...Introduction of the Starbucks Starbucks Corporation is an American global coffee company. It is the largest coffeehouse chain in the world, with 19,972 stores in 60 countries which headquarters based in Seattle, Washington. Starbucks is named after the first mate in Herman’s Moby Dick. It was founded on March 30th in 1971 by Gerald Baldwin, Gordon Bowker and Zev Siegl. And the Starbucks’ CEO is Howard Schultz nowadays. The company’s logo is also inspired by the sea-featuring a twin-tailed siren from Greek mythology. Until 2012, the company has an annual turnover of ＄13.29billion. Initially, Starbuck only sells high-quality bean coffee, drinks, salads, sandwiches and baked food through their company-operated retail stores, with the rapidly development of Starbuck, the company also offered bottled beverages in locality stores and grocery stores. In 1991, Starbucks established a relationship with CARE an international humanitarian organization and establishes a line of premium ice creams and offers a line of premium teas in the market, which was the beginning of the company’s international expansion effort. In 1992, Starbucks successfully listed. And in the later several years, this company has already acquired some small business. Then, Starbucks begin to expand its global marketing. The Company’s objective is to establish Starbucks as the most recognized and respected brand in the world. In realizing and achieving this goal, the Company plans to continue to rapidly...
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...“We aren’t in the coffee business, serving people. We are in the people business, serving coffee” Howard Schultz, Starbucks Chairman and Chief Global Strategist Fortune Magazine, Vol. 149 No. 2 Title: Submit To: Completed By: Starbucks: “The Non-Coffee Treat” P.V. Sundar Balakrishnan Matthew Carmean Partner Julie Anstett Partner Julia Toochette Partner Joel Ennis Partner Joey Eaton Partner Trang P. Huynh Partner Table of Contents TABLE OF CONTENTS...............................................................................................................................................................2 EXECUTIVE SUMMARY............................................................................................................................................................3 MANAGERIAL PROBLEM.........................................................................................................................................................4 SITUATION ANALYSIS...............................................................................................................................................................4 Company ................................................................................................................................................................................. .4 Customer .....................................................................................................................................
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...E-Marketing BM012-3-2-EMKT Individual Assignment | Table of Contents 1.0 INTRODUCTION 3 2.0 STRATEGY IDENTIFICATION 4 2.1Marketing Mix 4 2.11 Product 4 2.12 Price 4 2.13 Place 5 2.13 Promotion 5 3.0 ENVIRONMENTAL ANALYSIS 8 3.1 SWOT Analysis for Starbucks 8 3.2 PEST Analysis for Starbucks 10 3.21 Political 10 3.22 Economic 10 3.23 Social 11 3.24 Technological 11 4.0 E_MARKETING PLAN 14 4.1 E-Marketing Strategic Planning 14 4.11 Segmentation 14 4.12 Targeting 15 4.13 Differentiation 15 4.14 Positioning 16 4.2 Objectives 18 4.3 E-marketing Strategy 18 4.4 E-marketing Tactics 19 5.0 IMPLEMENTATION 22 5.1 Implementation Plan 22 5.2 Evaluation 24 6.0 CONCLUSION 25 7.0 REFERENCES 26 8.0 APPENDIX 30 1.0 INTRODUCTION Starbucks is a well known brand established 1971 at Seattle by Jerry Baldwine, Zev Seigle and Gorden Bawker. The company operates in approximately in 17,000 retail stores over 49 different countries including Malaysia. With the mission statement of “to inspire and nurture the human spirit-one person, one cup and one neighbourhood at a time” Starbucks have been expanding rapidly. Other than the world premium coffee Starbucks offers tea, cold beverages, complementary foods such as sandwiches and salads. (A. Mettlach, 2010) Starbucks has invested highly on IT to target their products and services to market segments. As a result Starbucks has attracted a large number of customers and established a...
