Marketing Strategy: Starbuck's and Frappuccino
Starbucks Coffee Company is North America's leading roaster and retailer of specialty coffees. Headquartered in Seattle, WA, Starbucks operates nearly 1,610 retail locations in North America and the Pacific Rim (Starbucks reports March revenues, 1998). For the fiscal year ended September 1997, net sales rose 39% to $966.9M. Net income rose 36% to $57.4M (Starbucks Corporation, 1997).
The objective of Starbucks is to establish the most recognized and respected brand of coffee in the world. To achieve this goal, Starbucks will continue to rapidly expand its retail operations, and grow its mail order and specialty sales operations. Starbucks will also selectively pursue other opportunities to leverage and grow the Starbucks brand through the introduction of new products and the development of new distribution channels.
Starbucks is extending its brand name in several innovative ways. Starbucks has expanded into coffee ice cream with Dreyer's and makes Frappuccino (a low-fat blend of ice, milk, coffee, and flavorings), a bottled coffee drink with PepsiCo. Frappuccino, available in Starbuck's franchises, is sold in grocery stores with soft drinks and iced teas, where Pepsi already commands prime shelf space (Starbucks the java juggernaut, 1997).
Starbucks chairman and CEO, Howard Schultz, focused on detail and quality to positively establish the Starbucks brand. The coffee buying public perceives the Starbucks brand as a product they value and trust. Frappuccino, extends the branding of style, quality, and flavor found in Starbucks coffee shops into the home market. (Starbucks, 1997).
Strategy Description: Company Planning
Establish Starbucks as the premiere coffee purveyor of the finest coffee in the world while maintaining our uncompromising principles as we grow .
1. Provide a great work environment and treat each other with respect and dignity.
2. ...