Roles and Functions of Marketing

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The business of promoting and selling goods or management, including statistical analysis and promotion, action marketing, institutional set, and cycles of making, delivering, delivering, and trading contributions that encourage customers, customers, participants, and the loose community. Marketing research is the volume that connects the consumer, the client, and the community with the advertiser with information used to identify and expose advertising and advertising problems. This document explains the marketing mix followed by Starbucks.

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ASSESSMENT CRITERIA TASK NUMBER EVIDENCE PAGE NUMBER
Pass 1
Pass 2
Pass 3
Pass 4
Pass 5
Pass 6
Merit 1
Merit 2
Merit 3
Merit 4
Distinction 1
Distinction 2
Task 1
Task 1
Task 1
Task 2
Task 2
Task 2
Task 1
Task 1
Task 2
Task 1
Task 1
Task 2
Plagiarism is a particular form of cheating. Plagiarism must be avoided at all costs and students who
break the rules, however innocently, may be penalised. It is your responsibility to ensure that you
understand correct referencing practices. As a university level student, you are expected to use
appropriate references throughout and keep carefully detailed notes of all your sources of materials for
material you have used in your work, including any material downloaded from the Internet.
LEARNER DECLARATION
I CERTIFY THAT THE ASSIGNMENT SUBMISSION IS ENTIRELY MY OWN WORK AND I FULLY UNDERSTAND THE
CONSEQUENCES OF
PLAGIARISM. I UNDERSTAND THAT MAKING A FALSE DECLARATION IS A FORM OF MALPRACTICE.STUDENT.
SIGNATURE :____________________ DATE:______________________
Contents
Task 1:
Marketing 4
Role of Marketing 5
Functions of Marketing and its Influence on other Functional Departments: 5
Marketing and Contemporary Organizations: 5
Conclusion 5

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Task 2:
What is a Marketing Mix? 6
Marketing Mix 7PS: 6
Product: 6 Place:7
Promotion: 7
Physical Evidence 7
Price: 7 People: 7 Process 7
Performance / Productivity 8
McCafe and 'Starbucks' marketing mix differences 9
Starbucks vs. McCafe: 9
Further improvements to customer experience and store environment 10
McCafe challenges to other company: 10
Marketing tactics: 11
1: PESTEL analysis 11
2: SWOT analysis: 11
Conclusion: 13
Task 3:
Introduction To starbucks 14
Motives Of Internationalization and Justification to enter Pakistan 14
Environment Scanning 15
International Business Strategy 20
Recommendations:
A. Organizational Architecture 21
B. Entry Mode 21
C. Human Resource Strategy 23
D. Marketing Mix 23
E. Marketing Strategy 25
Conclusion 25
Bibliography 26
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ASSIGNMENT : MARKETING ESSENTIALS
UNIT 02 MARKETING ESSENTIALS (LEVEL 4)
TASK 1
Marketing:
The work or business of promoting and selling goods or management, including statistical analysis
and promotion, action marketing, institutional set, and cycles of making, delivering, delivering, and
trading contributions that encourage customers, customers, participants, and the loose community.
Marketing research is the volume that connects the consumer, the client, and the community with the
advertiser with information used to identify and expose advertising and advertising problems;
manufacturing, improvement, and evaluation of commercial activities; screen advertising performance;
and improve understanding of marketing as a cycle. Marketing research identifies the data needed to
solve these problems, organizes the data collection process, oversees and evaluates the provision of
information, results tests, and presents their findings and recommendations (Homburg, 2000).
Role of Marketing:
Contemporary Marketing Practices (CMP) concept incorporates many marketing strategies and
strategies that go beyond the traditional approach to market integration. These include knowledge-
based marketing, advanced marketing, affiliate marketing, and corporate marketing (O 'Dwyer, Gilmore,
and Carson, 2009, Sacramento and Teixeira, 2014). The level of CMP development depends on the way
the organization and customers - or different partners - interface. At the same limit of this process, the
company and consumers interact impartially; contacts are divided and indifferent (thus, this low level of
communication is called a currency exchange guide). On the other hand, communication is defined by
close contacts that include customer intimacy, long-term connection, and different business
relationships (in the foreseeable future: relationship guidance).
The existing marketing document reflects the important global distribution that dates back to
ancient Advertising Practices. A test assortment that differs from the CMP text relies on expert concerns
regarding the construction of long-term bonds, which seem to exploit consumer loyalty. The text
recognizes, however, the need to keep the marketing strategies conditional (actually acting).
