Starbucks purchases and roasts high-quality whole bean coffees and sells them, along with fresh, rich-brewed coffees, Italian-style espresso beverages, cold blended beverages, a variety of complementary food items, coffee-related accessories and equipment, a selection of premium teas and a line of compact discs, primarily through company-operated retail stores. Starbucks also sells coffee and tea products and licenses its trademark through other channels and the company produces and sells bottled Frappuccino coffee drinks and Starbucks DoubleShot espresso drink and a line of ice creams.
Concluding, Starbucks is able to sell in some respects emotions and experiences. This is basically what every marketing try to realize and to measure. By providing a unique atmosphere, the customers enjoy the time they spend in the stores. The interior design and the smell of coffee are the most important aspects that support the company’s storeconcept.
Table of Contents
- What is Starbucks' product?
- What changes in society have helped Starbucks be successful?
- What strategic factors account for Starbucks' success in developing brand equity?
- What opportunities and threats face Starbucks?
- What are the advantages of the Starbucks Card to the company and to customers?
- What should Starbucks do to continue growing its revenues and earnings?
- Evaluate Starbucks' mission statement and guiding principles. What do they suggest about the company?
Objectives and Key Themes
This report aims to analyze the marketing strategies and success factors of Starbucks Coffee Company. It examines the company's product offerings, the societal changes that contributed to its growth, and the strategic factors that built its brand equity. The report also explores opportunities and threats facing Starbucks and evaluates its mission statement.
- Starbucks' product offerings and brand identity
- Societal factors influencing Starbucks' success
- Strategic factors contributing to brand equity
- Opportunities and threats to Starbucks' continued growth
- Evaluation of Starbucks' mission statement and guiding principles
Chapter Summaries
What is Starbucks' product?: This chapter defines Starbucks' product offerings, encompassing high-quality coffee, espresso beverages, blended drinks, food items, accessories, teas, and music. It highlights the crucial aspect of Starbucks selling not just products, but also an experience and atmosphere, emphasizing the importance of store design and ambiance in creating a unique customer experience. The chapter establishes the foundation for understanding Starbucks' overall brand strategy by identifying the core offerings and their emotional impact on consumers.
What changes in society have helped Starbucks be successful?: This section analyzes the societal shifts that have fueled Starbucks' success. It points to improved economic conditions, leading to increased foot traffic in prime locations where Starbucks stores are situated. The rise of information technology and media is also highlighted, emphasizing its role in customer reach and the integration of innovative technology-based initiatives, such as the Starbucks Hear Music digital music channel, into the company's brand strategy. Finally, the chapter considers the changing lifestyle of modern society, with more people on the go, creating a greater demand for convenient, high-quality coffee options.
What strategic factors account for Starbucks' success in developing brand equity?: This chapter delves into the strategic factors behind Starbucks' brand equity. It discusses Specialty Operations' role in expanding the brand beyond company-operated stores through various channels like licensing agreements and food service accounts. The chapter highlights Starbucks' strategic expansion into diverse locations, including rural and off-highway areas, to reach a broader customer base and enhance brand awareness. This strategic approach demonstrates Starbucks' proactive steps to build brand reach and loyalty beyond its core market.
What opportunities and threats face Starbucks?: This chapter examines the opportunities and threats to Starbucks' continued growth. Key opportunities include increasing market share in existing markets through store expansion and entering new markets to establish leadership positions. The substantial reliance on the US market as the major revenue source is identified as a significant threat. Maintaining brand equity through consistent product quality, ethical practices, and positive customer experiences is deemed crucial to mitigate potential risks. The chapter outlines both the potential for continued growth and the need for careful management of inherent business risks.
Keywords
Starbucks, brand equity, marketing strategy, consumer experience, societal change, economic factors, information technology, brand expansion, opportunities, threats, mission statement, specialty coffee, retail operations.
Starbucks Case Study: Frequently Asked Questions
What is the overall purpose of this document?
This document provides a comprehensive preview of a case study analyzing the marketing strategies and success factors of Starbucks Coffee Company. It includes a table of contents, objectives and key themes, chapter summaries, and keywords. The analysis aims to understand Starbucks' product offerings, societal influences on its growth, brand equity development, opportunities, threats, and its mission statement.
What topics are covered in the Starbucks case study?
The case study examines several key areas: Starbucks' product offerings (including the experience aspect); societal changes that contributed to its success (e.g., economic conditions, technology, lifestyle changes); strategic factors driving its brand equity (e.g., Specialty Operations, expansion strategies); opportunities and threats facing Starbucks; and a critical evaluation of its mission statement and guiding principles.
What is Starbucks' product, according to the case study?
The case study defines Starbucks' product as encompassing more than just coffee. It includes high-quality coffee, espresso beverages, blended drinks, food items, accessories, teas, and music. Crucially, it highlights the “Starbucks Experience,” emphasizing the importance of store design and ambiance in creating a unique customer experience.
How have societal changes influenced Starbucks' success?
The case study identifies several societal factors contributing to Starbucks' growth: improved economic conditions leading to increased foot traffic; the rise of information technology and media, allowing for better customer reach and integration of innovative technology; and changing lifestyles with more people on the go, increasing demand for convenient, high-quality coffee options.
What strategic factors built Starbucks' brand equity?
The case study points to several strategic factors: the role of Specialty Operations in expanding the brand through licensing and food service accounts; strategic expansion into diverse locations to reach a broader customer base and enhance brand awareness; and a focus on consistent product quality, ethical practices, and positive customer experiences to maintain brand loyalty.
What opportunities and threats does Starbucks face?
Opportunities include increasing market share in existing markets and entering new markets. A significant threat is the company’s substantial reliance on the US market as its primary revenue source. Maintaining brand equity is crucial to mitigating potential risks.
What is the focus of the evaluation of Starbucks' mission statement and guiding principles?
The case study aims to evaluate what Starbucks' mission statement and guiding principles suggest about the company's overall strategy, values, and long-term vision.
What are the key takeaways from the chapter summaries?
The chapter summaries provide concise overviews of each section's main findings, offering a clear understanding of Starbucks' product definition, the societal and strategic factors impacting its success, the opportunities and threats it faces, and the importance of its brand equity and mission statement.
What are the key words associated with this Starbucks case study?
Key words include: Starbucks, brand equity, marketing strategy, consumer experience, societal change, economic factors, information technology, brand expansion, opportunities, threats, mission statement, specialty coffee, and retail operations.
- Quote paper
- M.B.A. Nihat Canak (Author), 2006, Starbucks Business Case Study, Munich, GRIN Verlag, https://www.grin.com/document/64773
