Marketing Plan for Starbucks Research Paper Example | Topics and Well Written Essays - 1750 words

Marketing Plan for Starbucks - Research Paper Example A representative of the Oromia Coffee Farmers Cooperative Union. Tadesse Meskela argues that Starbucks sells its coffee in the market for $14 per pound whereas; it buys coffee for only $1.20 per pound which is even lower than production cost (Hot News, 2010). Such concerns are being discussed at the political and national level. Coffee producing nations can also impact the operations of the company and can threaten the United States to stop the trade of coffee. For the Ethiopian farmer's trademarking has become very important, therefore, Ethiopian government asked Starbucks to sign an agreement of ownership in Coffee, however, Starbucks refused to sign it (Oromoindex, 2009). Such concerns can directly influence the operations of a company. Increasing inflation has increased the cost of coffee, thereby, affected the revenues of coffee companies. Starbucks’ first-quarter sales increased by 2.9 percent because of higher coffee prices (Singh, 2009). The growing demand for energy and other beverages and food can influence the demand of coffee in the U.S. According to 2009 trends, consumption of coffee remained consistent at 54 percent of the total adult population partaking (National Coffee Association of USA, 2009). Discretionary spending in the U.S. for the year 2010 is $1.39 trillion and 38 percent out of total spending. Around $844 billion was spent on security and $553 billion was spent on agriculture ($25 billion) (Amadeo, 2010). Technological developments have also enhanced the capability of Starbucks to increase its green practices. For example, at several stores of Starbucks, the company is experimenting with compact fluorescent lights and energy saving fixtures (Allison, 2008). Environmental protection programs and practices are very important for the companies operating in the United States.