As we enter the last month of the semester coffee is what has been fueling my eyes to stay awake and brain to keep on working. So it is fitting that this weeks blog post concerns Starbucks!
Starbucks is an international brand that has over 18,066 stores, 18% of those is Asia and 16% in Europe, the MIddle East and Africa. They target men and women ages 18-40 and utilize the following channels: retail stores, online, grocery outlets and connivence stores.
Starbucks sources their raw materials from over 19 different countries and 70,000 outbound deliveries a week. Sourcing from many different countries helps Starbucks keep costs low and ingredients superior. Once the raw materials are harvested they are sent to one of six manufacturing plants.
Starbucks opens approximately 10 stores every day and has 137,000 employees. These physical stores serve approximately 40 million customers a week.
The retail and online stores are similar channels in that the flow of materials is the same. The flow of the materials goes from the farm to the roaster to the retail store or online store then direct to the customer. Items sold through these channels are: custom drinks (coffee & tea), food items, mugs, coffee equipment and Starbucks branded merchandise.
Their grocery and convenience store locations also have similar flow of materials. The materials go from the farmer to roaster to the bottler, in this case PepsiCo, to the distribution center to the store then finally to the customer. Grocery and convenience stores sell ground coffee, instant coffee (Via), and “ready to drink” Frappuccino and double shot espresso drinks.
By expanding the channels in which they sell their products Starbucks can make sure they are part of their customers life at home and at work.