...motives, attitudes among a brand, product line etc. Therefore, companies can rely on this similarity, which will ease their process while they decide to enter or improve their status on these markets. Sometimes, a single approach for multiple countries might be enough. However, firms might need to alter their marketing strategy, even they operate on similar markets. They should not take it granted that the same strategy will work for different markets, as we have seen some examples that some of the strategies fail even the difference between markets are so small. One way or another, they might have to make small changes, in order to adapt their strategy for a given market. Case Study 2: Starbucks: Going Global Fast Starbucks is one of the famous worldwide brands. Admirely i read the case about starbucks and its aggressive style took my attention. starbucks is avery fast growing corporation and it causes saturity in the market competitors of the starbucks is weak small coffee shops and the market is newly expanding. after usa and canada market become filled with starbucks stores, starbucks decided to go overseas for new markets. To start with, because starbucks grew rapidly and open lots of stores, they...
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...In this assignment I will be comparing both Apple and Starbucks to find out how marketing techniques are used to market products. I will include an Ansoff’s Matrix, survival strategies, branding and relationship marketing. Marketing – is the process in which the producers of goods and services focus on satisfying the needs of the consumers. Also marketing is the social process by which individuals and groups obtain what they need and want through creating and exchanging products and value with others. Growth Strategies – is a strategy aimed at winning larger market share, even at the expense of short term earnings. These consist of 4 broad growth strategies: * Product Development – is the creation of products with new or different characteristics that offer new or additional benefits to the customer. For example Apple updates their iconic iPhone by adding additional features like a bigger screen or a better camera. Starbucks also use product development, for example, when Starbucks released their ice frappes it only came out in one flavour, vanilla, but now they have made it better by adding different flavours like chocolate and Strawberry. But some stores in America do a bubble gum flavour for children. * Market Development – is a marketing technique aimed at increasing a company’s market in order to widen the customer base for the purpose of selling more products. For example Apple used to only sell in the USA because that’s where they were founded but now they have...
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...productivity and sales. Starbucks and Nintendo are two different businesses and I will be evaluating about the marketing techniques that they do to attract more customers to increase their sales. Starbucks Starbucks is one of the largest coffeehouse in the world with more than 20,000 stores globally. Starbucks opened its first store in America by three business partners and they were inspired by another coffee businessperson that sells high-quality coffee beans and equipment. Starbucks sells cold and hot drinks, sandwiches, pastries and snacks. Starbucks mainly target customers are men and women that is from aged 25-40 because they almost account for half of their business. Starbucks’s Marketing Techniques Branding-Branding is the process that is included in making a unique name and image for the products in the customers’ minds. Starbucks use branding to meet its target customers. For example, customers can easily recognise what a Starbucks coffeehouse looks like because the logo of Starbucks can be seen so branding is a useful asset to meet its marketing objectives such as market penetration and raising the customers’ awareness. Brand Extension-Brand extension is a technique of launching a new product by using an existing brand name on a new product in a different category. Starbucks used to sell only coffee products but they expanded their businesses by taking the risk of producing new products such as making tumblers and mugs. This made Starbucks to expand more of their...
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...Case Study : Starbucks- Going Global Fast. Question 1 Identify the controllable and uncontrollable elements that Starbucks has encountered in entering global markets. Answer: Starbucks have encountered various controllable elements while going global. Controllable elements in marketing is the 4Ps – Product, Pricing, Promotion and Place. Starbucks have localised product for different regions where Starbucks have expand its business to. Localised product means products are created to suit the taste and culture of a particular country or region. Example in the case study, Starbucks developed espresso and latte which is less sweet than US counterparts to match with Asian taste. Starbucks in Asian region also serves green tea latte to suit Asian habits of drinking tea, especially green tea. The next controllable element Starbucks encountered is the pricing factor. Since Starbucks is going global, Starbucks have to have a good pricing strategy to suit every market. Pricing strategy can be in various forms like bundle pricing or discounts and rebates. Pricing also determine the target customer of the business. Starbucks in this case does not compromise on the price. Starbucks are adopting high end pricing rather than competitive pricing. Starbucks is confident that the coffee they serve will certainly worth the price customers pay for. Therefore Starbucks never lower the price as doing so will reduce its brand value. Instead Starbucks continue with the same price and serve...
