Starbucks Essay Example | Topics and Well Written Essays - 2000 words - 1

Starbucks - Essay Example Furthermore, the report provides a discussion of the marketing mix and possible strategies that should be employed in order to ensure that the launch of a new organic product line by Starbucks in the UK is successful. Table of Contents Executive Summary 2 1.Introduction 3 2. Situation Analysis 4 2.1 PESTLE Analysis 5 The rise of health conscious consumers in the UK means that the organic food industry is no longer categorized as a niche market but has recently become a market that is targeted towards the masses. According to IBISWorld, sales volumes of organic products in the UK are expected to rise by 2.6% resulting in financial growth of ?2.02 billion (PRWEB 2013). Certainly, this trend reflects increased consumer awareness regarding food products and the benefits of organic produce on health. 6 2.2 SWOT Analysis 7 3.Market Summary 8 3.1Segmentation 8 3.2Targeting 9 3.3.Positioning 10 3.3 Competition 10 3.4 Market Growth Potential 11 4.1 Marketing Objective 12 4.2 Target Market 12 4.3 Product Offering 12 4.4 Marketing Program 13 4.4.1 Marketing Mix 13 4.4.2 Marketing Communication Mix 13 References 15 PRWEB (2013). UK Organic food industry is moving from niche to mainstream markets [online] available from [24 June 2013] 15 The Asset (2013). Strong UK GDP growth through Q3 seen, SWIFT Index predicts [online] available from [24 June 2013] 15 UKTI (2012). Finance, grants and incentives for businesses in the UK [online] available from [24 June 2013] 15 1. Introduction Starbucks started its operations in 1971 with a sole location at Seattle’s Pike Place Market engaging in the buying and selling of ground coffee and whole bean (Starbucks 2012). The business started with Howard Schlutz’s vision of taking the European coffeehouse experience and translating it according to the requirements, demands, needs and wants of the American customer (Kotler 2010). According to Kotler (2010) the success of Starbucks which is reflected in the existence of 17,651 sto res (as of July 2012) across the globe (Starbucks 2012) has been its ability to integrate a rich experience and successful product to provide the Starbucks Experience. Starbucks made entrance in the European coffee market in 1998 as a consequence of its acquisition of 65 Seattle Coffee Company outlets located in the United Kingdom (Starbucks 2013a). Analysts note that Starbuck’s entrance into the UK market via this strategic business decision was aided by the similarities shared by the two companies it their culture, values and commitment towards the customers (Starbucks 2013). 2. Situation Analysis According to the financial results of Starbucks in the last 5 years, the company has experienced significant growth in its earnings per share which is a positive sign. Under this consideration financial analysts can make accurate evaluations regarding the financial state of the company and the performance of the sales department in particular. According to reports, the earnings pe r share of the organization have increased on a consistent basis from $0.87 in 2007