This website uses cookies to ensure you have the best experience. Learn more

Starbucks Keeps It Brewing Essay

2024 words - 9 pages

Determine and discuss the barriers facing Starbucks as they try to reach people to change their consumption habits from tea and instant coffee.

Starbucks, a business that has strong popularity in the U.S., has decided to enter a new market in Asia. As result, they are facing barriers in an attempt to persuade customers to consume Starbucks coffee. The barriers that Starbucks are facing are: coffee and tea competitors, customer perceptions of coffee, price comparison, customer preferences, customers habits, and culture.
Competitors will be a barrier due to fact that “instant coffee is the major player.” Research has determined that coffee is a new item entering the market in Asia. ...view middle of the document...

Customer preference is a barrier that can be changed by researching what customers want in coffee. If the majority of consumers in Asia like a weaker version of coffee, and if Starbucks does not do the proper research to determine the customer’s preferences in Asia, they could lose a lot of money, and not improve their market share in this country. Specific insights in terms of coffee in Asia include association with Western lifestyles, the consumption of Starbucks coffee with status and wealth, preference of local products, and they prefer sweet tasting foods and beverages. Karl Salmon also indicated that the top five factors for Asian customers were “high quality, good for health, cares about customer, fits self-image, and fair price.” (Hawkins & Mothersbaugh, 2010)
The demographics will also play a factor in the barrier of price comparison. According to the textbook, “The potential 1.3 billion population base is largely rural and lower income.” (Hawkins & Mothersbaugh, 2010) Even though the middle class is growing, they tend to live in major cities. The target market of middle income class is expected to grow, however Starbucks will also need to focus on the customers that are in rural areas.
Make recommendations about what Starbucks can do to successfully encourage greater coffee consumption.
In order to encourage greater coffee consumption, Starbucks should offer test markets to determine what coffee tastes that customers prefer. By offering samples, they are able to effectively advertise their brand. In additions to offering samples, smaller sizes can be offered to the lower income market. By having a variety of sizes, market trials to see what consumers prefer in Asia, and by offering competitive pricing, Starbucks can stay competitive, and ahead of the same. Starbucks should also consider the culture of Asia and offer sweet desserts that are considered popular in Asia. Starbucks should also consider offering an instant coffee line that is complete with their own brand of sweeteners, and creamers as well.

Develop an advertising campaign that not only would encourage greater coffee consumption in general, but also more demand for Starbucks. Specify key themes, copy points, and visuals.
Starbucks should have an open house campaign on the slowest day of customer traffic that invites customers to come in a try a sample of their coffee. The coupon could ask for feedback on the product, and it could also request their email address for marketing opportunities. During the open house, there could be desserts on sale, and the coffee samples would be small. Wherever there are community events or gatherings, they should offer samples. This provides feedback, and new potential customers. The key theme of Starbucks should be its store slogan of "It’s not just coffee, it’s Starbucks" and “Coffee is culinary”. There should be aggressive advertising to the mature market, and the working professionals. The key theme of this...

Other Essays Like Starbucks Keeps It Brewing

Starbucks Innovation Essay

782 words - 4 pages . They should change the brands image that it was not only product and service also an unique experience on coffee drinking. They had partnership with United Airlines which start to service Starbucks Coffee on flights in 1996. It was a huge opportunity for Starbucks to diffuse, the partnership was a great success. Another important fact for company was the global expansion includes sores in Japan, Hawaii and Singapore in 1997. In 2004, company

Starbucks Analysis (Swot, Strategies And Core Competencies)

1140 words - 5 pages , retail skills and “brewing the perfect cup”. It is very evident that they care for their employees. Because of this, Starbucks has one of the lowest employee turnover rates in the industry. Lastly, it’s drive to be everywhere is definitely of one their core competencies. This has worked very well for Starbucks and has penetrated a wide variety of market and locations.   5   Sources: "Starbucks Marketing Strategy." Why Do People

Organizational Behavior

3989 words - 16 pages , influenced Starbucks’ ultimate path. Schultz was able to stay focused on his goal and mission for Starbucks. By maintaining his focus, he was able to develop the competitive advantage that keeps Starbucks going today. One part of Schultz's goal for Starbucks was for it to become a company that provides personal experiences to its customers. Starbucks fulfills that goal by focusing on and innovating the coffee shop experience through music

Starbucks Case Study

2568 words - 11 pages the convenience of a large volume of locations, which separates them from their competition. VIA, the new instant coffee line is straddling differentiation and low cost- leadership. While it will be a low cost and convenient alternative to Starbucks regular coffee, it is still unique from other products in the market. The in-store gifts and brewing utensils are in the focused differentia- KATHLEEN LEE 5 CASE STUDY: STARBUCKS tion category

