The Marketing Strategy Analysis of Starbucks Corporation
Introduction
Under today’s ever-changing market, strategic marketing planning has become more and more significant whether of the functional or the fundamental. Especially, although financial crisis leaded economy growth slowdown, it did not cause a serious influence for chain coffee shop. As Howard Schultz said, CEO of Starbucks, “I don't think we had a business plan for the severity of what has taken place. History demonstrated to us that a downturn in the economy would not affect us, and in fact, we would be recession-proof.” (Katie Couric, 2008) Based on Financial Times, Starbucks revealed that strong earnings of $242m of 2008, a jump from the $64m it recorded during the comparable period last year and total revenues for the quarter were $2.7bn, up 4 per cent from the $2.6bn recorded during the comparable quarter at the end of 2008. It illustrated that consumers will still pay premium prices for its coffee even in uncertain economic times. (Greg Farrell 2010)
In this essay, besides demonstrating the concept of strategic marketing, I will take Starbucks Corporation, United States for a case to define its position in this turbulent chain coffee shop market. Then, identify the “customized mass production” and evaluate how the organization affect and communicate the market. Next, the strategic importance of Starbucks Corporation, United States will be analyzed by various tools such as demand chain approach, SWOT and TOWS, PESTLE, pricing policies and so on with practical examples. Finally, based on these strategic analyses, the recommendations will be available for the organization to improve the competitiveness over this competitive market in the future.
Brief history of Starbucks Corporation
Starbucks Corporation, United States (NASDAQ: SBUX), the largest international coffeehouse chain company over the world, opened in 1971 by Gerald Baldwin, Gordon Bowker and Zev Siegl in Seattle, Washington, United States. In 1982, Howard Schultz, the present CEO of
Under today’s ever-changing market, strategic marketing planning has become more and more significant whether of the functional or the fundamental. Especially, although financial crisis leaded economy growth slowdown, it did not cause a serious influence for chain coffee shop. As Howard Schultz said, CEO of Starbucks, “I don't think we had a business plan for the severity of what has taken place. History demonstrated to us that a downturn in the economy would not affect us, and in fact, we would be recession-proof.” (Katie Couric, 2008) Based on Financial Times, Starbucks revealed that strong earnings of $242m of 2008, a jump from the $64m it recorded during the comparable period last year and total revenues for the quarter were $2.7bn, up 4 per cent from the $2.6bn recorded during the comparable quarter at the end of 2008. It illustrated that consumers will still pay premium prices for its coffee even in uncertain economic times. (Greg Farrell 2010)
In this essay, besides demonstrating the concept of strategic marketing, I will take Starbucks Corporation, United States for a case to define its position in this turbulent chain coffee shop market. Then, identify the “customized mass production” and evaluate how the organization affect and communicate the market. Next, the strategic importance of Starbucks Corporation, United States will be analyzed by various tools such as demand chain approach, SWOT and TOWS, PESTLE, pricing policies and so on with practical examples. Finally, based on these strategic analyses, the recommendations will be available for the organization to improve the competitiveness over this competitive market in the future.
Brief history of Starbucks Corporation
Starbucks Corporation, United States (NASDAQ: SBUX), the largest international coffeehouse chain company over the world, opened in 1971 by Gerald Baldwin, Gordon Bowker and Zev Siegl in Seattle, Washington, United States. In 1982, Howard Schultz, the present CEO of
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