Marketing Class Starbucks Case Study

Running head: MARKETING CLASS STARBUCKS CASE STUDY 1

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Marketing Class Starbucks Case Study

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1. What are Starbucks’ products?

Starbucks Company deals in gourmet coffee that has made the company rise to be the leading firm in the coffee retailer industry. The corporation had created over 15,000 stores in 44 countries to serve their customers satisfactorily. The aim of the firm is to have over 30,000 stores spread all over the world to increase the customers’ base. The company is currently serving more than 33 million customers on weekly basis (Peter, 2008).

2. What advantages does McDonald’s have in competing with Starbucks for coffee sales?

McDonald’s enjoys some advantages over Starbuck in the coffee sales. First, McDonald has more stores than Starbucks which gives them an upper hand in the coffee business. The high number of stores owned by McDonald’s has enabled them to reach more customers across the globe. Secondly, McDonald’s has improved the quality of the coffee they give to the customers. While Starbucks’ ensures that the quality of the product offered to the customers is maintained, McDonald’s ensures that they give an improved quality of coffee to their customers. The last advantage of McDonald’s over Starbucks’ is the inclusion of complementary products such as Panera Bread that attract more customers to their shops. On the contrary, Starbucks’ included products such as stuffed chairs for plastic and games the experience of the coffee drinker decreased thus reducing its niche in the market (Peter, 2008).

3. What changes in the society helped Starbucks to become successful.

Some of the societal changes in the society that had made the company to be successful include the increasing number of the coffee drinker. In the US it is estimated that the number of coffee drinkers is over 166 million. The second factor that has caused the success is the outsourcing attitude of the managers. In the workplaces today, the number of offices supplied by coffee from outside has drastically increased. The last change in the society that has also favored the firm is the tight schedule in the workplace that makes people opts for to eat in restaurants than going back to their homes (Peter, 2008).

4. What strategic factors account for Starbucks’ long-term success in developing brand equity?

The factors that have helped the firm in its long-term success are as follows. First, the firm has well-trained personnel that prepares the products and serves the customers. The employees have attracted the customers with their level of professionalism when dealing with customers. Secondly, the company offers a comfortable atmosphere for the customers in their restaurants. The atmosphere created in the restaurants help in containing the customers for a long time and in turn increases their sales. The last factor is the high quality and variety of products offered to the customer (Peter, 2008).

5. What are the advantages of the Starbucks Card to the company and to customers?

The Starbuck card helps the customer pay their purchase without carrying cash for their safety. The card holders are also given privileges and information from the company pertaining to the products of the firm. The firm, on the other hand, used the card for consumer relationship marketing thus cuts down the product promotional costs. The card helps the firm to create and maintain customer’s loyalty.

6. What recommendations do you have to improve Starbucks’ competitive position?

For the company to improve its competitive position, it should work on improving the quality of its products to the clients. Secondly, the firm needs to invest more in the international market where there are plenty of opportunities. The last recommendation is that the firm needs to put more effort into its product promotion so that the products are known by more potential clients.

7. Evaluate the Starbucks mission statement and guiding principles. What do they suggest about the company?

The mission of the company is to become a premier purveyor in the coffee industry while upholding their guiding principles. The mission implies that the firm intends to grow to international level while maintaining its business ethical practices. The intention of the firm is to satisfy all their customers and still protecting the environment (Peter, 2008).

References

Peter, J. (2008). Case Group B product strategy – Starbucks.