Starbucks project - Issues in global marketing
AZ7755
starbucks_report-2.pptxStarbucks
Starbuck’s
Starbucks has been the largest coffee house organization
Starbuck sold coffee products through its coffee house chain
17,000 distribution stores globally with its produce diversity
Coffee
Food
Snacks
Salads
Starbucks wants to achieve growth on a global scale while remain profitable
Issues Faced by Starbucks
Challenges will come in the form of Culture Differences and Economics
Anti-Globalization policies impeding Starbucks expansion
Despite attempts to be Socially Responsible, Starbucks has failed
Starbucks wants to achieve Globalization while maintaining commitment to Corporate Social Responsibility
Starbucks Strategy
Achieve Global success because of Mission and Vision
Mission is to be able to inspire and cultivate the human spirit
Quality service
Vision is to establish Starbucks as the premier supplier of the best coffee in the world
Not compromising principles to achieve success
Strategic plans involve all stakeholders in the company which includes customers, partners and shareholders
Satisfying customers and employees
Being a Socially Responsible Company
Marketing Strategy
Focusing its core competencies in order to differentiate
Created a standard for their coffee
Leverage of the company to many products and markets and creating ideas that are hard for competitors to imitate
Created a standard for their brand
Advertising
Atmosphere
Market Structure
Coffee is an important commodity
Estimated that 2.25 billion cups served
Coffee shops most popular in Industrialize Countries
Market expected to continue to grow
Highly Competitive
Easy to enter market
Differentiation required
With many competitors there are many substitutes
Many global competitors
Some of Starbucks North American Competitors achieving global success
Competition
Quick service restaurants and the specialty coffee shops
Dunkin Donuts
McDonald’s
Panera Bread
Second Cup
Many competitors in Domestic as well as International Market
McDonald’s
Costa Coffee
Competitors able to offer profitable substitutes
Same products at cheaper prices
Global Issues
Political Issues
Country’s attitude
Government bureaucracy
The political stability
The monetary regulations
Economic Issues
Recession
Country Cultures Differ
Currency differences
Tariffs and trade barriers
Financials
Starbucks total revenue increased by 10% to approximately 3 billion in 2011
Projected growth intended to increase revenue each year
Managing board of directors should implement appropriate policies
Cost of marketing should maintain at a minimum
Store globally should be evaluated to ensure consistency growth
Marketing should increase the figure by 15%
Reduce the current supplier costs by 20% through direct purchases of coffee from the producers
Recommendations and Conclusion
The management has realized that it must safeguard and develop its brand name and reputation so that it can bring more success in the future.
Starbucks needs to embrace technology
Capital investment in order to set up distribution stores across the globe
Starbucks need to change the organizational structure to reflects changes in the organizational strategy
Starbucks has to perform a number of strategic reviews that involve financial or economic assessment and breakdown
