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1 Starbucks Business and Brand Strategy Starbucks Business and Brand Strategy Kathryn Brooke Jones https://www.linkedin.com/in/kathryn-brooke-jones/ Internet Marketing Professor Barbara Turner 12 March 2023 by Unknown Author is licensed under

2 Starbucks Business and Brand Strategy Table Of Contents Introduction…………………………………………………………………………………….3 Starbucks’ Stock Performance………………………………………………………………….3 Company Mission Statement…………………………………………………………………..4 Company Product Lines/Brand………………………………………………………………..4 Market Share & Target Audience……………………………………………………………4-5 Ecommerce & Digital Marketing Campaign…………………………………………………5-6 Conclusion……………………………………………………………………………………..6 References………………………………………………………………………………………7

3 Starbucks Business and Brand Strategy Introduction Starbucks’ was founded in 1971 in Pike Place Market located in Seattle, WA. The company started as a store that offered fresh coffee beans from across the world. They are in the industry of food and beverages. They serve more than 32,000 stores in 80 different countries. Starbucks’ headquarters is in Seattle, WA. There current head of marketing is Brady Brewer who has worked in there marketing department since 2001. There current CEO is Howard Schultz who joined the team in 1982. They have more than 245,000 employees. Based off there full year fiscal of 2022 their net revenue is $32.3B. Starbucks’ Stock Performance Based off the treadmill in the Stock review over the past 5 years the price- earning-ratio is 35.88 meaning that the company’s stock is overvalued. The price to sales value is 3.60. They did not have information on the return of equity but the return on assets is 9.89%. Forbes states that the stock is outperformed meaning that they suspect superior performance. Image: Forbes Magazine. (n.d.). Starbucks | SBUX Stock Price, company Overview & News. Forbes. Retrieved March 5, 2023, from https://www.forbes.com/companies/starbucks/?sh=85cbef528acb

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4 Starbucks Business and Brand Strategy Company’s Mission Statement Starbucks’ mission is to “To inspire and nurture the human spirit – one person, one cup and one neighborhood at a time.” They strive their values on culture where everyone feels a warm welcome. They believe to act courageous and always stand up for what is right. They believe to always treat others with respect and to value dignity. They want to deliver the best possible service and to hold their selves accountable for results. Company Product Lines/Brand Starbucks’ offers a range of products from in store, on the go, and in home products. They offer premium coffee, that you can buy fresh in store or buy in bulk for home brewing. Starbucks’ has a line of handcrafted beverages that consists of espresso beverages, frappuccinos which is a blended beverage offered with and without coffee, refreshers, smoothies and Tazo teas. Starbucks’ offers a range of different milks and creamers that are dietary friendly. They offer at home coffee and tea products like whole and grounded coffee beans, k-cups, tea filter bags, and tea latte concentrates. For there ready to drink line they offer bottled frappuccinos, lattes, iced coffee, as well as canned expresso. In store they offer fresh baked pastries, sandwiches, salads, and lunch boxes with vegan friendly options. Online and in store customers can buy merchandise like mugs, cups, coffee and tea brewing equipment, as well as accessories. Market Share & Target Audience Starbucks’ market share as of 2022 is above 37% in the United States. This means they have more sales than competitors and that it is a large company with a large amount of influence in the industry. Having a higher market share will improve brand loyalty and encourage consumers to buy more products. In 2022 Starbucks’ opened 1,878 new stores leading to an increase of revenue by 10.98%. Starbucks’ target audience is affluent meaning high income estimated at

