These factors affect customers’ needs and the size of the potential market. The Company is using both demographic and geographic segmentation strategy in order to position its offerings as per their preferences of the customers accordingly. Let’s dive in a detailed swot analysis … Among all the products offered by the Company, the main product of Starbucks is its high premium coffee that offers a unique experience to its customers which is different as compared to the coffee of its competitors. The theoretical part analyses the macro environment of Starbucks with PEST analysis and points out the strengths, weaknesses, opportunities and threats of Starbucks in the Chinese internal market with SWOT analysis. According to Lock (2020) it has approximately 14.88 thousand stores in the country. Coffee being their staple product, they offer over 30 blends, which come from all over the world. They package these as well as produce a premium handcrafted beverage in their stores. Developing nations are the big potential for the companies in this industry. With the integration of all strategies it has been possible for Starbucks to compete with its direct competitors in the market like Costa Coffee, Dunkin Donuts, McDonald’s McCafe, etc. This analysis will list the 6 factors i.e. We hope the article ‘Competitors of Starbucks (Competitor analysis of Starbucks)’ has been … Post author By amplemarketreports Post date October 14, 2020 No Comments on Coffee Market SWOT Analysis by Key Players : Starbucks Corporation, The Kraft Heinz Company, The Coca Cola Company, Dunkin, Strauss Group Ltd, Tata Global Beverages Ltd Retrieved from https://www.ukessays.com/essays/marketing/competitor-analysis-and-contemporary-trends-starbucks-marketing-essay.php?vref=1, Friesner, T. (2014, May 9). Following are the place mix of Starbucks Company: Previously the company used to sell its product through the Cafes. Starbucks 4P’s of Marketing Mix is described as follows: Some of the Major Products offered by Starbucks are: Among all the above products the main product of Starbucks is its high premium coffee that offers a unique experience to its customers which is different compared to the coffee of its competitors. Tax avoidance scandal: Starbucks got a lot of criticism for not paying taxes in the UK during 3 consecutive years during the 2010s. They now have 4,588 stores in over 43 countries. Market research is at the core of many of the market entry strategies Starbucks is employing. 2.1 Primary Research: Large, established companies, typically expend considerable resources conducting marketing research, either through their own internal research departments or by contracting with outside research firms. Starbucks operates over 10,000 retail stores. Starbucks was founded in Seattle, Washington in 1971. Competitor Analysis And Contemporary Trends Starbucks Marketing Essay. Most of the 4,200franchised stores are located in shopping malls and airports. GREENSPAN, R. (2019, February 27). Dependence on the US market… they believe “people come here for the coffee, but ambience is what makes them want to stay,”. Starbucks was estimated to have a 5% share. Starbucks Company is not only focused on making profit but also is carrying out social and ethical responsibility equally. Starbucks segmentation, targeting and positioning. Competitive Analysis is defined as one of the critical parts which deal with identifying the key competitors of the company’s product and services along with evaluating strategies adopted by competitors to determine their strengths and weaknesses as compared to the product and service of your company (Li, 2017).  Strong Market Position and Global Brand Recognition: Starbucks has a significant geographical presence across the globe and maintain a 36.7% market share in the United States (Appendix 1) and has operations in over 60 countries. Entrance into many Developing Markets – Starbucks has many coffeehouses in the United States. Strengths in the SWOT analysis of Starbucks. “The company has realized that people don’t only come for coffee; they come for the atmosphere,” (Kembell). Examples of how Starbucks has used market trend data, digital consumer feedback and in-store product testing are the launches of its dairy-free milk alternatives. Required fields are marked *. Starbucks was estimated to have a 4% share. It identifies all the key strengths, weaknesses, opportunities and threats that affect the company the most. Some Researches showed Starbucks was operating in over 300 Company-owned stores in the United Kingdom, Australia, and Thailand. The purchases of the consumers are mostly influenced by several factors, which include but not limited to the quality of the coffee, the price, alternative coffee shops, and even the customer services offered (Ruiz, 2011). Auto-Cannibalization caused by the aggressive expansion of its stores. Starbucks is using both traditional and digital media to advertise its product and position its brand image. Starbucks