Sunday, May 9, 2010

The Starbucks Summary


Starbucks mission is to make sure that the customer is always satisfied. The company presents itself as luxury and is passionate about what they do. Starbucks sets the new standard and are the leaders in coffee around the world. The company is also committed to delivering perfection in every area: customer satisfaction, success for their partners and shareholders and the enjoyment of neighboring communities. These qualities help and encourage Starbucks to continue to grow. Recently, Starbucks major marketing situation was to allow Aria foods in Europe to manufacture, distribute and market Starbucks branded RTD beverages in Europe. The estimated net for Starbucks would be 500 hundred million.
Globally Starbucks has two strategies: Presenting its high quality product no matter where its sold and choosing the right people to work with. As part of Starbucks global marketing plan , cultures and language are extremely important in a foreign sell. The company tweaks its menus and furniture layouts to appeal to the different foreign markets.
The key to any business is customer satisfaction and Starbucks has enough of that. The Seattle based company is always introducing new items to the menu without much advertising. One may ask How does Starbucks influence customer decision? Starbucks relies on word of mouth, if one customer is pleased then that customer will tell a friend or maybe two and because of repetition Starbucks may gain more customers who tell more friends. I don't believe that Starbucks actually understands the needs of the customer in price, the company just sells the fact that their four dollar coffee is better than a cup of coffee that cost two dollars. I frankly think its two strong and wouldn't mind the cheaper coffee.
In business marketing Starbucks has managed to catch the interest of big retail chains. In 2002 Target and Starbucks agreed to to place a Starbucks in all of Targets new stores. Macy's in Manhattan also took advantage of the Starbucks repetition with two Starbucks located within the superstore. That's great business Marketing.
Starbucks values its customers and in the beginning Starbucks had one target market, now it caters to every demographic. Starbucks successfully expanded its product offering, revenue and brand values by targeting the right customers. Although Starbucks continues to expand its product line with items that will appeal to any demographic, its best customers are between the ages of 18-24. This age group make up the largest segment.
Starbucks centers itself around communities and has gone green to help the earth, the company also doesn't mind losing money to retrain Batista's. Starbucks is a success and the journey for the company has just began.

Friday, April 30, 2010

Starbucks Product Concept II



Starbucks has nationally and internationally changed the minds of many cost cautious consumers. Starbucks persuasive labeling intrigues this consumers because not only will they receive the luxury coffee but at times discounted. Although, Starbucks has many competitors, McDonald's, Dunk in Donuts, etc: Starbucks still manages to present itself in the category of an speciality product.



As Starbucks continues to expand globally, it keeps the Starbucks brand name. Starbucks continues to use product modification to appeal to global market. In japan and china, new snacks were created and drinks undergo style modification. Starbucks Coffee jelly and Green tea Frapps are apart of Starbucks many product line extensions. For each product mix starbucks has a different marketing strategy depending on the country.


Saturday, April 24, 2010

Starbuck's Product concept



Starbucks motto is the perfect cup of coffee is a wholesome, delicious snack that can make your day. So they make sure everything you choose is of the finest quality, they have a repetition of being creative. At Starbucks customers can receive not only the finest quality of coffee but delicious hand crafted snacks and sandwiches. As a customer myself I tend to go for the white hot chocolate more because of the strength of the coffee and I just leave the snacks. Starbucks products appeal to almost anyone and if your someone like me that doesn't like their coffee there are many alternatives.





Starbucks Via Ready Brew
Starbucks has found a new way to prepare a great cup of coffee but just adding water. Starbucks boosts that other instant coffees taste flat and lifeless. Starbucks Via Ready Brew is different because its full bodied and flavorful. It is made with the highest quality Arabic beans and it is an natural process that Starbucks spent years perfecting. Starbucks is constantly developing their product line extensions and product mix width by adding new editions to their already packed line of products some items are only sold in select retail spots.
Starbucks and beam global spirits & wines created a liqueur drink that is not sold at Starbucks. It is not the first time that Starbucks merged with other big brands to deliver innovative products and create niche markets. Pepsi co distributes Starbucks frappuccino drinks and double shot espressos and Dreyers distributes their ice cream in local stores.
Starbucks is always trying to develop new creative products to apply to customers. They modify their existing products to perfection.




