Making Jaun Proud :: essays research papers

The Company is organized into a number of business units. The Companys North American retail business sells coffee tree beverages, whole bean coffees and related hardw are and equipment through company- officiated retail throw ins in the United States and Canada. The Companys international retail business consists of entities that own and operate retail stores abroad. These two retail segments are managed by different presidents within the company and are measured and evaluated separately by senior management. The Company operates another(prenominal) business units as well and each is managed and evaluated independently. These other business units are organized around the strategic relationships that govern the distribution of products to the customer. These relationships include retail store licensing agreements, grocery channel licensing agreements, wholesale accounts, and joint ventures.Starbucks Corporation and its subsidiaries buy and roast high quality whole coffee beans. T o insure high quality of the product, Starbucks built three roasting plants of its own, where highly trained and experienced personnel monitor roasting of beans. Quality standards are so high that entire batches are thrown away after testing if qualifications differ from acceptable standards. Later, beans are sold in primarily company-operated stores along with fresh, rich-brewed coffee, Italian-style espresso beverages, decaffeinated beverages, cold blended beverages, a phase of pastries and confections, coffee-related accessories and equipment, and a line of premium teas. Starbucks sees its success in constant development of its products to bring new experiences and ideas to loyal customers of their coffee-empire. High quality of a product that allow for appeal to coffee lovers around the world is Starbucks main consideration. Starbucks sells a lifestyle, to customers and employees alike. It has learned from the experience of Pepsi and others to link its brand to new trends. St arbucks success could be attributed to an objective to mate their customers needs, and innovative new product offerings. Selecting a marketing schema based on a product mix is a rudimentary to Starbucks success. Coffee is the second most traded commodity in the world (McMahon, 2001), and as a result, Starbucks was forced to adopt a high product differentiation strategy. This strategy differentiates the company from the competition, making its product unique, by targeting quality, service, and the price conscious customer. Starbucks retail stores are usually located in high-traffic locations and high visibility areas. To reduce assay of failure and economic fluctuations, properties for the stores are leased. Brand name recognition of Starbucks therefore comes from people being frequently exposed to it.