Starbucks Company Market Performance - Case Study Example

Because of the constant criticism faced it decided to reduce the size by dividing a single bar into two bars, and then they promoted the two bars that they made claiming that a person can have the other part later. It still had to face criticism as people believed that it was not an actual size reduction but just a fad on the part of the company. Due to this they started producing the snickers mini and phased out the giant. The environmental aspects that have positively impacted the company include the demography of the area of operation which is within cosmopolitan regions. This also has amounted to the technological advancements within these regions especially since their products are furnished brands to the existing products. Lastly, the cultural trends of the regions of operations have been characterized by fashionable products which triggered the entry of Snickers into the market space.

Moreover, the success of starting the company amounted to the level of education of the management; this accorded the management technical as well as managerial skills, having studied a bachelor’s degree in business management. By extension, prior experience in a sugar processing farm came in handy as regards the stages of production and general processing. In addition to this, there were adequate savings to initiate the company as initial capital.

The Starbucks Company produces products made up of Nougat, caramel, and covered with chocolate. They have a range of products, the original snickers, the dark snickers, the almond snickers, and the ice cream. The ice cream comes in three forms, a cone, a brownie, and a bar.

Starbucks Company has enjoyed a whopping 30% market share owing to its quick establishment as regards the core products which long before never existed to satisfy the consumers’ needs, but if they did then were of poor quality. The main area addressed by Starbucks coming in handy as a cutting edge was their technological inclusion in the venture. This furnished the brand of the product. In addition to their quality products, the government was quite impressed and considered funding the expansion of the production of this new brand of products.

In addition to the aforementioned market share, Starbucks Company’s considerations come along with the knowledge of the customers of probable benefits accruing from the entry of the new product, their willingness and capability to pay higher prices for the new products, their likelihood to adopt the new brand based on their attitude and their criticisms about the product which they would wish to be addressed; especially the health concerns.

The current advertisement that Starbucks Company has been running is the “when you are hungry, you are not you”. It is this concept that has received recognition and they have made some really interesting advertisements that have earned them acclaim. This advertisement focuses on the fact that the company products give you energy and make you young and energetic. Other than this the company has also used various promotion strategies like the Push strategy as well as the pull Strategy which has ensured the maximal exploration of all available channels of distributing the product to the market. In these methods of advertising the company has employed various stratagems like Product comparison advertising; whereby it has enjoyed the benefit of an outstanding product. Other equally competitive marketing schemes include product family advertising; since their products are more to address the regularly used household and personal care products, and finally the product benefits analysis set upon the company’s standards for their market dominance.

The product should be portrayed as a very healthy option instead of other chocolates as it contains honey. The placement is very necessary and the same goes for the promotion tactics. This is one of the factors that the company considers in its pricing influenced by the net income requirement. In line with this, the specific strategies deployed include a skimming strategy; due to the high differentiation value of the products and also necessitated by the high market penetration and dominance. The other strategy also used is the comparable pricing strategy; which has been set by the management and is in line with the Company’s objectives. Once that is done a small question mark can again appear in the advertisements that are placed in the magazine. The major modes of distribution of the product include On-premise sales whereby the sales officers visit the clients in their homes to sell the products; wholesale sales whereby the company’s middle-men sell its products to retail agencies; Direct sales whereby the sales entity of the organization sell its products using technological aids like internet and telephone, and Full-service retail sales whereby the organization distributes its products through full-service retail.