was founded in Seattle, Washington in 1971. The internal factors in this part of the SWOT analysis of Starbucks Coffee Company show that the business must develop strengths to reduce the adverse effects of imitation and the influence of high price points on the company’s market share in the global industry. Starbucks Strategic Analysis. Customers that started visiting Starbucks in 2002 were 45% female,55% male. In the blog post we give target market analysis of coffeshops including Starbucks. Specialty coffee was an estimated $5 billion business in the foodservice channel. The Starbucks business depends on economic factors in developing countries, where it buys the coffee beans. Around the globe, the company was turned into a huge success with the effort of Howard Schultz. We're here to answer any questions you have about our services. The primary marketing operations these are done by Starbucks are dividing the market into different segments, analyzing the current needs of the market and the marketing mix including products, prices, places, promotions and Good Marketing: Starbucks gained popularity as a concept as well as a brand because of the good marketing is undertaken by the brand. SWOT Analysis of the Starbucks. To see this page as it is meant to appear, please enable your Javascript! Social factors include the demographic and cultural aspects of the external environment. The company is spending a huge amount of money on marketing and advertising (GREENSPAN, 2019). Free resources to assist you with your university studies! Coffee is the principle commercial crop. The Company is using BCG (Boston Consulting Group) Matrix Strategy in order to review the portfolio of its products for finding out the product to invest in, product to discontinue or develop. Let’s dive in a … It has become a part of American culture now. They understand that Starbucks is more than just a brand of coffee, but instead, it’s an experience that a person is savouring in the morning during their coffee time. Marketing Strategy of Starbucks – Starbucks Marketing Strategy. Retrieved from Entrepreneur Asia Pacific: https://www.entrepreneur.com/encyclopedia/competitive-analysis, Loob, W. (2013, January 31). Howard Schultz’s task was to closely observe how Italians treat the product and figure out a way to bring it home with minor changes. During 2015 and 2016, this brand has invested nearly $350 million on the marketing campaigns. This site uses Akismet to reduce spam. Starbucks menu contains brewed coffee, espresso traditions and, favourites, cold beverages, coffee alternatives, frappuccinos, and the, From the beginning when Howard Schultz took, over Starbucks, he believed, “Partner satisfaction leads to customer. Examples of how Starbucks has used market trend data, digital consumer feedback and in-store product testing are the launches of its dairy-free milk alternatives. The target market of Starbucks expanded to include rural communities, ethnic neighborhoods, rest stops, and others. (Johnson. The company has spent around $350 million in marketing and advertising in 2015. Market research is at the core of many of the market entry strategies Starbucks … Too much dependent on the US market with 8078 stores only in the USA. Starbucks rst opened in Seattle in 1971 (Starbucks, 2014) and has grown from one store to 19,767 stores today. This Starbucks SWOT analysis reveals how the largest coffee chain in the world uses its competitive advantages to continue growing so successfully all over the world. Starbucks is successful to satisfy the market needs and changing demands through new innovations and by establishing new products. You are to provide a management report that must address the following 3 questions: Because of the increase in the price of the roasted coffee beans and other raw materials, the company has to keep   price of the coffee high than other competitors Costa Coffee, Café Coffee Day, etc. Business growth of the Starbucks is dependent on the strengths possessed by its business activities and also from the competitive edge it attains in the market. Average age for an established customer was 38, new customers was 42. These events had a negative impact on Starbucks’ brand image. and create its own space in the market. Starbucks is the market leader in the USA in terms of number of outlets. They changed the normal experience of going to a coffee shop. We've received widespread press coverage since 2003, Your UKEssays purchase is secure and we're rated 4.4/5 on reviews.co.uk. As of 2018, the company operates 28,218 locations worldwide. Customers are able to socialize, read, study or enjoy music while drinking coffee. Starbucks already has an existing connection to Sweden: CEO Howard Schultz previously worked with Hammarplast, “a Swedish housewares company which marketed coffee makers” (Subhadra and Dutta, 2003). Such offers help increase one’s market reach. (2018, November). (Knowles et al, 2001) As Starbucks is expanding