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Business Philosophy of Starbucks

Paper Type: Free Essay Subject: Marketing
Wordcount: 1526 words Published: 18th Jul 2017

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Starbucks is a coffee shop company. It is one of the most popular coffee shops in U.S. and other countries. Starbucks purchases and roasts high-quality whole bean coffees and sells them. Starbucks has more than 16,600 coffee shops in about 40 countries. The outlets offer coffee drinks and food items, as well as roasted beans, coffee accessories, and teas. Starbucks operates more than 8,800 of its shops, which are located in about 10 countries (mostly in the US),

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Starbuck aim is to be the best brand in all over the world. Starbuck have introduced a coffee named “Frappucino” for those who don’t like to have coffee. Starbucks has become more than your regular coffee shop. people are coming in the shop for a morning lift before heading to the office or people are stopping by while enjoying a mid afternoon stroll throughout the city streets, Starbucks has enticed more than regular people looking for their daily dose of coffee.

Frappuccino’s which are created with real milk are a favourite amongst Starbuck’s customers. They come in a variety of flavours, of course, traditional Coffee, golden caramel, chocolate chip, sweet strawberries and cream, smooth vanilla, and chocolaty mocha. In the summer, when the heat become intolerable a Frappucino will cool you down and you can also order with crushed ice. Starbucks has successfully brought drinking coffee to a higher level. Starbuck also launched his starbucks card for customer who will receive free syrup and fee milk when they order espresso drink.

Ethical Sourcing

Starbuck coffees want to lead for their best coffee in the world. Starbucks always believe in serving best coffee to their customer if possible. Starbucks has always believed in buying, roasting, and serving the highest quality coffee in the world. By promoting responsible growing practices, star buck are able to serve a great cup of coffee while helping to improve the lives of farmers and protect the environment. We are also applying the knowledge we have gained through our work with coffee farmers to other areas of our supply chain.

Environmental Stewardship

Starbucks believe in the importance of caring for our planet working with and encouraging others to do the same. As a company that relies on an agricultural product, it makes good business sense. As a company that relies on an agricultural product, Starbucks is vulnerable to the effects of climate change. In order to maintain our high quality standards and help preserve the planet for future generations, we’re taking bold actions to reduce our environmental impact. At the store level, energy and water conservation and other green building strategies continue to be key priorities with potential to significantly minimize our environmental footprint.

Toward 100% reusable or recyclable cups

In March 2006, Starbucks introduced a new disposable cup containing 10% postconsumer recycled content. Starbucks are working to develop a recyclable paper cup that reduces its environmental impact over its entire life time – the materials used to make it, the impact of the way it’s manufactured, and the way it is disposed of after use. In 2009 star bucks convened a first-ever summit with local governments, cup manufacturers, recyclers, and other stakeholders to jointly identify the steps required to make our cups recyclable in form and in practice. And we developed local market survey and implementation tools to accelerate front-of-store recycling in the future and we found that we had served 4.4 million more beverages in reusable cups in 2009 than in 2008.

Toward 100% recycling in our stores

Over the years, starbucks white cup has been integral part of the coffee house experience. At the same time, it has become a major concern among our customers due to recycling challenges. In order to respond to customers and minimize our carbon footprint, we’re aiming to ensure 100 percent of our cups are reusable or recyclable by 2015. We’re currently working on a number of complementary initiatives to advance our progress in this area. We realize there is no quick fix for this problem; we still have much to learn. we are making the best what we can do to clean the environment and by recycling our cups.



Starbucks competes in a highly substitutable market .Starbucks has done a lot in this area to promote brand loyalty by orienting its overall image and structure to be one of a socially responsible organization with the idea will that people will ultimately support organizations that give back and are aware of their impact. The company also strives to have

the absolute best customer service realising that people not only buy coffee, but a social experience as well.

One advantage that may set Starbucks apart is the having a solid online marketing program. It should hire qualified online marketing managers to oversee its websites function retain customers and curb product substitution.

Marketing Mix

When Starbucks marketing their products firms need to create a successful mix of:

  • Product – the right product
  • Place – sold at the right price
  • Price – in the right price
  • Promotion – using the most suitable promotion

Starbucks marketing mix


Starbucks is known for providing superior products and services. Consumers have enjoyed the experience they encounter at Starbucks, and now for those who seek a high quality non-coffee drink can enjoy the same experience. By introducing these new summer drinks, Starbucks will enjoy an entirely new segment to market its products to. When looking at the sales revenues for the summer drinks it is important to consider that some of the existing customers will inevitably cross over and begin consuming the new drinks. In the end, the expansion of the product line is a wise decision because of the ease of adoption to Starbucks reputation for quality as well as the low cost of implementation increase consumer awareness of the company’s activities.


Starbucks products are reasonably priced while offering quality coffee.

Products are targeted towards general publics, thus their pricing are generally acceptable to attract more customers. Price and quality determines the value of the product. Starbucks was expensive and was positioned in accordance with that. They always tried to deliver the high value promised to the consumer.


Starbucks is a place for people to come to, a place to not be alone, a place to be with other people, and a place where, without having to do anything people become a part of a community of sorts. From my first observation at Starbucks I noted that the character of the space is divided into two categories. First there is the quick and simple transaction, in and out with your coffee; and the second is the use of Starbucks as an office, meeting place. To some customers ‘convenient’ is the key point. Hence, Starbucks takes into consideration for these consumers.


Starbucks invested heavily in training their staffs and did innovative tactics to manage their human capital. Thus they differentiated themselves in the market by constantly providing higher quality services

Starbucks Marketing SWOT


  • Starbucks Corporation is a very profitable organization, earning in excess of $600 million in 2004.The company generated revenue of more than $5000 million in the same year.
  • It is a global coffee brand built upon a reputation for fine products and services. It has almost 9000 cafes in almost 40 countries.
  • Starbucks was one of the Fortune Top 100 Companies to Work For in 2005. The company is a respected employer that values its workforce.


  • Starbucks has a reputation for new product development and creativity. However, they remain vulnerable to the possibility that their innovation may falter over time.
  • The organization has a strong presence in the United States of America with more than three quarters of their cafes located in the home market. It is often argued that they need to look for a portfolio of countries, in order to spread business risk.


  • Starbucks are very good at taking advantage of opportunities
  • New products and services that can be retailed in their cafes, such as Fair Trade products.
  • The company has the opportunity to expand its global operations. New markets for coffee such as India and the Pacific Rim nations are beginning to emerge.


  • Who knows if the market for coffee will grow and stay in favor with customers, or whether another type of beverage or leisure activity will replace coffee in the future?
  • Starbucks are exposed to rises in the cost of coffee and dairy products.


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