Starbucks Case
Jens Philip Therp
Retail Marketing
November 28th, 2012
Starbucks has been the leading retailer of specialty coffee since they opened up their first store in Seattle in 1971. Today Starbucks have over 17000 stores in more than 50 countries, all of them with a commitment to providing the highest quality coffee in the world. In the fiscal year 2011, Starbucks reported all time record net revenue of $11.7 billion. Starbucks is one of the strongest retail brands in the world, which makes them a very interesting company to analyze. In this synopsis, I will try to identify how Starbucks created such a strong brand, and discuss their retail strategy. I look at factors such as, products, location, store experience, and competition and will use empirical research to analyze these factors. Furthermore, I will discuss whether Starbucks have a future in Denmark.
Products
Starbucks sell a small variety of products including beverages, food, whole coffee beans, and coffee making equipment. Their sales mix is very interesting because most of the products do not contribute much to the overall sales. Beverages are by far the most important product, as it constitutes 75% of total sales. While Starbucks do not have a large variety of products, they do have a very broad assortment of beverages. They offer many different kinds of coffees, teas, and hot chocolates, where coffee of course is their specialty.
Location
Location is essential to building a sustainable competitive advantage. In fact, it is arguably the most important factor in retailing. Starbucks have a very successful location strategy that focus on high traffic areas. In addition, if there is one Starbucks, you can almost be sure that there is another one close by, as they want many stores in close proximity. For example, there were more than 100 Starbuck stores in Seattle before they expanded to other regions. Having many stores in the helps increase their overall revenue. This strategy has also proved to
Retail Marketing
November 28th, 2012
Starbucks has been the leading retailer of specialty coffee since they opened up their first store in Seattle in 1971. Today Starbucks have over 17000 stores in more than 50 countries, all of them with a commitment to providing the highest quality coffee in the world. In the fiscal year 2011, Starbucks reported all time record net revenue of $11.7 billion. Starbucks is one of the strongest retail brands in the world, which makes them a very interesting company to analyze. In this synopsis, I will try to identify how Starbucks created such a strong brand, and discuss their retail strategy. I look at factors such as, products, location, store experience, and competition and will use empirical research to analyze these factors. Furthermore, I will discuss whether Starbucks have a future in Denmark.
Products
Starbucks sell a small variety of products including beverages, food, whole coffee beans, and coffee making equipment. Their sales mix is very interesting because most of the products do not contribute much to the overall sales. Beverages are by far the most important product, as it constitutes 75% of total sales. While Starbucks do not have a large variety of products, they do have a very broad assortment of beverages. They offer many different kinds of coffees, teas, and hot chocolates, where coffee of course is their specialty.
Location
Location is essential to building a sustainable competitive advantage. In fact, it is arguably the most important factor in retailing. Starbucks have a very successful location strategy that focus on high traffic areas. In addition, if there is one Starbucks, you can almost be sure that there is another one close by, as they want many stores in close proximity. For example, there were more than 100 Starbuck stores in Seattle before they expanded to other regions. Having many stores in the helps increase their overall revenue. This strategy has also proved to