Buyer Behavior Group Project
Starbucks Co.
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EXECUTIVE SUMMARY
Starbucks is a global company that has made a strong name for itself in the coffee
industry. Starbucks offers a variety of products from coffee to muffins in their trendy settings.
As one of the most influential brands, brand loyalty plays a major role in the buying habits of
Starbucks’ market segment. Starbucks market segment consist both of men and women between
the ages of 18-35. Consumers are typically college students or business professionals who are
searching for a quick fix. The Single 1 stage is the dominant stage in the market segment given
that it contains young unmarried adults who are career oriented that has a disposable income to
spend on leisure items. This marketing plan will break down all the components that go into
creating this successful business. Internal as well as external factors will be looked at in terms of
what kinds of obstacles Starbucks faces on a daily basis.
The company positions its products in such a way that consumers perceive Starbucks
products as being better then its competitors. A strong promotional strategy needs to be in place
as well. A great product may exist, but if the product is not being communicated to consumers
the sales will not be there. Starbucks provides multiple locations, some with drive-through
service in order to offer convenience to their customers.
Starbucks is not your cheap bottom of the line coffee brand. Instead Starbucks is seen as
an indulgence. Starbucks offers contemporary products, such as frappochinos and lattes that
often correlate with social status. The moderately high priced drinks and snacks are thought of
as a quality product that is worth the extra cost. The prices range from $1.30 for a small tea, to
$4.30 for a large frappachino. However, these sizes are referred to as a tall, for small and venti,
for large, adding to the European influenced atmosphere.
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Starbucks values the customer. Every step in this marketing plan is imperative for a
successful business. Starbucks is a great company to follow and mimic its operations for the
reason that they have been so successful.
COMPANY INFORMATION AND BACKGROUND
Mission, Goals, and Objectives
Starbucks opened in 1971 and was created by Jerry Baldwin, Zev Siegel, and Gordon
Bowker. The store was originally called Starbucks Coffee, Tea, and Spice located at Pikes Place
Market in Seattle (Thompson & Gamble). Starbucks’ website explains that “Starbucks is named
after the first mate in Herman Melville’s Moby Dick” (www.starbucks.com). Starbucks is
known as the world’s #1 specialty coffee shop and has around 10,000 stores in more than 30
countries. Starbucks offers an extensive product line and sells some of its products at grocery
stores. Seattle’s Best Coffee and Torrefazione Italia are also owned by Starbucks. Last year,
Starbucks earned $6,369.3 million in revenue (Starbucks Corporation Overview). According to
CNN Money, Starbucks is ranked #338 in the 2006 ranking of Fortune 500 companies. Starbucks
is ranked third in the food services industry due to its high annual revenues (“Fortune 500”).
Starbucks is known as one of “the best 100 companies to work for,” and was ranked fourth as
one of the “Worlds Most Influential Brands” (www.starbucks.com).
Starbucks values its employees and strives to ensure a respectful and excellent work
environment.
customer.
The company believes in creating high quality products that satisfies every
Starbucks strives to build personal relationships with customers by providing
excellent service and quality, and by providing a place for customers to relax. Starbucks
understands that it is important to remain profitable to stay successful in the future. Starbucks
states that its mission is “to establish Starbucks as the premier purveyor of the finest coffee in the
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world while maintaining our uncompromising principles as we grow.” Starbucks is concerned
with environmental issues and it is developing and using environmentally friendly products. The
company’s environmental mission is that “Starbucks is committed to a role of environmental
leadership in all facets of our business (www.starbucks.com).
Starbucks’ goals are remain profitable and to produce social, environmental, and
economic benefits worldwide. The company strives to provide excellent working conditions for
coffee farmers and all Starbucks employees. Environmental protection is also imperative to
Starbucks in order to make a difference. The company’s objective is “to establish itself as the
most recognized and respected brand in the world” (www.starbucks.com). To implement this
objective, Starbucks plans to expand its retail and specialty operations, and introduce new
products while developing new channels of distribution (Business Summary). According to the
article, “Starbucks’ Goals Rely on Quantity, Quality,” Costa Rica’s former agriculture minister
explains, “If someone wants to get business with Starbucks, you have to think, breath, live, and
sleep quality” (Batsell).
