Marketing Trends Starbucks - Essay Example

Starbucks a. Market Structure Starbucks Corporation is essentially known as a renowned in speciality coffee. It offers fresh rich-brewed coffees, espresso beverages, a range of pastries and confectionary items, coffee-related accessories and equipment, and a line of premium teas under its brand name. The mission statement of Starbucks says, “To inspire and nurture the human spirit— one person, one cup, and one neighborhood at a time”. This mission statement in fact underlines the importance the company accords to each individual customer.

Though the company primarily operates in US, yet it as also on the lookout for exploring the potential in some other countries as well.The market structure is not very complicated in the coffee segment as there are not that many reputed players in the coffee market. Unlike what we see in segments like in the mobile phone market, some of the well known competitors of Starbucks include McDonalds Corporation, Dunkin Brands, Inc. and Nestlé. Having a strong brand image and a loyal customer base certainly helps the company, but in order to ward off the threat from competing companies the company has always tried to be innovative in its approach and offerings.

With presence1 in 43 countries outside US and 7,087 Company-operated stores, besides 4,081 licensed stores, the company is on a strong footing and looking after its business interests quite well. In addition the company takes good care of its workforce and appreciates the role of its diverse workforce in taking the company to such heights. The company has been recognized as amongst the ‘100 Best Companies to Work For’ by Fortune magazine. In fact the company has received such recognition consistently2 for many years now. b. Impact of new companies entering the marketWhile entering into any business, companies mainly look for;i.

The potential of the market in the form of customers and profitabilityii. The levels of the investments required in the market before the breakeven point is achievediii. The kind of prevailing competition and futuristic trends Coffee or soft drinks are the items which almost every individual loves to have every now and then. But as far as eating and drinking habits are concerned, an individual loves to go for the taste which suits him or her. Therefore, for new entrants the main challenging task is not only to attract the customers towards their products and services, but to retain them as well.

Therefore it will be preposterous to think that new companies entering into the fray will overnight start posing a serious threat to Starbucks. But in these times of globalization and liberalization one should not underestimate the emerging competition. For example if Apple Inc, known for computer hardware products, can create a serious threat to reputed mobile companies with the successful launch of iPhone, there could be companies offering coffee and other related drinks in other countries which might decide to take on Starbucks.

But as of now, Starbucks appears quite in control and the fact that the company has been consistently trying to improve the coffee experience of its customers helps Starbucks in retaining and widening its customer base.