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...Brand Management Brand Value Chain - The below diagram is a typical model of brand value chain. It follows the process of developing a brand. There are two lines in this model, first line shows the various stages of developing the value of company and the second line consists of the multipliers which strengthen the relationship between the stages. Generally there are four value stages and three multipliers in a brand value chain model but for explaining the case of Starbucks we have excluded the fourth stage and the subsequent multiplier. Marketing Program Investor Customer Mind-set Market Performance Marketplace Conditions Multiplier Program Quality Multiplier Value Stages Multipliers * Product * Location * Advertising * Employee * Clarity * Distinctiveness * Relevance * Consistency * Price Premiums * Price Elastics * Market Share * Expansion Success * Cost Structure * Profitability * Awareness * Attitude * Association * Attachment * Activity * Competitive Reactions * Channel Support * Customer Size & Profile Marketing Program Investor Customer Mind-set Market Performance Marketplace Conditions Multiplier Program Quality Multiplier Value Stages Multipliers * Product * Location * Advertising * Employee * Clarity * Distinctiveness * Relevance * Consistency * Price Premiums * Price Elastics * Market Share *...
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...promotion. With a company like Starbucks, promotion is key when reaching out to potential customers. Typically, when skimming a magazine, driving down the highway, or even simply just walking down the street, encountering the Starbucks logo is not a rare site. Starbucks advertises themselves on billboards, newspaper, ad space, and logos through the form of institutional advertising. When using institutional advertising, Starbucks goal is to improve the image of their company as whole to consumers and their target market. (Hair, Lamb, McDaniel, 2014). Along with this advertising, Starbucks uses various types of media to best reach its target market. Some of these media types are: magazine ads, television commercial ads, and most importantly through social media. Although Starbucks uses magazine ads and television commercials to portray their products and a friendly coffee shop environment, the company tends to have a big brand presence when it comes to the Internet. According to Branding Personality, Starbucks has made it a point to take its successful offline branding strategies and implement them online. Its online image and messages have stayed consistent with their brand values, which are honesty, sincerity, and connecting with its consumers on a level unlike any other brand. The coffee company uses different types of social media, such as Facebook and Twitter, to have a two-way communication with its consumers. The Starbucks Facebook Page was created in 2008...
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...A) Type of business strategy: Tim Horton’s: Low-Cost Provider Strategy Broad Differentiation Strategy Starbucks: The Focused Differentiation Strategy Best-Cost Provider Strategy B) MVV Statements Tim Horton’s • Mission: “[Their] guiding mission is to deliver superior quality products and services for [their] guests and communities through leadership, innovation, and partnerships.” • Vision: ‘[Their] vision is to be the quality leader in everything [they] do.” • Values: “At Tim Horton’s we are making a true difference for individuals, communities and the planet, everyday” “Tim Horton’s is proud to support local community initiatives that make a difference.” For example, o Free swimming/skating; timbits minor sports; community clean ups; earn-a-bike program; smile cookie program; The Tim Horton Children’s Foundation. o Sponsorships; National Sponsorships; Environmental Stewardship; Aboriginal Relations; Animal Welfare; Tim Horton’s Coffee Partnership. Starbucks: • Mission: “To inspire and nurture the human spirit – one person, one cup and one neighbourhood at a time.” • Vision: Starbucks vision is “to establish Starbucks as the premier purveyor of the finest coffee in the world while maintaining our uncompromising principles while we grow.” • Values: “Starbucks Shared Planet is [their] commitment to doing business responsibly. Working to promote a better way of helping each other and the planet – by inspiring [their] customers and partners...
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...Defining Marketing William Bice MKT/421 17 April 2014 Michael Bishop Marketing Defined Marketing plays a significant role in any successful business endeavor. Marketing is the way a business introduces products and services to potential customers. This introduction is the beginning or sustainment of the businesses relationship with its customers. The most powerful and successful marketing strategies can even have an effect on social behavior and attitudes. Effective marketing strategies often instill a feeling that somehow the target audience will be better off, or have a better life if they would just go out and purchase their product. Additionally some marketing strategies can instill a feeling perhaps guilt in would be customer that they are somehow missing out, or may not be the best person they can be unless they purchase the product. Shoes for example may imply an improvement in a customer’s athleticism. Or perhaps a pain reliever will work better than the rest. Maybe one of the most common marketing strategies is the promise of lower prices. According to “The American Marketing Association” (2013), marketing is defined as “the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large” (Definitions). The “Merriam Webster” (n.d.) website defines Marketing as “Activities that direct the flow of goods and services from producers to...
