Starbucks Essay

The marketing mix is a combination of 4 P’s (product, price, place and promotion) that should be used in conjunction with each other to ensure a competitive edge over other companies. ‘The marketing mix is designed to produce mutually satisfying exchanges with a target market’.

Price earnings (P/E) ratio is considered to be the most valuable tool for investors in determining which stock investments from comparable industry will most likely yield higher growth earnings in the future. Price earnings ratio is calculated by dividing the company’s price per share by its earnings per share (Yahoo Finance, 2015). The higher the ratio, the better because investors can use this ratio as an indicator of how well a company will do in the future. The objective of this paper is to help analyze and assess the P/E ratio of Starbucks and its two major competitors, McDonalds and Dunkin’ Donuts. Below are the comparable data of Starbucks and its

“The term marketing mix refers to a unique blend of product, place (distribution), promotion, and pricing strategies (often referred to as the four Ps) designed to produce mutually satisfying exchanges with a target market.”(Lamb,Hair and McDaniel, 2012, p.47). A marketing mix is important in business because it maximizes a company's chances of achieving steady, continual success in its operations. It also ensures that a company remains responsible to its customers by living up to its product claims.

While there has been articles written suggesting that the idea of the marketing mix is in need of updating, it still stands as the heart and soul of most marketing plans. "Often called the 4Ps, representing Product, Price, Place and Promotion, the marketing mix represents the decisions and tactics that need to be implemented to ensure products or services are successful. Deliberation is given to each element, with managers creating products and services that meet the needs of target customers, setting prices that are perceived as fair, designing distribution channels to deliver products or services, and ensuring promotions are in place so consumers hear everything about the other three Ps"

The company that I am writing about is Starbucks, the international coffee shop chain. The company's financial statements for this analysis are from the FY2011 Annual Report and 10-K. The company has 10787 stores in the United States, of which 38% are franchised and the remainder are company-owned. The franchise model is more common when the company operates internationally. There are 6216 Starbucks stores internationally and of these 63% are franchises, with just 37% company-owned. The franchise model for international expansion has been utilized to help Starbucks expand quickly in foreign countries and to mitigate foreign political risk and to ensure that the product/service offering is tailored to local tastes (Thompson, 2012). The company is now in the process of buying back some overseas franchise stores in order to retain more profits for itself (Franchise Press, 2011). This paper will take a look at the company's most recent annual report to analyze the financial statements.

Starbucks Corporation was founded in 1971 in Seattle, WA. It is a roaster, marketer, and retailer of specialty coffee worldwide. They have about 238,000 employees in 2015, 23,043 coffee houses, all of which are in 68 different countries. Their product includes a premium, gourmet style coffee, tea, and a variety of fresh foods within their stores. They have also sold and marketed many coffee and tea products, and license their products through many different grocery and convenience stores worldwide. Starbucks also markets its products with other brand names within sister companies, which includes Teavana, Tazo, Seattle’s Best Coffee, Starbucks VIA, Starbucks Refreshers, Evolution Fresh, La Boulange, and Verismo.

The marketing mix is for the most part made up of four elements, and they are product, place, price, and promotion. These elements are time and again referred to as the four P’s. Countless sources will portray the marketing mix as a formula used in creating a feasible marketing strategy, with each component utilized in various ways and in different intervals supported depending upon the product or service the group or individual is attempting to market. The marketing mix will be described using three sources to illustrate the elements of the marketing mix. It will also express how each one of the four elements of the marketing mix impacts the expansion of an organization’s marketing strategy and tactics.

At each store, a store manager acts as the chief. Under this store manager are a collection of shift supervisors who act as managers on duty when the store manager is out. Below the shift supervisors are the rest of the employees, referred to as baristas.

Product, Price, Place and Promotion, famously called 4P’s, forms the core of marketing and defines marketing mix. The 4P’s model not only helps in deciding new offerings but also helps in testing the existing marketing strategies. The marketing mix, synonymous to 4P’s, lays the foundation of the process of bringing new offerings in the market. While testing the existing offerings in the market, testing the 4P’s helps in finding gaps easily.

Starbucks is the largest coffee company. The company is currently operating in the world is in Seattle, Washington, was launched in 1971 by the Baldwin Jerry, Jerry Baldwin and Gordon Bowker. Now, the company does not stick to coffee and coffee products only, but cater to some refreshments and entertainment sector projects, his brand of music. 16858 cafes now work in 50 countries, including more than 12,700 in the United States, Canada and the United Kingdom (Schofield, 2008).

The marketing mix is primarily made up of four variables, and they are product, place, price, and promotion. These variables are often referred to as the four P's. Many sources often describe the marketing mix as a recipe used in developing a viable marketing strategy, with each ingredient being used different ways and at different times based on the product or service one is trying to market. This paper will utilize three sources to describe the elements of the marketing mix. It will also describe how each one of the four elements of the marketing mix impacts the development of an organization's marketing strategy and tactics.

The 'marketing mix' is a set of controllable, tactical marketing tools that work together to achieve company's objectives. The marketing mix analysis is also called 4P analysis. This analysis contains a set of controllable strategic tools of marketing which work in simultaneously to attain the objectives of an organization. In this paper we will analysis two organizations with respect to their marketing mix. The companies that I have chosen for this task are Pepsi Co and Coca Cola.

Marketing mix is commonly known as the 4Ps: product, price, place and promotion. These are controllable element and it importantly use when determined and adjusted until the right combination that serve the needs of the product’s consumers.

4) Stores and visual merchandising – Starbucks stores are spacious so that customers can wander around the store, drinking their coffee and considering the purchase of coffee paraphernalia ranging from coffee beans to brushes for cleaning coffee grinders to $1,000 home cappuccino machines.

Marketing mix is one of the basic and the very important part of marketing plan. It includes all the elements that are important for an organization from manufacturing to sale of the product. It can be considered as the set of marketing tools that blends together to generate a marketing response in the market. Every organization uses this tool to make its marketing plan. Primarily it consists of 4P’s, but now it is extended to 7P’s of marketing. (Jain, 2013)