Starbucks has introduced Blonde Roast essay
Starbucks has introduced Blonde Roast for several reasons. Firstly, the Seattle-based company was concerned about the spread of its nickname “charbucks” among those customers who considered the taste of the traditional coffee blend of Starbucks to be too strong and bitter (Bacardi “Starbucks Betting on Blonde”). Thus, the company decided to introduce a lighter alternative known as Blonde Roast. Secondly, the company aimed at expanding the market share by introducing a new type of coffee. And thirdly, the Starbucks owners were trying to resist competition as they noticed that those customers who preferred a lighter roast turned to drinking coffee at Dunkin’ Donuts or other competitors of Starbucks (Bacardi “Starbucks Betting on ‘Blonde’”). Exactly for the above-stated reasons, Starbucks found it necessary to introduce a totally new coffee blend. The company owners admit that 40 percent of 130 millions of coffee lovers prefer milder-tasting types of coffee (York “Starbucks to Go Blonde”). All these coffee drinkers are the target customers of the company. Starbucks uses several ways of the Blonde Roast promotion. Firstly, it has launched a cross-channel campaign that helped not only to encourage trial, but also to increase sales growth in the USA. Secondly, the Starbucks Company introduced a diversity of TV commercials – a tactics the company completely ignored and disregarded in the past (York “Starbucks to Go Blonde”). Thirdly, the company now offers free samples of Blonde Roast to those customers who are looking for milder-tasting coffee (“Free Starbucks Blonde Samples Aim to Sway Light-roast Coffee Drinkers”). All these ways of promotion are aimed at attracting the attention of more and more customers worldwide.
Although such coffee houses as Dunkin’ Donuts and McDonalds are serious competitors of Starbucks as they offer their premium coffees at low prices, Howard Schulz does not consider these companies a real threat as it is customary for Starbucks to face the lower-priced competition (Hartley 41). Starbucks has always been one of the most quickly growing coffee-related companies globally. It helps this company to maintain a leading position in the international market even after its collapse in 2008, the year of economic recession. Despite its unsteady position in today’s highly competitive market, Starbucks still stands for one of the most reliable and easily recognizable coffee houses in the international coffee-related industry. The statement that Starbucks continues to offer price premium coffee in spite of the growing competition and expansion of such companies as Dunkin’ Donuts and McDonalds can be explained by the fact that the competitors of Starbucks are not always courageous enough to drop prices on such luxury drinks as cappuccinos (Adamy “Will Investors Buy into Iced McMochas?”). Dunkin’ Donuts and some local coffee houses offer traditional coffee blends at low prices, while the whole assortment of the Starbucks coffee is always available at more affordable prices. Besides, the fact that Starbucks uses the so-called cannibalization of its coffee stores placing them close to each other, simplifies the process of transporting coffee beans and keeping them fresh as it is easier to supply the stores located near each other with everything necessary for providing high-class coffee at affordable prices (Hartley 43). Lastly, the Starbucks Company finally turned to using powerful advertising campaigns in order to maintain a steady position among multiple competitors. It also helps Starbucks to keep the pricing for its finest types of coffee unchanged.
India has long become one of the most highly consuming countries in the world. Starbucks decided to use a seducing opportunity to open its coffee stores in India in order to expand even further. However, Starbucks faced a number of challenges that prevented the quick expansion of its coffee houses in the exotic land of India. The first challenge is the highly competitive Indian coffee store branch known as Barrista Coffee Co (Paunikar 3). It represents a powerful rival that could have ruined the plans of the Starbucks Company to conquer the hearts of the Indian population.
However, the premium marketing strategy, reasonable pricing, global acknowledgement and assurance of high quality helped Starbucks to move ahead and gain loyalty of the Indian market. The second challenge of Starbucks is the fact that the Indian market still has a number of restrictions in its economic policies that prevent many international companies including Starbucks from taking over the Indian market. Thus, there are certain import duties that are still applied to nearly all products entering the Indian land and all shipments require a list of documents to be presented to the Indian authorities (Paunikar 8). However, Starbucks continues to steadily overcome these difficulties winning trust and approval of the Indian government. Thus, Starbucks greatly economizes on taxing and shipping by purchasing coffee beans and other necessary ingredients from local Indian farmers without the need to transport the essentials from the USA. The third challenge is the fact that it is still costly for Starbucks to open coffee stores in India as great financial resources are spent on the startup, imported goods and promotion. Nevertheless, the Starbucks Company addresses this challenge by setting low prices and providing a huge diversity of beverages that are oriented on the likings and preferences of the Indian population attracting a multitude of customers and thus contributing to the growth and expansion of Starbucks in the Indian land.
The premium priority of Starbucks has always been the friendly work environment and the Starbucks’ authorities consider it the major key to success. Starbucks follows a simple principle that is to treat customers just like the company’s employees treat one another, with dignity and respect. Excellent customer service surely helps the company to attract more and more coffee-lovers to its coffee houses. It certainly leads to greater sales. Excellent working conditions created for the benefit of every employee make every worker of the company loyal and dedicated to high performance. Health insurance, medical treatment, financial benefits, workplace safety and other opportunities of the Starbucks workers make them happy employees who perform their work with excitement and devotion. Such a friendly atmosphere in every store of the company captivates the attention of customers and makes more and more coffee drinkers drop at Starbucks. All this proves that the happiness of employees ensures greater sales.
