Marketing Analysis and Strategy Recommendation for Starbucks Coffee Company

Essay by wainilamUniversity, Master'sC+, April 2008

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Marketing Analysis and Strategy Recommendation for Starbucks Coffee Company


The purpose of this report is to conduct market analysis and recommend appropriate marketing strategies for Starbucks Coffee.

In the report, we will first look into Starbucks's goal, its product and markets. Then we will look into the key actions and decisions that lead to the success of the company. After that, we will discuss the issues that Starbucks is facing in this competitive global market. For each strategic issue, appropriate marketing recommendations for the company are made respectively.

Background and situation analysis

Starbucks Coffee starts in 1971 with a single store in Seattle's Pike Place Market. Today, they are privileged to welcome nearly 35 million customers on a weekly basis, in more than 12,000 stores around the world. (

Starbucks's goal is to become the leading retailer and brand of coffee in each of its target markets by selling the finest quality coffee and related products and by providing each customer a unique "Starbucks Experience".

"Starbucks Experience" is a third place after home and work with superior customer service, clean and well maintained retail stores which reflect the personalities of the communities in which they operate. Starbucks strategy for expanding its retail business is to increase its market share mainly by opening additional stores in existing markets and to open stores in new markets. In support of this strategy, Starbucks opened 1,040 new company operated stores in fiscal 2006. (

During fiscal 2006, Starbucks Coffee Company operated retail stores accounted for 85% of total net revenues. (Starbucks Annual Report 2006) In addition to company operated stores, Starbucks works with certain carefully chosen business to operate licensed stores in various places. Its strategy is to reach customers where they work, travel, shop and dine by establishing...