Starbucks: Brewing a worldwide Experience Starbucks is an American which have been founded in 1971 to strategic move into coffechouse in the mid-1980s, to its entry into international market in the mid-1990s. The company entered England by purchasing the Seattle Coffee Company in 1998 and the ventured into continental Europe in early 2001 by entering Switzerland. In the late 2001, it took its boldest step by entering Austria, with its 1900 existing coffee shops-one for cach 530 Austrian citizens. Their initial vision was to educate customers about coffee but the later ventured into other arcas such pastries, ice creams etc. Starbucks emerged as an entertainment destination offering the delight to experience discussion on books, music and movies associations. Starbuck customers visits the stores frequently averaging 18 times per month Its coffee is however not low priced relative to other coffee options, and its dedicated customers have strong brand preference. The company has done a lot of work to build brand loyalty which has caused their customers to do little comparison shopping. In some sense Starbucks took a commodity item and branded it to make it specialty product. It is very picky about its product quality and has sought a variety of cofee and brewing methods that allowed it to produce more flavourful coffec that would appeal to coffee lovers. It has developed a consistent packaging system that is internationally recognizcd. Despite predictions that Starbucks would stumble in coffec-rich Europe, it has succceded by sticking to its strategy of offering standardized products in a standardized atmosphere with some adjustments to its food offerings to meet local tastes. As the company prepares to complete its sweep through Europe and enter the ultimate test market, Italy, one wonder whether its strategy and its success will hold up. Questions: A. IHow would you classify Starbucks product using the marketing considerations for a consumer product? B. How is the concept of service marketing important to Starbucks? C. What marketing recommendations would you make to Starbucks as it contimues its International expansion?

Starbucks: Brewing a worldwide Experience Starbucks is an American which have been founded in 1971 to strategic move into coffechouse in the mid-1980s, to its entry into international market in the mid-1990s. The company entered England by purchasing the Seattle Coffee Company in 1998 and the ventured into continental Europe in early 2001 by entering Switzerland. In the late 2001, it took its boldest step by entering Austria, with its 1900 existing coffee shops-one for cach 530 Austrian citizens. Their initial vision was to educate customers about coffee but the later ventured into other arcas such pastries, ice creams etc. Starbucks emerged as an entertainment destination offering the delight to experience discussion on books, music and movies associations. Starbuck customers visits the stores frequently averaging 18 times per month Its coffee is however not low priced relative to other coffee options, and its dedicated customers have strong brand preference. The company has done a lot of work to build brand loyalty which has caused their customers to do little comparison shopping. In some sense Starbucks took a commodity item and branded it to make it specialty product. It is very picky about its product quality and has sought a variety of cofee and brewing methods that allowed it to produce more flavourful coffec that would appeal to coffee lovers. It has developed a consistent packaging system that is internationally recognizcd. Despite predictions that Starbucks would stumble in coffec-rich Europe, it has succceded by sticking to its strategy of offering standardized products in a standardized atmosphere with some adjustments to its food offerings to meet local tastes. As the company prepares to complete its sweep through Europe and enter the ultimate test market, Italy, one wonder whether its strategy and its success will hold up. Questions: A. IHow would you classify Starbucks product using the marketing considerations for a consumer product? B. How is the concept of service marketing important to Starbucks? C. What marketing recommendations would you make to Starbucks as it contimues its International expansion?

Principles Of Marketing

17th Edition

ISBN:9780134492513

Author:Kotler, Philip, Armstrong, Gary (gary M.)

Publisher:Kotler, Philip, Armstrong, Gary (gary M.)

Chapter1: Marketing: Creating Customer Value And Engagement

Section: Chapter Questions

Problem 1.1DQ

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Transcribed Image Text:10:54 E Y & marketing - Saved This document contains ink, shapes and images that. Starbucks: Brewing a worldwide Experience Starbucks is an American which have been founded in 1971 to strategic move into coffechouse in the mid-1980s, to its entry into international market in the mid-1990s. The company entered England by purchasing the Seattle Coffee Company 1998 and the ventured into continental Europe in early 2001 by entering Switzerland. In the late 2001, it took its boldest step by entering Austria, with its 1900 existing coffee shops-one for cach 530 Austrian citizens. Their initial vision was to educate customers about coffee but the later ventured into other arcas such pastries, ice creams etc. Starbucks emerged as an entertainment destination offering the delight to experience discussion on books, music and movies associations. Starbuck customers visits the stores frequently averaging 18 times per month. Its coffee is however not low priced relative to other coffee options, and its dedicated customers have strong brand preference. The company has done a lot of work to build brand loyalty which has caused their customers to do little comparison shopping. some sense Starbucks took a commodity item and branded it to make it specialty product. It is very picky about its product quality and has sought a variety of coffee and brewing methods that allowed it to produce more flavourful coffee that would appeal to coffee lovers. It has developed a consistent packaging system that is internationally recognized. Despite predictions that Starbucks would stumble in coffee-rich Europe, it has succeeded by sticking to its strategy of offering standardized products in a standardized atmosphere with some adjustments to its food offerings to meet local tastes. As the company prepares to complete its sweep through Europe and enter the ultimate test market, Italy, one wonder whether its strategy and its success will hold up. Questions: A. IHow would you classify Starbucks product using the marketing considerations for a consumer product? B. How is the concept of service marketing important to Starbucks? C. What marketing recommendations would you make to Starbucks as it continues its International expansion? B I U e A = E

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