Starbuck’s Environmental Factors
Starbucks has wide range of business activity. These activities allow the company to use numerous channels of product distribution. With the company operating in many locations throughout the world, environmental factors play a major role in marketing decisions. Each distribution channel is affected differently and the company’s flexibility in the marketing plan allows the company to adjust their strategies to meet the needs of the environmental factors that face them. The focus of this paper will focus on the environmental factors that impact the organization’s marketing decisions. In addition, it will explain how technology impacts Starbuck’s marketing decisions and analyze the importance of social responsibility and ethics as they relate to Starbuck’s marketing.
Starbucks is a leading company of the finest coffee in the world. Starbuck uses high quality whole bean coffee, and sells a variety of pastries, other unique beverages, and coffee-related accessories and equipment. As a part of their mission, Starbucks strives to provide a work environment treating the customer, as well as employees, with respect and dignity. Furthermore, the company embraces diversity as a major component in the way Starbucks does business. In addition, Starbucks subscribes to the highest standards of excellence to the purchasing, roasting and fresh delivery of their coffee. Starbucks believes that the company should satisfy customers every time they serve a cup of coffee and contribute to the communities and the environment while recognizing that profitability is essential to their success (Starbucks.com, 2008).
Starbucks owns and operates its own facilities, warehouses, and retail stores
Environmental Factors 3
giving the company control of product design, shipping, and receiving. The company’s strategy is to sell premium products pricing the product as high as the market will allow. Starbucks brand awareness is very important to introducing new products and developing new distribution channels. In fact, Starbucks is a leading company in sales of coffee and coffee products in both domestic and global markets. Furthermore, the company’s employee focused management practices have allowed Starbucks to grow and prosper as an organization.
Starbucks Coffee has been very successful in the domestic market over the years. In fact, Starbucks has recently expanded its U.S. retail presence. For example, Starbucks arranged to open more than 100 coffee bars in some of Albertson's supermarkets. In another agreement, Starbucks and Kraft Foods developed an agreement that allows Starbucks to sell its coffee in over 25,000 grocery stores across the US. Another mutually beneficial agreement is with Pepsi Co. and Dreyer’s, allowing Starbucks to market and sell their popular cold beverage, Frappuccino and a line of coffee ice cream. In addition, Starbucks has begun test marketing on a new menu of breakfast, lunch, and dinner items to be...