LB5202: Starbucks Marketing Mix Analysis and Case Study Report

This report provides a comprehensive analysis of Starbucks' marketing mix, examining its product, pricing, distribution (place), and promotional strategies. The analysis delves into the company's adoption of various marketing elements, including its premium pricing strategy, promotional activities such as consumer loyalty programs and corporate social responsibility initiatives. It further investigates the challenges Starbucks faces, such as high prices, limited digital marketing presence, a limited product range, and employee retention issues. The report offers recommendations to address these challenges, including adopting competitive pricing, enhancing promotional strategies through online platforms, expanding the product range, and improving employee retention through motivational plans. The conclusion emphasizes the importance of marketing strategies for business success, highlighting the application of marketing mix theories and the company's efforts to maintain its position in the market.

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Marketing
8/18/2019
(Student Name)

MARKETING 1
Marketing is one of the effective tools that are used by the organization to grow in the
competitive market. Most of the companies have adopted different marketing style to promote its
product in the new or existing market (Baker, 2016). Marketing is the process of communicating
the actual value of the goofs or service to the consumers. moreover, it is one of the activity that
are associated with the buying as well as selling of product or services at include selling,
delivering, advertising of the product to the people (Homburg, Jozić & Kuehnl, 2017). One of
the leading company Starbucks has adopted effective marketing strategies in its business that
made them grow in the competitive market.
In the following part there will be detailed analysis of the marketing mix that the
company has adopted and the challenges faced by the company in adopting the strategies. At the
end proper recommendations will be provided to the company that helps them to grow in the
competitive market.
Marketing Mix is one of the essential notions in the promotion management that is used
to entice the customers as well as for the sales preferment of the product. Every manufacture
need to focus some of the basic elements which include product, rising, distributive challenges,
sales promotion technique, process, physical evidence as well as people that are involved in the
process of product. The fair arrangement of such advertising rudiments are baptized marketing
mix. The marketing mix is one of the powerful paradigms that have been popular as well as
dominant in marketing the literature as well as practice since year 1950 (Wu & Li, 2018). It takes
into the according the different forces from the environment that drives the marketers to produce
the diverse mixes in devising the strategies related to the marketing. It is an evolvement of
continuous discipline and if the companies will not evolve according than the companies left a
way behind the competition. There are various fundamental changes has been came to a very
basic Marketing Mix. Marketing Mix is simply a toll which has been used by the organizations
which helps in determining a product or the brands which are offered (Gummesson, 2017).
Product include the Starbucks is famous for the brewed coffee which is made up of
selected premium teas used by the company. There is a mindset of the consumers that the quality
of the product comes with a heavy amount. The start buck pricing strategy had changed this
perception and pricing set by the company is very nominal. Place include the communication

MARKETING 2
with the stakeholders there are number of promotional strategies had been made by Starbucks.
The company had spent $248.6 million on advertisement in the year 2016 and $227.9 million in
the year 2016 (Bui, Nguyen & Pham, 2017). Price include there are various sum of pricing
tactics that are obtainable to the company these are cost plus, premium, loss leader and going rate
for some of the popular strategies. The premium pricing strategy has been used by Starbucks.
Promotion include the company has used various advertising approaches to link with its
shareholders. The company has adopted consumer loyalty scheme which is called as ‘Starbucks
Rewards. Corporate social responsibility is one of the other powerful mechanisms that are used
by the company. In the year 2015, the organization proclaimed that is elevated more than $ 5
million for the formative years organization in the US as well as Canada through its
conglomerate with Oprah Winfred (Nanda Dwipamurti, Mawardi & Nuralam, 2018). People
include the business has massive workforce. The business employed more than 10000 personnel
wide-reaching that also include home country. The company has diversified its workforce. The
company is also well-known for its investment in the employee training as well as development.
It is a consumer centric company where the consumers are the focal point. Process include the
every business of Starbucks goes through a particular process. For an example let’s take Client
service process. The employees of Starbucks are required to work efficiently because the
Starbucks is a hectic place as well as efficient work is required in Starbucks. The employees
greet every Starbucks customer when they enter the store. The customers than order something
and makes the payment. In the end the employees served the order and the farewell been given to
them (Kim & Kim, 2018). Physical Environment include the physical environment of company
is not limited the design of the stores, coffee cups, logo and napkins. An inviting atmosphere had
been provided by the company to the customers. The new approach had been adopted by the
company for designing a new approach. Each store had been looked distinctively for ensuring
distinctively at a very local level (Prasanth, Jyothsna & Kumari, 2018).
The company had facing a number of challenges in the market because the company is
lacking in a number of areas. The first area the company is lacking behind from their
competitors because of their pricing strategy. The company offers a high price to their customers
which the competitors provide in a low cost therefore the company is lacking behind. The
company is also lacking in digital marketing. The company only uses their retail service to sell
their products. The company does not sell their product through online means such as websites or

