...2 Four P’s Marketing Mix on Starbucks The marketing mix plays an important part in marketing. The purposes of the marketing mix are to use a combination of tools to satisfied the customers and obtain company goals. The marketing mix is referred as the four P’s: product, price, place, and promotion. “The elements are adjusted until a right combination is found that serves the needs of the product’s customers while generating optimum income”. (Marketing Mix, 2010, p. 1). By using the four P’s, most businesses have the ability to connect with consumers within the targeted market. The ability to create a successful marketing mix often has good results. However using the wrong mix can lead to failed marketing strategies which can result in the business dissolving. The key is not to get stuck on one mix; the combination of elements often has better results than just using one. This research paper will review all elements of the marketing mix and how each ones plays an important role that organizations must acknowledge in order to be successful. The first P in the mix is the product. The product is used to determine market needs, wants, and desires, to assess internal resources regarding satisfying market needs, wants, and desires with innovation, to develop process for market resource and product testing, and to forecast product life cycle. With this being said, the product would refer to a physical product or service in a company. The product would be used to satisfy a targeted...
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...Market Mix The Four P’s Price, Product, Promotion, and Place My company has decided that we want to sell a particular product or offer a service? This product will be based on Coffee. Not just hot coffee’s – but Iced Coffee’s with different flavors. As the company grows we will introduce 2 simple baked goods, English Scones and muffins. Deciding to sell these certain products will keep it simple in the beginning. As my company action plan will employ the market mix, and the essentials of the four P’s that will enable me access to get the goods and services to the customers that I am targeting in my local area. The action plan is called the “Marketing Mix”. The marketing mix is one of the biggest and most critical decisions that a company can make. A bad marketing mix can result in poor performance and the potential for financial losses. One has no wish to be alone with a great cup of coffee and a Blueberry Scone watching the Casey Anthony Trial in an empty Coffee Shop. Now that’s a bloody nightmare there.(Fulton et al, 2006) The Origins of the Market Mix Plan It is well known the marketing mix plan created and well defined by McCarthy some forty years ago. It is commonly used to date as the standard outline and set of marketing tools that a firm uses to pursue its marketing objectives or goals (Kotler and Keller, 2006). The marketing mix is then broken down into four distinct categories. These categories are called the four P’s or Product, Price...
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...Marketing Mix: Starbucks MKT/421 Marketing Mix: Starbucks When thinking about the companies that have had the most successful marketing strategies, Starbucks is one of the top companies. Starbucks is an international coffeehouse beverage chain that has become very successful. Their marketing strategies have allowed it to surpass other coffee offering outlets such as Peet’s Coffee and Dunkin’ Donuts. Starbucks has been able to capitalize on consumers wanting a quality coffee or tea beverage delivered at a reasonable price point. One of the key factors in their marketing strategy has been to cater to areas where consumers have a disposable income and a “want” for their products (“Starbucks Marketing”, 2013). Additionally, as revenues skyrocketed, Starbucks began offering their product at retail outlets. This enables any consumer to experience their product without even having to visit a local Starbucks coffee shop. This has proven to be a very successful venture for the company. Fiscal year 2011, boosted over 11 billion dollars in revenue for the coffee giant. None of this would have been possible without a successful marketing mix (“Starbucks”, 2012). Marketing mix The actual term marketing mix was first used back in 1940’s, but gained momentum in 1964. That year, Neil H. Borden published an article entitled The Concept of Marketing Mix that detailed the actual concepts of a marketing mix strategy. His initial idea contained around thirteen different...
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...P1: describe the The marketing mix- 4 p’s – product or service offered by a business The promotional mix – 7 p’s looks at the promotions a business uses for a product. Coke is targeting individuals as they have put name on the bottles and to try and persuade you to buy it because it has your name on it. McDonald’s- save4 menu- showing that there is something there for everybody. When did both campaigns run- Coca cola- 2012 during the summer –the Olympics. McDonald’s 2012 The marketing mix looks at the 4 p’s at the promotional mix looks directly at the promotions Personal selling does not apply to the business. Retailers of the product (coke) offer promotions. Public relations- McDonalds got sued for the beef patty they used to sell to customers which was made up of water and other harmful chemicals Coke- does not have any public relations. Direct marketing- coke are targeting people who specially want to buy their product. Sponsorship – both used the Olympics to boost sales, recognition of the products, improve sale i.e. revenue. * The purpose and objectives of the promotional mix Does it apply to McDonalds and coke? Corporate image – McDonald used this because they are a fast food restraint at it leads to bad things such as obesity. Most of the time they promote their products to businesses but in this case they promoted their products to individuals as customers could purchase a coke with their name on it and it would get sent...
