...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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...Internal Audit: 8 1. Marketing Systems 8 2. Marketing Activities 11 C. Portfolio Analysis: 13 1. Ansoff Matrix 14 2. BCG Matrix 15 3. McKinsey: 16 D. Competitive Advantage: 17 E. Analysis Conclusion: 17 V. MARKETING STRATEGY: 18 A. Where do we want to be? 18 B. Segmentation, Targeting and Positioning: 18 1. Segmentation: 18 2. Targeting: 19 3. Positioning: 19 C. Competitive Strategy 20 D. Marketing Mix: 21 1. Product 22 2. Price 22 3. Place: 23 4. Promotion 23 5. People 24 6. Physical Evidence 24 7. Process 25 VI. IMPLEMENTATION: 26 A. Product development and diversification 26 B. Price 27 C. Internationalization and distribution networks: 28 D. Promotion: 28 E. People: 28 F. Budget: 29 VII. CONTROL AND MONITORING: 30 VIII. APPENDIXES 31 EXECUTIVE SUMMARY: Starbucks Corporation, currently the global leader in the coffee business, started off as a coffee bean roaster and retailer in 1971 in Seattle. Since then the firm has established 20,891 stores across 64 countries under the leadership of Howard Schultz. In the last decade, Starbucks has resorted to aggressive expansion making it the leader on the coffee shop market. However, increased domestic competition, recession and rise of commodity prices have led them to shut down 128 stores in 2013. Hence, arises the need for a novel marketing plan. An analysis of the current situation reveals that Starbucks’ biggest strengths are its...
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...Integrated Global Marketing Case Study Capella University MBA 6012 Integrated Global Marketing COMPANY Since 1971 Starbucks Coffee and Tea has set out to be a different kind of company. Starbucks started out as a single store in Seattle’s historic Pike Place Market with a narrow storefront and some of the world’s finest fresh-roasted whole bean coffees. In 1981 a customer named Howard Schultz walked into Starbucks and had his first cup of Sumatra coffee. From then on Schultz was drawn to the company and joined a year later. In 1987, with the help of some investors, Schultz purchased Starbucks. Schultz’s mission for the company was to inspire and nurture the human spirit. Today, Starbucks is located in 62 countries having over 18, 000 stores in the world. MARKETING BASE When Starbucks opened, they use an undistinguishable marketing strategy and created a mix as a single segment. The difficulty in using this strategy is developing a brand that to caters to all customers. Considering that Starbucks has superior quality and only a few base products, the company developed a target strategy that did not compromise quality and satisfied all customers through relationship marketing. The goal was to foster customer loyalty, interaction and, long-term engagement which are attributed through the company’s quality, product class, and prices. Products 1. Starbucks specializes in coffee, tea, and associated beverages. a. Italian-style Espresso and Cold-blended...
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...Presentations School of Business 2009 Marketing Strategy and Alliances Analysis of Starbucks Corporation Rebecca Lingley Liberty University, rjlingley@liberty.edu Follow this and additional works at: http://digitalcommons.liberty.edu/busi_fac_pubs Part of the Business Commons Recommended Citation Lingley, Rebecca, "Marketing Strategy and Alliances Analysis of Starbucks Corporation" (2009). Faculty Publications and Presentations. Paper 10. http://digitalcommons.liberty.edu/busi_fac_pubs/10 This Article is brought to you for free and open access by the School of Business at DigitalCommons@Liberty University. It has been accepted for inclusion in Faculty Publications and Presentations by an authorized administrator of DigitalCommons@Liberty University. For more information, please contact scholarlycommunication@liberty.edu. Lingley, R MGT7002-4 RUNNING HEAD: Lingley, R MGT7002-4 Marketing Strategy and Alliances Analysis of Starbucks Corporation Rebecca J. Lingley Larson NorthCentral University 1 Lingley, R MGT7002-4 Abstract The Starbucks Corporation significantly utilizes alliances to expand market reach, improve product image, and develop greater company profitability. Starbucks, due to their market position and attributes, applies a Differentiation Focus strategy as defined by Porter’s Generic Market Theory. A review of Starbucks Corporation’s marketing strategies and alliance strategies proves that the company is being highly successful ...
