Question

In: Economics

There are a handful of top coffee companies but one of the most well-known companies is...

There are a handful of top coffee companies but one of the most well-known companies is Starbucks. The high-priced, high-quality coffee and beverages are quality products that keep customers returning for more. From their famous pumpkin spice latte to Frappuccino’s appeal to both adults and kids. To properly advertise their coffee, Starbucks uses multiple distribution channels. The most common method is the retail stores. Customers can order their coffee in advance via their mobile app and pick it up hot and ready. They can also order at the store as they arrive. Another distribution method that Starbucks uses are supermarkets. Starbucks also uses the supermarkets to distribute their coffee, teas and branded products. A third way that Starbucks distributes their products is through hubs or sponsored sites where they can offer a limited number of products. Starbucks refers to this model as Starbucks branded solutions. It is a way to offer their products through affiliation. Finally, Starbucks offers their products through their online website. All these distribution methods allow Starbucks to reach their customers everywhere it is convenient for them. Starbucks can enter into multiple markets and demographics easily. Their brand sells itself. Customers know that their can expect quality coffee, tea and other drink options.

Please respond to post in 100-150 words

Solutions

Expert Solution

It's Not Just Coffee, It's STARBUCKS

Starbuck Distribution Channel:

  1. It works on attaining expertise and good relations with coffee grower themselves.

           Result: Effectively bypassing much of the middle market and saving sufficient funds.

      2. Hybrid channel od distribution:

  • direct retail system in company-owned.
  • Import and Process coffee and sell under their brand name

        Result: Allows company to reach wider market.

    3. Eradicate unwanted complexity:

      Categorizing jobs into clear functions which simplify operations.

       Result: Organized Business Model.

    4. Commitment towards Sustainability: Believe in healthy mix of -

  • Sustainability
  • Aspirations
  • Profitability

      Result: Stronger Supply Chain.

      


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