Business planning strategies at Starbucks

Starbucks Corporation Business Plan

Starbucks' Societal Marketing Orientation

Today, Starbucks Corporation (hereinafter alternatively "Starbucks" or "the company") prides itself on being a responsible corporate citizen that values its customers which uses a societal orientation for its marketing. In this regard, Abhinandan and Ashok (1999) report that, "An orientation which encompasses customer orientation and which also preserves or enhances the consumer's and society's well-being, is termed as societal orientation" (p. 30). The company's focus on its customers is made clear by Starbucks' senior vice president of marketing, Scott Bedbury, who notes, "How can you, your people, your products, and therefore your brand -- create a human connection? To me, the answer is that being different is ultimately about values -- your values, your brand's values, and your company's values. Your values are what set you apart" (cited in Marek & Miller, 2009, p. 33).

Starbucks' Products/Services

Through its network of more than 18,000 retail outlets in 62 countries (Our heritage, 2014), the company offers a wide range of the following products:

Caffeinated (coffee and tea) beverages;

Roasted whole bean and ground coffees in packages;

Various single-serve products;

Bottled water; and,

Juices (Starbucks profile, 2014).

In addition, Starbucks' retail facilities also offer:

Fresh-food and other food items (including breakfast item and lunch items and pastries);

Beverages that are ready to drink; and,

Equipment and accessories for beverage-making applications (Starbucks profile, 2014).

Starbucks' Brand-Name and the Brand Logo

The founders of Starbucks named the company for Moby Dick's Captain Ahab's first mate, "Starbuck" (Our heritage, 2014). The company currently has a licensing arrangement through The North American Coffee Partnership with the Pepsi-Cola Company to produce and distribute the company's branded products to various outlets including grocery stores, national foodservice accounts and licensed stores (Starbucks profile, 2014). The company's brands include:

Starbucks,

Teavana,

Tazo,

Seattle's Best Coffee,

Starbucks VIA,

Starbucks Refreshers,

Evolution Fresh,

La Boulange, and Verismo (Starbucks profile, 2014).

Continuing the nautical theme from its name, the company's logo features a mermaid or siren (see Figure 1 below), depending on the source (Hoots, 2010).

Figure 1. Representative Starbucks' Logo

Source: Hoots, 2010

Starbucks' Pricing Strategy

The company's pricing strategy varies from country to country (Andrews & Chompusri, 2003) but generally speaking, Starbucks uses a sales-oriented pricing strategy based on careful market research and customer analyses to identify pricing levels that the majority of their consumers are willing to pay for their products (Dawson, 2013).

Product Life Cycle of Starbucks