case study Starbucks

Table of Contents
Table of Contents 2
Starbucks and Marketing environment 4
Technological: 6
Environmental: 6
Legal: 7
Conclusion and Recommendation: 7
Starbucks and Market Segmentation 7
Age: 7
Gender: 7
Income: 8
Location: 8
Situation: 8
Season: 8
Conclusion and Recommendations: 8
Branding and Starbucks 9
Franchising: 9
Brand Association: 9
Sponsorship: 10
Celebrity Endorsement: 10
Exclusivity: 10
Conclusion and Recommendations: 10
Role of the brand and extended marketing mix 11
Product: 11
Price: 11
Place: 12
Promotion: 12
People: 12
Process: 12
Physical Evidence: 12
Conclusion and Recommendations: 13
References: 14
Bibliography: 17

Introduction
Starbucks was founded by three atypical businessmen, Gorden Bowker, Jerry Baldwin, and Zev Siegl in 1971 at Seattle’s Plike Place Market, Washington, United States of America. Starbucks’ mission is to “inspire and nurture the human spirit- one person, one cup and one neighbourhood at a time”. Starbucks operates about 17,000 stores in more than 50 countries in the world (www.starbucks.com/aboutus). Starbucks purchases and roasts high quality whole bean coffees from different coffee growing nations and sells them along with fresh, rich-brewed, Italian style espresso beverages, a variety of pastries and confections, and coffee related accessories, mugs, packaged goods, music, books and equipment through its company operated retail stores. Starbucks also offers premium innovative teas by its owned subsidiary, Tazo Tea Company. The Company’s objective is “to establish Starbucks as the most recognised and respected brand in the world” (Herbeck, D., 2010).

Starbucks and Marketing environment The main challenges in the marketing environment can be analysed through Political, Economical, Social, and Technological (PEST), PEST is an analysis framework of macro-environmental factors (Peng et al., 2007, p.230). Main challenges which are likely to impact on

