Topic > Starbucks Financial Analysis - 944

Starbucks is known for its Frappuccinos; unfortunately they are in a downward spiral in sales due to competitors like McDonalds. In 2008 Starbucks admits losses due to competitors. “Company executives now freely admit that such thinking is largely responsible for the problems that led to Tuesday's announcement that Starbucks will close 600 U.S. stores and eliminate thousands of jobs. The coffee giant's missteps have come at a spectacularly bad time, hitting as the economic crisis deepens and consumers see their discretionary spending gobbled up by rising gas prices and grocery bills (Linn).” Starbucks will continue to lose unless they find a solution and a new marketing strategy to promote their products. There could be several reasons why this is happening. However, the company needs to take a step back and analyze the market. Starbucks must continue to research and produce new products to keep up with sales. Also, looking at today's economy, there should be a way to apply a different type and approach to advertising. Segmentation When it comes to franchises like Starbucks, you need to evaluate the market. There are several brackets in which each one is placed. For example, take McDonalds, whose marketing department is known for attracting children. Creation of external and internal play areas with slides and houses. Also, using a clown “Ronald McDonald” to attract young people is really brilliant. This type of marketing is setting 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” has lost its appeal. Target marketing It is the younger audience that...... uses paper. : Chapter 6: Consumer Decision Making. Retrieved April 30, 2014, from http://cacholajennifermar100.blogspot.com/2012/10/chapter-6-consumer-decision-making.htmlLinn, A. (2008, July 2). Starbucks' problems 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 (n.d.) . Who is Starbucks' target audience?. Small business. Retrieved May 1, 2014, from http://smallbusiness.chron.com/starbucks-target-audience-10553.htmlStarbucks. (n.d.). Forbes. Retrieved April 29, 2014, from http://www.forbes.com/companies/starbucks/Wang, H. (2012, August 10). Five Things Starbucks Did to Make China Do Well Forbes. Retrieved March 30, 2014, from http://www.forbes.com/sites/helenwang/2012/08/10/five-things-starbucks-did-to-get-china-right/