Background + Category
Starbucks Corporation is an American coffee company. It falls under the restaurant category. It operates as a marketer, roaster, coffeehouse chain and it is the world’s leading specialty coffee retailer. It retail products includes more than 30 types of the world’s top coffee beans, handmade espresso coffee, a variety of hot and cold beverages, fresh food and delicious pastries, coffee machines, coffee mugs and other merchandise. The first Starbucks was founded in 1971; it was a single store in Seattle, Washington. It did not sell brewed coffee and espresso, but only coffee beans. In 1983, Howard Schultz, a former employee of Starbucks traveled to Italy and attracted by Italian coffee bars and the romance of the coffee
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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). A place where the customer can rest, read, think, write and even stare into blank space. In other words, it is a place where customers can connect with people and also reconnect with themselves. Just like McDonald’s has been promoting sales of joy, Starbucks gradually breaks down the typical American culture into elements that can experience: visual warmth, music genre that appeals to everyone, aroma of coffee and so on. They are not just selling coffee but also a lifestyle. At the same time, the company continuously carries out various corporate social responsibility activities to contribute to the community and to make the world a better …show more content…
Founded in London in 1971, Costa is the nation’s favorite coffee shop and the largest coffee shop chain in Britain. Costa Coffee is also the leading retailer and roaster. According to Costa’s official website, they are the only coffee shop business in the world that source 100% of their beans from Rainforest Alliance certified farms. Unlike Starbucks that uses automatic coffee machines, each and every cup of Costa Coffee is made using the beans that have been slow roasted for 22 minutes in Costa Roastery in London and handcrafted by Costa’s baristas. This is to ensure a smoother flavor, which can produce a bitter taste (Dana, 2010). Costa defines itself as the ‘Real Coffee’; lesser choice, higher price but their coffee is smooth, aromatic and delicate. Although this could reduce the production of the coffee beans, Costa still insists on its way to retain the coffee oil and aroma of the coffee. As a consequence, their target market is limited because the lack of flexibility. 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
Modern day businesses have to be socially responsible; actions are taken to satisfy customers who might have a cause that they care deeply. Social responsibility occurs when a person or a company acts in an ethical and sensitive way towards important social issues of the day such as economic, environmental, and cultural concerns. Many businesses have a section of their website or business literature dedicated to social responsibility. Companies proudly detail the steps they are taking to address concerns that people have with the environment and economic issues. Having companies act in a socially responsible way is necessary because their actions have a tremendous positive impact on society.
Remember your regulars Embrace the locals Make people feel special Offer the best creative cuisine Change and delight frequently Marketing Objectives In 2015, Denis and Mirjana took over the café and in a relatively short time have transformed it from a good suburban café with great coffee to a top drawer inner city establishment that draws its wide customer base from happy locals to serious coffee aficiendos who came for the coffee and stayed for the food, ambience and the buzz. The marketing objectives of the business is to build the brand as a unique inner city ‘hip’ café with great ambience and gourmet food and real coffee. The owners understand inherently that their marketing mix must satisfy their target market while still meeting their marketing objectives.
For Starbucks currently their main customers are students, people between 25-40 and then young adults between 18 and 24. I would say the main reason they aim at people of these ages is because they are the most active for long hours throughout the day that are stressed and need a coffee or some form of hot drink to waking them up and keep them awake for their activities. Value Proposition As it says in the business model canvas above, their mission was to “Inspire and nurture the human spirit- one person at a time one neighbourhood at a time”. In 2011 they released a statement saying that they believe it is no longer enough to serve customers, employees, and shareholders.
Political • Growing demand and supply shortage has increased world coffee prices. • Favorable advantage to accessing raw material through supplier relationships. • Fair-trade practices include its Coffee and Farmers Equity (C.A.F.E.) program among other fair trade policies and agreements. • Starbucks adheres to local, national and international government laws and policies and tightly control labour practices, avoiding scrutiny and negative imagery from being a large corporation. Economic • High industry sensitivity to the macroeconomic factors affecting disposable income, a main industry driver.
