Scribd Logo
Upload

Welcome to Scribd!

  • 13 views

    Topic 05 Case

    Uploaded by

    aminath azza
    1. Starbucks began as a small coffee shop in 1971 and has since grown to become the largest coffeehouse company in the world with over 18,000 stores globally. 2. Through extensive marketing research including customer feedback, Starbucks has identified four pillars of its brand: high-quality coffee, complementary food and drink products, a warm welcoming environment, and community involvement. 3. By emphasizing its culture and relationships with customers and employees, Starbucks has been able to maintain a local presence and identity in each new market it enters, fueling its continued global expansion.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd

    Topic 05 Case

    Uploaded by

    aminath azza
    13 views2 pages
    1. Starbucks began as a small coffee shop in 1971 and has since grown to become the largest coffeehouse company in the world with over 18,000 stores globally. 2. Through extensive marketing research including customer feedback, Starbucks has identified four pillars of its brand: high-quality coffee, complementary food and drink products, a warm welcoming environment, and community involvement. 3. By emphasizing its culture and relationships with customers and employees, Starbucks has been able to maintain a local presence and identity in each new market it enters, fueling its continued global expansion.

    Original Title

    Topic 05 Case (1)

    Copyright

    © © All Rights Reserved

    Available Formats

    PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    1. Starbucks began as a small coffee shop in 1971 and has since grown to become the largest coffeehouse company in the world with over 18,000 stores globally. 2. Through extensive marketing research including customer feedback, Starbucks has identified four pillars of its brand: high-quality coffee, complementary food and drink products, a warm welcoming environment, and community involvement. 3. By emphasizing its culture and relationships with customers and employees, Starbucks has been able to maintain a local presence and identity in each new market it enters, fueling its continued global expansion.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    13 views2 pages

    Topic 05 Case

    Uploaded by

    aminath azza
    1. Starbucks began as a small coffee shop in 1971 and has since grown to become the largest coffeehouse company in the world with over 18,000 stores globally. 2. Through extensive marketing research including customer feedback, Starbucks has identified four pillars of its brand: high-quality coffee, complementary food and drink products, a warm welcoming environment, and community involvement. 3. By emphasizing its culture and relationships with customers and employees, Starbucks has been able to maintain a local presence and identity in each new market it enters, fueling its continued global expansion.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 2

