Starbucks in Fair Trade Coffee Network: Marketing Analysis Project

Starbucks in Fair Trade Coffee Network: Marketing Analysis Project

PEI-CHI YUN

Marketing Theory, Dr. Eric Wynstin Waltson

October 2012

In this generation, there are many companies working in global market. Especially, economies are becoming a global sharing market. Coffee store are ethically minded customers and a lot of people in many countries that enjoy the coffeehouse for relaxing. Additionally, Fair trade is also representing an important new approach to alleviating poverty in the global marketing and the movement also seeks to build international market relations.

What is Fair trade? Fair trade satisfies certain criteria on the supply chain of the goods involved, usually including fair payment for producers; often with other social and environmental considerations.

There are many companies that want to make a Fair Trade market in the world, like Wal-Mart, Starbucks, Wyndham and even eBay eyeing the growing Fair Trade Certified category as a new business. They not only give high satisfaction to their customers but also consider a lot of effects for the environment. Otherwise, Fair trade is becoming an important trend and topic nowadays. One of the big companies in the world is Starbucks, which focuses on Fair trade more than the other companies. They launched coffee product as fair trade.

Executive Summary

What Did Starbucks Do for Coffee?

For most coffee growers, Fair Trade is still a newer and more opening market. Starbucks has high responsibility for growing coffee with Fair trade which movement they believe can protect their employee’s benefits and can save energy for protecting our environment.

In fiscal 2011, Starbucks had bought over 428 millions pounds of coffee that 86% of the 428 millions pounds of coffee (367millions pounds) worth from C.A.F.E (Coffee and Farmer Equity) Practices that approved suppliers. Starbucks paid the price is 2.38 pound for premium green coffee in the year, which price is higher than 2010. Starbucks has been working together with Conservation International (CI) and have conducted an analysis of the C.A.F.E. Practices results. It will make sure the impacts of the coffee farmer and support the goals of Fair Trade program by CI’s analysis. Starbucks wishes the farmers can get better lives and benefits that program is already working on 20 countries, affecting over 1 million workers each year. Starbucks also encourages that farmers have responsible practices on 102,000 hectares each year .

Starbucks made those purchases that not only can gives confidence to their employees for their company but also lets customers have a good impression