Homework 2 - Starbucks
Starbucks use of strategic market planning is best displayed through their mission Statement “…inspire and nurture the human spirit – one person, one cup and one neighborhood at a time” (“Mission Statement”). Starbucks enforces their mission statement through product quality, customer care and community involvement. Their marketing plan and everything that they say, produce, sell, or advertise must align with their mission statement.
Starbucks has created a competitive advantage with their product quality by setting themselves apart from their competitors. “The Company has stayed with the upper-scale of the coffee market, competing on comfort rather than convenience, which is the case with its closest competitors, McDonald’s and Dunkin Donuts” (Mourdoukoutas, Panos). Consumers believe they are receiving a better product and experience when they purchase from a Starbucks as opposed to another large food service company that may sell coffee.
The company markets itself as becoming a part of the community as opposed to just another chain. If one has walked into a Starbucks you can often see merchandising shelves that
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While their customers are an uncontrollable force, Starbucks can control how they respond to customers. In June of 2014 I went to a Starbucks drive-thru and received a drink that was mostly milk when I had asked for light milk. When I asked them to remake my drink the Barista told me they were too busy and I would need to drive around and re-order – this directly conflicts with the SBP “Love your beverage or let us know. We'll always make it right” (“Our Barista Promise”). Instead I took my milky drink, snapped a picture and uploaded it to the Starbucks Facebook page. Within 10 minutes there were multiple comments on the post, and a Starbucks representative asking me to send them my
Consumer doesn’t choose Starbucks for price but they choose it for high quality product and services and comfortable environment (Liz, 2013).
Starbucks Corporation has been around since 1971. What makes Starbucks unique from other coffee-bar shops is not only their wide selection of products, but the environment they provide to all customers. Starbucks sustains competitive advantage by constantly looking for new ideas, new products, as well as new experiences for guests. Starbucks also offers a selection of music, and unique designed coffee mugs. The company even hires designers to come up with artwork for commuter mugs. Starbucks’ forte is incorporating differentiated features such as their different flavored coffees that no other company offers. They
Former Starbucks Executive Scott Bedbury once said “Brands need to communicate that they are along for the ride. They are made of flesh and emotion. That they are made possible by people” (10 Quotes from Starbucks Executives, 2010, para. 6). Starbucks’ beliefs in customer service, community solitude, and a strong business core stretch far behind just a belief in a quality caffeinated product. “We make sure everything we do honors that connection – from our commitment to the highest quality coffee in the world, to the way we engage with our customers and communities to do business responsibly” (About Us, 2011, para. 4). Thus, this commitment is the motivation behind Marketing Team A’s proposed
Starbucks has many stakeholders who are interested in the business’ success and failure, as they can be positively or negatively affected by the business. One of Starbucks’ main stakeholders is its consumers, this because consumers are the company's most influential stakeholder group and that Starbucks should listen to, to make the business successful. There are many types of consumers, therefore Starbucks should be aware of this and meet their consumer's needs and desires. Starbucks welcomes all type of people to their stores this is shown through Starbucks’ values which is to “create a culture of warmth and belonging, where everyone is welcome”. This emphasises that Starbucks knows that their consumers are an essential part of their business and believe it is important to please their consumers as they can have an influence on Starbuck’s activities. For that reason, Starbucks welcomes anyone to their business and makes them feel comfortable and also part of the business. Furthermore, if Starbucks didn’t have consumers the business wouldn’t survive, as they would have no-one to sell their products to. This means that it is important that Starbucks listens to their consumers but primarily pleases them with reasonable prices, a wide product range, and also easy access. However, there could be a conflict between consumers and Starbucks if the consumers are not satisfied with the product or services they have received which may lead to the failure of the business.
Starbucks is a strong competitor in the service sector and a leader in the gourmet coffee industry. With a continued growth rate in store openings and maintaining successful profitability of its operations, Starbucks has demonstrated its ability to sustain a reliable and steady growth. Starbucks’ ability to contend with the vulnerability to current financial threats such as economic recession, higher interest rates, and global competition, is constantly proven by its incomparable brand image, its continual product innovations, and its exceptional customer service. This
Overall, Starbucks customer satisfaction scores began to decline due to their steps of service and customer centric service in the stores. Starbucks differentiated itself by providing more beverage choices and allowing the customers to customize their drinks. However, this worked against them because they were in heavily dense areas that contributed to longer wait time. Additionally, that led Starbucks customers to believe the coffee chain was focus on making money and building more stores not customer satisfaction. A poll of the customers “improvements to service,” particularly speed of service, was most mentioned.