Business Structure
Starbucks is a corporation. The article “Corporations and LLCs,” defines corporation,
“The Corporation is considered an artificially created legal entity that exists separate and apart
from those individuals who created it and carry on its operations” (Corporations and LLCs).
In 1982, the three owners of Starbucks hired Howard Shultz to head the company’s
marketing. The owners decided to sell the company in 1987. Howard Shultz decided to
purchase Starbucks Coffee, Tea, and Spice along with other investors. Howard Shultz was 33
years old when he became the President and CEO of Starbucks. When Howard Shultz bought
Starbucks, the company became Starbucks Corporation (Thompson & Gamble). Currently,
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Howard Shultz is the company Chairman and Jim Donald is the President and CEO of Starbucks.
Starbucks owns around 6,000 stores and offers licensees and franchises to run additional stores
worldwide (www.starbucks.com).
Competition
Although, Starbucks is the #1 specialty coffee shop, it competes with many other coffee
chains. Starbucks’ top competitors are Caribou Coffee, Diedrich Coffee, and Dunkin Donuts
(Starbucks Corporation Overview). Other competitors include Second Cup, New World Coffee,
Coffee People, Coffee Station, and Java Centrale. Starbucks also competes with popular coffee
manufacturers including Kraft General Foods, Procter & Gamble, and Nestle. Kraft owns the
brand Maxwell House, and Procter & Gamble owns the Folger’s brand. These manufactures
distribute coffee products through supermarkets (Thompson & Gamble).
MARKET SEGMENTATION
In order for any business to be successful they must identify the target market they are
attempting to sell to. With a market segment in mind, Starbucks is able to better predict the
wants and needs of their potential customers.
External Influences
Starbuck’s is a business that is applicable to a diverse group of people. However,
Starbucks considers itself the “third place – a place between work and home” (Ubigau).
Starbuck’s appeals as a place to obtain a tasty and refreshing coffee drink, along with a place for
social gathering.
The market segment of Starbucks is the suburban young adult and the
professional businessperson on the go. The demographic of this market segment is males and
females between the ages of 18-35. Coffee products are generally linked to corporate jobs or
college students; therefore many of Starbuck’s consumers have a college degree. The consumers
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of Starbuck’s are middle class that has an average income that allows them to have enough
disposable income to spend on moderately priced coffee drinks and snacks. Different stages in
the household life cycle have various consumption patterns of Starbucks products. The stage
Single 1 is the most dominant stage in the market segment because it contains young unmarried
adults who are career oriented and has disposable income to spend on leisure items. Many
people in Starbuck’s market segment may also be in the Stage of Young Couples, with no
children. However, as you move into later stages, the consumption of coffee decreases. For
example in the Full Nest II stage, consumption would decrease because middle aged married
couples with children at home are not as likely to spend money on coffee or want coffee due to
the children’s wants and needs. In most cases, the individual is able to purchase Starbuck’s
products without any influence from family or friends due to the fact that it is not an expensive
item nor difficult to dispose of.
Internal Influences
Starbucks provides different needs to different people.
For the busy professional,
Starbucks products are delicious, affordable and easily transportable goods that may be used for
the need of hunger, craving, or caffeine. In addition to the need set provided to the professional,
the young contemporary individual may see Starbucks as a trendy location to converse and
gather with friends.
Due to Starbuck’s wide variety of drinks and snacks, the Starbuck’s
consumer is able to personalize their purchases in order to match the customer’s need set.
There are several emotions that may affect the purchase and consumption of coffee. If a
potential consumer is tired they may seek Starbuck’s for caffeine in order to get an energy boost.
Or if someone is stressed out they may purchase a tea to ease their mind. A customer could also
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be celebrating something and may purchase a frappachino or dessert as a reward. Consequently,
Starbucks are able to fill the needs of different people in different situations.
Situational Influences
Starbucks consumption is appropriate in many different situations. In some cases, it is
not just the type of person that affects purchase behavior, but the environment around them.
Physical surroundings such as the décor influence please to go and stay at Starbucks. The
Starbucks located on York Road across the street from Towson University has several couches
and tables that allow you to be comfortable for long periods of time. Some customers may
choose to do homework or read the paper while enjoying their product, which may lead them to
purchase more since they remain in the location for a long period of time. The lighting is soft
and intimate, promoting a gentle atmosphere for light conversation or study time.
