang out. The company quickly became a worldwide phenomenon characterized by rapid store expansion, add-on services (drive thru, music, sandwiches, etc.) and the best place to find gourmet coffee. Just as quickly, however, Starbucks’ success began to slip with declining customer visits, a falling stock price, and the actual closing of some locations. This case looks at how non-brand decisions (financials, contracts, locations, add-on services) eroded Starbucks’ brand positioning and brand equity over time.
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 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.
Starbucks treats its customers like its employers and therefore it looks forward to various aspects of employer branding and recruitment through the means of technology/social media. 1. Employer Branding Through Social Media Starbucks constructs its brand through its employees. It has also been listed in as the World’s Most Ethical Company for the seventh year and also made it into Fortune’s 100 best companies to work for. 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.
They know that they can expect quality products and there are a variety of options to select from. They also know that their experience will be consistent regardless of which location they visit as Starbucks locations all have similar décor and offer the same menu, regardless of where they are
The aggressive growth rate of stores across the world had a ripple effect which led to Starbucks undergoing multiple changes: a. Globalization – The number of retail stores were 5000 and counting. It also started experimenting with new retail formats such as ‘drive-throughs’. Around 15% of its revenue came from non-company operated retails channels, known as ‘Specialty Operations’ which included international licensed stores, grocery stores, warehouse clubs and online mail-order sales. The goal was simple – reach customers where they work, travel, shop and
Starbucks Coffee Company, founded in 1971, has grown to an international brand. As the world’s biggest coffeehouse company, Starbucks continues to lead the industry in sustainable business and innovation. Such success is attributed to the firm’s ability to address the external PESTEL/PESTLE factors. The PESTEL/PESTLE analysis framework indicates the most significant influences on Starbucks based on characteristics of the remote or macro-environment. Despite its current industry leadership, Starbucks must continue monitoring its remote or macro-environment.