s marketing strategy. Kraft handles distribution, marketing, advertising, and promotion for Starbucks. They distribute products to the grocery, warehouse, and other outlets.Starbucks retail stores are usually located in high-traffic locations and high visibility areas. To reduce risk of failure and economic fluctuations properties for the stores are leased. Brand name recognition of Starbucks therefore comes from people being frequently exposed to it. As a result, Starbucks carefully selects their market and store locations.Competition:Industry ranking as of April 1, 1999, particularly having coffee products: Company Name STARBUCKS CORP: FARMER BROS CO: CHOCK FULL O NUTS CORP: GREEN MTN COFFEE INC: COFFEE PEOPLE INC: BROTHERS GOURMET COFFEES INC Market Capital($000) $5,335,000 $395,000 $64,000 $21,000 $21,000 $2,000 The companies above mainly roast, pack and distribute coffee. Their core material: green coffee beans. Farmer Brothers sells to hotels, restaurants, and fast food outlets. Chock Full O Nuts is the fourth largest in this industry. It presents instant and specialty coffees such as LaTouraine and Cain's. Green Mountain's profile mentioned the two distribution channels it is focused on - wholesale and direct mail. Like Starbucks, Green Mountain considers growth with brand recognition and availability of its products. With 246 franchises so far, Coffee People is the second largest distributor of specialty coffee. Coffee People recently ventured with Gloria Jean's Inc. None of the latter five companies is able to match the market capital achieved by Starbucks. Starbucks management identifies competitors in restaurants, shops, street carts and supermarkets. Where own machines are being set up to serve espresso, cappuccino, Latt, and other coffee drinks to their customers. They are also faced with other mail order suppliers and wholesalers.Product Supply: Coffee Prices, Availability, and General Risk ConditionsGlobal supply litera...