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...company that I have chosen which is the Starbucks company. We will study the environmental analysis of Starbucks Company as well as the customer and competitor analysis. On top of that, we will also analyze the company’s industry analysis which includes the Porter Five Forces, PESTLE analysis and SWOT analysis to study the company’s position in the industry. Furthermore, this report will discuss the marketing objectives and marketing strategies of Starbucks Company and how the company uses the marketing plan to promote the company’s new product in order to grow their business. In the last part of this report, the company’s budgeting will be shown and the evaluation of control and mechanism will be clearly explained. Objectives The company’s objective is to establish Starbucks as the most recognized and respected brand in the world by providing and offering the best quality of coffee to a wide range of customers (Fellner, 2008). Mission The company’s mission is to inspire and nurture the human spirit – one person, one cup and one neighborhood at a time. Starbucks also wants to establish their brand as the premier and the finest coffee in the world while maintaining their uncompromising principles as they expand. On top of that, the company is passionate about ethically sourcing the finest coffee beans to improve the lives of people who grow them (Starbucks Coffee Company, 2013). Environment Analysis Company Analysis Starbucks Coffee is the largest coffeehouse company...
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...Table Of Content Introduction Marketing mix is one of the most useful strategies for every company to look for to have a good business. Starbucks has analysed the marketing mix to develope their brand in many market mostly in the Western country. However, in Eastern one, specifically in Vietnam market, the marketing mix strategy have to be different. This report will talk about the individual elements of the extended marketing mix and how to use the marketing mix in different contexts of Starbucks Vietnam. Starbucks Vietnam Marketing Mix Report 1. The explaination of how Starbuck Vietnam developed products to sustain competitive advantage Product is something that sastisfies a set of want that customers have. In every companies as well as Starbucks Vietnam, when they want to develope new product, they have to follow the eight stages of new product development (NDP) process: Figure 1: New Product Development Process (adapted from learnmarketing.net: New Product Development (NPD), n.d) The first two stages are the idea generation and idea screening. When Starbucks wants to make new product, the company needs to have new idea and the idea needs to be sreen clearly. The idea of Starbucks Vietnam can come from many ways that are from their competitor, through the market analysis or from the holiday, season or popular event. As can be clearly seen that, through time to time, Starbucks has came up with many new idea to survive in Vietnam market. They analyse the coffee...
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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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...Strategic Marketing Plan for the Starbucks Coffee Company Table of Contents Introduction and background 3 Company mission, company objectives 3 Market definition and product or brand background 4 Evaluation of results and conclusion about problem 5 Situational Analysis 5 Internal analysis 5 Customer analysis 7 Industry analysis 8 Competitor analysis 11 Distribution and supplier analysis 11 SWOT analysis – Confrontation Matrix 12 Choice of option 13 Marketing objectives/ expected results 13 Marketing strategy 13 Target audiences 14 Brand and product position 14 Decisions regarding marketing mix elements 15 Objectives for marketing mix elements 15 Strategies and tactics for marketing mix elements 15 Financial indicators and budges 16 Evaluation criteria 16 Sources 16 Introduction and background Company mission, company objectives The first Starbucks café was opened in 1971 in Seattle’s historic Pike Place Market. It was only a small café, but it offered some of the world’s finest fresh-roasted whole bean coffees. The company’s name derives from Moby Dick, the novel was written by the American author Herman Melville in 1851. Starbuck is the first mate on a whaling ship named ‘Pequod’, he is an intelligent Quaker (religious group) and he is from Nantucket. The name evoked the romance of the high seas and the seafaring tradition of the early coffee traders. Starbucks chairman, president and...
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...Marketing Plan for Starbucks Coffee BMM 364 Assessment-Part A Written by: Tianyi Wang (WAN12383771) Written for: Leo Billington 2012/10/19 * Table of Contents 1.0 Executive Summary 3 2.0 Introduction 4 3.0 Current External Marketing Situation 4 3.1 External/General Environment analysis and Trends 4 1 Demographic Segment 4 2 Economic Segment 5 3 Political/Legal Segment 6 4 Social-Cultural Segment 6 5 Technological Segment 8 3.2 Detailed Market Analysis and Projected Demand 8 1. Market Size 8 2. Market Growth Rate 9 3.3 Industry Analysis Including Porter’s Five Forces 9 1. Threat of New Entrants 9 2. Bargaining Power of Supplies 10 3. Bargaining Power of Customers 10 4. Power of Substitutes 11 5. Intensity of Rivalry 11 3.4 Competitors Analysis 11 4.0 Current Internal Analysis 12 4.1 SWOT of the Business and the Product/Service 12 1. Strengths 12 2. Weaknesses 13 3. Opportunities 13 4. Threats 14 4.2 Issues and Risk Analysis 14 1. Strategic Risk 15 2. Operational Risk 15 3. Political Risk 15 4. Country Risk 15 5. Technological Risk 16 6 Environmental Risk 16 4.3 Ethical and Corporate Socially Responsible Behavior 16 5.0 Identify a Commercially Viable Market Opportunity 17 5.1 Market Opportunity Including Potential Segments of the Market and Justification 17 5.2 Define the Value Provided 17 5.3 Positioning statement 18 6.0 Marketing Plan Objectives 19 7.0 Conclusion...