MARKETING 3
any other online source. The company also does not promote their company through social
media like Facebook, twitter, Whatsapp, Instagram, etc. and where the company marketing
strategy is lacking. The social media is an important tool for any company to market their
product. The company also facing a challenge that company has limited number of products.
The company does not have a varied variety and whereas the competitors in the market are
providing a large variety and therefore the customer are slowly moving towards them. The
retention rate of employees is also very low and therefore the huge investments have to been
made by the company on the training of new employees. it is the big challenge the company is
facing and to face the competition and to be the top in the market the company is require to
overcome these challenges (Steenkamp, 2019).
There are certain recommendations that are provided to the company to grow and
compete its competitors and make its marketing strategy more strong. Firstly, it is highly
recommended to the Starbucks to focus over its pricing strategy. The prices of the company are
high while comparing with its competitors. Therefore, it is required for the company to adopt
competitive pricing strategy rather than premium pricing strategy to attract its consumers in an
effective manner. Secondly, Starbucks is required to adopt effective promotional strategy for its
business. The company is also lacking in using social media and other online platform to
communicate its product through the platform of online in an effective manner. The company
should use app for its product and use other online platform to target wider range of consumers
to the consumers in an effective manner. Furthermore, the company should offer wider range of
products to its consumers that will make them competitive in the market. In the recent, Starbucks
offer limited snacks to its consumers that attract the consumers towards other competitive
brands. Therefore, the company can offer various flavour with innovative manner in coffee and
also can cover ore range of products to cover all segment of consumers in an effective manner.
At the end, the company should provide proper motivational plan for its employee to retain them.
It is essential for the company to retain its employee for longer period of time. Therefore, the
company should provide proper training to employee as well as make the comfortable
environment for the employees that made possible for the employee to retain in the company in
an effective manner.

MARKETING 4
It can be concluded that the marketing strategy is a very important for any company to
get succeed. There are various theories given by various authors on marketing mix. The company
Starbucks is famous for their coffee and the company had also uses various marketing strategies
for their promotion. The price of the company is premium and provides the best quality in the
market. The company employees are also very in large number and they work as family. The
process of the company is very different and everything goes from a process. The company’s
physical environment is also very good and that can be said the reason behind the success of the
company. It has been analyzed that the company is also facing various challenges in their
marketing strategy like the company is lacking in pricing strategy, promotion strategy,
employees retention and variety of products. Therefore in the end various recommendations had
been provided to the company.

MARKETING 5
References
Baker, M.J. (2016) What is marketing?. In The Marketing Book(pp. 25-42). London: Routledge.
Bui, T. Q., Nguyen, H. V., & Pham, N. T. (2017). The Effects of Selected Marketing Mix
Elements on Customer-Based Brand Equity: The Case of Coffee Chains in
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Gummesson, E. (2017). From relationship marketing to total relationship marketing and
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Homburg, C., Jozić, D., & Kuehnl, C. (2017). Customer experience management: toward
implementing an evolving marketing concept. Journal of the Academy of Marketing
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Kim, M. S., & Kim, J. (2018). Linking marketing mix elements to passion-driven behavior
toward a brand: Evidence from the foodservice industry. International Journal of
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Nanda Dwipamurti, I., Mawardi, M. K., & Nuralam, I. P. (2018). THE EFFECT OF GREEN
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Wu, Y. L., & Li, E. Y. (2018). Marketing mix, customer value, and customer loyalty in social
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