When it comes to for-profit organizations, marketing responds to increased revenue and
increased productivity of organizations. In addition, the power further assists in building the
customer/customer base of the Organization. This study clears that the Organization controls many
corporate clients and where the selection involves more than one group. The delivery of each item
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begins with advertising and ends with advertising, where the office sets the customers' needs, and after
introducing the thing, the office looks to see if the client's needs have been met (Lahti, 2000).
The Marketing Department in any organization plays a vital role in developing the business and the
purpose. It complements the content of your Organization, organizing and building all the

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a
business-related assets. It is the responsibility of the Marketing Dep rtment to communicate with
opportunities, clients, funders, or your local community while creating an all-encompassing image that
speaks to your Organization. Without marketing, our products would not be enlightened, and our
organizations would be dead. The Organization's success is in terms of prudent use of assets in a
different planning system and established customer relationships, which are part of marketing.
Functions of Marketing and its Influence on other Functional Departments:
The marketing function within any organization is not separate. After that, it is essential to see how
marketing integrates and fills different roles within the Organization. We should consider commercial
communications with a new job, creation/jobs/connectivity, H.R., I.T., and customer care in the next
section. All activities within your Organization should point out to the client, for example, that the client
is based on the application archive to a client who supports the client who answers any questions you
may have. Therefore, we should look at these different functions and their relationship to marketing (R.
Sabherwal, 2001).
According to Peter Drucker (2001), marketing is not just a broader phenomenon than marketing;
anything but a particular movement with any extension of thought involves the entire business. It is the
whole business that is viewed from the perspective of the final product, from the client's perspective.
Concerns and responsibilities regarding marketing should therefore be pervasive in all vacancies.
Marketing and Contemporary Organizations:
One sees that the marketing role of the current association is to incorporate the needs and
requirements of the customers into the following royal functions such as creation, R&D, account, staff,
and more. Marketing or another employee alone cannot continue work. All tasks are equally important.
Yet marketing, which mimics the location of joining (Kotler, 2000).
Contemporary Marketing Practices (CMP) concept incorporates many marketing strategies and
strategies that go beyond the traditional approach to market integration. These include knowledge-
based marketing, advanced marketing, affiliate marketing, and corporate marketing. The level of CMP
development depends on the way the organization and customers - or different partners interface. At
the same limit of this process, the company and consumers interact impartially; contacts are divided and
indifferent (thus, this low level of communication is called a currency exchange guide). On the other
hand, communication is defined by close contacts that include customer intimacy, long-term connection,
and distinct business relationships (in the foreseeable future: relationship guidance)
The existing marketing document reflects the important global distribution that dates back to
ancient Advertising Practices. A test assortment that differs from the CMP text relies on expert concerns
regarding the construction of long-term bonds, which seem to exploit consumer loyalty. The text
recognizes, however, the need to keep the marketing strategies conditional (Vorhies, 2003),
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Conclusion:
Marketing is a cycle that affects people's lives. Customers are consumers, but the value they
place on them is as significant in marketing as the deals of people, retailers, competitors, suppliers of
non-powered goods, and thus energy. As you all know, the concept of marketing is constantly being
reorganized. Marketing presents tests that earn recognition by trading etween groups. This idea is a
general definition of marketing. Marketing is used in many organizations and partnerships, but in the
global age, another concept has been developed called modern marketing. This study described current
marketing, its role and qualities, and its complexity in organizations and firms.
TASK 2 :
What is a Marketing Mix?
The marketing mix is a necessary foundation based on the most critical marketing systems and business
practices.
Marketing Mix 7PS:
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Product: P 7P starts with ''production.'' It may refer to an actual product, assistance, or encounter. In
particular, what is selling? Product No matter what your product or administration is, it is essential to
meet the markets. Market's needs and meet or exceed the administrations for the customer.
Place: Place means you decide whether to notify or allow your produ t or administration. It refers to
anything from a stockroom or high-road store to an online shopping store or cloud-based stage. The best
way to determine the ideal place to sell your product is to know your group; their needs, requirements
(Chopra, 2013).
Promotion: Promotions refer to your advertising, marketing, and contracting strategies. It is the current
practice of custom promotion or web content advertising through TV, radio, boards, etc., and
advertisements on web recordings, email marketing, or message pop-up. The way you decide to talk to
your audience and move your collaboration forward will directly affect your image success. Post a

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message to an unfortunate place or an unacceptable person, and you will end up in a difficult situation.
