Starbucks came in being as three partners who met while they

were students at University of San Francisco. Jerry Baldwin, Zev

Siegl and Gordon Bowker the passion of coffee in them inspired
them to sell high quality coffee beans and equipments. Starbucks
is an American companies founded in 1971 in Seattle.There are
many stories how Starbucks got its name. As for Bowker
recollection of how the company got its name. He recalls that the
co-founders were desperately close to naming the company
"Cargo House" until Heckler mentioned that he thought words that
began with "st" were powerful ones. That led Bowker to make a
list of "st" words, and somebody somehow saw the old mining
town of Starbo in an old mining map hence its name came into
being.
The first Starbucks caf was located at Western Avenue for six
years (1971-1976). This branch was later shifted to Pike Market in
1912.
The logo of Starbucks has been changing over period of time the
latest was changed in 2011, which is being used currently.

Starbucks has about 182,000 employees across 19,767 company

operated & licensed stores in 62 countries.
The headquarters are located in:
o Seattle.
o Washington.
o United States of America.

TYPE OF BUSINESS:
Starbucks is a corporation based business. It works in market
by the name of Starbucks coffee. Starbucks is the largest
coffeehouse company in the world.

OFFERING OF BUSINESS:
Starbucks offers service as well as products. Their service has
satisfied their consumers needs. The product that they are
famous for coffee, 75% of Drinks, 19% Food, 4% whole bean and
solution coffees, 2% coffee making equipment and other
merchandise. Starbucks also markets its products mix with other
brand names within its portfolio of companies, which include
Teavana, Tazo, Seattles Best Coffee, Starbucks VIA.
DRINKS/beverages OF STARBUCKS:

Iced tea.
Bottled drinks.
Evolution Fresh.
Freshly Brewed Coffee.
Espresso Beverages.
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Frappuccino Blended Beverages.

Kids Drinks & Others.
Smoothies.
Sodas.
ices coffee

FOOD ITEMS SERVED BY STARBUCKS:

Bakery.
Starbucks Petites.
Bistro Boxes.
Hot breakfast.
Evolution Harvest.
Yogurt and fruit.
Sandwiches.
Paninis & salad.

Starbucks also has various variety of accessories, T-shirt, mobile

phone covers, mugs etc.

Starbucks marketing Strategy:

Starbucks Corporation and its successful marketing strategies
are definitely something that anyone interested in business can
learn about. What sort of techniques did the company use, and
how were these able to reach out and attract millions of people
worldwide?
Perfect cup of coffee.
Third place (between house and office).
Customer satisfaction.

 Creating a Starbucks Community.

Innovation.

Starbucks marketing:
The company has created greatly individualized marketing
techniques to fit the promotion of the Starbucks brand as it
applies to the unique concept it was built on. Starbucks
employees keep an eye on the market and consumers need that
change time to time. Starbucks is famous for its unique flavor and
thats what attracts consumers, as many branches Starbucks
coffee house has it offers the same flavor.

Environmental Analysis:
PEST Analysis:
Political:
Industry-specific rules and regulations
The level of relationships between USA and countries that
produce coffee beans.
The level of political stability within a country.
Economical:
Buying power of consumers.
Local currency exchange rates.
Local economic environment within each market Starbucks
operates.
Taxation level.
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Social-culture:

Consumer preferences.
Changes in lifestyles of population.
The level of education of population in local markets.
Changing values among people.

Technology:

Emergence of innovative technology.

Biotechnological developments.
Developments in agriculture.
Automation.

SWOT Analysis:
Strength:

Strong Market Position and Global Brand Recognition.

Products of the Highest Quality.
Human Resource Management.
Use of Technology and Mobile Outlets.
Diverse Product Mix.
Goodwill among consumers due to Social Responsibly
Initiatives.

Weakness:
Expensive Products.
Self-Cannibalization through overcrowding.
Negative large corporation image.

 American/European coffee culture clash with that of other

countries.
Opportunity:

Expansion into Emerging Markets.