Saturday, April 17, 2010

Starbucks Pricing Concepts

In 2009, Starbucks revamped it pricing structure. Starbucks redesigned its menu to feature lower priced brewed coffees and offered promotions on its drinks. In the struggling economy, Starbucks needed to think of a more practical plan in order to keep its customers from McDonald's cheaper brewed coffees and Lattes. Instead Starbucks increased the prices of its higher end and more complex drinks. The Frappuccino and Carmel macchiatos were raised by 8%, because dun kin donuts and McDonald's cannot compete. Starbucks is using the lack of competitors and gaining profit from its most devoted consumer of the drinks.

Starbucks pricing may be considered unnecessary for more practical people, but this is America, and Americans are fascinated by the term of luxury. Starbucks sells itself on luxury and whether or not people can really afford it, they will still buy it. When a customer buys a cup of quality, it is seen as a small investment for quality. People who are all about luxury will never have a problem dishing out the extra bucks to receive it. Starbucks is aware ofthis and therefore can raise the price, because they have a strong net of devoted customers who may complain about the price increase, but you will see them with Starbucks the next day.

Prices for the smallest coffee:
Coffee of the day/ regular and decaf$1.40 $1.60$1.70
Carmel Macchiato$2.80$3.40$3.65
Plus Tax

Friday, April 9, 2010

Starbucks Advertising and Public Relations





Starbucks is well known for its lack of Advertising. Most of Starbucks advertising is done in and outside of its retail chains. Starbucks in store advertising helps customers get comfortable in the comfy chairs, relax to relaxing music and have the choice of spending hours sitting without even having to make a purchase. Which compels the customer to actually spend money because they almost feel like their taking Starbucks for granted. The Average Starbucks customer visits the store six times per month, while Starbucks most loyal visit 16 times per month. Starbucks lack of advertising must be doing something right.




When the growing retail chain releases a commercial, the commercial receives huge popularity. The commercials have driven up sales and received very positive feedback. Starbucks reported 26% of respondents like them and the commercial appeals equally to men and women. I believe that the music is the key the success of each commercial. Although Starbucks executives are happy with the feedback, they want to stick with creating unique and welcoming first handed experiences for all customers.


February 26, 2008 Starbucks closed down 7,100 stores in the u.s. They retrained Barista's in making espresso shots, steam milk and other drinks for customers. Starbucks made the public announcement promising customers that their drink should be made" perfect every time" or the customer should tell the Barista and they will remake it correctly. I think this is one example of excellent public relation. The company showed that they were able and capable of losing money that day just so in the future customers will know that their expectations are important.

Saturday, March 27, 2010

Starbucks Sales Operation

Starbucks is everywhere. How do they sell, through what distribution channel and who does the selling? Starbucks purchases and roasts high quality whole bean coffee, they also distribute a variety of pastries, blended beverages Cd's, a selection of premium teas throughout its retailer stores.
In addition to its sales through its aggressive retail chain, Starbucks sells its Coffee and tea through other distribution channels. The Business alliances business unit, collectively operations and speciality operations. Starbucks also distributes frappuccino drinks and ice cream to local supermarkets. Starbucks aggressive expansion increases its market share in existing markets and helps to open stores in new markets when the opportunity presents itself. The company's speciality operations aggressively wants to reach customers where they work, where they travel , shop and dine. The company sells whole bean and ground coffees to office distributors and international food service companies.

Saturday, March 20, 2010

Retail Experience


My daughter and I visited the Gap retail store on 42nd and Broadway to do a little shopping for the change of weather. It was a very pleasant experience because at that location, I always receive the help I need. I wish that location had more choices of clothing, though they have great customer service the shelves are almost bare. Can you say a serious restock. Overall I will continue to shop there and pray they have more things to sell , just because I love the customer service. The gaP retailer should try to a restock its shelves, because when there is nothing to shop for they can lose some serious money. I encourage a trip but they may not have what your looking for, but I'm sure you will find something else.