References: Adbrands (2007) Company Profile: Starbucks (US). Available at: http://www.warc.com/ArticleCenter/PDFViewer.asp?AID=81831&PID=starbucks_us_p.htm&NID=&CType=P&Tab= (Accessed: 17 July 2013). Benzaken, T, S. (2007) ‘Starbucks’ Responsible Sourcing: Social Guidelines from the Farm to the Coffee shop’, Embedding Human Rights in Business Practice II, pp.136-143 Bowers, S Calgary, AB. (2013) Coca-Cola brings fast and convenient refreshment to Canadians with new Interac payment option. Available at: http://www.interac.ca/index.php/en/press-releases/coca-cola-flash-vending-machines (Accessed: 21 July 2013). Chao, G., Peng, A., Nunes, M. (2007) ‘Using PEST Analysis as a Tool for Refining and Focusing Contexts for Information Systems Research’, European Conference on Research Methodology for Business and Management Studies,6, pp. 229-237. Cliffe, S., and Motion, J, (2005), ‘Building contemporary brands: a sponsorship-based strategy’, Journal of Business Research, 58(8), pp. 1068-1077. Corporation Sponsorship (2013) Available at: http://www.santander.com/csgs/Satellite/CFWCSancomQP01/en_GB/Corporate/Corporation-Sponsorship.html (Accessed: 21 July 2013). Darling, H., Reeder, A.,McGee, R., and Williams, S. (2006) ‘Brief report: Disposable income, and spending on fast food, alcohol, cigarettes, and gambling by New Zealand secondary school students’, Journal of Adolescence, 29(5), pp.837-843. Davies, J. (2013), Branding Lecture Overview, lecture notes distributed in Achieving Corporate Success BUS 747 at Kensington College of Business on 8 July 2013. Gomes-Cassesres, B. (1987) ‘Joint Venture Instability: Is it a problem?’, Columbia Journal of World Business, pp.97-102. Hamm, Steve (2008), “The New Age of Frugality”, BusinessWeek, October 20, pp. 55-58. Herbeck, D. (2010) The Starbucks Corporation. Available at: http://www.personal.psu.edu/dch5166/blogs/starbucks_corporation/2010/02/introduction-the-starbucks-corporation.html (Accessed: 21 July 2013). How Starbucks avoids UK taxes (2012) Available at: http://uk.reuters.com/article/2012/10/15/us-britain-starbucks-tax-idUSBRE89E0EX20121015 Ives, B., and Mason, R James, A (2009) Coffee sellers try to keep you drinking in the summer. Available at: http://www.seattlepi.com/business/article/Coffee-sellers-try-to-keep-you-drinking-in-the-1303805.php (Accessed: 21 July 2013). Kelly., J (2013) Coffee addiction: Do people consume too much caffeine? Available at: http://www.bbc.co.uk/news/magazine-22530625 (Accessed: 21 July 2013). Kotler, P., and Keller, K. (2006) Marketing Management, US: Prentice Hall. Legal Dictionary (2010) Available at: http://legal-dictionary.thefreedictionary.com/Joint+Venture (Accessed: 21 July 2013). Low income and ethnicity (2010) Available at: http://www.poverty.org.uk/06/index.shtml (Accessed: 21 July 2013). Marketing Theory (2009) Available at: http://businesscasestudies.co.uk/business-theory/marketing/the-extended-marketing-mix-7ps.html#axzz2aACKv39P (Accessed: 21 July 2013). Melody (2011) Is your Starbucks offering Decaf Iced Coffee? Available at: http://www.starbucksmelody.com/2011/06/19/decaf-iced-coffee-at-starbucks/ (Accessed: 21 July 2013). Mintel (2007) Coffee Shops UK, Available at: http://academic.mintel.com/display/219236/ (Accessed: 21 July 2013). Moulds, J. (2009) Starbucks gets roasted by the recession. Available at: http://www.telegraph.co.uk/finance/newsbysector/retailandconsumer/6139399/Starbucks-gets-roasted-by-the-recession.html (Accessed: 21 July 2013). O’Hara, K. (2013), The Marketing Mix, lecture notes distributed in Achieving Corporate Success BUS 747 at Kensington College of Business on 17 June 2013. Oslanova, K. (2012) ‘Trends in International Business 2012’, International Joint Conference on Business Strategies on Global Markets, p.189. Prahalad, C, K. (2005) The Fortune at The Bottom of Pyramid, Wharton School: US Piecy, N, F., Cravens, D, W., and Lane, N Quismundo, T. (2012) Philippines is 3rd most disaster-prone country. Available at: http://globalnation.inquirer.net/52858/philippines-is-3rd-most-disaster-prone-country-new-study-shows (Accessed: 21 July 2013). Rajagopal. (2007) Marketing Dynamics: Theory and Practice, New Delhi: India Rankin, J Rigby, Elizabeth (2009), “Thrifty Britain Rethinks Its Shopping Habits”, Financial Times, March 9, p. 2. Starbucks Success (2010) Available at: http://starbuckssuccess.blogspot.co.uk/2010/11/advertising-techniques.html (Accessed: 21 July 2013). Stein, G. (2013) The Nine Principles of Branding, Available at: http://www.polaris-inc.com/assets/pdfs/9_principles_of_branding.pdf (Accessed: 21 July 2013). Success Stories (2013) Available at: http://www.aboutmcdonalds.com/mcd/franchising/us_franchising/why_mcdonalds/success_stories.html (Accessed: 21 July 2013). Wiggins, Jenny and Birchall, Jonathan (2008), “Global Consumers Forced to Rethink Buying Patterns”, Financial Times, October 10, p. 24. Your tax questions answered (2012) Available at: http://www.guardian.co.uk/business/shortcuts/2012/nov/13/starbucks-your-tax-questions-answered (Accessed: 21 July 2013). Singh, M., and Kaur, H. (2010) ‘Emerging Dimensions of Foreign Direct Investment in Retailing in India’, IJBEMR, 1(1), pp.155-170. Argenti, P. (2004) ‘Collaborating with Activists: How Starbucks Works With NGOS’, California Management Review, 47(1), pp. 91-115 Prahalad, C, K., and Brugmann, J Borden, N, H. (1984) ‘The Concept of the Marketing Mix’, Journal of Advertising Research, 2, pp.7-12.