Then, if you implement those aspects correctly, your professional practice will undoubtedly grow!
Channel it is essential to know the best channel (s) and strategies for promotion. So Market Division
allows you to get acquainted with your group's needs, requirements, characteristics, and motivations.
Physical Evidence: Physical proof often consists of two structures: proof that guarantee or purchase has
been made and proof or confirmation of the existence of your image. Models for any administration or
products are considered valid proof. Such as your receipts, bundling, following data, requests,
brochures, or pdfs (Eriksson, 2011). Certification refers to the visual aspects or measurable highlights of
your image, such as your site, logo, business card, stamp on your structure, the base camp of the brand
and hardware, and your web-based media presence. These are the parts that the customer will look at
before they are attracted to you or your collaboration.
Price: The price you set should reflect the customer's apparent value of your product and should be in
line with your cost plan. If your client thinks that your cost is too high, you run the risk of losing the
market for a deal assuming that your price is too low, you risk losing exceptionally significant profits.
Business determining the right price for your product, which intends to benefit both your business and
your customer, is often achieved by companies through rapid market segmentation. Dividing your group
by their category, geographical, psychological, or social factors is a surefire way to find and validate the
costs you have determined (Light, L, 2015).
People: Employees. Individuals engaged in selling, planning, managing groups, targeting customers, or
marketing a product or administration. It does not make sense to build an exceptional brand, innovative
product, or excellent web-based media presence if you do not have the right people behind you. It
requires a lot of patience for your business. It would help if you made sure that all your representatives,
regardless of background or client, have the proper preparation and a comprehensive understanding of
their work (Light, L, 2015).
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Process
Process refers to the progress of the steps taken in informing the customer of the product or
administration. Analyzing conversations means evaluating aspects, for example, monitoring business
channels, your installment profile, investment strategies, and customer connections. Cycle Assess,
modify and improve the various parts of your cycle to help streamline your business endeavors, as well
as make sure your technology is up-to-date and up-to-date (Eriksson, 2011).
Performance / Productivity: ''P'' indicates your ability to tell your customers what you have promised.
Are they true to fulfillment? Is it fair to say that you respect them? You highly advise believing this way.
Otherwise, you are in for a negative word of mouth (WOM) universe. This is important because 92% of
shoppers accept the ideas of loved ones more than they promote.
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McCafe and 'Starbucks' marketing mix differences:
McCafe is a subsidiary of its parent company McDonald's, and founded in 1993. It belongs to the food
and beverage industry and is a chain of eateries.
Starbucks vs. McCafe:
The Starbucks channel did the excellent business of preventing the claimants from attacking the castle.
However, in recent years, Starbucks and McCafe have not been supervised to assume that this espresso
monster can take over. Starbucks has the opportunity to take some espresso, design it with an incredible
atmosphere and charge more than anyone has tried recently. However, when the company introduced
the pass through Windows, which currently has 80% of purchases, it lost the weather premium (Roby,
L.R., 2011). With the addition of breakfast and lunch sandwiches, the primary request measurement is
now slowly becoming more complex. Feel that "cheap food" at Starbucks drive-in windows and
breakfast sandwiches.
Due to the change in customer attitude towards better food types since early 2014. McCafe continues to
reduce deals for every store (Patton, 2014). To fix this technology float, you can find the methods that
McDonald's follows at Starbucks:
1: Improving the corporate image by providing a unique menu that targets different sound menus or
different buyer meetings.
2: Getting the brand, offering a solid menu. In this sense, McCafe made a huge mistake by auctioning off
its value at Chipotle. It is worth mentioning that McCafe first put resources into the progress of the
drive-through eatery chain, pushing its knowledge and then gathering more stiff competition.
3: Separation of transmission channels that predict CPG development through alliances or e-channel
progression.

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Further improvements to customer experience and store environment.
Starbucks improves its inventory network performance by obtaining useful total sourcing by McCafe.
Due to the expansion of Starbucks stores around the world, such an arrangement will allow Starbucks to
achieve more capabilities and improve the fulfillment of its founding partners. I suggest Starbucks
further expand its cooperation with franchisees to expand the number of multiple stores, as the
expansion of their own stores around the world disrupts their coordination. Starbucks recently faced
comparison problems in developing work costs due to irregular redistribution and rapid expansion
(Jylha, 2014).