So I also went to the olive garden, we are starving and just scarfed down a muffin that cost $2.59. Yes we are that hungry. In Olive garden the wait was an hour. I was starving, my daughter was starving and the wait was an hour. I could not believe it, McDonald's started looking good after the first 30 minutes and towards that last fifteen I was tempted to buy a hot dog off of the street and go home. I waited though and was seated in a very private and comfortable area, with complimentary wine. What a way to take off the edge! Overall the food came on time, the waitress was pleasant and the wine was a great icebreaker between olive garden and I. Olive garden can try to make the wait less and try to add more of sitting area for the people who are waiting. I like the that there was wine because it was like Olive garden was saying im sorrry you had to wait so long but here is a glass of wine to make up for it. I recommend this olive garden if you have time to starve or maybe during the afternoon when it is less crowded. Either way if they have complimentary wine, you will be fine.


Oh and I ended a pleasant day by giving a kiss to my beautiful Blair, what a day.

Saturday, March 13, 2010

Starbuck's Marketing Segement


Starbucks has successfully expanded its product offerings, revenues and brand value by targeting the right customer. Most of Star buck's customers are between the ages 18-24. These customers make up the largest segment of customers. Many may not be heavy coffee drinkers and may relax at the fact that Starbucks has non- coffee gourmet drinks. Customers between these ages see Starbucks as different and unique.

I am apart of that segment and I only go to target for the Raspberry, soy, white hot chocolate. Yum. The average customer within that segment makes around 5.3 visits a month. I am also guilty of this. With a Starbucks at every corner in Manhattan, how can you not feed your addiction.


61% of customers between the ages of 18-24 drink coffee of an energy boost.
80% of customers between the ages of 18-24 visit Starbucks for snacks and beverages.
49% of customers between the ages of 18-24 visit Starbucks for meeting with friends and social activities.
Because the customers between the ages of 18-24 are most likely college students. Many find Starbucks to be relaxing, affordable and convenient. New york university can enjoy that convenience with a Starbucks right on campus, as well as many other colleges.

Although Starbucks receives major business from this demographic, Starbucks also targets every other demographic. Everyone can enjoy Starbucks from its children's menus, to senior citizen discounts. I would say its the Bloomingdale's for gourmet "Everything" associated with beverages.

Friday, March 12, 2010

Does Starbucks participate in Business Marketing?




















Starbucks, well known for its luxury coffee and delicious seating area is committed to customer satisfaction. So why not include a Starbucks in every one's favorite discount store Target. In 2002 Target and Starbucks agreed to place a Starbucks in all of the new target stores, the Starbucks editions will have the same features of a typical Starbucks. Flashing forward to 2010, depending on the area the of the target store, Starbucks sales vary.Many customers prefer Targets less pricier meal choices.

Macy's in Manhattan has also agreed taken advantage of Starbucks great repetition, with two Starbucks located within the superstore.

As of 2010, Starbucks has also added their Internet site, there customers are able to purchase coffee and gift cards. Starbucks also caters to small businesses with its business to business products. For small businesses, Starbucks offers cups, coffee and machinery to satisfy the Starbucks junkies of today's workforce.