Temporal perspectives are situation characteristics that deal with time. Starbucks has
capitalized on the need for fast delivery and access by adding a drive thru at several locations.
For example, the Towson location allow customers to drive up to a speaker, order their product,
and pick it up at a window within minutes. This feature attracts many customers who are on the
run and do not have a lot of time to wait in line or get out of their car. In addition, Starbucks in
Towson opens at 6AM, which allows customers of most job types to stop by Starbucks before
work, giving them ample time to purchase Starbucks products.
Decision Process Influences
Starbucks has over 11,000 locations in the U.S. and is planning to expand to 30,000
stores nation wide (Reuters). Therefore, they are the leading brand and coffee shop out of all
chains and independent coffee vendors, making brand loyalty of customers, which is a major
advantage. Potential consumers compare the sweet taste of Starbucks products to regular brewed
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coffee, and often choose the more expensive delectable alternative. Starbucks has a reputation
for producing delicious products that makes the coffee drinking experience more of an
indulgence than a routine.
PRODUCT POSITION
There are a couple key features that Starbucks possesses that create a strong value
proposition that enables customers to perceive the company in a certain manner. Starbucks
product position is one of high quality and high value. Consumers are willing to pay $3.50 for a
cup of coffee for a reason. Starbucks is an extremely popular brand and people are willing to
pay more for their products because of brand loyalty, brand awareness, status consciousness, and
social factors. Starbucks is a place for people to meet and socialize with one another.
One other reason consumers are willing to pay premium prices for Starbucks is because
they have exceptional customer service. The friendly staff employed at each Starbucks
contributes to the fun and vibrant atmosphere of the store. An ideal cup of coffee for a consumer
would have just the right taste, temperature and freshness. Starbucks brews its coffee at a degree
that makes it the perfect temperature for immediate consumption, which is beneficial for
consumers hurrying off to work in the morning. Another factor that allows Starbucks to have
such a positive product position is that consumers have a perception of Starbucks coffee tasting
better than its competitors. Regardless of whether or not this is true, it is what the target
audience of Starbucks perceives. Looking back at the targeting segment of this paper, one can
see that Starbucks targets higher income individuals who are status conscious.
Starbucks
customers are loyal to the brand and are repeat customers. Starbucks is able to communicate the
brand in such a positive way that it influences consumers positively into thinking that it is one of
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the best coffee retailers. Because this company has such a strong brand image, it will impact the
long-term success of the brand as long as Starbucks continues to create this desired position.
PRICING
External Influences
Starbucks focuses on conspicuous consumption. They want their customers to constantly
choose Starbucks brand coffee whenever they are craving a café style beverage. This
conspicuous consumption could be considered a learned behavior. As the customer continually
chooses Starbucks brand over another coffee brand, they are choosing it because of the luxury
that Starbucks exudes as added value.
Our target market varies greatly. Many different types of people consume Starbucks
daily. Starbucks gives the customer a European café experience, where they can sit back, relax,
enjoy the environment around them all the while they sip their beverage. One segment of the
market has an expendable income. This is because this market makes a significant amount of
money in order to afford the pricey costs of Starbucks on a daily basis. Others within the market
want to sample the brand of Starbucks, at all costs. Starbucks has become a designer coffee
brand; this is due to them maintaining their pricing above the market rate of a cup of coffee.
Also, many members of their target market are not individuals with expendable incomes or
people who just desire to have the Starbucks brand. This other segment is of people who
recognize the name, and just would like coffee so they shop there. Their income is flexible
depending on their reasoning behind their purchase on that particular day.
Starbucks will not lower their prices under any circumstances. Their price is a reason
why people choose Starbucks over another brand. They want their customers to desire and
consume a luxury coffee, not just your average cup of Joe from the coffee shop around the
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corner. Starbucks will not offer temporary price reductions in order to induce a product trial.
Starbucks brand is well known enough, that people will either choose to purchase it or not.
Many people sample Starbucks everyday. There is no need to offer free samples in order to
increase product sales, as long as Starbucks picks a good location for their store, they will not
need to offer promotions to draw people in.
