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  • Essay / Financial Analysis of Starbucks - 944

    Starbucks is known for its Frappuccinos; unfortunately, their sales are in a downward spiral because of competitors such as McDonalds. In 2008, Starbucks admitted its losses due to its competitors. “Company executives now freely admit that this thinking is largely responsible for the woes that led to Tuesday's announcement that it would close 600 Starbucks stores in the United States and cut thousands of jobs. The coffee giant's missteps come at a spectacularly bad time, as the economic crisis deepens and consumers see their discretionary spending eaten away by rising gas prices and grocery bills (Linn). a new marketing strategy to promote their products. This could be due to several reasons. However, the company must take a step back and analyze the market. Starbucks must continue to research and produce new products to stay on top of sales. Additionally, looking at today's economy, there should be a way to apply a different type and approach to their advertising. Segmentation When it comes to franchises like Starbucks, you need to evaluate the market. There are different categories that everyone is placed into. For example, take McDonalds, whose marketing department is known for appealing to children. Build outdoor and indoor play areas with slides and playhouses. Plus, using a “Ronald McDonald” clown to attract young people is pretty awesome. This type of marketing sets the bar for the next generation to retain customers for generations to come. Starbucks needs to take a step back and reevaluate its advertising market. There should be an analysis to see where the “Frappuccino” lost its appeal. Targeted marketing Is the younger audience middle of paper ...... use. : Chapter 6: Consumer decision making. Retrieved April 30, 2014, from http://cacholajennifermar100.blogspot.com/2012/10/chapter-6-consumer-decision-making.htmlLinn, A. (July 2, 2008). Starbucks' woes could get worse. msnbc.com. Retrieved May 1, 2014, from http://www.nbcnews.com/id/25498374/ns/business-us_business/t/struggling-starbucks-woes-could-get-worse/#.U2f-X1ehHlcFarrell, RO (nd) . Who is the target audience of Starbucks?. Small business. Retrieved May 1, 2014, from http://smallbusiness.chron.com/starbucks-target-audience-10553.htmlStarbucks. (nd). Forbes. Retrieved April 29, 2014 from http://www.forbes.com/companies/starbucks/ Wang, H. (August 10, 2012). Five things Starbucks did to turn China around. Forbes. Retrieved March 30, 2014 from http://www.forbes.com/sites/helenwang/2012/08/10/five-things-starbucks-did-to-get-china-right/