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...Strategic Organization of Starbucks Founded in Seattle Washington’s Pike Place Market in 1971, Starbucks has positioned itself to be the long contending leader of coffee. In fact, their very mission is to “inspire and nurture the human spirit – one person, one cup and one neighborhood at a time.” At first blush, it would seem as though Starbucks is taking a congenial approach towards being a brand that one can count on. To the contrary, congeniality did not make Starbucks the juggernaut of a company, coffee or otherwise, that they are today. Starbucks domination of the market is a direct result of their prowess to provide a great product all the while capitalizing on a product many Americans depend on daily. In fact, according to a competitor “Coffee is the second most consumed beverage on the planet after water. It’s the second most traded commodity after oil. People at work and home drink coffee all day, every day in almost every country around the world”. To that end, it is no wonder why Starbucks aggressively markets its product. Starbucks has single-handedly revolutionized the way in which America, and the world over, consumes, buys, and even orders its coffee. Upon closer review, one will notice that each and every decision Starbucks makes is a calculated effort to garner more and more of the market share. First we will examine Starbuck’s marketing strategy. Starbucks has forgone the conventional style of marketing. Instead it has relied on word of mouth its quality product...
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...Starbucks in Cambodia Introduction Globalization, a process of international integration from the interchange of world views, products, ideas and cultures which can benefit all countries that embrace international trade. With the right strategy to involve in international trade, a country can successfully grow economically, as well as socially. Cambodia is a country located at the central of Southeast Asia, with population of over 14.8 million people. With an open investment policy, Cambodia offers opportunities for creative entrepreneurs and dynamic businesses. It is evident through her rapid development and strong, positive growth over the last 15 years. It provides opportunities for foreign investment. In this paper, we will discuss the global coffee company-Starbucks Corporation and its potential expansion into Cambodian market. Starbucks Corporation is an American global coffee company and coffeehouse chain based in Seattle, Washington. Starbucks has developed an internationalization strategy to enable the company to open stores and franchises in countries across the globe. They provide unique tasting products and have improvised the recipe of traditional coffee according to modern tastes. While Starbucks was very successful in its domestic market, the leaders of the company sees the potential of foreign markets and planned to expand its business to foreign countries through globalization in order to fully utilize the potential that the company had. In 2003, Starbucks...
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...think less or even at all of profit. I will compare the growth strategy, survival strategy, branding and the relationship marketing between the two organisations. Growth Strategy: McDonalds and Calderdale college both have a different approach to growth strategy, due to them being in complete opposite sectors, with McDonalds being a private organisation and the college being part of the public sector, they differentiate in many ways also considering the fact that there purpose are not a like as they are specialists in different occupations. McDonalds needs to grow like every other business out there today, no matter how big your organisation is, there always has to be a growth strategy in the plan of the business. So in order for the McDonalds organisation to grow and compete with other similar businesses who are on the same path as McDonalds, such as: KFC, Costa, Starbucks, and Burger King, they have to do what every other competing organisation is doing in order to grow and consume more customers like going into festive season, as that’s what McDonalds has done in order to grow. McDonalds has participated in the festive season, one of the ways they have done this is by changing the appearance of their coffee cups and adding the Christmas flair to them with different images (snowflakes, reindeers, Snowmen and Christmas trees). So how is that a part of the growth strategy? This is a great factor of the growth strategy of McDonalds as we all know that Christmas is just around...