Many people in the household evaluate the price of Starbucks. The direct consumer of
the product evaluates it, because not only are the spending their money on the product; they
actually get to enjoy it. The purchaser of the product evaluates how much the particular item at
Starbucks is worth. In their head, they weigh the pros and cons of the higher price of the luxury
brand. Additionally, they evaluate if their money is well spent or if they are wasting it on luxury
coffee.
Internal Influences
Starbucks is a status indicator. People who consume Starbucks exhibit that they have
money to purchase and consume an expensive brand. This status shows other consumers that “I
am drinking Starbucks; I have money to enjoy a luxury beverage.” Consuming Starbucks is an
attention grabber. Their distinctive brand name, image and logo have popularized its status.
The economy is not a relevant to the Starbucks lifestyle. Starbucks consumers do not
generally try to minimize purchases; this is because they want to exude an expensive lifestyle.
They either have the money to purchase the product, or they save up their money in order to be
able to exude the lifestyle and then purchase it.
Price is an important aspect to Starbucks. They charge above the market rate because it
allows them to prove that they are more desired and a luxury brand that people aspire to
purchase. Starbucks’ competitors generally price far below Starbucks. Coffee has never been a
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commodity item before. It has always been something that is easily and relatively cheaply
priced. Starbucks has designed its product line to be something that all other coffee shops desire
to have. Most stores that sell coffee focus on other products as well as their coffee. No other
coffee shops offer the variety that Starbucks offers.
Starbucks feels that the population segment that purchases Starbucks believes that their
pricing is somewhat overpriced, yet it is the name and brand that they are really buying, thus
they do not care that they are spending an additional dollar for the Starbucks brand.
Situational Influences
The role of price does occasionally vary with the situation. The consumer’s decision on
whether or not to purchase the Starbucks brand is determined by whether or not they feel that
they want to spend (on average) $3 for a cup of coffee, when they can spend about $1 (on
average) everywhere else. Many times consumers choose Starbucks because they have extra
money in their wallet and they want to splurge. Other times consumers has very little flexible
spending money so they choose a different brand based on price solely.
Decision Process Factors
Price is used as an important evaluation criterion. Whether or not the consumer has the
money to purchase the product that moment, ultimately determines the success of the business.
Price is definitely used to serve as a surrogate indicator of quality. Starbucks wants consumers
to believe that their high prices mean better quality and a better product that you cannot find
anywhere else.
Consumers are definitely likely to respond to in-store price reductions. Starbucks rarely
alters their prices. The only time their prices differ is when it comes to the specific location of
that particular Starbucks. In New York City, a Tall (Starbucks lingo for small) Caffe Latte may
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cost $3.25, where at the Towson University Starbucks it costs $2.65. Online the price list of all
the different varieties of their coffees does not list their prices. Also, when approaching the local
Towson University Starbucks for a menu/pricing sheet, they stated that they none are available,
and to refer to any of their prices online; which does not list prices. Each Starbucks location is
priced differently based upon the average income levels of the target market in that region.
To see a complete pricing sheet of the entire current product line (as of 4/26/06) at the
Towson University Starbucks on York Road, please refer to Appendix A.
DISTRIBUTION STRATEGY
External Influences
Starbucks segments value the environment, while also being conscious of the luxury
brand Starbucks offers. Starbucks focuses on these values while distributing their coffee around
the world. They use recyclable cups and biodegradable lids so that their luxury consumer enjoy
their coffee with an environmentally safe mindset.
The different populations within the segment all have deferring views on distribution.
Male and females distribution tactics do not vary; both segments want their Starbucks when they
want their Starbucks. Working couples, single parents, and single individuals would want
Starbucks to be at many different locations in order to meet their convenience so that they could
purchase Starbucks wherever their location is at that moment. This segment has a high demand
for Starbucks in varying locations at all times, thus distribution strategy needs to be high for this
market.
Many of the different reference groups can definitely serve as a means for individuals
with common interests to come together. Starbucks space is often used for business meetings,
people on the go who just want to relax, a social venue- with which to hang out and meet up with
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friends, or just a place where you can find peace and quiet with your cup of Starbucks along with
your laptop (due to their wireless Internet available at most U.S. locations).
