Ch. 4 - The Marketing Environment

Demographic Factors

 

- Tweens(8~12)

     Tweens are the biggest potential customers in the future of all market sections. Therefore, attracting tweens to Starbucks is really important to company's development. Starbucks' best selling product is Coffee. However, coffee isn't allow to children, usually. Caffeine can be hamful to children, so Starbucks has Kid's menu, Apple juice, steamed milk, hot chocolate, and so on. building positive relationship with customer is the most important way of marketing, especially when they are young. If customers have bad attitude to one company, they wouldn't be customers of that company when they grow up.

- Teens

      Teens starts to think about shopping, and their friends are the most powerful effects to teens. If they have to buy somthings, They will ask to their friends. not to their parents. As a result, they need space to talk, access of internet, and something to drink during the conversation.  In addition, Students have light purse, so they are sensitive to price. Therefore, they need to find reasonable price to them. Starbucks coffee shop fits to those conditions.

-20' to 40'    

     Twenties to Thirties are major customer in coffee market. For 20'to 40', coffee is the starter of a day and finisher of a day. For example, if they didn't get breakfast, they would get some drinks during the way of work place or school. In addition, they lives in busy life. They starts to work, so thier finacial status are usually stable. Therefore, they choose a coffee shop as how close to thier school or workplace. In Chapter 2, I found Starbucks' accessiblilty as the 'Strength' of Starbucks. You can find over hundreds of  Starbucks coffee shop in the manhattan. You can find same flavor and same menu in five to ten minutes.

 

-Elders

 

have you ever been to Starbucks in suburban? The Starbucks is meeting room for villager. You can talk with elder of village without wall. They know people who sit near their table. you can encounter your neighbors. if you ask "what are you doing, here?", they will answer "I just looking people. I'm alone in my house, because my son and dautgher go to work. If I sit here for 2~3 hours, I can meet my friend without plan." for elders, Starbucks can be a day-care center with coffee.

 

 

Conclusion 

Starbucks is known as the most famous coffee shop in the world. Starbucks' targets are people who want dirnk. No matter how old s/he is, no matter how much their income is, they will serve Starbucks coffee to their coffee. Starbucks just require to their customer afford to $3~$7 coffee price. It's almost same price with a bottle of water.

Ch. 3 - Ethics & Social Responsibility

For Coffee

Starbucks collaborate directly with coffee farmers. Starbucks made first farmer support center at Costa Rica in 2004. As helping coffee famers, Starbucks expacts to encourage responsible growing practices and improve the quality and size of coffee harvests.
Starbucks has plan to 2015 and has continued to expand the program. In addition, Starbucks shares coffee knowledge with farming communities through Starbucks office in Guatemala City and additional farmer support centers in Kigali, Rwanda, and Mbeya, Tanzania to improve the quality of coffee.

For Recycling

If you visit Starbucks near our school, 120 Church St, New York, NY. You can find recycling box which looks like this picture. this is called Front-of-Store Recycling. You can guess easily where it is located. It's located in front of store. As setting this recycling can, almost 94% hot cups would be able to recycle.




In addition, Starbucks has discount policy to use reusable personal tumbler. if customer used their own tembler, you can save 10cents for each cuffees. Nowadays, only 1.5% of customer used their tembler. Starbucks promoted using personal tembler, and made beautiful and fancy designed temblers

 

For Cummunity

In 2012, civic leaders and nonprofit organizations contributed more than 613,000 hours of service around the world. During April’s Global Month of Service, volunteers made a significant impact in more than 33 countries around the world.

Starbucks created the Youth Action program in 2008, and they set a goal of engaging 50,000 young people by 2015. These youth leaders in turn mobilized more than 1.8 million hours of community service in 2012 and created ripples of change in communities around the world. Starbucks helps many young people can build successful and socially responsible thinking, surpports nonprofit organizations, either.







by 2012 Global Responsibility Report: Year in Review, Starbucks Co.

Ch. 2 - Strategic Planning for Competitive Advantage

1. SWOT analalysis

 - Strangth: You can find same menues, and flavors in differrent countries without menu board. In addition, If you have Starbucks card, you can add to your smartphone application easily. Therefore, you can buy a cup of coffee with your smartphone, not with a heavy, thick, and old-fashioned wallet.

 

Starbucks has also machines that can make Starbucks drinks at home. If you have this machine in your home, you don't need to go to Starbucks branches in a freeze day.


Homemade Drinks Machines of Starbucks

 - Weakness : First of all, If company made new drinks, they have to consider all of worldwide trands. secondly, changing style is really hard to company. customer used to your drinks, so if company change something in drinks, customer will recognize it immidiately. As a result, company can be turned over.


