EXECUTIVE SUMMARY
Coffee market is continuously changing and this section include the marketing plan to show where Starbucks stands in this current market.Major changes in coffee industry include changes in the price of coffee, changes in buying habits of customers,new market entrants etc...Starbucks is well known for its exceptional coffee products and is regarded as the company that has revolutionized coffee business.Its origin is in Seattle,Wsahington.The company has its operations currently in 5 continents,in nearly 30 countries.Although starbucks didn’t have the first mover advantage,it got an opportunity to give something new to the region.One of its competitors Double Coffee had the first mover advantage.But huge differences are there …show more content…
SWOT ANALYSIS
a) Strength
Starbucks offer wide variety of products
Strong research and development
Strong brand image and reputation
The company has good ethical values,commitment to both society and environment
Good quality products
b) Weaknesses
High price compared to the competitors
Product recalls that affect brand image and margin
There are possibilities of a downward turn in economy as people become more conscious about their spending habits.
c) Oppurtunities
Entry into ready-to-drink coffee sector in Europe
Introduction of VIA coffee essence in japan
d) Threats
Operating margins will be affected by increased minimum wages
Continued threat from competitors
Increasing health consciousness of consumers
6.MARKETING OBJECTIVES/STRATEGY
Inorder to increae brand awareness and build themselves as a reputed brand in the world Starbucks implemented a well-defined marketing program which has the following marketing mix:
a) Product
Starbucks has 30 varieties of coffee beans to eco-friendly cappuccino,coffee makers etc..The products are developed in such a way to satisfy customers and keep a pace with the competition.The company also offers coffee makers who wish to change their existing coffee …show more content…
The operating income margins of Starbucks have increased substantially from 4.9% in FY2008 to 15% in FY2012. Starbucks had an operating loss in FY2013 and this resulted in a operating margin of -2.2% for that year and the main reason for that is due to a court case that charged $2.8 billion to Kraft Foods for ending an agreement with them. This charges is treated as an odd occurence and should be deduced from the overall operational performance of Starbucks. Starbucks Return on Equity and Return on asset have been remarkable with 29.2% and 17.8% respectively for FY2012. In Starbucks efficiency ratios, it has gained a significant operational efficiency with notable asset and inventory turnover ratios with a low of 1.51 and 5.4 respectively for
Coffee market is continuously changing and this section include the marketing plan to show where Starbucks stands in this current market.Major changes in coffee industry include changes in the price of coffee, changes in buying habits of customers,new market entrants etc...Starbucks is well known for its exceptional coffee products and is regarded as the company that has revolutionized coffee business.Its origin is in Seattle,Wsahington.The company has its operations currently in 5 continents,in nearly 30 countries.Although starbucks didn’t have the first mover advantage,it got an opportunity to give something new to the region.One of its competitors Double Coffee had the first mover advantage.But huge differences are there …show more content…
SWOT ANALYSIS
a) Strength
Starbucks offer wide variety of products
Strong research and development
Strong brand image and reputation
The company has good ethical values,commitment to both society and environment
Good quality products
b) Weaknesses
High price compared to the competitors
Product recalls that affect brand image and margin
There are possibilities of a downward turn in economy as people become more conscious about their spending habits.
c) Oppurtunities
Entry into ready-to-drink coffee sector in Europe
Introduction of VIA coffee essence in japan
d) Threats
Operating margins will be affected by increased minimum wages
Continued threat from competitors
Increasing health consciousness of consumers
6.MARKETING OBJECTIVES/STRATEGY
Inorder to increae brand awareness and build themselves as a reputed brand in the world Starbucks implemented a well-defined marketing program which has the following marketing mix:
a) Product
Starbucks has 30 varieties of coffee beans to eco-friendly cappuccino,coffee makers etc..The products are developed in such a way to satisfy customers and keep a pace with the competition.The company also offers coffee makers who wish to change their existing coffee …show more content…
The operating income margins of Starbucks have increased substantially from 4.9% in FY2008 to 15% in FY2012. Starbucks had an operating loss in FY2013 and this resulted in a operating margin of -2.2% for that year and the main reason for that is due to a court case that charged $2.8 billion to Kraft Foods for ending an agreement with them. This charges is treated as an odd occurence and should be deduced from the overall operational performance of Starbucks. Starbucks Return on Equity and Return on asset have been remarkable with 29.2% and 17.8% respectively for FY2012. In Starbucks efficiency ratios, it has gained a significant operational efficiency with notable asset and inventory turnover ratios with a low of 1.51 and 5.4 respectively for