Digital Marketing Strategy for Starbucks Australia

This report discusses the digital marketing strategy of Starbucks Australia, including their purpose, web business model, target marketing strategy, online consumer behavior issues, dynamic forces, customer interface, WebQual, and the effectiveness of E-CRM on online branding.

INDIVIDUAL
REPORT

Contents
MAIN BODY..................................................................................................................................3
1.Identifying purpose of the site..................................................................................................3
2.Web Business Model................................................................................................................3
3.Target Marketing strategy.........................................................................................................4
4.Online consumer behaviour issues...........................................................................................4
5.Dynamic Forces........................................................................................................................5
6 7C’s of customer interface........................................................................................................6
7.WebQual...................................................................................................................................6
8.E-CRM and its effectiveness on online Branding....................................................................7
REFERENCES................................................................................................................................9

MAIN BODY
1.Identifying purpose of the site
Digital business and digital marketing opportunities: Starbucks Australia is being engaged
in making use of digital method of marketing promotion. In this they are able to reach out large
range of consumers at a lower cost. They are serving their products and services online that
supports customers in buying the services provided by Starbucks with just one click. Online
services are also being provided 24*7 (Rezende and et.a., (2017).
Owned, paid and earned media: Starbucks Australia can increase marketing of their
products through earned media. Like for example when consumer tag Starbucks while posting
pictures on Facebook, the company is earning profit. They are also earning when users put
hashtag Starbucks Australia on their post on Instagram. There products gained huge publicity
when in HBO Game of Thrones, Starbucks coffee mug appeared. Starbucks Australia also their
own web properties like for example consumer can order coffee from Starbucks app or even
from their websites (Lewis, (2017). They are also promoting products on all social media
channels like Facebook, Instagram and even on Twitter. Company is also making use of paid
media for increasing marketing of their product like for example pay per click.
2.Web Business Model
Key Partners:
The key partners
on which
Starbuck
Australia rely
upon is suppliers,
outside traders,
producers of
coffee
Key activities:
Coffee beans
Seasonal
products
Complementary
products and
pastry.
Key Resources:
Finance, human
resources,
acquiring coffee
related
equipment’s.
Product
innovation staff
and store
managers are of
most important
to them.
Value
proposition:
Unique selling
proposition of
Starbucks
Australia is that
they provide high
quality coffee
bean. They make
consumer drink
standard quality
of product.
Customer
relationship:
Starbucks
Australia provide
cards to their
premium
consumers as a
reward for their
loyalty. In this
they provide
huge discount to
consumers.
Customer Channels: Cost structure: Revenue B2B and B2C:

segments:
On the basis of
age, place,
income.
Starbucks
Australia
promote their
coffee on social
media channels,
they also have
great relationship
with store
mangers
It includes
expenses related
to rent of
Starbucks store
streams:
Commission
charged from
store operators
B2B; Peer to
peer
B2C: Online
channels
Social network and community sites; In this Starbucks Australia give reply to comments of
users which are being posted on Facebook and Instagram, they solve queries of consumers over
there.
Brand building site: Products of Starbucks Australia makes sure that they increase experience
of consumers.
3.Target Marketing strategy
Marketing strategy: Starbucks Australia targets consumer from high income group. They
have segmented consumers on the basis of age and profession. They target young adults and
business personnel’s. They also target consumers on the basis of their online engagement and
interest in Starbucks Website (Phadermrod, Crowder & Wills, (2019).
Building personal attributes into Personas: Target market for Starbucks Australia is men
and women from the age of 25-40. Starbucks' appeal to this consumer age group through hip,
contemporary design that is consistent in its advertising and decor. And working to keep its
products current as status symbols.
4.Online consumer behaviour issues
Reasons for purchasing or not purchasing online: Starbucks Australia is engaged in
selling coffee beans online which is Available on Amazon. People buy it online as the Amazon
app is easy to use. The reasons while consumer not purchase Starbucks product online is that
they prefer buying of consumable products in personal and also as Starbucks has closed most of
their online stores, consumers lack trust on company (Gürel & Tat, (2017).
Identifying behaviour in response and purchase value: Starbucks Australia has made use
of E-marketing channels which has decreased their operational cost. As it is very easy for them

to reach out consumers through social media, emails. They share important information with
consumers through e-mails, direct marketing.
5.Dynamic Forces
Pest analysis of Starbucks Australia in era of digitalization
Political Factor Government is promoting benefits of using online channels. To protect
the data online they have also implemented Data protection act.
Economic Factor Digitalization has increased unemployment that can affect online and
offline business (Rezende and et.al., (2017).
Social Factor Social factor is being related to culture, thoughts and values of
individual. It also have significant impact on digital marketing.
Technological Factor Government has implemented laws related to digital security which is
promoting digital marketing in Australia.
Industry analysis through Porters Five forces
Bargaining
power of buyers
Bargaining
power of
suppliers
Threat of
substitutes
Barriers to entry Rivalry between
existing
competitors
Power of buyers
who are
purchasing
online are high
as they have
wider choices
Bargaining
power of
suppliers is low
as owner can buy
through E-
market
procurement.
It is significantly
high as other
competitors can
also involve in
selling online.
It is also low, as
any new coffee
company can
enter market by
opening their
business online
It is high as
every business is
trying to sell high
quality of
products online.
SWOT analysis of Starbucks Australia
Strength
 Starbucks Australia is engaged in
selling high quality coffee beans that
makes there USP.
 Strong brand image
 Highly efficient supply chain which is
global.
Weakness
 Less affordable by people of lower
income group
 Products and services provided are also
imitable.
 Less number of diversification.

