ks Marketing AnalysisStarbucks Coffee Company is the leading specialty coffee retailer, roaster, and brand in the world. Starbucks' goal is to establish the company as the leading provider of the best coffee in the world, while maintaining the organization's uncompromising principles. Furthermore, Starbucks wants to develop its brand beyond being the preferred outlet to purchase coffee from to become the preferred consumer brand. The coffee company has capitalized on the newfound popularity of specialty coffee with the addition of cafes globally. Starbucks common stock rose from $3.31 per share in 1994 to $10.00 per share in the mid-1990s. Despite Starbucks' success, the company faces many challenges to continue growing its business. The key strategic problem Starbucks faces is maintaining its brand quality by leveraging its brand image and entering different sales and distribution channels. SWOT Analysis Strengths1. It is a leader in the specialty coffee industry (p7).2. Its commitment to quality (p7), values (p8) and principles (8).3. Its policy towards employees (page 8, 17).4. Its openness to innovation. Pepsi-Coal – Frappuccino.b. Distinct roasting equipment and processes. (longer shelf life; p10)c. AOL Café.5. World resources for coffee beans.a. 50% from Latin America.b. 35% from Pacific Rim.c. 15% from E. Africa.d. The SB trains exporters.6. Supply Chain Operation (SCO)7. Page 11:a. It's coffee.b. Employees.c. Merchandising.d. Philosophy of ownership.e. Real estate approach. (Location, construction and cluster strategies)f. Image.8. In-depth training for Starbucks “baristas” (employees).9. Mall kiosk program.10. The image of the brand.11. Key specialist sales partners (p14).12. Different distribution channels. Such as:a. Food chains.b. Dreyers.c. Pespi-Cola.d. Kiosks.e. Airlines.13. “Encore” mail order program (p16).14. Howard Schultz's vision and leadership (pp. 16 – 17).15. His six guiding principles. Weak Points1. Rapid growth is taking a toll on SCOs (p11; see also Strengths #7)2. The challenge of finding good employees (p12; see also Strengths #8)3. It consists...... half of the paper...... it is not just for breakfast but it is an anytime drink.5. Starbucks shouldn't just be a coffee, but an experience.6. The retail system is the anchor of Starbucks' brand building strategy, this can “catapult” Starbucks beyond its roots (according to a report by Merril-Lynch).7. Grocery store sales are not essential to survival, but are necessary to remain a major player (Orin Smith, p15).8. Supermarket merchandising will move customers from low-priced coffee categories to higher-priced specialty coffee brands (p13).9. “Starbucks executed its strategy almost to perfection (quote from an investment firm, p19).10. Starbucks plans to have 2,000 retail stores by 2000. My Opinions – My opinions are included in the “Issues Analysis” section of the document. Assumptions –1. Coffee sales in specialty stores will increase from 19% to 54% by 1999 (see Facts #8).2. Starbucks estimates 17% growth by 1999 (p5).3. Starbucks expects a lower cash investment to open future stores (see Exhibit 4).4. Starbucks plans to increase the number of stores in the Asia-Pacific region from 13 to 100 by 1999 (e.g... 5).

Topic > ks Marketing AnalysisStarbucks Coffee Company is the leading specialty coffee retailer, roaster, and brand in the world. Starbucks' goal is to establish the company as the leading provider of the best coffee in the world, while maintaining the organization's uncompromising principles. Furthermore, Starbucks wants to develop its brand beyond being the preferred outlet to purchase coffee from to become the preferred consumer brand. The coffee company has capitalized on the newfound popularity of specialty coffee with the addition of cafes globally. Starbucks common stock rose from $3.31 per share in 1994 to $10.00 per share in the mid-1990s. Despite Starbucks' success, the company faces many challenges to continue growing its business. The key strategic problem Starbucks faces is maintaining its brand quality by leveraging its brand image and entering different sales and distribution channels. SWOT Analysis Strengths1. It is a leader in the specialty coffee industry (p7).2. Its commitment to quality (p7), values (p8) and principles (8).3. Its policy towards employees (page 8, 17).4. Its openness to innovation. Pepsi-Coal – Frappuccino.b. Distinct roasting equipment and processes. (longer shelf life; p10)c. AOL Café.5. World resources for coffee beans.a. 50% from Latin America.b. 35% from Pacific Rim.c. 15% from E. Africa.d. The SB trains exporters.6. Supply Chain Operation (SCO)7. Page 11:a. It's coffee.b. Employees.c. Merchandising.d. Philosophy of ownership.e. Real estate approach. (Location, construction and cluster strategies)f. Image.8. In-depth training for Starbucks “baristas” (employees).9. Mall kiosk program.10. The image of the brand.11. Key specialist sales partners (p14).12. Different distribution channels. Such as:a. Food chains.b. Dreyers.c. Pespi-Cola.d. Kiosks.e. Airlines.13. “Encore” mail order program (p16).14. Howard Schultz's vision and leadership (pp. 16 – 17).15. His six guiding principles. Weak Points1. Rapid growth is taking a toll on SCOs (p11; see also Strengths #7)2. The challenge of finding good employees (p12; see also Strengths #8)3. It consists...... half of the paper...... it is not just for breakfast but it is an anytime drink.5. Starbucks shouldn't just be a coffee, but an experience.6. The retail system is the anchor of Starbucks' brand building strategy, this can “catapult” Starbucks beyond its roots (according to a report by Merril-Lynch).7. Grocery store sales are not essential to survival, but are necessary to remain a major player (Orin Smith, p15).8. Supermarket merchandising will move customers from low-priced coffee categories to higher-priced specialty coffee brands (p13).9. “Starbucks executed its strategy almost to perfection (quote from an investment firm, p19).10. Starbucks plans to have 2,000 retail stores by 2000. My Opinions – My opinions are included in the “Issues Analysis” section of the document. Assumptions –1. Coffee sales in specialty stores will increase from 19% to 54% by 1999 (see Facts #8).2. Starbucks estimates 17% growth by 1999 (p5).3. Starbucks expects a lower cash investment to open future stores (see Exhibit 4).4. Starbucks plans to increase the number of stores in the Asia-Pacific region from 13 to 100 by 1999 (e.g... 5).