Marketing strategy of the specialty coffee retailer. Effects on the company of the downturn in the economy, increased competition, and a lawsuit settlement. Starbucks as the Number One brand in the industry. Starbucks' goal for its marketing strategy. 4Ps marketing mix: Product, place, distribution, price and promotion. Global market entry and expansion of the chain.
According to ACNielsen, the coffee retailer industry experienced dollars sales of... more
According to ACNielsen, the coffee retailer industry experienced dollars sales of approximately $3.5 billion in 2001 (Marketing 2002). Starbucks, founded in 1971, is a gourmet or specialty coffee retailer. According to the National Coffee Association of Americans, in 2001 the percentage of gourmet coffee drinkers increased to 14% of the U.S. population, or approximately 29 million coffee drinkers (Marketing, 2002). For the second fiscal quarter of 2002, Starbucks posted $32.1 million on revenues of $783.2 million and increase of 32% in revenues over the previous year’s same period (Winters, 2002, 1). For 2001, retail sales grew by 22% and specialty revenues increased 37% to $106 million (Murphy,