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Starbucks Case Study: A Complete Overview

Before discussing Starbucks case study assignment, let us first know what case studies are and how they are formatted and why Starbucks Case study assignment help is needed. Given here is a quick look at everything that you want to know about.

What are Case Studies?

Case studies deal with the evaluation and identification of situations in organizations and then drawing out inferences and coming up with the recommendations. This assignment is meant for testing the knowledge off readers about certain circumstances in any organization. When you hire a professional Starbucks case study assignment help they follow the standard approach of analyzing the organization and then following an evaluation-oriented and problem solving approach.

About Starbucks:

Starbucks is an American company with a coffee house chain. The company is the third largest chain of the fast food items in terms of the number of locations of products and services. Company is ethically committed to purchase and roast only the high-quality whole beans.

This American Coffee company and a coffee house chain founded in Seattle, Washington in the year 1971. It is now operating in more than 30,000 locations all across the world. The company is known for serving cold and hot drinks. Micro ground instant coffee known as espresso, cafe latte, full and loose leaf teas, beverages and fresh juices etc. There are a number of stores of Starbucks that are selling pre-packaged food items, cold and hot sandwiches and a number of drink ware including tumblers and mugs etc. Wine, beer, appetizers etc. are being served in the Starbucks evenings. Starbucks-brand ice creams, cold coffee drinks and coffee drinks are sold at the grocery stores.

Starbucks is the main representative of “second wave coffee.”  And a retrospect movement was popularized in the artisanal coffee and in the dark roasted coffee in particular. Since 2000s, there are third-wave coffee makers that have targeted quality-minded coffee drinkers. These days Starbucks makes use of automated espresso machines that are highly efficient for the safety reasons attached to it. There are several Starbucks locations where cold and hot drinks are served. There are stores that sell the pre-packaged foods, cold and hot sandwiches and a lot more. Along with the Starbucks brand coffee, bottled cold coffee drinks are also sold right at the grocery stores.

A Starbucks case study assignment help puts all the efforts to know about the company, examine and analyse it and then write about it.

Starbucks offers one of the most likeable coffees in the world was founded by Zev Siegel, Gordon Bowker and Jerry Baldwin in the year 1971 at the street from the historic Pike Place market in Seattle. Three Starbucks founders had two things in common. Both of them were academicians and both of them loved tea and coffee. These partners invested some amount of money for the purpose of opening their very first store in the city of Seattle which came to be known as Starbucks.

Alfred Peet was a coffee-roasting entrepreneur and was an inspiration of the Starbucks. It was Peet’s success that encouraged the Starbucks founders to base their business-model on the selling of coffee-making equipment and beans. Partners purchased the used roasters from Bowker, Baldwin and Holland and experimented with different types of roasting techniques for the purpose of creating their flavors and blends. It was in the early 1980s, Starbucks opened as many as 4 stores in Seattle which stood out from the competition for their top-most and fresh quality.

Starbucks began to gain profit in the early 1980 in Seattle. There was an initial economic downturn when it expanded into British Columbia and Midwest in the late 1980. The company grew by leaps and bounds and experienced revitalized prosperity when it entered into California in the year 1990. Starbucks operated the six roasteries with the tasting rooms and as many as 43 coffee bars as a part of this program. It was in the year 2019 that the world’s largest Starbucks was opened in the Chicago on the Magnificent Mile.

Howard Schultz Era:

In the year 1981, a sales representative for Hammarplast which is a Swedish company used to make house ware and kitchen equipment from which Starbucks purchased drip-coffee makers noticed that orders of the company were too large. Schultz was deeply moved and thoroughly impressed to pursue a full-fledged career at the Starbucks. He worked with the store employees for the purpose of developing customer-friendly sales skills and other type of advertising and brochure producing activities that make the customers learn about the company’s services and products.

Schultz however failed to persuade Bowker and Baldwin to deviate from selling coffee to opening a café and hence Schultz left the Starbuck in 1985. It was in the year 1987 that Bowker and Baldwin decided to sell the company and it was Schultz that purchased the company, embraced the concept of café and combined all its operations for the dramatic rise of Starbucks. In the early 21st century, the company had a presence in dozens of the countries all across the globe and opened more than 20,000 stores world-wide.

Revenue of Starbucks:

Revenue is the amount of money which any company receives in lieu of the sales of services or goods. Revenue is the top-line items on the income statement from which all the expenditures and costs can be deducted for getting the net income.

