STARBUCKS COFFEE COMPANY MARKETING AREA
I. Introduction
Starbucks is an American coffee company and a warehouse chain that was founded in Seattle,
Washington, in 1971. The American company started as a small store in Seattle’s Pike Place
Market, and its name was inspired by the movie Moby dick as a reference to the first coffee
traders navigating the seas. Starbucks, as we know it today, was born from the ideas of the
former CEO and marketing director Howard Shultz who traveled to Italy and saw the “Italian
Cafe” tradition, and was inspired to bring this culture to the United States. This paper
discusses the Marketing area of Starbucks that has lead them to own over 30,000 coffee
stores all around the globe in the course of 50 years. We have first analyzed the company and
its opportunities, followed by the actual marketing strategy and finalizing with the marketing
mix.
II. Marketing Opportunities
5 C’s
Company:
Since 1971, Starbucks has been a roaster and retailer of coffee, tea and spices, that has
expanded to over 30,000 stores in 80 different markets. Their mission is to “inspire and
nurture the human spirit-one person, one cup and one neighborhood at a time.” They believe
in serving the best coffee while improving under high standards of quality and ethical
sourcing. Furthermore, they maintain their high quality and image by selecting high quality
coffee beans from farms in Latin America, Africa and Asia. (Starbucks Coffee Company,
2019)
Collaborations:
Starbucks has completed several collaborations in order to connect and support with
different communities, art, sports and the environment. Starbucks aims to be present in its
communities, therefore has developed several partnerships that foment important activities
for the people living in them. They also have international partnerships which adds more
prestige and recognition to the brand. Besides, they constantly work on ways to improve the
environment around them and positively impact its employees, and work alongside the areas
1
, of education, equity, sustainability and army veterans. Depending on each community, they
have formed partnerships with local NGOs or benefit businesses that work towards common
goals and value Starbucks mission. (Starbucks Coffee Company, 2019)
Customers:
Starbucks’ main target are women and men from 25-40 who are in a medium-high-
income bracket, are socially and environmentally aware, trendy and enjoy to work. The
company appeals to these consumers through hip and contemporary designs for them to have
a nice place to work, hang or rush to the office. (Alam, 2019)
Competitors:
Starbucks is a market leader, but in recent years more and more coffee companies
have emerged. Tackling a wider and budget friendly customer there are Dunkin’ Donuts,
McDonalds with McCafe and Costa Coffee. In the area of environment and similar quality
and business proposition: Tim Hortons and Peet’s Coffee. (Hawley, 2019)
Climate:
Starbucks is a global company that sources their coffee beans from different farms all
over the world and has over around 30, 000 stores. Due to their importance and recognition
globally, Starbucks is affected by many of today’s trends and factors. In regards to politics,
they must consider where they source their raw materials from plus the different regulations
and taxation in the 80 different countries they operate in. The economical factors affect
everyday consumers with the global recession, since Starbucks’ coffee can be seen less of a
commodity, customers may move to cheaper alternatives. In the social environment,
Starbucks constantly works to aid the communities they are involved with and their
employees’ conditions.
PEST ANALYSIS
Figure 1. PEST Analysis
POLITICAL ECONOMICAL
The main type of political considerations Buying coffee for many is a daily purchase,
that Starbucks needs to consider regard but with the economic recession worldwide
sourcing raw materials (coffee beans). There buying starbuck’s coffee has become less of
are many concerns surrounding the a commodity and people have shifted to
environment and social/employee rights in cheaper alternatives. Also, the company has
agriculture in several countries where to deal with pricing according to the demand
Starbucks sources their coffee. They need to of the coffee worldwide, as a multinational
follow the regulations of each country and entity. Some other economic factors that can
be aware of the activism and political affect the company are: inflation, local
2
I. Introduction
Starbucks is an American coffee company and a warehouse chain that was founded in Seattle,
Washington, in 1971. The American company started as a small store in Seattle’s Pike Place
Market, and its name was inspired by the movie Moby dick as a reference to the first coffee
traders navigating the seas. Starbucks, as we know it today, was born from the ideas of the
former CEO and marketing director Howard Shultz who traveled to Italy and saw the “Italian
Cafe” tradition, and was inspired to bring this culture to the United States. This paper
discusses the Marketing area of Starbucks that has lead them to own over 30,000 coffee
stores all around the globe in the course of 50 years. We have first analyzed the company and
its opportunities, followed by the actual marketing strategy and finalizing with the marketing
mix.
II. Marketing Opportunities
5 C’s
Company:
Since 1971, Starbucks has been a roaster and retailer of coffee, tea and spices, that has
expanded to over 30,000 stores in 80 different markets. Their mission is to “inspire and
nurture the human spirit-one person, one cup and one neighborhood at a time.” They believe
in serving the best coffee while improving under high standards of quality and ethical
sourcing. Furthermore, they maintain their high quality and image by selecting high quality
coffee beans from farms in Latin America, Africa and Asia. (Starbucks Coffee Company,
2019)
Collaborations:
Starbucks has completed several collaborations in order to connect and support with
different communities, art, sports and the environment. Starbucks aims to be present in its
communities, therefore has developed several partnerships that foment important activities
for the people living in them. They also have international partnerships which adds more
prestige and recognition to the brand. Besides, they constantly work on ways to improve the
environment around them and positively impact its employees, and work alongside the areas
1
, of education, equity, sustainability and army veterans. Depending on each community, they
have formed partnerships with local NGOs or benefit businesses that work towards common
goals and value Starbucks mission. (Starbucks Coffee Company, 2019)
Customers:
Starbucks’ main target are women and men from 25-40 who are in a medium-high-
income bracket, are socially and environmentally aware, trendy and enjoy to work. The
company appeals to these consumers through hip and contemporary designs for them to have
a nice place to work, hang or rush to the office. (Alam, 2019)
Competitors:
Starbucks is a market leader, but in recent years more and more coffee companies
have emerged. Tackling a wider and budget friendly customer there are Dunkin’ Donuts,
McDonalds with McCafe and Costa Coffee. In the area of environment and similar quality
and business proposition: Tim Hortons and Peet’s Coffee. (Hawley, 2019)
Climate:
Starbucks is a global company that sources their coffee beans from different farms all
over the world and has over around 30, 000 stores. Due to their importance and recognition
globally, Starbucks is affected by many of today’s trends and factors. In regards to politics,
they must consider where they source their raw materials from plus the different regulations
and taxation in the 80 different countries they operate in. The economical factors affect
everyday consumers with the global recession, since Starbucks’ coffee can be seen less of a
commodity, customers may move to cheaper alternatives. In the social environment,
Starbucks constantly works to aid the communities they are involved with and their
employees’ conditions.
PEST ANALYSIS
Figure 1. PEST Analysis
POLITICAL ECONOMICAL
The main type of political considerations Buying coffee for many is a daily purchase,
that Starbucks needs to consider regard but with the economic recession worldwide
sourcing raw materials (coffee beans). There buying starbuck’s coffee has become less of
are many concerns surrounding the a commodity and people have shifted to
environment and social/employee rights in cheaper alternatives. Also, the company has
agriculture in several countries where to deal with pricing according to the demand
Starbucks sources their coffee. They need to of the coffee worldwide, as a multinational
follow the regulations of each country and entity. Some other economic factors that can
be aware of the activism and political affect the company are: inflation, local
2