Starbucks products offer a very diverse product line of a variety of coffees, teas and
blended drinks. High service channel is not necessarily required in ordered to ensure diffusion of
the product. But Starbucks uses high level of customer service with all of its customers. They do
this by giving the customer the opportunity to customize and personalize all beverages that are
made to order.
Internal Influences
Starbucks uses their retail stores as almost their entire outlet of enhanced product
position. They market themselves by placing as many Starbucks as possible at as many locations
as possible. This way their name is constantly on the consumers mind and they can more easily
distribute their product due to their enhanced popularity.
All of the different segments like the type of distribution that Starbucks does. This is
because all of the segments can agree that if they want coffee and they want Starbucks, they like
that they will not have to travel very far to find one. With thousands of locations, Starbucks’
popularity is growing more and more each day.
Situational Influences
Starbucks’ distribution system does not vary with the situation. Starbucks believes in
positioning themselves in as many locations as possible, so that people can enjoy Starbucks no
matter where they are. Additionally, many Starbucks locations have longer hours than the local
coffee shop around the corner. The Starbucks at Towson University is open till 11 p.m. every
night, to meet the demand of the influx of college students who will purchase coffee later at
night, for a little boost later in the evening.
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Decision Process Factors
Starbucks is a retail outlet that sells various café style beverages to meet their consumers’
tastes and preferences. Consumers will seek information about this type of outlet, by finding out
information on the different varieties of coffee beverages Starbucks offers, along with their
competitors. Customers do this for the reason that they like to compare Starbucks to other rival
brands. An everyday Starbucks shopper is very loyal to the brand.
Consumers use location to evaluate Starbucks retail outlet.
If all things are
approximately equal, the consumer will generally select the closet store. They do this by using
the retail gravitation model. This model is used to calculate the level of store attraction based on
store size and distance from the consumer. The distance or travel time to a store is assumed to be
a measure of the effort, both physical and psychological to a reach a given retail area.
The outlet is selected by using the brand first, and the outlet second. This is done because
consumers recognize Starbucks’ brand name. This brand name is essentially how Starbucks has
built its empire. Consumers know they want a Starbucks coffee, and they will find the closet
Starbucks outlet location to their current location. Starbucks has saturated the market by putting
as many locations as possible in their target market area.
PROMOTION STRATEGY
Starbucks promotion strategy is astounding for the reason that Starbucks does not directly
promote its products, such as a Latté or Frappucino; instead Starbucks promotes its products
through other efficient mechanisms. In spite of this, Starbucks does not portray a need to use a
direct promotion strategy for its products given that Starbucks banks on consumers carrying
around its products in “Starbucks cups” as a way of promotion. Walking advertisements has
been and continues to be an excellent promotional method for companies like Starbucks, Nike
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and other companies. In addition to walking advertisements, there is no additional cost to the
company for the promotion of its products.
Starbucks came to the realm that television promotion of its products was unnecessary in
the spring of 2005, which was the last year when they aired a commercial. Simultaneously
Starbucks had two primary commercials airing from May to July. The commercial slogan was,
“Bring on the Day” that portrayed a typical morning where individuals would wake-up to start
their day. Several consumers currently do not remember this advertisement do to extinction.
Furthermore, the commercial implied consuming Starbucks’ Double-Shot Espresso individuals
would receive more than sufficient energy, motivation and confidence to go on with their day.
Moreover, the commercial illustrated an individual going to work in corporate America, which is
a desired achieved status for several but not all Americans.
Starbucks has several locations all around the world including 49 stores in a 20 miles
radius within the Towson area. Several of these stores are company-operated coffeehouses and
others are licensed locations, which are destinations in malls and grocery stores like Giant and
Safeway. As a result, it raises the probability and possibility of consumers buying their products
on the spot when they see someone else with Starbucks. They may crave Starbucks and make a
purchase all due to the walking advertisement.
Nonetheless, Starbucks does have some promotion strategies, such as currently
promoting the movie “Akeelah and the Bee.” For Starbucks to promote this movie so heavenly
they must have product advertisements within the movie, such as a Starbucks store, cup, or other
products.
Additionally, Starbucks has other “in store” promotions.
The “Black Apron”
promotion is where an expert coffee maker makes a particular drink for consumers. Other “in
store” promotions include items, such as gift cards, mugs, coffee equipment, CDs, and coffee.
