Starbucks Marketing Analysis Essay

1795 Words Dec 10th, 2006 8 Pages
UNIVERSITY OF REDLANDS

MARKETING MANAGEMENT

BUAD 680

INDIVIDUAL: CASE SUMMARY

14 OCTOBER 2006

STARBUCKS CORPORATION – ASSESSMENT AND EVALUATION OF MARKETING

STEPHEN ANSUINI

Introduction

Headquartered in Seattle Washington, Starbucks Corporation is a premium coffee retailer offering a wide selection of hot and cold beverages, pastries and light deli fare, coffee accessories and equipment. Starbucks opened its first location in 1971 at Seattle's Pike Place Market and within 20 years held its initial public offering and now has over 8500 retail locations in 32 countries. "Each store varies its product mix depending upon the size of the store and its location. Larger stores carry a broad selection…smaller stores…a
…show more content…
• Single Product Line. Currently, Starbucks is heavily reliant on a single product line. With coffee and related products being its primary focus, Starbucks narrows the potential market to this market segment and leaves itself vulnerable to a possible global trend away from tea and coffee consumption.
• Pricing. With the recent price hike, an already above average priced cup of coffee may be out of reach for some consumers. Starbucks is missing out on the opportunity to reach the lower-to-middle income customer. This also leaves them vulnerable to competition on a strictly price point basis.
Opportunities
• Marketing. Starbucks spends a relatively small amount on marketing, does not offer coupons and rarely uses television as an advertising medium. Sponsoring television movies, such as Ford Motor Company did for "Schindler's List", would give exposure with the desired emotional feeling without the vast cost of partnering with a movie production. That may end up not playing well to consumers.
• Pepsico Partnership. The new partnership with Pepsico to test launch product vending machines could open a new path to consumers and puts products in office buildings, hospitals, shopping malls and other niche markets and locations where Starbucks currently does not have exposure while concurrently not requiring the

Related Documents