starbucks marketing strategy - esl
Post on 17-Oct-2014
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by Patrícia Azevedo (Brazil) and Kyle Tsung (Taiwan)August 2009 - UC Irvine - Grade: A+This is my final project for ESL Marketing Program, at University of California Irvine. Our goal was present marketing concepts throught a real American Brand in a creative presentation.TRANSCRIPT
Starbucks Coffee Company - Profile
Founded in 1971, in Seattle - selling high-quality green coffee
beans ;
Howard Schultz joins Starbucks in 1982 – starts to provide coffee to fine restaurants and espresso
bars;
1984 – 1st store coffee bar concept;
Today: almost 17,000 stores in 49 countries (11,000 in U.S.);
Revenues: 9% whole beans coffees + 12% equipment + 15%
food + 64% beverage
Starbucks Coffee Company - Subsidiaries
Subsidiaries: Starbucks Coffee Company, Tazo Tea Company, Seattle's Best Coffee, Torrefazione Italia, Hear Music and Ethos Water.
Seattle's Best Coffee
began in 1968 as an ice cream parlor/coffeehouse
known as "Stewart Brothers Coffee“ till 1991.
purchased by Starbucks in 2003
Torrefazione Italia
also founded in Seattle in 1986 espresso, coffee and baked goods also purchased by Starbucks in 2003
Ethos water brand of bottled water with a social mission :
“Helping children get clean water“ began in 2001. purchased by Starbucks in 2005 approximately $0.05 to $0.10 of the retail
price ($1.80) goes to charity
Hear Music
retail music concept and record label began as a catalog company in Massachusetts in 1990 purchased by Starbucks in 1999
Current artists: Anjulie, Paul McCartney, Joni Mitchell, Sia, James Taylor, Hilary McRae, Carly Simon, John Mellencamp and Antigone Rising
Competitors
Holds a dominant position in the specialty coffeehouse market
no single clear rival in the sector
closer competitors: other specialty coffee shops, doughnut shops, restaurants
More intense competitor: McDonald's - became a rival in 2006. Upgraded to coffee, has 14,000 stores in the U.S. and world wide expertise .
Product – What Starbucks can provide for me?
Tangible ProductCoffee, coffee bean, tea, food, cold drinks (milk, water, juice), tea, bottle , mug , music and seasonal products
Core Product: services provided in store Coffee, considerable service, relieved atmosphere, decoration , Wi-Fi connection
Augmented Product: intangible service Interaction with customers
Tangible Product
Tangible ProductCoffee, coffee bean, tea, food, cold drinks (milk, water, juice), tea, bottle , mug , music and seasonal products
Core product
Core Product: services provided in store Coffee, considerable service, relieved atmosphere, decoration , Wi-Fi connection
High price and high quality
Price = cost + profit
1 + 1 > 2
Perceived-value pricing strategy
PricePrice
Sales
Advertisement
Merchandising
Social media
Corporate Social Responsibility
“We always figured that putting people before
products just made good common sense.”
Sales
Changing prices
Free coffee in determinate period
Receipt as coupon
Online coupon
Cards
Special offer in website (buy 2 and get 1 free / special discounts)
Corporate Social Responsibility(CSR)
Green Stores: Building greener stores
Purchased renewable energy
Greener Cups: The quest for the 100% recyclable cup