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...Background Information -Describe and discuss (broadly speaking) the 4 P’s associated with your product/service. Below are the 4P’s described in your textbook, describe and discuss all four of the 4 P’s: - Old 4 P’s-Product, Place, Promotion, Price. New 4 P’s-People, Processes, Programs, Performance. OLD FOUR P’s PRODUCT-Starbucks is the world’s largest purveyor of coffee with over 20,000 store in 61 nations. The company originally started out as a Seattle based coffee house that was known for offering exclusively dark roast coffees. When Starbucks was originally establishing itself and growing in the late 1980’s and early 1990’s dark roast coffees were publicly perceived as being of higher quality. Starbucks purchased Tazo Tea in 1999 thus improving its tea offerings. Lighter coffees were not added until around 2010. The array of products now offered at Starbucks locations has expanded significantly in the last decade and now includes numerous varieties of coffees and coffee products, full leaf teas, snacks, pastries, sandwiches, music CD’s, and many others. The whole bean coffee and Starbucks ice cream are now available in grocery stores as well. A small number of Starbucks locations now also sell alcoholic beverages such as beer and wine. Virtually all locations offer at least a few food items. (Reuter’s Jan 24, 2013.) PLACE-Starbucks Company data suggests that there are currently about 20,366 locations in 61 countries...
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...Introduction Marketing mix comprises four P’s: Product, Place, Price and Promotion, which is one of the most fundamental concepts of marketing. These Ps are quite essential for developing a marketing strategy of any organization (Perreault & McCarthy, 2004). The marketing mix (price, product, distribution, promotion) forms the entire promotional campaign. As stated in “Management of a Sales Force” by Rosann L. Spiro, Gregory A. Rich, and William J. Stanton, “when these are effectively blended, they form a marketing program that provides want-satisfying goods and services for the company’s market." The term became popular in the article written by Niel Borden called “The Concept of the Marketing Mix.” He started teaching the terms to many after he learned about it with an associate. The marketing mix is a broad concept that includes several aspects of marketing which all are required to obtain a similar goal of creating awareness and customer loyalty. The marketing mix is not only an important concept, but a guideline to reference back to when implementing the price, promotion, product, and distribution. Those are the four main ingredients of the marketing mix, but there are other components not already mentioned on the Wikipedia site, including, planning, branding, packaging, display, distribution channels, personal selling, advertising, servicing, and physical handling. All in all the current description of the marketing mix is accurate, but missing some vital pieces of...
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...Final: A Starbucks Case Study Brian Davis Business Ethics BUSM 4263 Dr. Johnson April 5, 2012 Incorporating Coffee and Business the Starbucks Way The Early Years Starting a Small Group – During a business trip Howard Schultz visited Seattle, WA, investigating why a local coffee shop was outselling Macy’s in specific drip coffee makers. His visit brought him to Starbucks where he first met Jerry Baldwin, Zev Siegl, and Gordon Bowker. Inspired, Howard Schultz sought and achieved employment with Starbucks as the head of marketing, forming a small group of owners and leaders. A small group interaction is, “the process by which three or more members of a group exchange verbal and nonverbal messages in an attempt to influence one another” (Tubbs, 2007, p. 6). As a new member of the Starbucks group Schultz brought fresh new ideas and a vision for future growth and expansion. For example, Schultz helped develop customer-friendly skills that employees utilized to build better relationships with clientele. This process was the beginning of teamwork in the Starbucks Company during the Schultz era. Group Dynamics – Group dynamics is defined as, “the interactions that influence the attitudes and behavior of people when they are grouped with others through either choice or accidental circumstances” (Dictionary.com, 2012, p. 1). Over time the dynamics of the cohesive Starbucks team shifted, after hiring Schultz, causing dissention...
