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Starbucks Knows
The business opportunity that Starbucks sought to pursue was to grow its market in the grocery space. By designing K-Cups that appealed to consumers’ tastes, Starbucks sought to compete with other companies, such as Proctor and Gamble and Smuckers. The idea was to get Starbucks brand ready-made drinks into peoples’ homes so that they could have them without having to go to the store. As Sarah Whitten noted, “It’s a way for [Starbucks] to expand a brand that’s already owning retail and bring it into consumer’s homes…So, they can almost double consumption because consumers are going to want to drink it when they go to the actual Starbucks locations and now they have the freedom to drink it at home.” By analyzing customer data, Starbucks was able to identify a variety of drink formulations that would appeal to the largest segment of consumers.
The analytical methodology that Starbucks used to solve the problem was to obtain “data from several consumer-research firms in shaping its new grocery product line” (Whitten). Data analytics in consumer research are helpful for “categorization, abstraction, comparison, dimensionalization, integration, iteration,...
The goal of this method is to identify patterns of meaning that can be both qualitative and quantitative and then develop a product in response to those findings so at to appeal to consumers. It is a type of use of Big Data that is made possible by the use of technology, which can “capture rich and plentiful data on consumer phenomena in real time” (Erevelles, Fukawa and Swayne 898). Starbucks used Big Data to obtain information on how consumers prefer their drinks when they order at the counter—whether they add milk or sugar to certain drinks, whether they like tea sweetened or unsweetened, whether they add milk to iced coffee when they drink it in their own homes.
By understanding the preferences of their consumers, looking at the data, and relating it to sales and qualitative information gathered from surveys, questionnaires and consumer interviews, Starbucks was able to construct a clear picture of its target market consumer and what that consumer would be likely to purchase in the grocery store aisle. The goal of the expansion would be to compete outside of retail and double consumption rates. By getting consumers while they shop, Starbucks would…
Starbucks and Team-Building One company which builds the inherent value of team-building right into their reputation is Starbucks. Starbucks is known for valuing not only their employees but the manner in which their employees work together; this is an aspect of the company which has long been built into the company image. The First Step of Team-Building: Valuing Employees One of the ways that employees are rewarded for their teamwork starts with the
Starbucks and Peet's have similar gross margins. Dunkin' Brands has a much better gross margin at 78.9%, while McDonalds has a lower gross margin at 39.6%. Starbucks' gross margin might put it in the middle of the pack for quick service, but it is still a healthy margin. The company is profitable, something most of the firms in the industry are. Interesting, Dunkin is the least profitable of these
Neither McDonalds nor Dunkin Donuts has a product quite like this one. In order to further beat the competition, this product should be manufactured as soon as possible. Though some customers may be tempted to choose a Dunkin Donuts or McDonalds coffee over Starbucks by their proximity to the competitors' restaurants, one whiff of the air freshener will change their minds and have them driving back to Starbucks. Since 1971,
A fourth foundational element is the strength of the Starbucks brand itself and is ubiquity globally. As a result of rapid and well-defined strategies for opening up retail stores, Starbucks is now considered one of the most preeminent and strongest brands globally. Starbucks has generated the strength of their brand through combining high-quality coffee and tea beverages with the third-place concept to generate customer loyalty and world-of-mouth among customers and their
Proposed Ecosystem Hub for Starbucks Overview Each day, technologists working at Starbucks, in collaboration with other stakeholders, work on innovations that could only be described as groundbreaking. This is the team responsible for the unique Starbucks experience. However, without this level of dedication and inventiveness, Starbucks technology-centeredness would not have been possible. Thanks to these efforts, Starbucks now boasts of superior customer connection with the enterprise and continues to further promote customer
Starbucks and Gloria Jeans in Singapore. The focus will be on the marketing elements of these two stores. For Starbucks, the store visited was in Raffles City. The Gloria Jeans was in Suntec City Galleria. The focus of the report will be on describing the elements of the marketing mix, including product, price and promotion. A table will be presented, and then there will be descriptions of the findings.