Starbucks is the world leader in the premium coffee market and has an amazing success story. In this study the key factors for the successes of Starbucks are analyzed. The distribution strategy of Starbucks, e.g. through coffee stores, grocery markets, and new retail channels, is investigated. Additionally, problems of the rapid expansion of Starbucks in national and international markets and their solutions are discussed.
Starbucks sells not only its coffee; it sells the “Starbucks’ experience”. The company is successful to convey its vision to the customers. It can convince customers paying more for high-quality products and a new life style. Starbucks reached its goal to establish and leverage its powerhouse premium brand through rapid expansion of retail operations, introduction of new products and store concepts, as well as development of new distribution channels.
Starbucks has revolutionized the coffee business. The main marketing strategy is to represent Starbucks’ store as a “third place” between work and home. The company could increase the market share in existing markets and open stores in new markets rapidly. Additionally, Starbucks always tries to expand its products portfolio. The company cooperates and takes alliances with other companies to develop and distribute new products. As the result, Starbucks has developed from a local coffee bean roaster and retailer in the US to a multinational coffee and coffeehouse chain with more than 14,000 stores in 42 countries.
The rapid expansion of Starbucks leads unfortunately to some serious problems. The company has to fight with the commoditization of Starbucks’ brand because of a series of decisions which are necessary for the rapid business growth. Getting back to the score, being smarter in efforts of time, money, and resources, pushing innovation, and doing things necessary to once again differentiate Starbucks from all others are the keys for business success in the future.
Table of Contents
- Executive Summary
- Table of Contents
- 1 Introduction
- 2 Main Part
- 2.1 The effect of Starbucks' entry into the grocery market
- 2.2 The "Starbucks' experience" and new retail channels
- 2.3 Key factors for Starbucks' success
- 2.3.1 New definition of coffee store
- 2.3.2 Strategy for store expansion
- 2.3.3 Innovation in products and store concepts
- 2.4 Problems of the rapid expansion and their solutions
- 3 Conclusion
Objectives and Key Themes
This study analyzes the key factors contributing to Starbucks' remarkable success in the premium coffee market. It investigates Starbucks' distribution strategy across various channels, including coffee stores, grocery markets, and new retail avenues. Furthermore, it examines the challenges arising from Starbucks' rapid expansion and explores the solutions implemented to address these issues.
- Starbucks' distribution strategy and market penetration
- The "Starbucks Experience" and brand building
- Key factors driving Starbucks' success
- Challenges of rapid expansion and their mitigation
- Product innovation and diversification
Chapter Summaries
1 Introduction: This chapter likely provides an overview of the study, introducing Starbucks and its position in the premium coffee market. It sets the stage for the subsequent analysis of Starbucks' marketing strategies, successes, and challenges related to rapid expansion. The introduction may also briefly outline the structure and scope of the research.
2 Main Part: This section delves into the core aspects of Starbucks' marketing strategy. It likely examines the impact of the company's entry into the grocery market, the creation and cultivation of the "Starbucks Experience," and the identification of crucial factors responsible for the company's overall success. This section further explores the strategic decisions behind store expansion, product innovation, and the development of novel store concepts. Finally, it tackles the complexities and solutions associated with managing the rapid growth of Starbucks on a national and international scale.
Keywords
Starbucks, marketing strategy, premium coffee, distribution channels, brand building, rapid expansion, market penetration, product innovation, competitive advantage, challenges of growth.
Starbucks Case Study: Frequently Asked Questions
What is the purpose of this document?
This document provides a comprehensive preview of a case study analyzing Starbucks' success in the premium coffee market. It includes a table of contents, objectives and key themes, chapter summaries, and keywords. The information is intended for academic use, focusing on themes related to marketing, distribution, and brand building.
What topics are covered in the case study?
The case study examines several key aspects of Starbucks' business strategy, including its distribution strategy across various channels (coffee stores, grocery markets, etc.), the creation and maintenance of the "Starbucks Experience," the factors contributing to its success, the challenges of rapid expansion, and its approach to product innovation.
What are the main objectives of the case study?
The study aims to analyze the key factors driving Starbucks' success, investigate its distribution strategies, examine the challenges of rapid expansion and their solutions, and understand the role of product innovation and brand building in Starbucks' market dominance.
What are the key themes explored in the case study?
Key themes include Starbucks' distribution strategy and market penetration, the "Starbucks Experience" and brand building, the factors driving Starbucks' success, the challenges of rapid expansion and their mitigation, and product innovation and diversification.
What is included in the "Chapter Summaries" section?
This section provides a brief overview of each chapter's content. The introduction sets the stage, while the main part delves into the core aspects of Starbucks' marketing strategy, including its entry into the grocery market, the "Starbucks Experience," key success factors, challenges of rapid expansion, and solutions implemented.
What keywords are associated with this case study?
Keywords include Starbucks, marketing strategy, premium coffee, distribution channels, brand building, rapid expansion, market penetration, product innovation, competitive advantage, and challenges of growth.
What is the structure of the case study?
The study is structured with an introduction, a main part detailing various aspects of Starbucks’ strategy, and a conclusion. The main part further breaks down the analysis into sub-sections focusing on specific strategic elements and challenges.
Who is the intended audience for this case study?
This case study is intended for academic use, particularly for students and researchers interested in business strategy, marketing, and brand management. The analysis focuses on providing a structured and professional examination of the themes discussed.
- Quote paper
- Dr. Khanh Pham-Gia (Author), 2008, Marketing strategy of 'Starbucks Coffe', Munich, GRIN Verlag, https://www.grin.com/document/132247