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...Marketing LaTroya c. Boyd MKT/421 4/30/14 Dr. Michael Rico WHAT IS MARKETING? I consider marketing to be a form of art. The goal is to persuade the audience and lead each individual into the direction of being convinced. Whether it is a product sold in the market or an idea of a business and the creator is looking for an investor, marketing builds the connection that should ultimately lead into trust. According to “Basic Marketing A Marketing Strategy Planning Approach” marketing is defined as more than just buying and selling. It is stated that “marketing is the performance of activities that seek to accomplish an organizations objectives by anticipating customer or client needs and directing a flow of need-satisfying goods and services from producer to consumer or client.” In other words, the mission of any business is to keep track of what customers are most interested in order to maintain a successful business. It takes strategic planning and for all involved in the company to use good communication skills and learn to coordinate with the rest of the so that everyone is on the same page. To promote goods or services the marketing strategy should be organized. Un-organization is the recipe for failure. Personally I believe marketing is quite a few things. Marketing is art. It is a process of convincing people and promotion. Other sources will sum marketing up and describe it as a management process where goods and services are moved from a mere idea to the consumer...
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...Starbucks Marketing Goals and Objectives Teneisha Gamble Grantham University BA440: Marketing Analysis Benjamin Brink 26 October 2014 Abstract Traditional, when you think of coffee it is brewed at home or at a restaurant. The beginning of Starbucks was an idea of three guys who wanted the European-style of whole bean coffee taste, unlike the traditional of Folgers’s and Maxwell House coffee. With the change of times Howard Schultz reinvent how Americans viewed coffee. Using the Italian coffee and barista idea, he incorporated the idea to what we call Starbucks. The vision of camaraderie between the customers, and the barista is what Starbucks was founded on. Launching a coffee shop like any other business there must be a plan and goal to market the product. Starbucks Marketing Goal and Objectives Starbucks was a vision of Howard Schultz who was the marketing director, until he bought out the company. Starbucks opened its’ doors in 1971, exceeding competitor Seattle’s Best which in 2003 the company acquired. In the beginning Starbucks used the word of mouth approach for advertisement...
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...Video Case 6.1 Starbucks: Staying Local While Going Global Through Marketing Research. Questions 1. The SBDC National Information Clearinghouse provides information for the Small Business Development Center Network and America's small business community. Euro monitor International is a marketing intelligence firm that provides data to industry, business intelligence reports, and market research. USDA objective is to maintain a model for environmental concerns, food production, and a healthy and safe food supply. www.Starbucks.com the company’s website offer information on their products and services. Google –Coffee related information such as coffee consumption, coffee shops, etc. 2. Consumers are looking for a place where they can socialize and relax and enjoy the experience of the coffee house and smell the aroma of the rich coffee bean as if they were in Milan where Howard Schultz experienced the interaction between the coffee houses patrons and the quality of relationships that were established with the people and their love of coffee. Starbuck consumers are looking the three P’s in their coffee house experience: People- the connection the baristas has established with their customers. Place - the aroma from the coffee bean drifting throughout the establishment, and the overall design layout of the physical. Product – the food, beverages, and merchandise offered for sale. Starbucks can determine the answers to these questions by using...
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...EXECUTIVE SUMMARY 2 PROBLEM STAEMENT 3 SITUATION ANALYSIS 3 Background 3 Objectives and Goals 3 SWOT Analysis 4 MARKET ANALYSIS 4 Marketing Mix 4 COMPETITION ANALAYSIS 5 External Environment (PESTE) 5 CONSUMER ANALYSIS 6 Positioning Map 7 CASE KEYS 7 ALTERNATIVES – need more pros and cons 8 RECOMMENDATIONS 8 ACTION PLAN - TBD 9 CONTINGENCY PLAN -TBD 9 APPENDIX A – Competitor’s strength and weakness 10 APPENDIX B – Segmentation 11 REFERENCES 12 EXECUTIVE SUMMARY Founded 1971, Starbucks started off as a bean roasting company. After a visit to Italy by Howard Schultz, he was determined to open an Italian style espresso bar. For the next 20 years, after the name had been purchased by Howard in 1987, there was a vast growth and expansion. With little competition, Starbucks was able to open a total of 15,011 stores in globally in which two-thirds were in the USA. In 2007, Starbucks was hit with a financial crisis that plunged its shares around $19-$20. With a negative working capital caused by increase financial debt both short and long-term, the sharp expansion due to strategy shift may have caused targets in 2007 not to be met. As shareholders expectations were high, Shultz reclaimed is seat as CEO with intentions to steer the company back to focus on the customers and commitment to its community. During the years of great success for Starbucks, there was little competition globally. Its direct competition in Canada was Second Cup and in the US was Pete’s...