Starbucks Corporation is an American global coffee company and Italian-styled coffeehouse chain, based in Seattle, Washington. It is the world’s largest coffeehouse chain, and is considered one of the world’s best-liked and best-known consumer brands- with 19,972 stores in 60 countries. Business analysts agree that Starbucks is a widely respected company because of its commitment to social responsibility. Starbucks has earned this reputation through its actions in all phases of its business and live out this commitment through both its mission statement and values. The Starbucks website states that, “Our mission: to inspire and nurture the human spirit – one person, one cup and one neighborhood at a time”. Starbucks even has a
Product Strategy: The strategy followed by Starbucks in preparing and marketing their products is to be innovative and creative with diversification of the products. Starbucks provides various diversified products which include hand crafted beverages like fresh brewed coffee, hot and ice espresso, fresh foods like baked pastries, sandwiches and salads. As a result of the high quality and diversified products Starbucks is viewed by its consumers as having all day treats and which increases sales and in turn profits.
It’s hard to drive the street these days and not see a Starbuck’s coffee house sitting on a corner with cars lined up in the drive-thru or consumers gathering in their café to socialize. This has been the scene since the first Starbucks was opened in 1971. Since then, Howard Schultz, chairman and CEO, has embarked on a vision to bring Italian coffeehouse traditions back to the United States. Starbucks mission statement is simple, “to inspire and nurture the human spirit – one person, one cup, and one neighborhood at a time” (Starbucks, 2017, para. 7). Starbucks has built a global empire with a reported 22,519 stores spanning over 66 countries. The company’s diversity and purchase power of
Starbucks’ regional manager should send a signed, written apology to Jeremy Dorosin on company letterhead (see Exhibit 1). An apology letter will not only comply with Mr. Dorosin’s request but it shows Starbucks’ culpability in what occurred. Since the employee involved in Mr. Dorosin’s negative experience was not displaying the traits of a model Starbucks barista (see Exhibit 3), the employee should be retrained. The other employees and the manager of the store involved should also be required to go through retraining courses in order to not only show why what they did was wrong but how to behave in the future. One facet of the retraining should involve role playing (see Exhibit 4) in order to better understand real-life situations. In following these recommendations along with the gift card and machine repairs, Starbucks should be
Starbucks came up with several products and differentiation strategy as they provided a high quality coffee and unique experience in the convenience of a large volume of locations, and Starbucks tried to add value through innovation, offering Wi-Fi service, creating and selling its own music. More recently, Starbucks attempted to put the focus back on coffee, revitalizing the quality of its standard beverages. But none of these moves addressed the fundamental problem because Starbucks is a mass brand attempting to command a premium price for an experience that is no longer special.
Starbucks to provide high quality products and provide our customers with quality service, they are prepared to pay more for better quality and better service. Starbucks to maintain the quality and level of service coffee purchases to prove a higher price. Starbucks took a lot of effort to stand out from the competition: new kinds of specialty coffee drinks, interior design to make time spent at Starbucks more enjoyable, new services (Starbucks goes mobile), Starbucks social networking communities, this creates for customers provide additional value, they are willing to pay more. Overall Starbucks is a strong global brand positioning itself as a coffee expert, whose product is based on the price of the relevant brand of high-end
It prides itself in the ethical way it does business, through community, sourcing, environment, diversity and wellness. It strives to live out its mission statement and values every day. Starbucks openly displays its commitment to being socially responsible and wants its customers to know exactly how Starbucks is doing so. It plasters its mission statement and values on the walls of many of the stores, it prints facts onto its coffee cups, it dedicates countless pages on the company website to
Using Porter’s five force model we can analyze Starbucks and the industry it is in. First looking at industry competitors. There are many competitors in the industry. Specialty coffee was to have around a 15% growth rate in 1994 (Starbucks, Ivey). This increase is due to the face that consumers are being more health conscious. Coffee is also the second most valuable commodity world wide (Business Insider). To stay ahead of competition and reduce the risk of imitation Starbucks has certain tools and qualities other companies do not possess. Starbucks has a signature roasting system (Starbucks, Ivey), that allows them to keep records of the way certain blends were made. It also has extensive training for all partners from CEOs to its baristas. This allows Starbucks to surpass the other competitors. (Sara)
There is response to this question in the text, but I can explain my thought. When we buy a coffee at Starbucks we don’t buy only a coffee but also a corporate images, a service, a way of thinking and living. Starbucks create its own environment, brand value. It represents the premium coffee. There is not only coffee, even if it is the Starbucks’s specialty. Also, there is breakfast, drink, gift card, candy, lunch, and all spin-off products (derivative product or tie-in merchandise). The atmospheres of the place are a huge factor in the Starbucks experience. They want us to be the first and the most luxurious coffee.