Saturday, March 6, 2010

How Starbucks Influences Consumer Decision


In any business the key to success is consumer satisfaction. Starbucks is aware of this and pleases many customers with luxury coffee supposedly made with great care. Starbucks is always introducing new things to the menu without much advertising. Starbucks recently added oatmeal with three topping choices to the menu and lets not forget its limited time drinks around the holiday. One can ask themselves how are people informed of these special offers when Starbucks does not use large advertisement banners. Starbucks relies on word of mouth, if they please one customer that customer will tell a friend or maybe two : and because of its repetition they may gain more customers who will tell more friends. Does Starbucks understand the real need of consumers or potential consumers? No, Starbucks is a company that wants to sell itself and force people to believe that a four dollar cup of coffee is way better than a cup of coffee less than two dollars. You may say whats the difference between the two I still get the buzz. Well Starbucks sells you on luxury, they pay close attention to culture and language in order to enforce this thought internationally. Starbucks may be able to force its "luxury" coffee on Americans and many other countries but Italy wont have it. They already have luxury coffee and the people pay less than a dollar for it, that's a sell that can't be sold. Regardless, Starbucks is constantly introducing new items to the menu and targeting almost every demographic. Hot chocolates and cupcakes for children, low fat pastries and the choice of soy milk for the health conscious person and comfortable chairs and mellowing music can relax anyone. Though Starbucks doesn't advertise on television and public banners, its success has been based on word of mouth and its luxury coffee. I think customer satisfaction has definitely been met 100%.

Sunday, February 28, 2010

Starbuck's Global Marketing Plan

Starbucks a Seattle based company is well known for its quality to coffee and aggressive global marketing. Starbucks has two strategies when expanding globally:presenting a high quality product no matter where you sell it and choosing the right people to work with. Starbucks also tries to stay sensitive to cultures and language. In Spain almost every menu is written in Spanish and Catalan. In china Starbucks goal is to build hip hangouts that tap into the new taste of china's emerging middle class: tweaks to furniture,store layout, artwork and food options have been made to apply more to the Chinese eye.

Starbucks largest oversea markets are in japan, England and china. Starbucks need to make more changes to appeal to these countries who prefer tea.

Friday, February 19, 2010

Starbucks Target market

Starbucks original target market for its delicious high quality coffee was young college students with slightly higher incomes than average incomes. Years later Starbucks has moved it focus from college to targeting every demographic. Starbucks locations are noticed in specific neighborhoods and classes. Starbucks targets every demographic in higher incomes: people with high incomes are more likely to spend 4 dollars and up for a cup of coffee.

Monday, February 15, 2010

Starbuck's Major Marketing Situation

The Starbucks chain just continues to grow and grow. Europeans will be happy to know that Aria foods: a company owned by 7,700 Danish and Swedish cooperative members will now manufacture, distribute and market Starbucks branded RTD beverages around Europe. This is a great deal for Starbucks who estimate the European market size at about 500 million. Starbucks is also calling for 200 international cafes and has not forgotten about the united states takeover calls for 100 net stores. Starbucks is looking toward china for the expansion of the company after it takes over the united states. All I can say is watch out Dun kin donuts because when Starbucks does it , they do it big.

Thursday, February 11, 2010

Re definition of Starbucks Mission Statement

Our mission is to make sure the customer is always satisfied. Whether its coffee to go, hot steaming cup of oatmeal with fruit and nuts or a pastry to start a pleasant day, the customers are always satisfied. We are encouraging and cultivating the human essence one cup and one neighborhood at a time.

Customer satisfaction is our number one goal. We are passionate about quality and our work is never done. The finest coffee beans are imported and roasted with love and tenderness. With every cup of coffee we want our customers to feel as though they received a hug from a relative they haven't seen in awhile. We are that passionate at what we do. This is not just a job for us; its a career in which we love what we do. We treat each other with courtesy and enjoy diversity, which is the standard nothing less.

Starbucks is really about the human junction. We connect with our customers, we share laughs or light conversations while serving a perfectly made beverage. Our customers are always respected and their needs met. Comfortable seating and internet services are made available for the customer that enjoys spending time with us. We like to think of Starbucks as home away from home, without the worries of the outside world. Just grab a cup of Joe, one of oue delicious pastries, a comfty seat and enjoy the comforts of Starbucks. Always full of empathy.

The world is looking toward Starbucks to set the new standard and we will lead. We are part of many communities and we make it imperative that we are good neighbors. We are commited to delivering perfection in every area: customer satisfiction, success for our patners and shareholders and the enjoyment of neighboring communties. We dont forget the importance of environmental issues and we share that with everyone. We realize that we are all responsible for the environments future that is why we encourage all to join our mission of buying, selling and using environmentally friendly products. Starbucks is not just about delivering perfection but perserving life.