Starbucks on Facebook

OK, so I want to end my blog by mentioning the popularity of Starbucks on Facebook. I became a member of Starbucks Facebook group when I started my blog.

Few minutes ago I checked again the number of members that join this group: 5,158,393 fans. Wow.. There is something new posted on the group every day. It can be information about a new product, event, sales promotion, deal or a "Happy Holiday" message. No matter what it is posted, there are around few hundred comments every day, and few thousand "likes" every day...Isn't that crazy?

Yes, Starbucks is a worldwide company that gained the hearts and pockets of their customers. It is amazing to witness all of this process, to watch how big companies are expending and surviving even during a recession.

The way Starbucks does business made me choose this company for my marketing assignment, not necessarily their product. The way they keep selling coffee at a high price, even though MC Donald's is screaming that they offer espresso for half price.

Starbucks listens to its customers. The consumers have the opportunity to speak up, to share their opinions, complains or satisfaction. I think this is an important factor in Starbucks success.

Strabucks in Supermarkets(Marketing Channels and Supply Chain Management)

In September 1998, Starbucks company and Kraft Foods announced that they were making a long-term licencing agreement to allow growth of Starbucks in grocery channel across U.S.

In the same year Starbucks brought to groceries several coffees : House Blend, Decaf House Blend, Colombia Espresso Roast and French Roast. "We've employed state-of-the-art technology to guarantee that our uncompromising quality standards are maintained in this new effort", said Mary Williams, Starbucks senior vice president during that period.

In April 1998, Starbucks started to offer whole bean and ground coffee in supermarkets. Six selections of roasted coffee became available in supermarkets in 12-ounces Flavor Lock bags.

"Thanks to Kraft, we are now in a position to provide Starbucks coffee through grocery stores much quicker than we would have been able to do it ourselves" said the CEO, Howard Schultz. this agreement was a step farther for Starbucks expansion national wide and worldwide.

Nowadays, Starbucks has around 16,000 retailers in over 50 countries. The company's expansion is a proof of a intelligent way of doing business and a willingness of taking risks. Starbucks is an example of a company that is ready to face the competition and to bring innovation and great experience to its customers.

Starbuck's Channel Alliances (Marketing Channels and Supply Chain Management) )

Starbucks, Pepsi and Unilever partner grow the Tazo Tea Ready - to - Drink business.


Starbucks Coffee Company, PepsiCo , Inc and Unilever made a licensing agreement for the manufacturing and marketing Starbucks super- premium Tazo ready to drink(RTD) beverages- including iced tea, juiced tea and herbal infusion- in the U.S and Canada. Tazo's RTD line is integrated to Pepsi/Lipton Tea partnership.

Tazo created more tha a hundred beverages. All of them are done at Tazo headquarters in Portland, Ore. to ensure quality and flavor consistency. Kraft Foods, which distributed Tazo RTD line as part of its 10-year relationship with Starbucks, will continue the distribution of Tazo filter bag teas and tea-latte concentrate, as well as Starbucks and Seattle's Best Coffee.




Starbucks relationship with PepsiCo was established in 1994, when the companies created the North American Coffee Partnership , a joint venture that helped built the RTD, Starbucks Frappuccino, DoubleShot Espresso, Doubleshot Energy+Coffee and other beverages. The beverages were an immediate success. Today PepsiCo is still the sole distributor for Starbucks RTD beverages, and Starbucks has continued access to the thousands of outlets where Pepsi is sold.


Usually producers don't use only one channel to distribute their products. They create strategic channel alliances in order to be able to use another manufacturer's channel. Strategic channels are used specially by growing companies that are developed worldwide. Starbucks is an example of a company that focuses on strategic channel alliances.

Starbucks Ice Cream (Devepoling and Managing Products)

Starbucks sells its ice cream from 1996, under a partnership of Dreyers Grand Ice Cream Inc. In 2009 Starbucks announced an licencing agreement with Unilever , for the manufacturing, marketing and distribution of the Starbucks ice cream in U.S and Canada. Unilever's capabilities as the leading global manufacturer of ice cream will straighted super-premium position of the company in the U.S and Canada.


Starbucks Coffee is made with only high quality arabica coffee, purchased and roasted in accordance with Starbucks standards. "Unilever's industry - leading innovation and commitment to social responsibility with brands like Ben&Jerry's are well aligned with our values and vision for the business" said Gerry Lopez. Ice cream market in U.S and Canada is worth about 17 billion, Unilever estimates.



The new line of Starbucks ice cream has the fallowing flavors:
caramel macchiato, java chip frappuccino, mocha frapuccino and coffee. The ice cream is not sold in Starbucks stores because many of them don't have freezer. Customers can find the new products in groceries and supermarkets.


I personally love Starbucks ice cream because of its richness and flavor; Java Chip Frappuccino is one of my favorite ice cream.
Starbucks will never stop bringing innovation and new experience to its customers.

Vivanno Products(Developing and Managing Products)

On July 15, 2008 Starbucks introduced its new products Vivanno Nourishing Blends. Developed with a strong nutritional goal in mind, the drinks provide at least one serving of fruits, 16 grams of protein and 5 grams of fiber with 270 calories and no artificial colors.

Vivanno line is one way Starbucks takes in consideration customers' ideas for great tasting and healthy products. They are very receptive to the customers' messages. On MyStarbucks Idea everyone can tell his opinion about the company and its products. There are many specialists that answer and are in contact with those willing to share their experience.

Vivanno drinks can be also customize. By adding espresso to the Banana Chocolate Blend, the drink provides the bold, smooth flavor of espresso with no extra calories. Matcha Green Tea Powder added to the Orange Mango Banana Blend gives the beverages the antioxidants of green tea with only 40 additional calories.
The way Starbucks develop and manage products is interesting to follow. They have the sense of bringing inovation and receptiveness to their business.

Starbucks' Food (Develping and Managing Products)

Even though Starbucks' primarily product is coffee, the company is focusing on improving their food products as well. The company introduced its food line from 1991, but it was always secondary to the coffee.

In 2007, the company was finally ready to serve a high-quality food to its customers. Starbucks made huge investments in new high-speed, high-heat ovens. The ovens developed by companies including TurboChef combine microwave and convection technology and can be used for both cooking and reheating.

Pastries were long brought from different bakeries, only in 2007 the company created its own receipts and made the cookies taste the same in the whole country. Starbucks wants to offer high quality food next to its high quality coffee. "We are determined to serve food our coffee can be proud of", said Mr. Barr, director of food research and development.

The company brings new healthy food products like : "Starbucks Perfect Oatmeal", "Chewy Fruit Nut Bar", "Apple Brown Muffin", "berry Stella" and many others. Starbucks food products are addition to the existing products. They want to keep the customers in their stores, giving them the opportunity to eat and drink coffee in the same place.

Starbucks' "Treat Receipt" Sales Promotion

Starbucks' "Treat Receipt" promotion was a version of Happy Hour. Between June 30 and September 29, 2009, customers were able to purchase more coffee for less money. Those who purchased a coffee before 2 p.m. could get any Grande cold drink for $2.00 after 2 p.m. by just showing the receipt.

It was a good deal especially for those customers whose drinks after 2 p.m. were fancy coffee, like frapucciono or any other complex drinks; This way they could save more money. I think "Treat Receipt" was a good promotion because it encouraged people to double purchasing; as well as it made them try complex products. The idea of offering cold drinks in a hot season was a good one , bringing profit to the company.