  • Starbucks revenue for the quarter ending December 31, 2019 was $7.09 B. It is a 7% increase from the previous year.
  • The company revenue for the twelve months ending December 31, 2019 was $26.973 B was 6.7% which was more than the previous year,
  • Starbucks annual revenue for 2018 was $24.72 B which was 10.42% increase from the year 2017.
  • Starbucks annual revenue for 2017 was $22.387 was 5.02% increase from the previous year 2016.

The trend has shown that the company is able to gain profitability and the revenue has climbed from year to year. The company is aimed towards selling the highest quality whole bean coffees and over the year it has gained the reputation of being one of the highest selling coffee brands. Knowing about the revenue which company churns out every year will be a great Starbucks case study assignment help. The experts are well-versed with the real-life situations that the company is dealing with.

Growth Strategy of Starbucks:

Starbucks is a super-hero. The company has a number of plans for accelerating its growth and they seem to work very well. From the modest opening of selling coffee beans and equipment online, the company has put forward a number of plans for accelerating its growth and these all plans are working very well. Every since the start of café, the company is aggressively indulging in opening restaurants, improving its technology and developing the products that can expand the company’s rewards program. This tactics is paying off.

Sales at the cafes open a year and grew by 6% globally in the 3rd quarter. Net sales of the company grew by 8.1% to every time high touch to $6.8 billion. Starbucks has an improved financial outlook and touched the new height of success. One other strategy that the company adopted is adding more and more stores. In the third quarter, the company opened as many as 442 new stores out of which one-hired was in China. With the opening of 30,000th store in the year 2020, the company is through with 30,600 stores which is indeed a landmark.

At present the company is focusing on improving the customer-care experience at the coffee houses so that the delivery chain can be expanded. Starbucks announced its partnership with Uber eats for the purpose of furthering its growth in the United States.

Present Status:

Starbucks is a major player in the International market and the situations all across the world is in the favor of the Starbuck’s business. The company is known all around for setting its goals and changing lives of the people all around the world. According to the current scenario, the company can achieve its target in the present situation in the International market which can be further improved by the different types of ventures all across the world. Starbucks is doing business with several countries all across the world like Taiwan, United Arab Emirates, Egypt, United Kingdom and United States etc.

The company is aimed towards inspiring and nurturing the human spirits. “The primary mission of the Starbucks is to ser itself as the leading supplier of the finest coffees. It works towards providing a great work ambiance for the purpose of building dignity and respect. It applies the highest standards of excellence in purchasing and developing the highly satisfied customers.

Current Performance of the Company:

Starbucks has attracted the attention of most of the companies all across the world. There outstanding performance all through the years has made them a global player. These days, a number of international companies are more than willing to work with the Starbucks in the joint ventures for strengthening their roots in the International market.  The company is hoping for spreading its roots in the International market and it is all poised to become one of the coffee retailers of the globe.

Starbucks is all connected with the customers with laugh and it can uplift the lives of its customers. They can be trusted for perfectly made beverages. With the help of a good Starbucks case study assignment help all the data about the current performance will be readily available with them. Starbucks is the star performer that has climbed to the peak of success with a well-crafted strategy at place.

Starbucks Marketing Strategy:

The company is one of the most reputed brands on the earth. The brand recognition has reached on its height all thanks to their marketing strategy and their commitment towards keeping the brand consistent. There are certain core principles behind the marketing strategy of Starbucks that brand should borrow and implement.

It is true that the tactics currently used by the Starbucks have always reflected its tradition. Starbucks is all about connecting with the customers. Target audience for the Starbucks is men and women in the middle to upwardly mobile classes that can afford the higher priced beverages of the Starbucks on a regular basis. Their marketing strategy is offering the target audience an unforgettable experience whenever they visit their stores. Over the years Starbucks has become a great place for the customers to interact and have fun around.

They Follow Unbeatable Branding Consistency:

They are cleaner, most modern and has a philosophy that is applied to everything they can create right from the atmosphere in the stores to the digital content to the advertising strategy and everything else. The company follows a high quality so that the target audience can continue buying the products. So, if you are paying for a premium coffee that tastes far better any other royal brand, you will willingly buy it.

The company follows a unique marketing strategy which begins right from focusing on their products. The company differentiates itself from the others in the market by selling a premium quality. Right from its modest origins in Seattle to the brand that sprawled all across the world to become a leading coffee brand in the world, Starbucks has taken winning strides and retained the identity of being a winner.

The newest chapter in the International growth story is the Asian part. The company adheres to the quality-based product differentiation that has resulted in higher popularity and customer loyalty. But, it is true that the marketing strategy is not related to the products alone. The company has acquired a distinct position in the competitive market due to its consistent efforts. The great of all focus that the company pays is on its quality. It is the core of its marketing principle. No wonder why it enjoys a great marketing reputation.

