Starbucks First initiative What is Starbuckss strategy Schulzs

Starbucks

First initiative: What is Starbucks’s strategy? Schulz’s cancelled new store openings and revised operetional practices to improve costs. The second: thrust was the reaffirmation of Starbucks’ values and business principles includining revitalising the Starbucks’ experiences and reconnecting with its customers.

• Schultz went on to elaborate some of starbucks accomplishments in relation both financial and social performance and , in doing so , noted that a $10000 investment in Starbucks stock at the time of its 1992 IPO would currently be worth almost $2 million. Starbucks financial performance

Starbucks shareholders The company communicates with shareholders primarily through mailing documents, though shareholders can choose to receive information electronically. There are two important meetings: the Annual Meeting of Shareholders and the Biennial Investor Conference. Although the company dose not guarantee seating for all shareholders, they can watch a live stremami of the events online.

What threats Starbucks have? • low-priced coffee shops for example Mc. Donald's and Dunkin'Donuts • It's too expensive and that's why normal people don't go there. Even if they have a presentable brand, Starbucks will lose customers because of high prices.

Starbucks has been able to gain such a large share of the market by catering specifically to a well-defined target audience. Who are your customers? • Adults: Starbucks’ primary target market is men and women aged 25 to 40. They account for almost half (49%) of its total business. • Young adults : aged 18 to 24, total 40% of Starbucks’ sales. • Kids: Kids and teens are also part of Starbucks’ target audience. Together, customers age 13 to 17 account for just 2 percent of Starbucks’ sales, but most items for kids are purchased by the parents.

What core problem do you solve for your customers? What key benefit are your providing? • Starbucks is providing free wifi in every coffe shops, just open a browser on your laptop or mobile device and click Connect.

Who are your primary competitors? In the last few years, Starbucks has entered into a battle, fighting Dunkin' Donuts and Mc. Donald's for the top position as coffee king. Customer desire and preference greatly influence the fight, so each company is fighting to expand menu options and physical store locations to reach and better serve a greater customer base and draw consumers away from the competition.

A connected customer experience: Starbucks seeks to provide a connected customer experience to build and maintain a long term relationship. More than just offering fine coffee, the coffee giant provides the “Starbucks Experience” which makes customers feel at home What is your primary competitive advantage/your secret sauce?

What is the value of your product or service to the buyer? Before Starbucks, Coffee was a commodity. Most restaurants or diners would sell a cup for about a buck. It was a commodity. Coffee was just coffee. After all, coffee beans are traded in commodities markets around the world with fairly standard pricing. And yet, Starbucks charges $2, $3 up to $6 for a cup of coffee that has the same basic commodity ingredients. The genius of Howard Shultz was looking at emotions and experience to create value for customers.

Where do your customers look to buy your product or service? Starbucks uses multiple channels of distribution for its products. Firstly Starbucks sells its products through a direct retail system in company-owned stores. They import and process coffee and then sell it under their own brand name in their own stores. However, Starbucks also sells its products in supermarkets and shopping centers.