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...| Starbucks | Case Analysis | | | What factors accounted for the extraordinary success of Starbucks in the early 1990s? What was so compelling about the Starbucks value proposition? What brand image did Starbucks develop during this period? Describe the original target market. After joining Starbucks’ marketing team in 1997, Howard Schultz traveled to Italy. He was very impressed by the Milanese coffee culture and the way of its services. He really liked the espresso bar that had attracted a lot of customers. Upon his return he suggested that Starbucks set up an espresso bar in the corner of their downtown shop. His idea was to make it a place where people go to relax and enjoy others, or just be alone - a third place in people’s lives besides home and work. When given the opportunity, Schultz purchased the company from the original founders and began opening new stores. At a time when the market was flooded with cheap, 50 cent coffee, Schultz decided to sell whole beans and premium-priced coffee beverages by the cup. His primary market was affluent, well-educated, white-collar patrons (skewed female) between the ages of 25 and 44. Starbucks branding strategy was divided into three components: coffee, service, and atmosphere. The company prided itself on offering the highest-quality coffee in the world, sources from Africa, Central and South America, and Asia-Pacific regions. The second component, service, refers to the company’s personal relationship...
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...Starbucks Market Segmentation Market segmentation is a common marketing process that divides a large group of an audience into a certain criteria with consumers that have similar needs, according to the online Business Dictionary (WebFinance, 2013). Once a market segment is developed, companies can use the marketing mix to individually approach the most profitable markets with messages specifically designed for them. This makes marketing investments more efficient. If successful, the benefits are higher profit margins, possible market share and revenue growth (Tobak, 2008). Starbucks uses demographic segmentation markets by: age, gender, income, ethnic background, and family life cycle; as well as geographic segmentation markets by: region of a country or the world, market size, market density, or climate; and psychographic segmentation, which can link with demographics. The company positions the business as a highly respected brand, and as such, that can distinguish their products from competition, which gives them an advantage. Starbucks practices a concentrated targeting strategy by focusing only one segment, which is the gourmet coffee drinker. This is how Starbucks defined its niche and labels the company as a high quality product. After establishing their niche, Starbucks continually expanses its product line to their specific segment more enthusiastic (Cachola, 2012). According to the article: “Starbucks and McDonald’s Winning Strategy” by Panos Mourdoukoutas, it...
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...This essay will illustrate the extent to which effective marketing must incorporate Segmentation, Targeting and Positioning. Segmentation, targeting and positioning is a three stage process. Segmentation describes what kinds of customers exist, targeting describe target market which is best to serve and positioning which describe segmentation by categorizing the products or services for that segment. Segmentation is “the process of defining and subdividing a large homogenous market into clearly identifiable segments having similar needs, wants, or demand characteristics. Its objective is to design a marketing mix that precisely matches the expectations of customers in the targeted segment.” Segmentation try to find out what kinds of different consumers with different needs exist. Segmentation depend on? Gender Age Social class Personal Disposable Income Family life cycle Employment status Marital status / living arrangements and many more. Segmenting consumer markets - Geographic -Demographic -Psychographic -Behavioural There are different kinds of variable which are used for segmentation: -Demographic – to this belong: gender, income, education, location, and family size, ethnic. -Behaviour – some customers are “brand loyal”- customers stay with the brand they are stick to. Some consumers are “heavy” users while other are “light” users. Targeting evaluate the attractiveness of each segment. Defending a target market requires...
