PO Box 1075
Starbucks
Customer & Competitive
Analysis (US Home Market)
Team Members:
Florez, Miguel
Imaz, Jose
Li, Liangshi
Mehrotra, Anil
Shippy, Jeff
PART A: COMPANY AND PRODUCT DESCRIPTION
Company and Product Overview
In a span of ten to fifteen years, Starbucks has become one of the most recognized brand names in the US. Most of us in the US are familiar with Starbucks’ coffee shop outlets that have sprung up in what seems to be every block in the country. Specifically, the company roasts its own imported coffee beans and sells them through a variety of espresso drinks, such as mochas and lattes, primarily through its retail stores. Through its stores, it also sells a variety of pastries, and coffee-related accessories and equipment, such as espresso machines. In addition to the retail stores, the company also sells its imported coffee beans through a specialty sales group, a direct response business, online at Starbucks.com, and supermarkets. Also, through its joint venture partnerships the company produces and sells bottled Frappuccino® coffee drink and a line of ice creams, as well as a line of teas. *
*Schultz Caffeinated Crusade, Brandweek, XXX (27:21-25), July 5, 1999.
This paper will focus exclusively on analyzing the retail coffee shop side of the Starbucks business, and will not evaluate the current supermarket, online, or group sales channels.
Marketing Program Overview
Starbuck’s marketing objective has been to establish itself as the most recognized brands in the world. As part of its marketing strategy, Starbucks intends to expand its retail operations, grow its specialty sales, and introduce new products through existing and new distribution channels.
From the beginning, Starbucks has minimized the traditional brand-building strategies in its marketing