rrent Market Position
Throughout the past five years Starbucks has seen the market value and topline revenue go up by almost double, leaving the numbers to now be $23 billion compared to five years ago being $14 billion. Starbucks is one of the most known brands throughout the entire world. The company has reached this remarkable goal by having a strong marketing strategy and being consistent across the board with the company. Although Starbucks does have a multi-million-dollar marketing budget it makes other companies not compare. With the launch of a Rewards Program Starbucks quickly jumped to the top of leader boards.
Trends in Company's Industry
For Starbucks to continue doing so well with competing partners they keep the number of stores they must a growing amount. Starbucks has also expanded to not only typical stores but to changing the type of stores the company is opening. Starbucks has recently started opening express stores in major cities which is aimed to increase the number of people that go into the stores and at a quicker rate. With the number of stores opening rising this is also causing the number of sales to rise throughout the company. Starbucks is also aiming away from the typical coffee experience to starting to trend to different types of coffee and espresso. While the company has always food they are trying to incorporate, more options including already meals that a customer can buy ready to eat while they are on the go.
History of Starbucks
Starbucks opened its very first store in 1971 located in Seattle's Pike Place Market. About 11 years after that Starbucks hired Howard Schultz as director of retail operations and marketing, this is also the time when Starbucks began to provide coffee to more restaurants and espresso bars. In 1988 the company started to offer full health benefits to full and part time employees, now Starbucks has 33 stores open. By the time 12 years pass Starbucks now has 3,501 stores open throughout the world and has created many agreements for sell products in U.S. and Canada. In 2007 Starbucks, has officially eliminated all artificial trans-fat and has made 2 percent milk the new option for espresso drinks. In 2015 the company has launched cold brew iced coffee and handcrafted smoothies, also by this time there are 22,519 stores throughout the world. Starbucks has changed throughout history from a small startup company to a company with thousands and thousands of stores. In 1971 Starbucks just had the typical roasted coffee and now there are nearly 100 options for varieties of drinks and even food the company has added to the menu. Starbucks has now expanded its employees to youth employees. The company now has a full tuition coverage for all four years of an undergraduate degree for qualifying employees called, “Starbucks College Achievement Plan.” Throughout the entire world Starbucks now has over 22, 520 stores.
Previous Marketing Efforts of Starbucks
Transitioning from a typical coffee store to a premium coffee brand has been one of Starbucks biggest transitions over the years. Besides just having premium coffee beans and grinds the store has been transitioning to more of a premium store environment to give its customers an enjoyable place to relax and enjoy a nice cup of coffee. Many consider Starbucks a premium brand so with this the customers that buy this type of coffee generally come from the upper middle class and middle class. Higher earning professionals in the age group of twenty-five to sixty is what makes up the typical Starbucks customer. Although a lot of college kids also put Starbucks into their budget because the stores are expanding to many college campuses.
Current Marketing Activities
The current marketing strategy that Starbucks is incorporating in its business is known as “third place,” this is meaning it's a hangout spot for customers away from home and work which is this so called “third place.” Another huge strategy that Starbucks is implementing a loyalty program. The Starbucks Reward Program offers a free item for every twelve transactions that a customer makes. The marketing idea behind this rewards program is to get customers to keep coming back into the store because the rewards expire after a certain amount of time. During certain time periods Starbucks, will also offer a happy hour which may include a buy one get one free deal. Starbucks has also created an app which customers can skip the line and instead make a purchase in the app so the order is ready for pickup. Most importantly Starbucks has been keeping up with times and adjusting where need be and that is what is keeping them to be the most successful coffee shop.
Analysis of Starbucks
Starbucks current company revenue is 22.387 billion which is a 5% increase over 2016. Not only has Starbucks revenue increased but the profit has also gone up 2.4% over 2016. Although Starbucks is succeeding the company does have many competitors including Caribou Coffee Company, Costa Coffee, Dunkin' Brand, Green Mountain Coffee Roasters, McDonald's Corporation, Nestle and many other chains. Starbucks is currently the premier roaster and retailer of specialty coffee in the entire world. Currently Starbucks has stores in 75 countries and is still expanding.
As Starbucks continues to grow as a company it is going to be very important that they keep up with competitors. Keeping up with the up and coming marketing strategies of other companies is going keep Starbucks successful. Customers are very intrigued with the loyalty programs so to keep that up Starbucks must continue to update its program with the idea of customers. Revenue and profit must continue to rise but most importantly revenue and profit will have to continue to rise more than competitors. If Starbucks continues to do all of these they will continue to be more successful than other competitors as they are already more successful than most.
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