McCafe challenges to other company:
McCafe was too quick to consider his attack a success. It can be assumed that this attack awakened the
sleeping Goliath. It must overcome some wonders before McCafe can become a more fundamental
threat. Since McDonald's is an established structure, it is prudent for establishment owners to create a
restaurant in their store; many did not. Vulnerability is an area where Starbucks has more control over
the company than its stores (A.J. and Gamble, J.E., 2007).
Marketing tactics:
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1: PESTEL analysis:
Some pestel tests distort the measure of information used for customer choices - the lack of data makes
it difficult to use. Information isn't easy to lose the sense of all directions in the vast knowledge. In these
ways, there is a risk of capturing too much information and testing large amounts of data, which implies
a ''loss of speed from the probe''. Since the Pat Pastel test removes doubts, there is a risk of being off-
base. Sometimes nature does not work with pastel tests. Therefore, it should be a straightforward
method. The speed of progress makes it difficult to reverse the turn of events, affecting the union in the
future.
2: SWOT analysis:
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SWOT testing is a systematic methodology required to assist an individual or association in identifying
qualifications, defects, openings, and risks associated with a commercial competition or work setting.
Conclusion:
This study described that the value of a company is not just in numbers. Consistently in every industry,
companies must have the opportunity to diversify their canals and protect themselves or, it will
eventually violate their natural values. Vulnerabilities exploited, systems design, and wars fought for the
area at the top of the trade. In the early stages of this controversy, this study bet Starbucks would
benefit from it. Many excellent companies with solid brands such as Coca-Cola, American Express, and
McDonald's. McDonald's have used, returned to what was needed, and encouraged their investors.

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TASK 3
Strategic marketing plan:
Expansion Of Starbucks To Pakistan
Introduction Of Starbucks and Its Strategies:
Starbucks can be identified as a special success story in the yesteryears of America. It soon managed to
spike the minds of the public and became the top priority for people. Starbucks shows up its mission as
“to inspire and nurture the human spirit – one person, one cup and one neighborhood at a time.” And
highlights its vision as “treat people like family, and they will be loyal and give their all.” (Four Week
MBA). Starbucks has won many awards at global level such as “No. 1 Best Coffee”, “ Fast Food And Quick
Refreshment Categories”. Zagat’s Survey of National Chain Restaurants – 2009-2011.
Starbucks was founded by three partners Jerry Baldwin, Gordon Bowker, and Zev Siegl, who initiated the
opening of its first store in 1971 near the historic Pike Place Market in Seattle. The CEO of Starbucks is
Kevin Johnson (Apr 3, 2017-). Starbucks operates 32,938 stores worldwide in 2021, the figure has almost
doubled in the last decade. (knoema, 2021)
Fig 1: source:https://knoema.com
Motives Of Internalization And Justification To Enter In Pakistan
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According to the research of United Nations development reports, In recent times Pakistan has the
largest population of youngsters ever witnessed in its history. ‘The rising middle class level in Pakistan is
ascending the consumers' spending’ (Arifeen, 2018). The urbanized youth Population of Pakistan is
nearly 53.66% (Population by selected age groups - Pakistan Bureau of Statistics) which can be analysed
as expansion of premiumization amid the youth, Hence comprises the basic target for Starbucks market
which is urbanized and active spenders. In conclusion, The growth of Starbucks might ascend in the
process of making the right choice to enter the Pakistani market.
In the present years, An enormous growth is seen in the coffee culture of Pakistan. As the youth and
corporate businessmen favor Cafes as a satisfactory platform for get togethers as well as informal
meetings (Coffee Culture In Pakistan, 2020). Pakistan is one of the fast-growing economies with an
excessive income, handling the development in shopping centers, framework etc. The expenditure of
coffee is gaining constant growth as well on the account of market development. Other than that, the
accessibility of resources and the plenty of agricultural production increases the chances of entering the
new market. Even though Starbucks is famous for using the arabic coffee beans, other resources which
are used in the operation of coffee chains can be provided without any obstacles. The biggest
competitive advantage that can be gained by making coffee sachets as of Nescafe, producing
commodities as mugs, extras, good packaging and identifying the basic needs of consumers.
The Electric Paradigm consists of three main aspects which are ownership, location and internalization
advantage.