All Paper

1704 words - 7 pages company with emphasis on strong values and guiding principles that its employees would be proud of and the employees could feel like their thoughts and decisions mattered. The 2010 vision never changed fully but was an expansion of the 1980 vision. It just amended the business needs and changes that took place to include more innovative and cost cutting practices. Starbucks wanted to expand their market segments, complete their acquisitions while


3729 words - 15 pages retailer, the company has expanded rapidly. Between 1987 and 2007, Starbucks opened on average two new stores every day. Starbucks had been profitable as a local company in Seattle in the early 1980s but lost money on its late 1980s expansion into the Midwest and British Columbia. Its fortunes did not reverse until the fiscal year of 1989-1990, when it registered a small profit of $812,000. By the time it expanded into California in 1991 it had become

Starbucks a History

1203 words - 5 pages brewing and roasting accessories. They did well until things began to change in the 80’s. (Garza, G 2014) In 1982 Retail Sales and Marketing man Howard Schultz is brought on board. In 1985, Schultz leaves the company to found Il Giornale. In 1987 the owners of Starbucks Coffee Company sell their business and name for $3.7million. They merge with Il Giornale, changed the Logo to Starbucks’ current well known logo- the deep green ring inscribed with

Environmental Analysis Paper

3011 words - 13 pages their empoyees and customers. This includes the introduction of anti-slip floor mats in California company-operated stores and introducing new digital brewing equipment and automated espresso machines to reduce the risk of burns for employees. Starbucks abided by all applicable labor laws for their partners and followed International Labor Organization’s Declaration of the Fundamental Principles and Rights at Work. The company developed a tax

Case Study on Starbucks

5204 words - 21 pages March 2008, Starbucks had more than 16,226 stores worldwide, including 11,434 stores located in the United States. On July 1, 2008, the company announced it was closing 600 under-performing company-owned stores and cutting U.S. expansion plans amid growing economic uncertainty. On July 29, 2008, Starbucks also cut almost 1,000 non-retail jobs as part of its bid to re-energize the brand and boost its profit. Of the new cuts, 550 of the positions are

Fin534 Assignment 1

2854 words - 12 pages announced it may change some of the product line but keep the Teavana experience the same, as well as expand locations outside of malls and onto urban streets (Jennings, 2013). Starbucks offers consumers a wide variety of products from which to choose. Below is an abbreviated list of some of Starbucks product lines: (Starbucks Corporation, 2012a). • Coffee: More than 30 blends and single ‐ origin premium coffees. • Handcrafted Beverages: Fresh

Starbucks' Market Research Implementation Plan

2170 words - 9 pages to result in more coffee sales and larger revenue for Starbucks. According to Entrepreneur Media (Secondary Market Research, 2012), secondary research consists of “outside information assembled by government agencies, industry and trade associations, labor unions, media sources, chambers of commerce, and so on. It is usually published in pamphlets, newsletters, trade publications, magazines, and newspapers.” For Marketing Team A’s market

Related Papers

Starbucks Marketing Plan Essay

3452 words - 14 pages . (2013). Starbucks SWOT analysis 2013 | Strategic Management Insight. [online] Available at: [Accessed: 10 Dec 2013]. Theodore, S. (2002). Expanding the coffee experience: Starbucks keeps sales brewing with new products, innovation and global expansion. New York: Beverage Industry pp. 57- 62.

Marketing Essay

2445 words - 10 pages socialize. This strategy increased the customer base of Starbucks. A lot of customers prefer Starbucks as a place to socialize.  References Isidro, I. (2004). Learning from Starbucks: 10 lessons for small businesses. Power Home Biz. Retrieved online: Theodore, S. (2002). Expanding the coffee experience: Starbucks keeps sales brewing with new products, innovation and global expansion. Beverage

Starbucks Strategic Management Essay

2131 words - 9 pages select coffee beans packed in given quotations. Starbucks sold its products online successfully. RECOMMENDATIONS: Starbucks is a globally known company which has branches all over the world. It has developed a lot in terms of sales and success growth keeps on uplifting. The name starbucks and its fame, brand image has created a trend in the coffee house industry. In order to sustain with the competition and to remain in the top notch

Starbucks Essay

670 words - 3 pages Starbucks is one of the most famous companies among coffee industry in the world. There are 20,366 stores in more than 50 countries and 1,299 in the UK. The firm was built by Jerry Baldwin, Zev Siegl and Gordon Bowker selling coffee beans and brewing and roasting equipment, they did not sell brewing coffee. It was started at Seattle which is in Washington, U.S.A in 1871. Pequod is the first name of the firm but some of co-founder rejected it