5 Starbucks Business and Brand Strategy around 90,000 annually. Most Starbucks’ are placed in higher income areas, but you can also see them in middle-income neighborhoods. This is because they market premium coffee as a luxury item. They are marketing towards busy people, individuals who are on the go if its to work, kids soccer game, or to the gym. In 2015 they release mobile ordering which is accessible via smart phone, which broaden their age demographic, they have a large target age range from 22 to 60. Starbucks’ two main competitors are Dunkin’ and McDonald’s. Dunkin’ is the second largest competing company right behind Starbucks’. Dunkin’ stores are most franchises which means it provides a additional source of capital but with franchising does not enable the company have complete quality control over there products. Its competing strategy is focus their pricing to appeal to the middle class. They also represent themselves as all American brand by saying “America runs on Dunkin’”, this is a different approach than Starbucks’ because they present themselves to be a chic and upscale environment. McDonald’s is another well know leading competitor. They focus on providing low-cost meals. They competitive mostly with their breakfast line and McCafé coffee line at a more affordable cost. What makes them stand out is that they offer a large variety of food giving them a competitive lead over Starbucks’. Ecommerce & Digital Marketing Campaign Starbucks’ started their ecommerce journey by offering exclusive items online like Starbucks’ equipment along with coffee and tea you can not find in their retail stores. They use mobile commerce (m-commerce) by enabling consumers to use their mobile devices to conduct orders. A customer can place an order for pick up at their convince. Starbucks’ also has the presence of another ecommerce by having Starbucks’ eGift cards and a loyalty programs. It is a form of digital currency that consumers can use at Starbucks’ locations, as well as earning double points by using an eGift card called Starbucks’ Stars, that can be later traded in for food and beverages. Starbucks’ recently enable customer to link their Starbucks’ rewards account to their SkyMiles

6 Starbucks Business and Brand Strategy account enabling customers to not only earn Starbucks’ Stars but to also earn miles through Delta. Starbucks’ uses many platforms like Facebook, Twitter, Instagram, and YouTube for their social media campaign They are a large presence advertisement for new limited edition collects. They have held challenges over their platforms like the “Red Cup Design Challenge” which invited customers to go out and buy red cups to engage in this challenge. They also held an illustrated series called #ToBeHuman by having video drawing and a voiceover of several Starbucks’ employees shared personal and encouraging experiences. Conclusion Starbucks’ was founded in 1971 with headquarters located in Seattle, WA. They are a large geographic range providing services to 80 different countries. Based off their stock performance over the past 5 years they are outperforming with expected growth. They offer a large line of products ranging from in store and at home use. They are dominating their industry with a market share above 37% in the United States. They market to higher income families and show promise to keep brand loyalty by enticing customer to engage in there mobile app for rewards. They use many different platforms to engage with customers and drive there digital marketing campaign.

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7 Starbucks Business and Brand Strategy References Bean-Mellinger, B. (2019, February 5). Who is Starbucks' target audience? Small Business - Chron.com. Retrieved March 8, 2023, from https://smallbusiness.chron.com/starbucks-target- audience-10553.html Forbes Magazine. (n.d.). Starbucks | SBUX Stock Price, company Overview & News . Forbes. Retrieved March 8, 2023, from https://www.forbes.com/companies/starbucks/?sh=45a2c8e128ac Hughes, J., & John HughesJohn Hughes is a digital marketing strategy and business expert contributor. While he’s got a strong background in finance. (2022, September 27). Starbucks competitors analysis . Business Chronicler. Retrieved March 8, 2023, from https://businesschronicler.com/competitors/starbucks-competitors-analysis/ Starbucks Company profile . (n.d.). Retrieved March 8, 2023, from https://stories.starbucks.com/uploads/2019/01/AboutUs-CompanyProfile-Q3-2013-9.18.13-1.pdf Starbucks reports Q1 fiscal 2023 results . Starbucks Corporation - Starbucks Reports Q1 Fiscal 2023 Results. (n.d.). Retrieved March 8, 2023, from https://investor.starbucks.com/press- releases/financial-releases/press-release-details/2023/Starbucks-Reports-Q1-Fiscal-2023- Results/default.aspx Starbucks's Digital Marketing Strategies - Case Study . India's First Agency Styled Digital Marketing Training Institute. (2022, June 17). Retrieved March 8, 2023, from https://digitalscholar.in/starbucks-digital-marketing-strategies/

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