Starbucks Term Paper
Starbucks Term Paper
1. I find myself frequenting Starbucks more than a couple of times a week. Starbucks is a food and beverage non-durable good. There are Starbucks cafes littered throughout cities, throughout the nation and in other countries as well. Starbucks not only has their own cafes but they also rent space in grocery stores such as Safeway and Albertsons. Starbucks also sells canned and bottled coffees in grocery stores for people who like the convenience of just grabbing a coffee from home instead of having to visit their café. Starbucks not only offers cold and hot beverages in their cafes but they also offer food, ground coffee, packages of tea, and other non-perishable goods. When I visit Starbucks I usually leave with either an iced Carmel macchiato, iced white chocolate mocha, or iced passion fruit tea lemonade. Every once in a while you might catch me buying oatmeal, too. One main reason for my visits to Starbucks is a sociocultural influence; my fiancé likes to go there. He likes their mochas and predictability.
Another two reasons for my frequent purchases at Starbucks are situational influences; they keep their buildings and parking lots clean and they provide a drive thru. Drive thru’s are a must for people who are in a hurry or are still in their pajamas and do not wish to walk into a store and have other people give them funny looks. 2. Starbucks packaging is quite simple. They use a round logo that is always green and white and has a lady with long hair and a crown. (She might be a mermaid) They use the standard plastic and paper cups that all other coffee companies provide their product in. The label’s purpose is to provide brand recognition. It’s easy to spot a Starbucks from down the highway simply by recognizing their signature green block letters or their green and white logo. Their plastic packaging for their iced beverages provides customers with an option to recycle their cup after use and their paper cup is used for hot beverages to provide their customers with a drink that can stay warm as long as possible and gives the option for the customer to reheat their drink if necessary.
3. Starbucks is a private brand. Their products are distributed and sold using the store’s name. My sense of brand loyalty is to a medium degree. I am mostly loyal to the brand for the reasons given above and they are so easy to find. Because they are so predictable with their menu, I sometimes like to change it up a bit so I will go through a small drive thru coffee stand on the side of the road instead. 4. Starbucks has been and still is in the growth part of the product life cycle. They keep their product mix limited, have prices that meet competition, and are still continuing to open new stores. Their strategy is to expand their market share. 5. Starbucks pricing is about equal with its competitors. To be honest, I think Starbucks uses price leadership. Their competitors adjust their prices according to how Starbucks adjusts theirs. Although I think their coffee is a little expensive, I still buy it because it tastes better than what I can make at home. Starbucks’ pricing objectives are obviously to optimize profit. Perhaps their objective is also to create an image.
Starbucks is very well known for their signature color- green. 6. Starbucks has more than one distribution chain for their consumer goods. They utilize chains that deliver from manufacturer to retailer to customer when they sell their products in their exclusive Starbucks stores and grocery stores and also from manufacturer to wholesaler to industrial users when they sell their ready to drink products at places such as Costco. Starbucks uses both intensive and exclusive distribution; intensive distribution is used when they put their ready to drink products into various convenience and grocery stores. Their exclusive distribution is used in their Starbucks cafes that only sell Starbuck brand coffees. 7. Different promotional mixes that Starbucks could use would be through advertising. Letting customers know of the different products Starbucks has to offer through television or radio ads are a great way to draw their attention.
These ads are very informative and can be made to include a “jingle” that will stick in customer’s minds when they think of buying coffee. Other different ways are through social networking like Facebook which helps customers know what is available to purchase, store hours, what people think of their product, promotions, etc. One that I experience myself is through sales promotion. Starbucks sends me text messages every once in a while to let me know when they are having a new product come out or when they are having some type of promotion. I like this idea as a promotional tool because it’s easy to read as a customer and I don’t have to worry about it cluttering my house. One great thing that Starbucks implements are having samples. That really sells. It’s a great idea because customers can know what they are buying before hand and don’t have to worry about whether or not they are going to like it. 8. Starbucks has a very informative website.
There is information for customers via blogs, online communities, careers, business information, ways they (and you) can help the community locally and globally, etc. Their menu is placed online with caloric/nutrition information. They even have a rewards program and now a new application to download onto your cell phone to make it easier for you to pay for your Starbucks purchase. What a great idea for Starbucks to increase business revenue! My only suggestion for Starbuck’s website to help create more sales is adding descriptions of the tastes of their drinks. If they can make the drinks sound the way lotion companies describe their lotion scents, I think it could turn a bigger profit. I would say to add prices online so people know how much the items are selling for but that actually might deter them. Get them into the store first!
University/College: University of Chicago
Type of paper: Thesis/Dissertation Chapter
Date: 11 October 2016
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