Intensive Growth strategies of Starbucks Coffee
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Starbucks has used intensive growth strategies to become the world's largest coffee retailer. These strategies include market penetration through promotional activities and adding new stores, product development such as expanding their food menu, market development by entering new geographic markets, and diversification by selling coffee makers and accessories. Starbucks began with a single coffee shop in 1971 and has grown significantly through the strategic application of Ansoff's Grid for intensive growth.
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Introduction
Starbucks Company is a coffee company and the coffeehouse chain that is based in America. The company was started in 1971 in Seattle, Washington. The company was started by three friends namely Gordon, Jerry and Zev, who had a great interest in the sale of fresh coffee beans. The company operates a lot of locations around the globe including in the United States, China, Canada, Japan and in the United Kingdom. The locations of the Starbucks usually serve cold and hot drinks, micro-ground instant coffee, the whole-bean coffee, full-and loose-leaf teas, and espresso. Most of the Starbucks stores are involved in selling of pre-packaged food items, drink-ware and the cold and hot sandwiches (Bussing-Burks, 2009).
The company started being profitable for the first time in the 1980s, which led to the revitalized prosperity with its entry in California because of its expansion despite of the initial economic down. The company expanded their locations to Japan in 1996, and expansion to overseas now contributes to nearly one-third of the Starbuck’s stores.
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Starbucks has been reporting increased customer traffic of late and also experience a growth of 3% in the customer count. The expansion plans of the company involve opening more stores in different locations which will be major drivers of growth for the Starbucks. Considering the size of the company it may appear that the fast growth of the company will not be experienced any further. However, the company great opportunities for growth at a pace that is healthy in the decades to come (Hill, 2010). The following are growth opportunities for the Starbucks Corporation:
a. Growing beyond coffee
One of the major growth initiatives in the company has been involving enhancement of the non-coffee sales. The selling of food has been growing at a pace that is increased compared to the rest of the company sales. The company added lunch sandwich offering that are new in order to promote additional growth. The company is also beginning to test selling of the beer, wine, and the small-plate appetizers. These new investments for the have a promising pay off, which will lead to a tremendous growth of the company (Michelli, 2007).
b. Mobile order and pay
The company is also planning a potential game changer in planning to roll out the mobile order and pay functionality chain-wide. This will enable the customers to be in a position of placing orders in advance and collect them with no waiting in line. This will be the urban solution on the convenience of the drive-through. This provides a potential growth on the delivery services and convenience in the company (Michelli, 2007).
c. Lots of ways to grow
Starbucks is moving in a fast way searching various key opportunities for gro.
Star
Starbucks has experienced rapid global expansion since opening its first store in 1971. It has grown from a small Seattle coffee shop to a large international chain through diversification of its product offerings and strategic partnerships. However, its financial ratios show assets growing more slowly than liabilities, suggesting its expansion has been too fast. It needs to slow its growth and focus on increasing brand awareness through improved marketing.
Starbucks presentation
Starbucks was founded in 1971 in Seattle, Washington to sell high quality imported coffee beans. It aimed to bring the Italian coffee house tradition to the United States. Starbucks has since expanded globally with over 16,700 stores in 43 countries. Starbucks provides comprehensive health care benefits to employees and funds literacy programs through its foundation. It also partners with conservation efforts and ensures ethical sourcing of coffee beans to be environmentally and socially responsible. Starbucks faces increased competition from fast food chains entering the coffee market but aims to continue offering high quality coffee and expanding its product range for long term success.
Case on star bucks
Starbucks has experienced tremendous growth since 1987 through strategies like aggressive store expansion nationwide and internationally, developing new coffee-related products through partnerships, and prioritizing social and environmental responsibility. The company pioneered the premium coffee shop model in the US and has established itself as the dominant leader in the retail coffee market, despite facing competition from chains like Dunkin' Donuts and McDonald's. Starbucks focuses on creating a dense network of stores, opening new locations around the world, and selling coffee at a premium price to drive profits.
starbucks-case-study
The document provides background information on Starbucks, including its history from founding in 1971 through expansion led by Howard Schultz in the 1980s and 1990s. It discusses Starbucks' vision, mission and objectives. It also performs external analysis using PEST and Porter's Five Forces frameworks to understand the business environment and competitive landscape.
Marketing-Plan
This document provides a marketing plan for a new product called Starbucks Spreads. The spreads will come in four popular Starbucks flavors and target coffee lovers ages 18-36. The plan aims to increase awareness by 50% and gain 20% market share in the coffee/spread industry within one year. Strategies include social media promotions with contests and BOGO offers. The spreads will be sold in Starbucks and affiliated stores to leverage existing customer traffic. Each 13oz jar will retail for $4.75 given production costs and competing prices.
Marketing group assignment (turnitin)
Starbucks is the largest coffeehouse chain in the world with over 32,000 stores globally. It began in 1971 with three partners in Seattle, Washington selling high-quality coffee beans and equipment. Starbucks aims to create a third place between work and home that provides customers a sense of belonging. It maintains its market position through high-quality coffee products and has expanded its offerings to include food items, packaged coffee, and licensed products. Starbucks uses customer value-based pricing and competes through premium pricing and quality. It relies heavily on word-of-mouth marketing and uses promotions like seasonal drinks and gift cards. Starbucks has over 32,000 stores globally and continues pursuing growth through new products, markets, and formats like drive-th
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- 1. Presentation on PRESENTED BY MD. RASADUL ISLAM ID. 33 Intensive Growth strategies of Starbucks Coffee
- 2. STARBUCKS Overview Starbucks began in 1971 as a single coffee shop in Seattle. Today, it’s the world largest coffee retailer company. They offer different types of products like Coffee, tea, meals, coffee makers etc.
- 3. Intensive growth Intensive growth strategies are business plans designed to improve the business performance of a company. Ansoff’s Grid 1. Market Penetration 2. Product Development 3. Market development 4. Diversification
- 4. Intensive Growth strategies of Starbucks Coffee Market Penetration Doing some promotional activities like “WhiteCupContest” Adding new stores in current market
- 5. Intensive Growth strategies of Starbucks Coffee Product Development Adding soda, hot breakfast sandwiches, egg and tomatillo warp, Chicken and protein bowl to the menu.
- 6. Intensive Growth strategies of Starbucks Coffee Market Development Building business through new geographic market
- 7. Intensive Growth strategies of Starbucks Coffee Diversification Selling Coffee makers, Espresso Makers, Teapots and Tea kettles and different type of related accessories