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Summary to essay on topic "STARBUCKS IN CHINA"
Starbucks was formed in 1971 by three business men in United States and indulged in business of coffee beans and coffee beverages since its inception. With the passage of time, the company recorded phenomenal growth in its business operations and thus expanded its operations to…
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Download file "STARBUCKS IN CHINA" to see previous pages... The retailer also used restructuring strategy to maximise its productivity and eradicate any internal management weakness. Employees are trained, new products are developed and stores are redesigned to entice a large pool of potential customers towards its coffee houses. However, it must be noted that the global coffee retailer tends to charge higher prices,
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since it does not compromise over quality and brand reputation. This paper will going to discuss the marketing strategy of Starbucks and importance of its three core business segments that are US Segment, International Segment and Global Consumer Products Segment. (Company’s Annual Report, 2009)
Indeed, Starbucks has so far maintained the highest number of retail coffee outlets, mostly on ownership basis, in United States which is a market of more than 300 million people. Since marketing does not aim to target every single human being and customer, therefore, the coffee retailer has established a quality criterion to meet the tastes and preferences of its US customers who are inclined to pay higher prices for better quality. It is worthwhile to mention that more than 70% sales generated in 2009 by Starbucks was from its US business segment. In addition, the company has also entered the business of Instant coffee or ready-made coffee that attracts fast food customers. The market for this coffee product in USA is estimated to be more than $700 million dollars. In 2003, Starbucks acquired its competitor namely ‘Seattle’s Best Coffee’ which today has become an active brand as it is sold in more than 25,000 Starbucks’ outlets, supermarkets, retail stores and fast food chains. The retailer also has “Specialty operations within the US include licensed retail stores and other initiatives related to the Company’s core business” (Company’s Annual Report, 2009) and Helliker 1, ...Download file "STARBUCKS IN CHINA" to see next pagesRead More
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