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External Factors
Starbucks customers are people of diverse ethic, income, and age groups with varying
taste and interests; therefore, they are not likely to have a conscience of shared values. In spite
of this, some values and beliefs that most consumers share are the importance of hard work, selfesteem, happiness, safety, education, leisure activities (e.g. sports, music, etc.), desire of status,
self respect, and prestige to name a few. In addition, there are some aspects to not consider when
using promotional strategies, such as race, religion, and politics for the reason that consumers
will either agree or disagree with the issue at hand.
It is imperative to display non-verbal communication to consumers when promoting
products. These non-verbals should be portrayed in commercials where the communication is
obvious, such as happiness, smiling, and the sense of satisfaction to reach consumers. Moreover,
references groups will not have a strong effect on consumers given that Starbucks does not
directly advertise; however, if a consumer sees an other individual with an achieved status that
they desire they may considered purchasing the product. For example, if that consumer sees a
successful businessperson on WallStreet with a Starbucks cup it may affect their purchasing
decision, yet if Donald Trump drinks Starbucks coffee in a commercial does not necessarily
mean that consumers will do the same, and it will not have the same effect as the businessperson
on WallStreet given that Mr. Trump is given money for endorsing the product.
Internal Factors
Starbucks promotion is designed to reach consumers on an impulse buying level;
therefore, it neglects a large segment of consumers.
However, Starbucks hopes that the
consumers’ impulse buying transforming into low involvement buying where the consumer
purchases Starbucks due to its brand equity.
Starbucks no longer uses the various media
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channels, such as television, radio, Internet, and print media (newspapers) to promote products.
More than less Starbucks uses both classical collective learning because every time the potential
consumer sees an individual with a Starbucks cup they want, desire, or crave Starbucks. As a
result, they will build up a tolerance for Starbucks and develop a low involvement decision
making process for the product. Consequently, Starbucks has been successful with a direct
promotional strategy via commercial advertisement; however, there currently strategy is
extremely effective and cost efficient.
PRODUCT
Starbucks has a very strong product line that offers variety to its customers. Not only
does the company supply beverages, Starbucks offers an extensive line of retail products as well.
All Starbucks products are tagged with the company logo and they represent the high quality
reputation that is present. One may only think of coffee when hearing the word Starbucks, but
there is much more that comes with this business. A breakdown of the product line shows the
extensiveness of its product offerings.
The types of beverages that Starbucks offers are both diverse and unique. The basic
drink the company offers is coffee. There are a total of 32 different types of coffee beans and
they are separated into five categories according to the geographical region they are located in.
Depending on the location, the coffees vary in aroma and flavorings. Each week, Starbucks
stores select a different coffee of the week. All the various types of coffees are available, but
only one is selected and featured each week.
Not only does Starbucks offer regular coffee, they offer Espresso, Frappaccino’s®,
Classic Favorites, and Tazo® teas. Espressos and Frappaccino’s® can be purchased in hot and
cold forms and come in multiple flavors such as mocha, vanilla and caramel. Tazo® tea is a
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popular selection for customers who do not like coffee. In addition, there is a whole line of
Starbucks ice cream products sold in grocery stores. Finally, for those who do not like caffeine
or tea, there are hot chocolate and seasonal products such as apple cider and a gingerbread drink.
In addition to Starbucks beverages, the company also has a line-up of retail products
ranging from Starbucks coffee mugs to books, CD’s and board games. They also sell food and
desserts allowing customers to get a full experience when they enter a Starbucks store.
REGULATIONS
Starbucks follows a series of regulations in order to ensure the security and satisfaction of
the customer.
Starbuck’s is committed to environmentally sound policies and they follow
through with this by being dedicated to their environmental mission statement. Which is the
following:

Understanding of environmental issues and sharing information with our partners

Developing innovative and flexible solutions to bring about change

Striving to buy, sell and use environmentally friendly products

Recognizing that fiscal responsibility is essential to our environmental future

Instilling environmental responsibility as a corporate value

Measuring and monitoring our progress for each project

Encouraging all partners to hare in our mission.
In addition, Starbucks adheres to a strict temperature policy ensuring that the warmth of a
coffee drink is within comfortable standards. Starbuck’s also prints a warning label on their
containers in order to prevent lawsuits. In addition uses recycled products in order to promote
environmental concerns.