Expansion of retail operations.
Technological advances.
New distribution channels.
Band extension.

Threats:

Increased Competition.
Price Volatility in the Global Coffee Market.
Developed Countries Economy.
Changing Consumer tastes and lifestyle choices.
Developed Countries Market Saturation.

Market Segmentation:
Demographic & Psychographic:
Starbucks does not have a particular group to target. Its
products are for all ages. Starbucks mainly targets well educated
men and women with children. The coffee house created a mature
and high prestige image and also provides beverages and food
that appeal to children in order to appeal to their ideal segment.
ADULT: Starbucks primary target market is men and women
aged 25 to 40.Customerstend to be urbanites with relatively high

income, professional careers and a focus on social welfare. This

target audience grows at a rate of 3 percent annually.
YOUNG ADULTS: Youngsters aged 18 to 24. Starbucks
positions itself as a place college students can hang out, study,
write term papers and meet people. Total 40 percent of
Starbucks sales are from youngsters.
KIDS & TEENS: Kids and teens are also a large part of
Starbucks target audience. Together, customers age 13 to 17
accounts for just 2 percent of Starbucks sales.
Geographic:
As stated earlier, Starbucks also uses geographic segmentation.
Starbucks is located all around, specifically in upscale locations,
near offices, and near many college campuses. Their positioning
strategy is customer based, which allows them to give the best
customer service. As they continue to do this, they hold onto their
sustainable competitive advantage in terms of their customer
satisfaction as well as their employee satisfaction. Starbucks has
more than 10,000 shops in more than thirty countries. It targets
mostly the Europe and Asian countries. Starbucks is present in 65
countries and territories.as Europe has 25 countries, Asia has 22
countries, South America has 6 countries, Oceania has 2
countries, North America has10 countries, Africa has 2 countries.

Marketing mix (4ps of marketing):

Price:

 Pricing approaches
Value-based pricing(good service, quality); Not CostBased Pricing(mark-up too high)
Competition-based.
Comparing with competitors
Similar price ranges
More benefits to impress consumers
Promotion:
Advertising
Reminder e.g. location of new outlet.
Informative e.g. new flavors of drinks.
Public relation
Community relationship.
Invited celebrities.
Place
Number of channel levels
Uses direct marketing channel (Starbucks outlets).
Also uses indirect marketing channel (bottled
Frappuccino).
Consumer responses on Starbucks place
Convenience of Starbucks.
Starbucks to be intensive or selective distribution.
Product
Brand positioning
Product attribute: organic coffee.

 Product benefit: caffeine.

levels of products
Core benefit, actual product, augmented product.

Price of the offerings:

The price of Starbucks products are never the same they always
change with the products demand for the consumer. Starbucks
coffee maintains a fairly inelastic demand curve, and a small price
increase can have a huge positive impact on their margins without
decreasing demand for drinks. In addition, only certain regions
are targeted for each price increase, and prices vary across
depending on the current markets in those areas.
Packaging: Starbucks products are offered in different packagings.
Such as bottles, brown bags, air seal packs, disposable cups and
many other ways of offerings. Starbucks uses recycle packages
as for welfare of the environment.

Starbucks promotion in the market:

1. Social media:
Tweet-a-coffee: lets users do exactly what the name
suggests: send redeemable Starbucks e-gift cards through
their Twitter accounts.

 My Starbucks app: On the Starbucks app for iPhone and

Starbucks app for Android. Get consumers can shake to
pay for a speedy purchase, digitally tip your barista, and
download our free Pick of the Week.
2. TV advertisement.
3. Billboards.
4. Ads in magazines.
5. Pamphlets.

Distribution in the market:

Starbucks disturbers its products in the market stores, coffee
shops, stalls, and many other ways in the market.

Business affecting shareholders under

business ethics:
Starbucks Corporation is a non-ethics corporation.
Employees never speak against their company and always
remain loyal towards their work, but lie to the consumers.

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The high society is not being affected, because coffee comes in

their daily use. But for low society they only enjoy it once a month
(once in a blue moon).

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