Ownership advantage helps the firm to persuade the accountability of foreignness. ‘ The liability
of foreignness can be explained as the disadvantages that an international firm meets in other
countries due to their outsider status. (Peng, 2009). The main competency of Starbucks is
customer service along with top-quality.
location advantage can be explained as geographic advantage in Pakistan for Starbucks. It can
be pointed out through Porter’s diamond model. One of the most important approaches to the
resources is agricultural resources, which signifies the easy availability of basic material.
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Internationalization advantages handle the decisions of internal and external production, it says
that there must be a profit from keeping the international expansion within the firm.
Environmental Scanning:
PEST analysis is a simple and widely used tool that helps in analysing the key elements to be
incorporated in the business evaluation. It helps organizations to assess major external factors
that can have an impact on its functioning in order to become more competitive in the market.
Following is through examination of Pakistani environment in order for Starbucks to perforate
into the rising market.
Political Factors:
Tax And Political Risks:
Taxes are the main source of revenue for most governments, from income tax to goods
taxations applied on all levels. According to the report, ‘Starbucks was trapped in political
variables in the UK around the year of 2013-2014’, It was also accused of refraining from paying
corporate tax.
In Pakistan, the corporate income tax rate is the tax that is aggregated from companies. Its
quantity is based on the net income companies attain while practicing their business activities,
normally during one business year. Currently, the actual corporate tax in Pakistan is 29%
(1997-2021) which is also the lowest. (Trading economics,2021).
Every organization needs to dare for risk in one way or another as it is said that there is no
business without any risk. Pakistan being a self-governing country, the government has
(BBC-News, 2013).
source:https://www.trendsmap.com

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examined severe ferocity against the ruling parties while the political scenario is observed to be
unstable for businesses to operate. The index of economic freedom for Pakistan was 54.8 in the
year 2020. Though Pakistan's index of economic freedom oscillated considerably in recent years,
it tended to drop through the 2001 - 2020 period ending at 54.8 score in 2020. In order to
recover fastly, the government is now convinced to let foreign countries enter.
source: https://www.heritage.org/index/country/pakistan
Political Stability And Legislation:
Pakistan is capable enough to reach the new developments with a dynamic speed, along with
having a vivid domestic market and decreasing level of privation. The Growth Domestic Product
achieved in 2020-2021 is 3.94%. The country has also gained attention in foreign direct
investment by ensuring equal conduct towards foreign and domestic investors. (Board of
Investment, n.d)
Economic Factors:
Economic Growth And Exchanging Rates:
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The facts that pressurizes the economic expansion of Pakistan includes insufficiency of command
on foreign investment, impotent regulations, administration etc. However, the current steps
have modernized foreign investment and reconciled their policies which not only affected the
country's currency valuation but also lowered the tax rates.
Currency crises may act as hindrance for foreign investment in a country. The government of
Pakistan is striving to uplift the economic platform in order to encourage the businesses to enter
the Pakistani market. The current exchange rate is varying 155 Pakistani rupee equaling 1 USD.
Competition In The Market:
The People of Pakistan are eager to drink tea in a very large population, amid this it can be a
little tricky for companies to indulge coffee in people's minds. Major competition for Starbucks
in Pakistan is Nestle Nescafe, It is known to most people in urban and rural parts of the country.
The other competitors included Espresso, Gloria Jeans, The Second Cup, New York Coffee and
Butler’s Coffee, these brands are also recognized globally. Other than this, local tea and coffee
houses can also be a substitute as the common public find it affordable.
Social Factors:
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As the probability of job opportunities increase in Pakistan, the money enables the Pakistani
consumers to reinvest in the economy of Pakistan. Saving money has always been the mantra
for every middle class pakistani family, so the attitude toward money has changed, but the
youth having enough money to spend is inspired by job opportunities, the frame of mind of the
young generation is to enjoy life and spend money.
However, it is safe to say that the pakistani nation is addicted to tea and consumes it twice a
day. According to market research studies, coffee is mainly consumed in urban areas as
compared to rural ones. The people of urban areas were not coffee drinkers from the start, but
as time passed it has now become the fashion statement to drink and try new flavours of coffee.
The consumption of instant coffee and filtered coffee keeps varying on national and regional
level.
Technological Factors:
Social Media And Wifi, A Modificator For revenue:
It would be not wrong to say that social media plays a great role in creating a good image of any
brand.