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CUSTOMER SATISFACTION AND FEEDBACK/RECOMMENDATIONS
Starbucks strives to provide the “highest status of excellence” with the production and
presentation of their products. Every aspect of the company works towards exceeding
expectations of its customers. Starbucks is known for having great customer service. The
Starbucks experience is unique and stands out above the competition. Brand equity is achieved
because the brand is valued above and beyond the actual product. A high level of quality is
always present in each and every Starbucks store.
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References
Batsell, J. (2004, September 20). Starbucks’ goals rely on Quality, Quantity. Retrieved
April 28, 2006, from http://www.seattletimes.nwsource.com
Business Summary. Retrieved April 27, 2006, from
http://www.research.businessweek.com
Corporations and LLCs. Retrieved April 24, 2006, from http://www.entrepreneur.com
Fortune 500. Retrieved April 28, 2006, from http://www.cnnmoney.com
http:// www.starbucks.com
Reuters. (2006) Starbucks Could Become No. 1 Food Chain. Retrieved April 18, 2006
from http://www.msnbc.msn.com/id/12239491/
Starbucks Corporation Overview. Retrieved April 21, 2006, from
http://www.hoovers.com/starbucks
Thompson, A. & Gamble, J. Starbucks Corporation. Retrieved April 24, 2006, from
http://www.mhhe.com/business/management/thompson/lle/case/starbucks.html
Ubigau, J. (2002) Company Response: Starbucks Corporation. Retrieved April 12
2006 from http://www.qawire.com/published/80cef5d:eec6c93740:-7f97.html
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Appendix A: Pricing Sheet
Name of Product
Tall
Tea Latte
Chai Latte
$2.90
Brewed Hot Tea
Green Tea
$1.30
Black Tea
$1.30
Herbal Tea
$1.30
Iced Tea
Shaken Iced Tea
$1.45
Shaken Lemonade Iced (in Green or $2.30
Passion Tea)
Classics
Hot Chocolate
$2.35
Vanilla Crème
$2.35
Kids Drink
$1/ 8oz.
Espresso (hot or iced)
Espresso
$1.45- Solo
Grande
Venti
$3.30
$3.55
$1.70
$1.70
$1.70
$1.85
$1.85
$1.85
$1.70
$2.65
$1.95
$2.95
$2.60
$2.60
$2.85
$2.85
$1.75Doppio
$1.85Doppio
$2.15
$3.20
$3.50
$3.60
$3.90
$3.50
$3.20
$2.50
$3.50
$3.75
$3.85
$4.20
$3.80
$3.50
$1.50
$1.85
$12.00
$1.70
$2.15
$1.80
$2.50
$3.30
$3.10
$2.75
$3.10
$3.30
$3.80
$3.60
$3.25
$3.60
$3.80
$4.30
$4.10
$3.75
$4.10
$4.30
$3.30
$3.10
$2.75
$3.10
$3.80
$3.60
$3.25
$3.60
$4.30
$4.10
$3.75
$4.10
Espresso Macchiato
$1.50- Solo
Caffe Americano
Caffe Latte
Caffe Mocha
Carmel Macchiato
White Chocolate Mocha
Vanilla Latte
Cappuccino
Coffee
Hot Coffee
Shaken Iced Coffee
16 Cup Traveler
Frappucino
Blended Coffee
Carmel
Mocha
Coffee
Caffe Vanilla
Java Chip
Light Option
Carmel Light
Mocha Light
Coffee Light
Caffe Vanilla Light
$1.85
$2.65
$2.95
$3.00
$3.35
$2.95
$2.65
22
Blended Crème
Strawberries and Cream
Vanilla Bean
Double Chocolate Chip
Green Tea
Seasonal Special
Blackberry Green Tea Frappucino
Extras
Malt
Silk or Soy Milk
Espresso Extra Shot
Syrup- Carmel, Toffee Nut, Cinnamon,
Valencia, Raspberry, Almond, Hazelnut
and Vanilla
$3.30
$2.75
$3.30
$3.30
$3.80
$3.25
$3.80
$3.80
$4.30
$3.75
$4.30
$4.30
$3.30
$3.80
$4.30
$0.50
$0.40
$0.55
$0.30/each