Starbucks is the world largest coffee company. The company now operating worldwide was initiated in 1971 by Jerry Baldwin, Jerry Baldwin, and Gordon Bowker in Seattle, Washington. Now the company is not stick to coffee and coffee products only, rather it caters a number of refreshment items along with entertainment division and he music brand. Now 16,858 cafes are operating in 50 countries, including over 12,700 in United States, Canada and UK (Schofield, 2008).

Target Market

Company success is largely been associated to socialized networking. Starbucks outlets are mostly visited by business talkers. The company has always put effort not to promote the products of Starbucks but to inculcate the desire of having Starbucks experience in its customers (Gibson, 2008). Starbucks is often professed as affordable luxury which on the other hand allowed premium for Starbucks products. Initially the target market was white collared, sophisticated people but with the passage of time new strategies evolved and low budget and class friendly outlets were established, while maintaining its initial strategy in its real form.

Industry Trends

Starbucks was initially not very famous choice but with a little change in strategy it entered into small and large enterprises and hit the market saturation. Now Starbucks is the total coffee supplier and retail market in U.S. The company is popular because of being user friendly as it organizes the music and book events and Wi-fi connection is available at all the outlets just like home or office (Ferguson, 2002). Unlike other popular food industries like Mc Donald’s the company has been offering its presence in licensed markets and super stores, through which the stores generates big revenue. The revenue generated by the company is basically through whole bean Coffees that is 76%, and secondarily through equipment that is 18 % and quite negligible through foods and beverages that is 3% each.

Marketing Goals

• The main goal linked to marketing is its global presence.

• Budget friendly items as well as best environment to rejoice.

• To work in collaboration and with pace with licensed store and emerging markets.

• To accomplish mission statement of environment friendly policies as a result of which they are continuously recycling their waste.

• Marketing goal of company is to raise weekly sales of each store to $20,000.

Marketing Strategies

• To be finest coffee retailer around the globe, while maintaining its originality and working strictly according to the principles.

• Gaining employees loyalty by providing them dignity.

• Price maintenance policies.

• Gathering a wide range and different classes of customers by diversifying the stores with diverse product range.

• To maintain the first focus on profitability as a key to keep pace with future presence.

• Imprint a permanent taste on customers and overshadowing the small coffee chains.

• Providence of hygienically upgraded goods to consumers.

Marketing Budget (Yearly)

• The company has invested the huge budget of U.S $10.71 billion in year 2010.

• Upcoming budget for 2011 would be almost U.S $ 11 billion.

Marketing Mix of Starbucks

• Its coffee range includes espresso and drip brewed coffee including whole bean coffees.

• Several beverages including hot and cold drinks.

• Sakes including sandwiches, Panini, pastries and salads.

• Mugs, tumblers and CDs are also sold at the outlets.

• Products at all outlets are branded.


• Price is regulated according to customer’s response.

• Coffee, which is the main dealing, is being sold in different sizes that are short, tall, Grande, Venti and Trenta. So, the customers can chose according to their budget.

• For having one drink, you must have around $3 to $4 in your pocket.

• Other eatables have varying prices.

• The company revises certain low price offers like $1 coffee with unlimited refills at 50% additional price.

• The company is also working on value deals, so that price sickish customers can also experience the Starbucks.


• The company caters in most of the locations in UK, USA and Canada.

• Apart from United States, its operating in more the 50 countries including all the continents. While induction in Africa is at grass root level.

• Beside Licensed stores the products are also being steeled and are being sold without Logo at certain stores.


• In this world of IT the company believes on one to one promotion rather than electronic media advertisement.

• On the whole the company spends little budget on its promotion.

• Seasonal induction of items are considered main source of customer attraction.

• Beside that cards are issued that promotes its popularity.

• Certain gift cards are given on beverages that increase sales considerably.

• Coffees are transported to offices free of additional cost and irrespective of cup size, making officials permanent

Customers of Starbucks.

• Starbucks spends on non governmental organization, posing a strong brand image.


• Local coffee companies.

• Mc Donald’s and Dunkin Donuts are its biggest competitors but the coffee brand most sold is that of Starbucks. These companies also have menace about Starbucks.

• Other competitors include Panera Bread, BIGGBY Coffee, 7-Eleven, Caribou Coffee, and Einstein Bagels.


• Dominates the coffee businesses in United States, emerging successfully around the globe.

• Net earnings increase more than 40% each year.

• Best services at their outlets.

• Part of licensed stores and markets.

• Clustered units of the company

• Well behaved with employees.

• Research and development progressively going on.

• Good collection of music at outlets to attract customers for a living experience.


• The company’s major share is in U.S and other countries are lagging behind, so the expansion is not homogeneous.

• Over reliability on beverages.

• Least attention is paid on the innovation of other company products.

• International operations face difficulties because of lack of concentration.

• Though leading market organization yet lacking a strategic group.

Monthly Tactics

Marketing strategy runs smoothly through out the year so, there is no specific monthly tactics except the seasonal induction of the products and making the product open for as may classes of people as possible (Tartakoff, 2007).


•    Gibson, Charles (2008). “Starbucks Shut Down 3.5 Hours for Training”. ABC News.
•    “Starbucks Map”. (2010). Starbucks Coffee Company. Retrieved online from  Retrieved 2010-12-15.
•    Ferguson, Brian (2002). “Is coffee firm making mocha of city rules?” Edinburgh Evening News.
•    Starbucks 10-K (2008). Section 1 – Business. pg 2
•    Official Website.  Retrieved on March 14, 2011.
•    Schofield, Jack (2008). “Starbucks lets customers have their say”. The Guardian (London).
•    Starbucks 10-K (2010). Section 6 – Selected Financial Data. pg 21
•    Tartakoff, Joseph (2007). “Logo look-alikes. Saving souls in Starbucks’ image”. Seattle Post-Intelligencer.

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