Starbucks Marketing Plan Essay

8688 words - 35 pages

Strategic Marketing Plan

Lecturer: Erik Kostelijk
Student: Parisa Taghipoor
Class: ICV4C
Date: 19 November, 2010

1.0 Introduction & Background

1.1 Background
Established in 1985, Starbucks Corporation is today’s premier roaster and retailer of specialty coffee in the world. Starbucks purchases and roasts high-quality whole bean coffees and sells them, along with fresh, rich-brewed coffees, Italian-style espresso beverages, cold blended beverages, a variety of ...view middle of the document...


Coffee in the Netherlands
Coffee consuming in the Netherlands is big business. In 2005, the Netherlands imported almost 150.000 tons, still growing every year although the consumption rate fluctuates. The average Dutch person drinks 145 liter (= 7 kg) on a yearly basis, which equals 3.2 cups of coffee per person, per day. This takes the Netherlands to the 7th position on the world list. Only people in Scandinavia, Denmark, Austria and Switzerland drink more coffee (Vereniging van Nederlandse Koffiebranders en Theepakkers [VNKT], 2005, “Annual Report”, p.11). Anticipating on these facts, a growing amount of coffee stores are opening their doors, thereby stimulating people to drink their coffee outdoors.

Starbucks’ absence in the Netherlands
Although, at first sight, the Netherlands fits in the Starbucks entry strategy as described above, the company has still not opened one single public Starbucks store in the country. The internet provides several discussions concerning Starbucks’ absence in the Netherlands. Because spokesmen of Starbucks do not offer any explanations for it, different speculations now circulate the web (NRC Handelsblad, 2006, p.12). The one says that Starbucks does not open a store because of a ‘gentlemen’s agreement’ with Sara Lee, the company that owns Douwe Egberts Koffie. The other states that Starbucks simply cannot find suitable A-locations in the Netherlands. Also, many people share the opinion that Starbucks’ concept just could not work because of the existing Dutch coffee culture in which people enjoy a simple cup of coffee in an authentic and cosy coffee shop, other than the well known Starbucks stores. According to Carijn Manders, Manager Business Development Schiphol Airport, Starbucks did not enter the Dutch market before, because of their efforts to enter other European countries (Manders, 2007).

1.1 Product portfolio
All Starbucks stores offer a choice of regular and decaffeinated coffee beverages; a broad selection of Italian-style espresso beverages, cold blended beverages, iced shaken refreshment beverages, a selection of premium teas and distinctively packaged roasted whole bean coffees. Starbucks stores also offer a variety of fresh food items, including several healthy choice selections. Food items include pastries, prepared breakfast and lunch sandwiches, and salads as well as sodas, juices, and bottled water. Starbucks continues to expand its food-warming program in the United States and Canada, with approximately half of these stores as of September 28, 2008 providing warm food items, primarily breakfast sandwiches. A range of coffee-making equipment and accessories are also sold in the stores. Each Starbucks store varies its product mix depending upon the size of the store and its location. Larger stores carry a broad selection of the Company’s whole bean coffees in various sizes and types of packaging, as well as coffee and...

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