Starbucks Case Study on Sales and Distribution
Starbucks Experience and
Social Media
Being a barista on the internet
A. Introduction
In the realm of global economic crisis, Starbucks had started to experience losing revenue and shifting market segment from High income, well-educated, white-collar professionals between the ages of 25 and 45 to younger generation. The newer customers were younger, less well-educated, and in a lower income bracket- than their more established customers- had less frequent visits and a different perception of Starbucks. Starbucks had lost the connection between satisfying customers and growing the business under threat of global economic crisis. This was the big concern which had been expressed that Starbucks lost communication between market segments and their relation with each other. Starbucks experience depends on translation of their confusion to the customers by using online social media tools to involve in the community and search out, get advice for new product offers and build strong relationship over the social media to recover the Starbucks experience as it was in store environment and it will be always.
In the following chart shows the revenue performance during different periods from 2008 to 2010.
REVENUE | Periods | 2008 | 2009 | 2010 | December | 2767.6 | 2615.2 | 2722.7 | March | 2526.0 | 2333.3 | | June | 2574.0 | 2403.9 | | September | 2515.4 | 2422.2 | | Totals | 10383.0 | 9774.6 | | Comparable Store Sales Growth(Company-Operated Stores Open 13 Months or Longer) (LLP) |
B. Situation Analysis (SWOT)
Strengths
* Starbucks one of the most recognized and respected brands in the world * Innovative and willing to spend on R/D * Premier roaster and retailer of specialty coffee * Good relationships with coffee suppliers * Value employees and supports them with training and education * The product is strongly differentiated from those of rivals * Good supply chain management
Social Media
Being a barista on the internet
A. Introduction
In the realm of global economic crisis, Starbucks had started to experience losing revenue and shifting market segment from High income, well-educated, white-collar professionals between the ages of 25 and 45 to younger generation. The newer customers were younger, less well-educated, and in a lower income bracket- than their more established customers- had less frequent visits and a different perception of Starbucks. Starbucks had lost the connection between satisfying customers and growing the business under threat of global economic crisis. This was the big concern which had been expressed that Starbucks lost communication between market segments and their relation with each other. Starbucks experience depends on translation of their confusion to the customers by using online social media tools to involve in the community and search out, get advice for new product offers and build strong relationship over the social media to recover the Starbucks experience as it was in store environment and it will be always.
In the following chart shows the revenue performance during different periods from 2008 to 2010.
REVENUE | Periods | 2008 | 2009 | 2010 | December | 2767.6 | 2615.2 | 2722.7 | March | 2526.0 | 2333.3 | | June | 2574.0 | 2403.9 | | September | 2515.4 | 2422.2 | | Totals | 10383.0 | 9774.6 | | Comparable Store Sales Growth(Company-Operated Stores Open 13 Months or Longer) (LLP) |
B. Situation Analysis (SWOT)
Strengths
* Starbucks one of the most recognized and respected brands in the world * Innovative and willing to spend on R/D * Premier roaster and retailer of specialty coffee * Good relationships with coffee suppliers * Value employees and supports them with training and education * The product is strongly differentiated from those of rivals * Good supply chain management
Bibliography: LLP, DELOITTE & TOUCHE. Starbucks Corporation Fiscal 2009 Annual Report. Annual Report. Seattle, Washington: Starbucks Corporation, 2009. Morrisey, Brian. "Hoping to find some new fans for a great brand ..." Brandweek (10/12/2009): Vol. 50 Issue 36, p13-15, 3p. York, Emily Bryson. "Starbucks Gets Its Business Brewing Again With Social Media." 3 March 2010. Advertising Age. <http://adage.com/>.