 - Opportunity : Starbucks is a worldwide coffee shop, so company has many customers in differant countries. Their customer can be a each opportunity. In other words, company can give reseach to customer for new items. They will get responses by sales revenue.


 - Threats : There is many risks. First of all, coffee shop is already red-ocean. So many coffee franchises are upcoming, like The Coffee Bean and Tea Leaf, Aroma Espresso bar, and local single coffee shops, too. Therefore, if company loss their truth from customer, in the ways of taste or service, customer will find another stores instead of Starbucks.

 

 

Product Strategy

Starbucks makes 3~5 new drinks every seasons. Mocha cookie Frappuccino and Java Chip Frappuccino that blended beverages for last summer season, and Pumkin spice Latte and Salted caramel Mocha that fit to cooler weather beverages for this coming fall season.

Those seasonal drinks attrack people who want to feel changing weather. also, those drinks represent things that people want to feel in each season. Blended beverages represent cool things for summer, and Pumkin Latte or Caramel Mocha represent warm things because of low temperature.

Distribution strategy

Have you ever work through fifth avenue in New york City? How many starbucks chains can be found? you can find at least one Starbucks chain in every miles. It means, if you want to drinks any Starbucks coffee, you can get your coffee in 5 minutes on New York City. Even though, if you want your drinks in the midnight or 3 a.m, you can get your drinks in some chains near 42nd street Time Square. In addition, if you go to Japan,korea, china to trip, you can find Starbuks drinks exactually same one that you had in New York City.

Promotion strategy

Starbucks is always on promotion at least one. Basically, Starbucks card is a way of promotion. Starbucks membership have three levels, welcome, green, and gold. each level have different own benefits. For example, you can get a free refills in the stores on green level. Secondary, StarBucks have Happy Hours. If you got drink before 12p.m, you can get same drink after 12p.m with your vaild receipt.

Price Stategy

Someone said Starbucks' tall size( It is small size on the other coffee shops) coffee is so expansive. It could be a ture or fulse. tall size regular coffee is 12oz and $1.93. however, venti size regular coffee is 24oz and $2.25. Compare those two coffee. The portion is exactly two times. Contrastively, the price gap is only $0.32. It says, if you ordered bigger one, you can get your bigger drinks with two quaters.

Ch. 1 - Overview of Marketing (Brief History and Mission Statement)

The First Starbucks chain in Seattle,WA

History - 

Starbucks Corporation

The most world famous coffee shop started from tiny coffee bean wholesales store named Pequod, which sold coffee beans and roasting machines, by Jerry Baldwin, Zev Siegl, and Gordon Bowker, who met when they were university students in 1971. From 1984 to 1987, Starbucks started to sell espresso and to make foundation. Finally, Starbucks became a coffee shop like a nowadays Starbucks. 

Starbucks in a No.1 coffee house in the world, with 20,981 stores in 62 countries 

(13,279 in the United states, 1,324 in Canada, 989 in Japan, 851 in China, 806 in the United kingdom, 556 in South Korea, 337 in Mexico, 291 in Taiwan, 206 in the Philippines, 179 in Turkey, 171 in Thailand, and 167 in Germany)

Mission Statement of Starbucks

Our Coffee

It has always been, and will always be, about quality. We’re passionate about ethically sourcing the finest coffee beans, roasting them with great care, and improving the lives of people who grow them. We care deeply about all of this;

Our Partners

We’re called partners, because it’s not just a job, it’s our passion. Together, we embrace diversity to create a place where each of us can be ourselves. We always treat each other with respect and dignity. And we hold each other to that standard.

Our Customers

When we are fully engaged, we connect with, laugh with, and uplift the lives of our customers even if just for a few moments. Sure, it starts with the promise of a perfectly made beverage, but our work goes far beyond that. It’s really about human connection.

Our Stores

When our customers feel this sense of belonging, our stores become a haven, a break from the worries outside, a place where you can meet with friends. It’s about enjoyment at the speed of life-sometimes slow and savored, sometimes faster. Always full of humanity.

Our Neighborhood

Every store is part of a community, and we take our responsibility to be good neighbors seriously. We want to be invited in wherever we do business. We can be a force for positive action-bringing together our partners, customers, and the community to contribute every day. Now we see that our responsibility-and our potential for good-is even larger. The world is looking to Starbucks to set the new standard, yet again. We will lead.

Our Shareholders

We know that as we deliver in each of these areas, we enjoy the kind of success that rewards our shareholders. We are fully accountable to get each of these elements right so that Starbucks and everyone it touches can endure and thrive.