owned subsidiaries: The Coffee Connection, Inc. ("The Coffee Connection"), Starbucks New Venture Company ("Starbucks New Venture"), Starbucks Coffee International, Inc. ("SBI"), Starbucks Holding Company. (Appendix H)Product:Starbucks Corporation and its subsidiaries buy and roast high quality whole coffee beans. To insure high quality of the product, Starbucks built three roasting plants of his own, where highly trained and experienced personnel monitors roasting of beans (Appendix C). Quality standards are so high that entire batch is thrown away after testing if qualifications differ from acceptable standard.Later beans are sold in primarily company-operated stores along with fresh, rich-brewed coffee, Italian-style espresso beverages, decaffeinated beverages, cold blended beverages, variety of pastries and confections, coffee-related accessories and equipment, and a line of premium teas. Retail sales brake down is roughly 61 % coffee beverages, 15% whole-bean coffees, 16% food items, and 8% coffee-related products and equipment. Product mix varies with the size and location.Starbucks sees its success sustainability in constant development of its products to bring new experiences and ideas to loyal customers of their cozy “coffee-empire,” (Appendix B). High quality of a product that will appeal to coffee lovers around the world is Stabucks’s main consideration.Marketing and Product Design: A branding strategy must work well with marketing strategy. Starbucks sells a lifestyle, to customers and employees alike (Appendix E). It has learned from the experience of Pepsi and others to link its brand to new trends. Therefore Starbucks' success could be attributed to objective to meet their customers needs and innovate new product offerings.Selecting a marketing strategy based on a product mix is a key to Starbucks success. Coffee is the second most traded commodity in the worl...
