The paper "Competitors of Starbucks Coffee Company " is a great example of a business case study. Starbucks Coffee Company grew from a small, regional business into the undisputed leader in the speciality coffee industry by buying only the best quality coffee and providing an unmatched store experience. The company’ s coffee buyers had built long-standing relationships with farmers and believed it paid the highest prices in the industry for quality beans. Adopting the fair trade model would cause serious concerns for Starbucks, as fair trade paid a floor price of $1.26 regardless of bean quality. Starbucks’ success in the United States pointed, for starters to the ever-expanding meanings of buying in America.
For a 15 year stretch from 1992, when the company first went public, to 2007 when its profits stated to the flag for the first time, Starbucks delivered much more than a stiff shot of caffeine. The hold that Starbucks had on many in the United States grew out of another more fundamental and far-reaching transformation: the nearly wholesale replacement of civic society by a rapacious consumer society.
Under the post-Reagan era, Milton-Friedman inspired free-market political economy of neo-liberal, deregulated capitalism brand induced consumption oozed into every aspect of daily life. Yet hefty doses of buying advertising and marketing were not new to America in 1995 or 2005. The pullback of community, the state and other binding agents allowed brands like Starbucks to sell more goods and garner greater profits by reaching deeper into our lives and consciousness and claiming solace that civic institutions including the government had occupied in the past. Three personas visiting Starbucks in the US: The Lifestyle customer- the first segment that forms a bulk of the Starbucks sale comes from the Life-style generation, which one can understand to be trend-setters.
This is the segment that loves junk food, better explained as the blended beverages and frozen foods loving generation. These are upwardly mobile and are often indifferent to price fluctuations. Their preferences are determined by the social ambience and the experience of having coffee more than the coffee itself. They are excited by oral sensations, have no over-consumption hangups The Business Consumer- This is the segment that goes into the coffee-shop to pick up their daily caffeine kick.
More often than not, they are characterised by the necessity of coffee rather than leisure. They are young executives with an active career who have to rush in the morning. These are people that have money but no time and are therefore ready to pay $5 for a cup of coffee in the mornings. These are also the people who subscribe to the coffee culture that now characterizes America The singles-These are young single people that reside in homes that are barely-furnished.
These could be college going kids to young professional. This group is also inclusive of writers and the ones that like alone time. They are therefore in need of some fancy breakfast, an alone cup of coffee or are even looking for breakfast that they do not want to have to cook. The final such group will have a single person that does not want to eat breakfast alone and is therefore in need of people around, or of someone who wants to try a different breakfast once in a while.
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Starbucks plans major expansion into China. Retrieved February 15, 2011. < http://online.wsj.com/article/SB10001424052702304604204575181490891231672.html>