internationally, trade restrictions, tariffs, tax policies and employment laws of related to their business countries have influence upon Starbucks. Ground coffee. They sprung up in urban areas, suburbs, as well as rural areas. Marketing mix refers to the set of actions, or tactics, that a company uses to promote its brand or product in the market. Starbucks Weaknesses – Internal Strategic Factors. The Company along with these strategies has been adopted according to the technological pace by introducing “Starbucks App” both for Apple and Android. Starbucks is depending on the U.S market which is a major weaknesses for the company. Below is a detailed Pestle analysis of Starbucks, the premium coffee and beverages retailer. Starbucks Company Market Analysis. and create its own space in the market. Company Registration No: 4964706. Geereddy, N. (n.d.). JAB owned brands such as Pret a Manger, Peet’s Coffee, and Caribou Coffee also put … The website techfee tells us that 49 percent of Starbucks customers are from age 25 to 50. *You can also browse our support articles here >. Notify me of follow-up comments by email. The report illustrates the application of the major analytical strategic frameworks in business studies such as SWOT, PESTEL, Porter’s Five Forces, Value Chain analysis … STARBUCKS MARKETING ANALYSIS CRIS B 201501 ... category, a low market share but a high business growth rate. The Company is not only focused on profit but also is carrying out social and ethical responsibility. Market analysis in the Marketing strategy of Starbucks – Coffee consumption in globally is growing at the rate of 2%. That means in the United States they had 11,168 stores, 7,087 company operated stores and 4,081 licensed stores make up this staggering number. The company was originally named Starbucks Coffee, Tea and Spices, but today change to Starbucks Coffee Company. And 40 percent are the younger generation who are less than 25 years old, students, whom Starbucks appeal with their novelties and with cool image. From simple essay plans, through to full dissertations, you can guarantee we have a service perfectly matched to your needs. This is not an example of the work produced by our Essay Writing Service. SWOT Analysis of the Starbucks Business growth of the Starbucks is dependent on the strengths possessed by its business activities and also from the competitive edge it attains in the market. Starbucks segmentation, targeting and positioning comprise marketing decisions directed at identifying appropriate group of people among the general public as future customers for the business and targeting this segment via positioning products and services that resonates well with their needs and wants. The strategic use of different marketing channels affects the profitability of the business. Starbucks Case Analysis. The company offers expensive products but has a great product quality that allowed the company to sustain its premium image among its customers because of the high quality and amazing experience offered by the company. | Organizational Behavior, Key elements of Organizational Behavior | Organizational Behavior. political, economic, socio-cultural, technological, environmental, and legal factors that … They have comparably more income. We speak about target audeinces and target customers of … But due to growing advancement in technology company has allowed its customers to place their orders through the use of the Starbucks App. It also throws light on the threat that the business can encounter to get the maximum benefit from the various opportunities in the international market. VAT Registration No: 842417633. Retrieved from Marketing91: https://www.marketing91.com/marketing-strategy-starbucks/, Essays, U. Disclaimer: This work has been submitted by a university student. Starbucks target market has been changing over time in response to the changes in the market. The music selection, furnishings, wide selection of coffee, and great customer service set them apart. You can view samples of our professional work here. To export a reference to this article please select a referencing stye below: If you are the original writer of this essay and no longer wish to have your work published on UKEssays.com then please: Our academic writing and marking services can help you! Dependency on the U.S. Market. Starbucks Marketing Mix. Now stores are located all over the U.S. Registered office: Venture House, Cross Street, Arnold, Nottingham, Nottinghamshire, NG5 7PJ. Out of $24.71 billion revenue, the company generated 16.7 billion US dollar from the American market. Starbucks has many coffeehouses in the … Stay up to date on the latest stock price, chart, news, analysis, fundamentals, trading and investment tools. SWOT analysis is a powerful tool that is used by the company to assess its external and internal factors for evaluating strengths, weaknesses, opportunities, and threats of the company. 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