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Marketing Analysis: Starbucks United Kingdom - Case Study Example

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"Marketing Analysis: Starbucks United Kingdom" paper focuses on marketing activities of Starbucks in the U.K. Despite being a very popular and successful business organization, the trade of Starbucks in the U.K. is experiencing increased revenue, but declining profitability with time. …
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Marketing Analysis: Starbucks United Kingdom
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Download file to see previous pages The research paper shows that increased competition within the restaurant industry and declining real discretionary spending powers of individuals in the U.K. have created barriers for the company’s commercial expansion. At this juncture, the company can resolve business problems by incorporating certain changes. The research will prove that a new pricing strategy, increased business internationalization, and a more detailed vertical integration process can facilitate the company’s growth in the long run.

This report will focus on Starbucks Corporation, a popular multinational publicly traded organization, which engages in global coffee producing and selling. It is based in Seattle, Washington. Since its inception in 1971, the company has expanded across several international branches and operates in more than 64 countries (Starbucks Coffee Company, 2011). In 2013, it was estimated that the company owns 18000 retailing outlets and recruits more than 200000 employees around the world (Starbucks, 2014). As of 2013, the aggregate revenue of Starbucks was US$ 14.89 billion and net operating profit was US$ 325.4 (Starbucks, 2014). This research report will analyze the marketing activities of the company in the U.K. the analysis is rational because; despite increasing revenue, the company is experiencing declining profitability trends in the U.K.

Starbucks is a popular coffee producing company that sells a variety of brewed and in-house coffee flavors in the U.K. Apart from selling coffee, the company also sells other products such as, cold and hot beverages, sandwiches, snacks, and pastries. The coffee and liquid beverages of the company are sold in different standardized measurements, such as demi, short, tall, grande, venti, and trenta (Starbucks Coffee Company, 2011). Most of the coffee beans used by Starbucks are procured from Latin American and African countries. The company’s products are sold in its own retailing outlets. The company stores sell pre-packed products and few even offer beer, appetizers, and wine in the evenings.  ...Download file to see next pagesRead More
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