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...IMPORTANT ELEMENT IN THE MARKETING MIX Definition of Marketing Mix According to Philip Kotler - "Marketing Mix is the combination of four elements, called the 4P's (product, Price, Promotion, and Place), that every company has the option of adding, subtracting, or modifying in order to create a desired marketing strategy" Marketing Mix was first coined by Neil Bordon, the President of the American Marketing Association in 1953 and is referred to as the set of actions, used by a company or organisation to promote its product or service in the market. A typical Marketing Mix is made up of 4Ps – Product, Price, Promotion and Place. These 4 Ps were introduced by the marketer E. Jerome McCarthy in 1960 and since then they are being used worldwide by the marketers. Product A product is a good or service offered by the company to satisfy the demands of the consumer. Price Price is considered to be an amount charged by the seller for the product or service given to the buyer. Promotion The methods used by the marketer to bring the product into market and to create awareness among the people e.g. advertisement. Place Place is all about how the products reach its buyers for sale. A business can be profitable only when the right product with right price is made available to the right users. The Product ‘P’ is always the single most important element in the Marketing Mix Affirmative The product plays the most important role in the entire process of marketing mix. The product is...
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...neighborly atmosphere. According to the text, Panera Bread serves nearly six million customers a week system wide and become one of the largest chains. This shows that the unique position has contributed to its success. In my opinion, I think Panera Bread will reach its goal because the company is relying on its unique position strategy, its signature foods and savvy execution to make this goal a reality. Q2. Q3. Q4. Application questions Q1. * Background Key personalities, location of offices * Financials Method of growth, liquidity * Products Brand loyalty, new product developed, patents * Marketing 4 P’s * Personnel Number of employees, management style * Corporate and marketing strategies Objectives, growth plan * Facilities Plant capacity, shipping logistics Q2. * Starbucks Product ,service, feeling special * Apple IPhone First smart phone and leader now User...
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...How Costa Coffee would benefit and create additional value for their coffee store clients by using elements of Starbucks marketing strategy? Contents Introduction 3 Coffee Market in the UK 3 Market Leading Coffee Shops in the UK 4 Costa Coffee 4 Identifying competition 6 Starbucks 6 Conclusions 8 Recommendations 9 References 11 Appendix 1 13 Appendix 2 14 Appendix 3 15 Introduction Competitive marketing strategy is described by Kotler and Armstrong (2012) as a strategy which positions company against competition giving it the strongest possible strategic advantage. I have chosen Costa Coffee as it currently is the market leader in terms of most coffee retail outlets in the United Kingdom as demonstrated on appendix 1. Kotler and Armstrong (2012) point out that competitor analysis includes assessing competitions objectives, strategies, strengths and weaknesses, reaction patterns and selecting which competitors to attack or avoid. For he purposes of this assignment, I have identified competition based on the market share and customer view. Competitive marketing strategy is selected on the basis of it creating further value for the customer. Blythe (2009) concludes that competitive advantage is the outcome of effective...
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...spend per visit by consumer-driven N.P.D | Focus | A niche market strategy is not suitable; focus is on mass market & intense penetration with diversification of products/services | Cost Leadership | Low prices is not congruent to the Brand Values of Starbuck’s - Premium price for high quality products & customer service/experience | Fig 3. Porter’s 5 Forces - Market Attractiveness – 60% of consumers have not altered coffee habits in recession Competitive Rivalry Mature & Fierce * Branded coffee shops focus on premiumisation & quality of services - Barista expertise to emphasise their ‘added value’ * Independents have flexibility and are as present as Branded * Market dominated by a Large Global companies: Starbucks, Costa, Caffe Nero, Caffe Ritazza and a large number of independents * Non-specialists – McDonalds - attracting new customers through coffee moments – top coffee seller in the UK & Greggs – a low-cost alternative | Bargaining Power of Suppliers * Strong ethical ‘Fairtrade’ stance...
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