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...Welcome to the new HBR.org. Here’s what’s new. Here’s an FAQ. BRANDING How Starbucks’ Growth Destroyed Brand Value by John Quelch JULY 2, 2008 WHAT TO READ NEXT 10 Charts from 2013 That Changed the Way We Think Make Your Emotions Work for You in Negotiations The Real Problem with Pensions Starbucks announcement that it will close 600 stores in the US is a long-overdue admission that there are limits to growth. In February 2007, a leaked internal memo written by founder Howard Schultz showed that he recognized the problem that his own growth strategy had created: “Stores no longer have the soul of the past and reflect a chain of stores vs. the warm feeling of a neighborhood store.” Starbucks tried to add value through innovation, offering wi-fi service, creating and selling its own music. More recently, Starbucks attempted to put the focus back on coffee, revitalizing the quality of its standard beverages. But none of these moves addressed the fundamental problem: Starbucks is a mass brand attempting to command a premium price for an experience that is no longer special. Either you have to cut price (and that implies a commensurate cut in the cost structure) or you have to cut distribution to restore the exclusivity of the brand. Expect the 600 store closings to be the first of a series of downsizing announcements. Sometimes, in the world of marketing, less is more. Schultz sought, admirably, to bring good coffee and the Italian coffee house experience to the American...
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...MARKETING AND BRANDING When we talk about marketing the primary definition that comes to our mind is actively promoting a product or a service. A push tactic where it is pushing out a message to get sales results. But is it branding?? No. Branding is the process involved in creating a unique name and image for a product in the consumers' mind, mainly through advertising campaigns with a consistent theme. Branding aims to establish a significant and differentiated presence in the market that attracts and retains loyal customers. In simplified terms Brand encourages someone to buy a product and it directly supports whatever sales or marketing activities are in play. It is a personality that identifies a product. Name, term, sign, symbol. The WALT DISNEY: Disney has been successful at branding with their particular script font (originally created for Walt Disney’s “signature” logo), which it used in the logo for go.com. Primary Difference between marketing and branding can be figured as that Branding is strategic and marketing is tactical. Marketing may contribute to a brand but the brand is biger than any particular marketing effort. It is what sticks to one’s mind. Associated with a product , service , or organisation. Marketing and Branding for an organisation goes hand in hand. Every organisation has to sell, The way they sell might differ but ultimately every organisation is working towards constructing an image. The image of whatever they are trying to sell, be it...
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...How to build a strong employer brand? In the competitive business world, companies strive to protect their most precious asset, talent. Talent shortage is a major challenge across industries where employees with suitable technical competencies and qualities are difficult to obtain and retain in the competitive employment market. In addition, as Baby Boomers who possess substantial valuable experience for the companies retire, Generation Y became increasingly vital in the company’s workforce; study has shown that 1 in 5 worker will be above 55 years of age by 2021 compared with 1 in 7 in the year 2005. Companies not only struggle to replace the positions of the retired workforce with younger candidates with similar capabilities, they also realize that the two generations have different workplace expectations and values. Candidates are looking beyond the basic wage and benefits; factors such as career prospect, reputation, international mobility and company values also play a significant role in candidate decisions. Therefore companies need to adjust their conventional hiring method to position themselves strategically in order to capture the awareness and commitment of the top candidates. In order to attract and retain young talents, companies need to differentiate themselves from their competitors with their employer brand. Unlike product brand names that can be managed with marketing to manipulate consumer perception, employer brand needs to be cultivated through time...
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...America especial in America with 11,962 stores which kept increasing from 2011 (Statista , 2014). Starbucks is proving that it is a master of using model marketing, specifically in term of consumer behavior, and to establish their position in customer mind. Since the first coffee shop of Starbucks was settled down in Seattle, America in 1971 by English teacher Jerry Baldwin, history teacher Zev Siegl, and writer Gordon Bowker. It had been 43 years which is a long time to create a brand loyalty, a brand awareness, brand image for Starbucks which becomes a national brand, “In fiscal 2013, Starbucks had more than 3 billion customer visits to our more than 19,000 stores in 62 countries” (Starbucks, 2013). The truth about Starbucks have paid a lot of money to do research on international consumer behavior are paid off with a thousand of franchise stores have been spread out the world. In business perspective, Starbucks can be called a master of Marketing, and why that term is made up for Starbucks. In this project, our group would like to figure out the best marketing strategy of Starbucks based on the consumer behavior aspect which are in store environment element, product line extension, image of company, customer service, staffs’ communication way, using customers’ ego such as environment friendly, and sponsorship for local community. Store Environment When consumer think about Starbucks, the first mage which comes to consumers’ mind is the fresh coffee smell mix with the fresh...
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