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...Research on the Marketing Strategies of Coffee Chain Business- A Case Study of Starbucks in China 姓 名 （中文） 李佩琪 （拼音） LiPeiQi 学 号 20100301336 所在学院 国际商务英语学院 年级专业 国际商务管理 指导教师 侯香勤 职称 讲师 完成时间 2014 年 2 月 28 日 A Research on the Marketing Strategies of Coffee Chain Business --- A Case Study of Starbucks in China Li Peiqi School of English for International Business Abstract In this article, the writer summarizes the marketing strategies of Starbucks by applying the basic theories of marketing, the SWOT analysis method with the theory support from a lot of reading and information searching. This article argues that the factors which distinguish Starbucks from its competitors in the market positioning are: the pursuit of coffee quality, the well-trained staff, the enthusiasm for making the world better, the attention to it pays to the community and the environment, innovation and the one and only “Starbucks Experience”. Starbucks puts coffee business in primary place, its core competiveness is its culture and values. Since the company locates the business in inspiring human’s spiritual beauty, it is necessary for their marketing means to come from the mental and psychological level. One innovative side of this article is that in addition to using the most basic marketing theory to the analysis of Starbucks' marketing strategy, the writer...
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...Starbucks Marketing Mix Paper Aiza Ashley Starbucks Marketing Mix Paper A good marketing plan must possess a strong marketing mix strategy. Organization uses marketing mix strategy modeling to estimate causal relationships and measure how marketing activity affects outcomes. The Marketing-mix models analyze data from a variety of sources, such as retailer scanner data, company shipment data, pricing, media, and promotion spending data, to understand more precisely the effects of specific marketing activities. In this paper there will be a description of the four elements of marketing mix: product, price, place, and production. It will describe how the four elements of marketing mix affect the development of the marketing strategy for Starbucks. The Four Elements of the Marketing Mix Modeling The four elements of the marketing mix modeling products, price, place, and promotions also known as the four Ps of marketing were known as the controllable parameters likely to influence the consumer buying process and decisions (Constantinides, 2006). The strength of the four Ps approach is that it represents a memorable and practical framework for marketing decision-making and has proved useful for case study analysis in business schools for many years (Constantinides, 2006). Product Product refers to aspects such as the firm’s portfolio of products, the newness of those products, their differentiation from competitors, or their superiority to rivals’ products...
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...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 culture to create...
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...Global Marketing Value on Integrated Marketing Starbucks Coffee Starbucks History Jerry Baldwin, Zev Siegl and Gordon Bowker created Starbucks; they met coffee roasting entrepreneur Alfred Peet who inspired the three novices to open a coffee shop to sell roasted coffee at their first location in Pike Place, Seattle. Their goal was to sell high quality coffee beans. This venture has certainly paid off, as Starbucks has become a well-known name brand both locally and internationally. They met Howard Schultz an entrepreneur who suggested the idea of selling coffee drinks in European style cafes. He later went on to purchase Starbucks and expanded the coffee chain. Starbucks Corporation (NASDAQ: SBUX) is a global coffee company with an Italian-style coffeehouse which started its chain in Seattle, Washington. Starbucks is the largest coffeehouse company in the world, with 19,972 stores in 60 countries, including 12,937 in the United States, 1,273 in Canada, 971 in Japan, 790 in Great Britain, 657 in China, 453 in South Korea, 356 in Mexico and 276 in Taiwan. Starbucks sells drip brewed coffee, espresso-based hot drinks, other hot and cold drinks, coffee beans, salads, hot and cold sandwiches and Panini, sweet pastries, snacks, and items such as mugs and tumblers. Through the Starbucks Entertainment division and Hear Music brand, the company also markets books, music, and film. Many of the company's products are seasonal or specific to the locality of the store. Starbucks-brand...
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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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...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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...| HND Business | | Marketing Principles | | LCC20146213 | | Taslim Ahammad | | 20/03/2015 | Hyasmin Hyasmin Unit 4: Marketing Principles Task 1 1.1: Elements of the marketing process Marketing is the action of a business endorsing, promoting and selling products or services, including that of market research, surveys and advertising. It’s the method of which goods and services move from concept to the consumer. “Marketing is a human activity directed at satisfying human wants and needs” (Phillip Kotler). The marketing process involves four steps. These four steps are all accomplished with the goal of creating value for your target consumers. Some elements of the steps are performed continuously, such as monitoring the marketing environment this can be done by market research. A SWOT analysis is an organized planning method used to evaluate the strengths, weaknesses, opportunities and threats involved in a project or in a business. The four elements that Starbucks marketing consist of are; product or service, place, price, promotion. When marketing a product or services there should be an established price that balances the other elements of the marketing mix. When setting a price, Starbucks must be aware of the customer supposed value for the product or service. There are various features of the marketing method for example: scanning the marketing environment, targeting strategy, segmentation and positioning. ...
