Joseph
MKT 421
Michael Seller
May 15, 2006
Environmental Factors Paper
Environmental Factors Paper
Introduction
Starbucks' wide range of business activity allows it to utilize numerous channels of product distribution. The corporation owns and operates its own production facilities, warehouses, and retail stores. This allows them full control of product design, shipping, and receiving. Starbucks' strategy is to sell premium products for premium prices and to lever Starbucks brand awareness by introducing new products and through the development of new distribution channels. Starbucks also wants to apply its name to more than just coffee. Starbucks is a leading company in the domestic and global market. Excellent management practices have allowed Starbucks to grow and prosper as an organization.
Domestic marketing
Domestic marketing is defined as activities directed exclusively in a business's home market. Starbucks Coffee has been very successful in the domestic market over the years. To expand its U.S. retail presence, the company joined with Kraft Foods to sell its coffee in over 25,000 grocery stores across the US. It has also signed an agreement with
Albertson's to open more than 100 coffee bars in some of its supermarkets. The Company also sells cold beverages (Frappuccino) with PepsiCo and a line of coffee ice cream with Dreyer's. Starbucks is also developing its own line of chocolates and is selling its brewing equipment in traditional retail locations. Starbucks has begun test marketing on a new menu of breakfast, lunch, and dinner items to be sold in its retail stores. There is currently a Starbucks located in every state, and large states like California h ...