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...Starbucks Marketing Plan Group H National University Table of Contents Executive Summary.………...….….……….………....…..…………...……………...………..…3 Situation Analysis…..……………………………………….……...……………...……………...3 Marketing Strategy……….…………………………….………………..……….........………….9 Financials……………………………………….…………………………….…….…….…...…12 Controls…………………………..…………..……….……..………….………….………..…...16 Appendix………………………………….………….……………………………….…….……17 References………………………………………………………………………..…………........18 Starbucks Marketing Plan Executive Summary Starbucks Coffee Company’s reputation is so exceptional; the company must maintain its outstanding brand reputation. Starbucks has been and continues to increase demand; therefore, we need to maintain exceptional customer service by decreasing the long lines during peak hours. If the standards are not the same Starbucks jeopardizes their excellent reputation. If the standard of quality were to drop, consumers would be less likely to choose to pay the premium price, resulting in a significant loss of market share. With such rapid demand, Starbucks must also ensure that its standards are met throughout the world. Recommendations: * Introduction to Starbucks new ordering application (app) to ensure high quality customer service in every aspect of the Starbucks brand. Situation Analysis Starbucks has been a leader in coffee and other beverages and is a well-known brand. Starbucks offers a variety of products to meet customers’ needs and has expanded...
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...COMPANY DESCRIPTION Starbucks is the largest coffeehouse company in the world. It was founded by three very unusual entrepreneurs, an English teacher Jerry Baldwin, History teacher Zev Siegel and a Writer Gordon Bawker. They came with this brilliant idea of getting into the coffee business inspired by an entrepreneur who sold high quality coffee beans and equipments, named Alfred Peet. The first Starbucks store was opened in Pike Market Place in Seattle on March 30, 1971. It is a for profit company. In the 1990’s the company grew at a very fast pace. Studies show that Starbucks opened a new store every working day. From one store by its founders Starbucks grew to more than 8,000 stores in the United States itself and over 4000 stores around the world today. All this was due to the marketing strategies after Howard Schultz took over the company in 1982 as a marketing executive. His experiment to open a coffee bar in downtown Seattle made the mark for the company. First the espresso coffee bars were named Il Giornale used Starbucks high-quality coffee beans to make their coffee. The espresso coffee bars didn’t take time to gain popularity, with backing of local investors; Il Giornal acquired Starbucks assets and changed its name to Starbucks. It offers a very wide variety of products other than coffee beans and coffee beverages. The varieties include handicraft beverages, merchandise, fresh food, Starbucks entertainment, Starbucks card and Global consumer...
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...MKG631 Strategic Marketing Abstract This paper takes a closer look on the brand Starbucks, a world-wide known brand in the coffee industry. The Starbucks brand, which also stands for a certain lifestyle, will be analyzed and broken into three different parts. The first part of the paper will create a brand personality profile for the brand Starbucks. The second part will focus on the brand mantra of the product. The last part will analyze the brand equity. Brand Personality Starbucks is a company started in 1971 in Seattle, Washington by Jerry Baldwin, Zev Siegel and Gordon Bowker. They named it “Starbucks Coffee, Tea and Spice”. Their main product was to offer exceptional coffee drinks, coffee beans and coffee related equipment. As of today Starbucks is represented in over 60 countries with more than 20,000 stores. Starbucks runs with their mission statement: “To inspire and nurture the human spirit – one person, one cup and one neighborhood at a time.” Before analyzing the brand Starbucks this paper takes a look at how Starbucks sees themselves first. According to their website Starbucks offers main priority in offering coffee is quality. Their passion is about ethically sourcing out the finest coffee beans, roasting them with great care and improving the lives of people who grow them. Starbucks does not just care about the coffee product itself but also what is around it. For Starbucks, they start interacting with the customer with a promise of a perfectly made...
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...Skyline University Collage Case 1-1 - Starbucks International Marketing class – Dr. Shivakumar Alaeddin Khader Answers to the case study questions: 1. In Its journey to the top of international success in coffee stores, Starbucks has faced a lot of controllable and uncontrollable challenges. Starbucks started in Seattle in the United States where the people there love coffee and have a lot of coffee shops to visit. That was the first uncontrollable challenge facing the company as it started in nearly saturated environment with lots of competition. When operating in international market they need to operate through local partner who will cut from their profit so that they will keep only 20 to 50 percent of the profit. Expansion to international market poses with huge risks. While spreading out they have faced cultural challenges. Below picture shows the protesters against the globalization attaching Starbucks as they see it as a symbol for the free market international company and represents the globalization. For the controllable challenges that Starbucks have faced, the company growth largely in the United States as they have participated themselves of saturating the market of coffee shops as their crowding of so many stores so close to each other has become a national joke. Such as the headline in the Onion (a satirical publication): “A New Starbucks opens in restroom of existing Starbucks”. Opening so many stores near to each other will cut...
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