A company that starts by showing care and responsibility towards their employees is more likely to exhibit credibility when carrying out corporate social responsibility with external stakeholders and the community in which the company
The organization I work for, Starbucks is highly diversified. In my opinion, Starbucks successfully employs each of the seven diversity components: “authentic leadership commitment, clear organizational communication, inclusive recruitment practices, long-term retention strategies, incorporating diversity into main work of the organization, diversity management metrics, and expansive external relationships” (CanÌas, Sondak 2014). With that being said, Starbucks could improve by incorporating diversity into main work of the organization. One way Starbucks proves their commitment to diversity is authentic by holding a diverse board of directors. Of the seven board members, three are women and one of these women is of an African descent.
But as the time goes by the taste of the product had been the top reason why the consumer keep on patronizing it. Moccona coffee produced different variety of product that suits the taste of their target market. As they move on globally different consumer represents different taste buds. As part of their product strategy they venture in developing a product with different flavour or fusion.
Starbucks is known for its delicious fresh brewed coffee and its dedication to employees, customers and communities. Starbucks is one of the largest companies in USA and it is based in Washington. The company keeps its customers on their toes with new products and loyal customer deals. Every year the company is introducing something new and interesting. This strategy and approach keeps the company on the top and customers coming back for more.
I. The world consumes about 2.25 billion cups of it every day, it is also the world’s second most valuable traded commodity, and drinking it can improve blood flow. A. This valued commodity is coffee. B. Americans alone drink 54% of coffee every day. II.
At this time the rights to manufacture, market, and distribute Starbucks ice cream was given to Unilever. In 1998 Kraft Foods began marketing and distributing whole bean and ground coffee to supermarkets in the US. Tazo Tea was acquired by Starbucks in 1999 and in 2005 they acquired Ethos Water. A partnership with Jim Beam Brands created Starbucks Coffee Liqueur in 2004 and Starbucks Cream Liqueur in 2005. In order to offer healthier options they began offering skinny lattes, banana walnut bread, fruit cups, yogurt parfaits, a farmer’s salad, and smoothies in 2008.
In order to formulate an effective ad, the target audience must always be defined and understood. Starbucks Coffee’s target audience is families with young children. There are several factors involved in determining the target audience, and that is demographic, geographic, psychographic, and consumer insights. Firstly, there are several demographic variables that are taken into account.
As the competitive advantage of the company is to differentiate by delivering a unique customer experience by focusing on those four aspects Starbucks ensures that their process deliver their value proposition. The key aspect of their operations in store relates to personalisation and customisation of products as well
INTRODUCTION Performance management Performance management is an important part of the company. Companies based on criteria set by the partner for evaluation, so that company manger can knows the performance of employees. Also make the partner aware of their position in the company, pragmatic to complete the work. Background of Starbucks Starbucks is the world’s largest multinational coffee chain.
Ethical issue in Starbucks Starbucks, an American coffeehouse chain based in Seattle, Washington, is the world largest coffee retailer chain in the world having more than 21,000 stores in 65 countries (Starbucks website, n.d.). In United States, Starbucks owned 12,973 stores (Starbucks Company Statistics, 2014), which is more than 73% of the market shares of the United States coffeehouse industry. Hence, Starbucks possesses monopoly power in the specialty coffee market. Enjoying monopoly position, Starbucks plan to completely dominate the market by eliminating competition. Starbucks engages in a range of anti-competitive activities.
They are focused on their suppliers such as coffee beans farmers and customers. Starbucks through the fair transition to keeping coffee beans market position and provide high-quality coffee as well as a comfortable place to customers enjoy Starbucks’ coffee and food. Also, Starbucks has involved a lot of community activities, so they are created a long-term relationship with the community. Moreover, Starbucks also focus on environment development. Such as cycling activities and water Conservation.