It is the great taste and equally good quality of its products that it has gained an immense amount of popularity in the fast food market. They are known for their unparalleled service and superior customer-care support. A great customer care service has added to the positive reputation of the company and in the years, advertising and marketing has lead to the better sales and better consumer awareness in the market.

Brand Positioning:

The company has positioned itself well in the market of premium coffee brand based and the customer reaching out to the company experience a great satisfaction level. Apart from a great quality and a great brand proposition the customer has always strived hard to keep its customers on the fore in the priority listing.

Market Segmentation:

Since Starbucks is tagged as a premium brand, the customers are basically from the rich and upwardly mobile. The brand is meant for those who want to have a complete peace of mind while they were enjoying their cup of coffee to do away with the fatigue. People with income potential and the upper strata is the target of Starbucks. All of the customers of this coffee company belonging to higher wage professionals, business owners and so many other people that belong to 25-60 years of age primarily. This is the perfect place for those who want to lose stress with their daily cup of coffee.

How Starbucks Promote Itself?

Company makes use of a number of channels for the purpose of advertising and marketing their products. So, you can find their products in the social media to the advertisements and TV spots. In this way they can make their brand recognizable and it is the skill of marketing their brand consistently in an effective manner that helped them carve a niche for itself in the highly competitive market.

Important to Note:

Though their brand promotion is not cheap at all but Starbucks still spend far lesser than so many other global brands that are out to make impact in the market. In reality, Starbucks is quality focused and customer-oriented brand that keeps all the business ethics in mind. This is an important point that Starbucks case study assignment help highlights. Besides having numerous fabulous looking stores where customers can just sit comfortable and enjoy the excellence of coffee. The company is focused on other part of the business also and that is for the creation of strong and unique brand image. Ethical sourcing is a vital part of their business strategy and it sources as much as 99% of its coffee to the other suppliers all across the world.

This is enough to endorse the ethical image of the Starbucks that proved to be very favorable in terms of the customer loyalty and their retention. It is a major advantage in the 21st century and the customers are turning more and more loyal towards the brands and making them environment friendly.

Investment in Advertising:

It was till recently that Starbucks was well-known for not investing in advertising and marketing since all the marketing was based solely on the brand image and the fame offered by the Starbuck quality products. Lately, the company has made some changes in their marketing strategy and began to invest in advertising at large. Now, the ads of company are visible in print, television and in the digital channels.

A couple of year back, the company invested over $351 million in the field of advertising and marketing. TV commercials of the Starbucks highlighted the romantic most flavors present in the Starbucks store. But, as a matter of fact paid promotions and advertising were not the sole focus of Starbucks. When its budget is compared with the marketing budget of other celebrity brands they were far less.  Almost a decade back, Starbucks used to focus on hiring only the talented people on board and sourcing only the top most quality raw materials.

According to the 2006 annual report of the company, the growth is focused more on clear marketing and advertising gimmick than anything else to make their dreams come true. There was a time when they began to spend rigorously on advertising and marketing but in truth their advertising/marketing budget never touched even half a million. So, the company has kept its budget tightly under control.

Social Media Marketing Strategy:

Apart from other promotional strategies, Starbucks began to market itself in various social media platforms and achieved a tremendous amount of success in that. Today the brand has more than 500 engaging videos on the most popular social media platform. The company has a team of professionals that work towards promoting it. The company has released the videos of supply chain, products and several other aspects of the business operations.

This is not all. The coffee brand began an animated series of the cute characters. This animated series is made with the help of cute characters that depicted the life inside the stores of Starbucks. The company also tried Twitter successfully without much investment and gained a large fan following there. Right from its new products and inside the store stories, the brand also shared several other exciting things that make people glued to it. With the help of a proper marketing strategy the brand was able to add a real value to the marketing and in truth, you can learn a lot from them.

 The main point that a Starbucks case study assignment help service provider will make is that being customer-centric in the market and focusing on the product is what actually matters.

Given here are certain important points that Starbucks case study assignment help can bring to the fore.

Main Point of the Starbucks Marketing Strategy

  • Differentiation based on quality coffee or premium quality tea.
  • Consistent brand experience
  • Excellent customer-care service
  • Use of the unconventional techniques in branding and marketing.
  • Customer-orientation
  • High brand equity
  • Creating a positive brand image
  • Investment in advertising
  • Higher word of mouth marketing
  • Creating high customer value.

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