The dawn of social apps such as Instagram, facebook and Snapchat etc has helped in this
process. The communication bridge not only markets the mouth publicity of the product but
also helps in maintaining a contact platform in order to be updated of the needs of customers.

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The Figure shows an upload on Instagram showing a Starbucks cup.
One of the surveys reports that ‘almost 62% said that customers spend more time on cafes or
stores once provided with wifi which makes them easy to socialize, Also 50% customers spent
more money too. (Campbell, 2016). It can also be beneficial for stores to provide wifi to
customers as they will capture the picture of whatever they order and upload it which is also a
free publicity for the brand.
International Business Strategy:
Internationational business strategy can be explained as effectual and conclusive matching of
Multinational Corporation’s strengths with opportunities and objections in geographically
diverse environment that intertwine the international borders.(Verbeke, 2009). In order to meet
the requirements of local people, Starbucks plans an attentive research over local culture and
taste of people. But the Global Standardization is followed as Starbucks is itself a reputed global
brand. As mentioned before about the research of Starbucks over local taste , it implements a
flawless blend of localization principle strategy into a strict globally systematized one. It provides
a motive to set the market in a different manner. For example, Starbucks endorsed Chai Latte
from paralleling the concept of traditional tea in India (Kohli,2015). The brand not only adopted
the products but it also showed the adaptation of an inventive store in China in order to meet
the expectations. The local chinese culture was different in comparison to American coffee
culture such as the chinese would choose to go in groups instead of alone. Therefore, Starbucks
adopted it sores consequently so that they could entertain the requirements of their local
chinese tradition of sitting in large groups.
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source: https://bugylutypudixoxe.degisiktatlar.com/ikea-4p-strategy
Outlining the above figure, it can be said that Starbucks starts off with reduction of cost and low
local responsiveness. This procedure makes sure that protection of the brand is safe and the
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diff rences in the offering may lead the brand to risks and it also reduces the cost as it applies
similar strategies and as a consequence of that, the economies scale is enjoyed.
Recommendations:
A. Organizational Structure:
The matrix organizational structure can be defined as a combination of two or more
organizational structures such as functional and divisional departments.
The chart shows the Matrix Organizational structure.
Matrix helps in smooth operation of information and requires less human resources. Moreover,
it demands accountability to separate the chains of command and design two-boss issues in the
business. Hence, The strategy of matrix organizational structure can be used by Starbucks to
operate in Pakistan to ensure a successful mechanism in place. B. Entry Mode:

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Entry mode can be defined as to build a possibility by organizing a company's products,
management, technology, human skills and other resources to penetrate into a foreign country.
Ther are various entry modes to enter a new market such as franchising, licensing, wholly owned
subsidiary and turnkey projects.
The factors upon which the selection of entry mode widely depend are industry, country and
firm level factors which are level of competition, technology, legislation barriers, and culture etc.
Starbucks modifies its international strategy for the purpose of satisfying the needs and
requirements of every market, along with respecting the costumes and traditions. The three
strategies used by the company presently are joint venture, wholly-owned subsidiary and
licenses. After examining the whole entry modes, it can be implied that the wholly-owned
subsidiary is suitable to meet the requirements of the market conditions. ‘A wholly-owned
subsidiary is a corporation with 100% shares held by another corporation, the parent company’.
(Cleartax ,2021).
The wholly-owned subsidiary can be in another country than that of the parent company. The
subsidiary mostly has its own executive structure, product and customers, in simple words
wholly owned subsidiaries own 100 percent of the organization. Initiating a wholly owned
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subsidiary can cost a huge amount, in addition to it, it also initiates full control over the
operation of supply chains.
Initiating a subsidiary include following steps:
1. Greenfield Venture is a form of market entry strategy with development of a new
wholly own d subsidiary in a foreign country by constructing its provisions from scratch (MBA
Skool team, 2018). In a greenfield venture a business penetrates into a new market devoid of
the help of another business which beforehand present there.
2. Acquisition can be defined as when a corporation acquires an or all of the shares of
another company in order to gain the ownership of the business. It is easy to execute as
compared to greenfield ventures as it reduces the risks to a certain extent.
3. The Joint Venture is a business entity in which two or more parties agree to pool their
resources in order to achieve a particular task. For example The Tata Starbucks Limited, is a
50:50 joint venture company which is operated by Tata Consumer Products and Starbucks in
India. (wikipedia, 2021).
