Starbucks is considered as the largest coffeehouse company in the world and it is operated in 49 countries and they have a total of 16,120 stores in the world. Starbucks sells different flavors of coffee and these flavors include drip brewed coffee, espresso coffee and hot and cold drinks. Besides coffee also offer different snacks, mugs and coffee beans to its customers.
The company is also engaged in marketing different elements like music brand, books and films. The products of the company are usually seasonal and they are quite specific to the location and locality of a store. They are also into ice creams and there ice creams and coffees are sold at different grocery stores. Starbucks is planning is to expand and that is the reason why they are entering in to the global arena. The core idea of the company is that the more outlets they will open the more they can gain. The biggest advantage of the organization is the ambiance of their stores and they are cashing on this strategy and opting for a price skimming strategy. The organization is all about passion, quality, excellence, and the understanding of the culture of coffee. The purpose of the organization is to build an attachment in its customers in such a way that the customers would be enacted with the organization.
Although coffee is considered as Western bourgeois commodity from the recent years but now the United States coffee consumptions is increasing and it has doubled in the past few years. But opening new coffee houses in the United States is not that easy because the demand of people that consume coffee is slowly decreasing and they prefer the alternatives of coffee. People are opting for tea, ice teas and other alternatives that are closely related to coffee. That’s the reason why conventional approach towards the promotion of coffee should be changed and a different approach must be used by Starbucks. Similarly, cutting the costs and giving the cost benefit to the customers would also increase the customer base and it would help the organization in both the short and the long run.
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