 Loyal consumers.
Opportunities
 To increase business can make use of
more digital channels like SEO and
SEM (Meyer & Cohen, (2018).
 Extend suppliers network
 Expand their products and services in
emerging market
Threats
 Competitors can enter easily in market
through online channels
6 7C’s of customer interface
Consumer: Starbucks Australia is engaged in producing the products and services
according to taste and preference of consumer. They are attracting consumers by using various
online channels like Facebook.
Cost: Cost of attracting consumer through E-marketing is low in comparison to traditional
marketing. It has reduced operational cost of Starbucks Australia (Devi, (2016).
Convenience: Starbucks Australia is promoting their products online which can be explored
by consumer through online mobile app, which is convenient for people to use it.
Communication: To make consumers aware about Starbucks Australia’s product and
service they communicate via emails, skype and even they take feedback from consumers online.
Caring: Company cares about their consumer, they try to solve their queries online by
replying to their emails and comments on their websites.
Coo-ordinated: Starbucks Australia maintains key relationship with suppliers of coffee
beans and even with store managers.
Confirmation: Whether they sale product online, Starbucks Australia confirms that they
provide high quality of coffee beans.
7.WebQual
Information quality: Information which is provided by Starbucks Australia on their website
is accurate and transparent. They provide information related to privacy policy which is
maintained by company.
Functional feet to task: Consumers are highly satisfied with information provided by
Starbucks Australia online, as they can know about attributes of services being provided by
them.

Tailored communications; Starbucks Australia communicate with consumers by bringing
solutions to queries brought up by them. They talk with consumers according to their needs.
Trust: Consumers trust Starbucks Australia as they share information related to their
privacy policy and how company is using personal information of users.
Response time: Company take their time to respond to problems faced by consumers
online.
Ease of understanding: It is easy for consumers to understand the information given on
website of Starbucks Australia.
Intuitive operations: Consumers can easily navigate through company’s page and get to
know about useful information.
Visual appeal: Website of Starbucks Australia has the picture of their logo and even Coffee
mugs which they sale online.
Innovativeness: Starbucks Australia has used unique font style so that consumers can be
attracted.
Emotional appeal: Appealing to people’s emotions is key for a brand like Starbucks who
have built an empire on the experience they give people, meaning this particular emotive
advertising move makes sense.
Consistent image: Website gives full information to users, they do not try cheat their online
consumers.
Online Completeness: They make sure that people who visits online purchases product
from them.
Relative Advantage; Company is gaining competitive advantage by marking their presence
online.
Customer Service: Starbucks Australia respond to every comment and feedback which
consumers give online.
8.E-CRM and its effectiveness on online Branding
E-CRM activities: Starbucks Australia has built up their own websites, they also serve
consumers with their mobile apps. They have also marked their presence on social media
channels, like for example Facebook, Instagram, Twitter. Company has used these channels to
tweet about the exciting offers which they are providing to consumers. Also company spread
emails to their premium consumers, these mails can consist information related to firm’s privacy

policy, exquisite offers, discounts which is being given by enterprise. These E-CRM activities
increases consumer’s loyalty.
Benefits of using E-CRM: it is the most cost effective method, as promoting through online
channels has assisted Starbucks Australia, to save expenses related to customer relationship
management. It has helped them in building better relationship with consumers that has
supported them in growing and achieving their goals and objectives. By this platform company
has also been able to reach out large range of consumers that has also increased their
profitability.

REFERENCES
Books and Journals
Devi, V. R. (2016). Six C's for effective teaching. Journal of Engineering Education
Transformations, 29(4), 48-50.
Gürel, E., & Tat, M. (2017). SWOT analysis: A theoretical review. Journal of International
Social Research.10(51).
Lewis, R. (2017). Porter's Five Forces of competitive advantage.
Meyer, C., & Cohen, D. G. (2018, July). Porter’s Five Forces in the Post-industrial Age.
In Academy of Management Proceedings (Vol. 2018, No. 1, p. 16589). Briarcliff Manor,
NY 10510: Academy of Management.
Ortega, R. G., Rodríguez, M., Vázquez, M. L., & Ricardo, J. E. (2019). Pestel analysis based on
neutrosophic cognitive maps and neutrosophic numbers for the sinos river basin
management. Neutrosophic Sets and Systems.26(1).16.
Phadermrod, B., Crowder, R. M., & Wills, G. B. (2019). Importance-performance analysis based
SWOT analysis. International Journal of Information Management, 44, 194-203.
Rezende, N. E. H., Moura, L. R. C., Vasconcelos, F. C. W., & da Silveira Cunha, N. R. (2017).
Proposition and Test of a Quality Assessment Extension WebQual Model in
Brazil. Review of European Studies.9(2).

Schuetz, C. G., Mair, E., & Schrefl, M. (2018, October). PESTEL Modeler: Strategy Analysis
Using MetaEdit+, iStar 2.0, and Semantic Technologies. In 2018 IEEE 22nd
International Enterprise Distributed Object Computing Workshop (EDOCW) (pp. 216-
219). IEEE.
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