Companies by unifying the technological structures and financial information can provide help to
each other, along with integrating processes and reducing costs, But there are some
disadvantages too such as not fully freedom of decision-making process which may create
misunderstandings. Hence, Starbucks can agree to joint venture in Pakistan with any beverage
company as an alternative.
C. Human Resource Strategy :
Starbucks chases a polycentric approach in appointing the lower level employees as hired in
cafes and not employees for the US. This strategy not only proves to be an inexpensive
implementation but also helps in reducing the cultural myopia. On the other hand, enterprising
this approach might limit the check on managerial expertise.
The advantages of hiring local employees in the business is that they are familiar with the
culture already and also it reduces the chances of obstacles in communication as a local
employee would understand the needs of the local public more easily.
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Recently, the government of Pakistan has grasped a friendly approach to visa regulations. the
authority of the Pakistan Mission abroad has permitted remote specialists along with
administrative faculty. D. Marketing Mix :
The marketing mix consist of 7Ps which includes product, place, price, promotion, process,
people and physical evidence as discussed below:
Products:
Starbucks is known for its great coffee, they endeavour to achieve an elite degree of quality, an

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unusual presentation and an extraordinary servicing. It can be suggested t at Starbucks should
deliver the tailored products in the starting in order to get used to the market as Pakistani’s
thrust their lives toward beverages. The products served by the brand are tea, coffee, ice cream,
smoothies, merchandise cookies and the pastries, Other than this they additionally deliver the
seasonal drinks too such as Strawberry Frapuccino in the summers.
Figure showing Starbucks products.
Price:
Price is the most critical component of the marketing mix as it is the main reason for turnover
for customers. “ Starbucks has been enjoying huge prices in China, mainly because of blind faith
of local consumers and other western brands” a statement made by Director Of Coffee
Association Shanghai Wang Zhendong ( Jourdan, 2013).
One cannot deny the fact that the prices of Starbucks are high as it promises to deliver High
quality of coffee beans, along with perfect decorum and atmosphere to all cafes and also
guaranteeing the proper training of staff and employees.It is noteworthy to mention that the
availability of raw materials and decreasing fluctuations in taxes can have a great impact on the
cost of products offered.
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Place:
The strategy of Starbucks is to deliver directly from producer to the consumer. They use
numerous channels of trading as the products are offered to sale throug self-own stores and
direct merchandisers. They also have exceptional arrangement with hotels, airports etc which
also encourages them to impel the more extensive market.
Promotion:
Promotion can be simply put into words as a bridge to communicate using dispersed
information of the firm and its products. Starbucks uses various platforms for its promotion such
as public relation, verbal as well as sales promotion and advertising. Starbucks can also adapt to
local taste and catchy announcements, keeping in mind the worthiness and reputation of the
brand.
People:
Starbucks already has a huge labor pool. The brand has started hiring many employees after the
difficult times of 2020, as the company is committed to build a diverse workforce. Starbucks is
also known for its expenditure in staff training and development.
Process:
Every business of Starbucks goes through a process such as customer service process which
includes the punctual service by employees, the customer and employee interaction beginning
with a greeting, then its turn for customer’s order which is noted carefully and is paid by the
customer, this is then followed by customer being served and then leave-taking take place.
Physical Environment:
Starbucks provides its customers with a friendly atmosphere, adapting a new approach to design
the store with time. The new approach needs the Starbucks designer to take a look of every
store in order to make sure its distinctively localization.( Starbucks Corporations, 2021)
E. Marketing Strategy:
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Starbucks will use a standardized marketing strategy in Pakistan, as it is a global reputed brand
of coffee chain along with following international uniformity. ‘Standardized marketing follows a
union of culture with sme environmental and customer demand’ (Jain, 1989).
One can gain improved development and research, lower investments and less marketing cost
with the help of economies of scale. Global standardization helps in maintaining a constant
market mix, also in concentrating on a single product.
Summary:
In the matter of resources, Pakistan has a vast variety of raw material and technology. Further,
the increasing literacy rate and a multitude of educated youth helps t e brand in efficient
training with less problems. Throughout the research, the factors that influence the entrance of
Starbucks in Pakistan are discussed, it can be implied The Starbucks is the coffee chain that in
accordance with perfectly blended Global standardization and local strategies to entertain the
local taste along with maintaining the high reputation of the brand. Hence it is safe to say that
expansion of Starbucks in Pakistan can lead the business to development in terms of economy.

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