    CHAPTER 5 | SURVEY AND OBSERVATION 153a

    Online Video Case 5.1


    STARBUCKS: Staying Local While Going
    Global Through Marketing Research
    Named after the first mate in the novel Moby-Dick, Starbucks is the largest coffeehouse company in
    the world. As of 2014, it had more than 18,000 stores in over sixty countries. The company’s objec-
    tive is to establish Starbucks as the most recognized and respected brand in the world. It expects
    to achieve this by continuing with rapid expansion of retail stores and growing its specialty sales
    and other operations. It will also continually pursue other opportunities to leverage the Starbucks
    brand through new products and new distribution channels that meet consumer needs deter-
    mined by marketing research. Over the last two decades, Starbucks has revitalized the coffee in-
    dustry. The inspiration behind Starbucks was conceived when CEO Howard Schultz visited Italy.
    At that time, Starbucks was a coffee company, and people were very passionate about the coffee,
    but in Milan, Howard saw the passion around the coffeehouse experience. In Milan, Howard
    went from one espresso bar to the next and saw how people at the coffeehouses knew each other.
    These people were getting their daily coffees, but they also were making daily connections with
    other people, with the baristas, and with the artistry; the folks making the drinks were connecting
    with their customers and knew them personally. From this experience, Howard recognized that
    although Starbucks was passionate about the coffee, it also had the opportunity to be equally pas-
    sionate about the coffeehouse experience.
    Marketing research determined four strategic pillars for expressing the Starbucks brand. The
    four pillars are (1) the coffee, which is Starbucks’ foundation and which gives Starbucks its credi-
    bility; (2) some of the finest products that are associated with the coffee experience; (3) the warm,
    welcoming, and inspiring environment; and (4) community involvement. Even though the coffee
    and the products are important, the key to Starbucks’ success has been the latter two. It has de-
    signed an environment that is warm and welcoming and provides an experience that makes the
    company a part of the community or local culture. It has been able to achieve this success by em-
    phasizing the Starbucks culture.
    Starbucks also draws upon customers for ideas by conducting extensive marketing research.
    Many of its products and services are a direct result of suggestions from patrons or local employees.
    Much more than most companies, consumers touch and influence the corporation. Many innova-
    tions and retail items resulted directly from customers’ feedback obtained by conducting market-
    ing research and by suggestions made to the baristas. From customized CD music collections to
    sales of sandwiches, gums, and chocolates—all were a result of customer recommendations. Many
    stores even offer wireless Internet access in response to customer demand. Through its baristas,
    Starbucks found that people were interested in an iced Starbucks drink and a blended Starbucks
    drink, and thus the Frappuccino was born—an idea that came from customers and the baristas
    rather than corporate headquarters.
    This local connection with customers and the consequent brand building have allowed
    Starbucks to move into other successful venues—from coffee bean sales at grocery stores to part-
    nership with United Airlines, Marriott, Pepsi, Kraft, and others. Starbucks has some of the best cof-
    fee in the world, but it was missing from grocery stores, which is where most coffee is purchased.
    Syndicated data from The Nielsen Company showed that grocery stores sell two-thirds of the coffee
    in the United States, and Starbucks has been able to enter this lucrative market. It has also used
    partnerships in other industries to increase revenue.
    In the past few years, Starbucks has been aggressively expanding its global footprint by enter-
    ing newer markets and strengthening its position in countries in which it already has a presence.
    Growing a brand overseas, however, can be different from doing so in Starbucks’ home market.
    According to Thomas Yang, former senior VP of International Marketing, this difference in growth
    153b PART 2 | RESEARCH DESIGN FORMULATION

    behavior in different countries can be attributed to Starbucks’ different stages of development


    in the United States and different parts of the world. In international markets, Starbucks is at the
    brand development and establishment stage, allowing consumers to discover what the brand is
    about and what the Starbucks experience is about. In contrast, Starbucks has had a presence in
    North America since 1971. In the United States, the Starbucks experience is pretty well-known and
    understood, and thus it is in a different stage.
    Starbucks has been extremely successful in achieving its objectives. It has been able to main-
    tain a local feel despite massive growth around the globe. It has done this by stressing its culture
    and placing the focus on its employees and customers through marketing research. Starbucks
    hopes to continue staying local while going global through marketing research.

    Conclusion
    Starbucks has gone from a small local coffee startup in the 1970s to the largest coffeehouse com-
    pany in the world. This success has largely been due to the strong connection it has been able to
    foster with its consumers and to maintaining a local charm and feel in its stores even as it contin-
    ues to expand globally at breakneck speed. This strong connection has also enabled Starbucks to
    gather useful feedback and marketing research information from customers, leading to the intro-
    duction of several successful new products and penetration into new global markets.

    Questions
    1. Use the Internet to identify secondary sources of information pertaining to coffee
    consumption in the United States. What insights into coffee consumption can be obtained
    from social media research?
    2. What are consumers looking for in a coffeehouse experience? How do they view the Starbucks
    coffeehouse experience? How can Starbucks determine answers to these questions?
    3. A survey is to be conducted to determine the image coffee drinkers have of Starbucks and
    other coffee chains. Which survey method should be used and why?
    4. Starbucks is thinking of introducing a new gourmet coffee with a strong aroma. Can a survey
    be used to determine the consumer reaction to this coffee prior to national introduction? If
    so, which method should be used?
    5. Starbucks is thinking of introducing a new gourmet coffee with a strong aroma. Can the
    observation method be used to determine the consumer reaction to this coffee prior to
    national introduction? If so, which observation method should be used?

    References
    1. www.starbucks.com, accessed July 15, 2013.
    2. Steven Gray and Kate Kelly, “Starbucks Plans to Make Debut in Movie Business,” Wall Street Journal (January 12,
    2006): A1, A8.
    3. Bob Keefe, “Starbucks to Offer CD-Burning Capabilities at Stores in Future,” Knight Ridder Tribune Business
    News (June 28, 2004): 1.

    You might also like