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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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...Hospitality Marketing Pham Manh Cuong Index number: RASG00009 Due date: 28/03/2010 Table of content 1.Introduction……………………………………….3 2.Main body…………………………………………4 2.1Nature of business…………………………….4 2.2 Customer perception…………………………6 2.3 SWOT analyze………………………………..8 2.4 Types of marketing…………………………..10 3. Recommendation……………………………….18 Reference…………………………………………..19 1. Introduction I have done a marketing analysis on Starbucks. I will be looking into nature of business of Starbucks, customer perception, the different areas of marketing plan adopted by Starbucks The general areas are analyzing the current situation, the marketing targets, goals, mission and objective, the marketing mix (the “4Ps”) and implementing, controlling and reviewing the marketing process. To source for the information, I have gone down to a Starbucks outlet to do some research. I have also gone to the internet to find articles on Starbucks. Combining the information, I hope the report I have done is able to provide an overview analysis of Starbucks’ marketing plans. 2. Main body 2.1Nature of business Starbucks started operations in Seattle's Pike Place Markets, Washington in 1971. It was originally named as Starbucks Coffee, Tea and Spices and is later changed to Starbucks Coffee Company. In 1982, Howard Schultz joined the company and changed its strategic direction. He sets to establish Starbucks as The Third Place' - a place between work...
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...1. INTRODUCTION OF STARBUCKS COFFEE The company, Starbucks Coffee was initially incorporated in the year 1971 by 3 entrepreneurs in Seattle where the business of the company is mainly selling whole bean coffee. Throughout the years of 1990s, Starbucks Coffee under the leadership of Howard Schultz, the company had expanded and growth rapidly with several efforts done. Starbucks coffee started its global expansion from year 1996 opening its first store outside of North America in Japan. Opening globally made Starbucks Coffee Company to record total net revenues of USD 9.8 billion for its business sales and operation. One of the Starbucks Coffee Company globally expansion market is Malaysia Food and Beverages Industry. Starbucks Coffee Company expanded to Malaysia in year 1998. The mode of entry of Starbucks Coffee Company to Malaysia expanding and operating its business through the mode of licensing. Berjaya Corporation Berhad is the company that obtained the license to operate Starbucks Coffee Company locally. Berjaya Starbucks Company Sdn. Bhd. Is formed and jointly owned by Starbucks Coffee International and Berjaya Corporation Berhad. Starbucks Coffee Malaysia opened its first store on 17th December, 1998 at KL Plaza Bintang, Kuala Lumpur. The business of Starbucks Coffee Malaysia basically are selling of espresso and coffee beverages, non-espresso and coffee beverages, coffee-related accessories and equipment, gift and merchandise, souvenirs, pastries and confessions...
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...summary “Third home”, it is concept created by Starbucks. This unique idea comes up because Starbucks understand consumer needs and wants. Starbucks is one of the most successful coffee shop chains with over 17000 stores in 52 countries. The company also employs 137 000 people, Starbucks is leader of coffee shop industry. Starbucks attracts various generations from teenager to senior citizen. But, their main target is office worker in middle and upper class who want “third home”. Surprisingly, nowadays their main competitor is fast food chain such as Mc Café and Dunkin’ Donuts. One of the strongest strength is cozy ambience of their shop where customer can feel comfortable. However, the reputation of Starbucks’ coffee taste is not so good despite of their success; this is their weakness to improve. Likewise, conducting Macro analysis allows Starbucks to grow more. From the PESTEL analysis, Singapore is ideal country to spread their product. It is because the economy of Singapore is much prospered and grows 4.1% in 2013. Moreover, westernization of Singaporean will enhance value of Starbucks. After analyzing external and internal environment, company need to make marketing strategy to suite their target market. Starbucks clearly segment its clientele on demographic bases. They focus its offer on the age of its customers, often between 25 and 40, but also on income since these are quite high wages. As mentioned, Starbucks targets on upper class and middle class people and...
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