Marketing Strategies of Starbucks and Nintendo

This assignment delves into the distinct marketing strategies adopted by Starbucks and Nintendo. It examines various marketing tools utilized by each company, including product, price, promotion, and place, highlighting their target customer segments and how these strategies address the specific challenges faced by each organization. The analysis also considers the role of physical evidence in service-based industries like Starbucks.

INTRODUCTION
TO MARKETING

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1 ...........................................................................................................................................1
P1.................................................................................................................................................1
P2.................................................................................................................................................3
P4.................................................................................................................................................5
P5.................................................................................................................................................6
P6.................................................................................................................................................7
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
Organizations new products with marketing mix creating techniques are portrayed.
Promoting is a strategy through which a firm can have the capacity to profit data of items and
administrations to individual from society (Anda and Temmen, 2014). Thus advertising is a
procedure of addressing needs of clients by doing research in market and this will help in
understanding necessities of open of the focused on market. It is essentially about comprehension
of requirements and goals of clients and after ward as indicated by that items are served to them.
It will likewise concentrate more on fulfilment level of the clients in market. Starbucks and
Nintendo are two organizations who are doing diverse showcasing techniques to set up and to
support in aggressive market as required in current situation.
TASK 1
P1
Marketing is the process of meeting the necessities and wants of customers. Most businesses
today are having rivalry towards generating the most profits as there are a lot of competitors in
the business world.
Two companies
Starbucks and Nintendo are the two different business.
Starbucks
Starbucks is one of the largest coffee house 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 business person that sells high-quality coffee beans and equipment (Bhattacharya,
ed., 2010).
Branding
Starbucks use branding to meet its target customers. For example, customers can easily recognise
what a Starbucks coffee house 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
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expanded their businesses by taking the risk of producing new products such as making tumblers
and mugs.
Relationship Marketing
Relationship marketing are the marketing activities that are targeted at developing and handling
long-term relationships with a huge proportion of customers. Starbucks uses relationship
marketing to build long-term relationships with customers.
Nintendo
It is a successful organisation in the field of gaming business industry Japan with playing cards
as their first product and the playing cards were handmade. Nintendo’s playing cards soon gain
popularity and they had to hire assistants to keep in the demand of the customers (Hallahan,
Kauffman and Pullen, 2010).
Growth Strategies
Growth strategy is the strategy that most businesses use to expand their customers’ market for
the products of the company which was developed by Ansoff in 1941. Ansoff’s growth matrix
helps most businesses to plan their products their market growth strategy. It also proposes that
business’ tries to increase on either a business needs to market new or present products in new or
present markets.
ANSOFF products:
 Market Penetration: by marketing present products to the present market
 Market Development: by developing new market for the present market
 Product Development: by marketing new products for the present market
 Diversification: by marketing new products for new market.
Diversification is the most risky growth strategy because the business is going to market new
products that they have little or no knowledge. Nintendo started to market playing cards only but
as their business consistently grows they started to market electronic games which were
successful. As we can see, Nintendo started to make new products to generate more profit and
that they assessed the risks they could face and the result was a high reward with the use of
diversification.
Product Development
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Product development is very suitable for business who wants to remain competitive in the market
by differentiating their products. For example, once Nintendo customers’ have purchased a game
that Nintendo is marketing, Nintendo could offer them an expansion pack with contains bonus
contents. Nintendo’s customers would be more likely to purchase it because most customers
want the idea of bonus features (Malhotra, 2012).
Market Development
Market development is where a business tries to find to market its present products into anew
market. It could be geographically, new type of distribution or not similar pricing policies to
draw different type of customers.
Market Penetration
Market penetration is where a business concentrates on selling their present products into the
present market. The main goals of market penetration is to protect the control of growth markets, to
increase the number of people of customers.
P2
Sale of Goods Act
Sales of Goods Act affect a business marketing activities because it means that any type of
advertising should define their products exactly. For example, most anti-bacterial products
advertise that their products can kill germs 99.9%. This is because if the advertisement said that
it kills germs 100% and it didn’t work according to what they advertised then they can be sued
by the customers for making false statements (McKenzie-Mohr, 2013).
Consumer Protection from Unfair Trading 2008
This enables all the businesses’ customers to have the fair kind of treatment from businesses that
the customers deal with. For example, there are maybe some businesses that do not treat their
customers such as there is no proper accommodation from the businesses’ staffs when you asked
for help.
Consumer Credit Act
The Consumer Credit Act is applied to all businesses that offer services or products or businesses
that loan financial help to consumers. The Consumer Credit Act obliges all businesses to provide
daily updates on their account such as annual statements.
Consumer Protection (Distance Selling)
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Distance selling is any type of marketing where face-to-face communication is not available
between the customer and the business, for example amazon. co. uk and eBay does not use face-
to-face communication with their customers but they use emails to communicate with each other.
Data Protection Act
The Data Protection Act protects customers’ information that is held by businesses from being
misused by companies. For example, the customer’s information that are being held by
companies should be obtained by businesses lawfully because if a customer’s information is
obtained illegally they can be taken to court for illegal obtaining of that person’s information
(Mentzer and Gundlach, 2010).
Acceptable Language
In businesses’ advertisings, offending the customers is the main priority of the business as it
can turn down customer from purchasing their products. But there are circumstances where a
business can use a language depending on the message and images in which it is used.
P3
Market research
Marketing research helps a business to make decisions by understanding the changing of the
markets that it sells products in. For example, Starbucks that wanted to promote their coffee
would want to know their target audience.
Primary and secondary research
There are two different ways that Starbucks can gather research, either primary or secondary.
Primary research is carried out by the organisation that the research is being done about,
secondary research is gained by collecting data that has been collected previously. There are two
types of primary research (internal and external), internal primary research refers to data
collected by looking at the businesses internal databases, external primary research refers to date
that is collected by finding out opinions that have an outside view on the business (Molesworth,
Scullion and Nixon eds., 2010). There are also two types of secondary research (internal and
external) which are almost the same to primary research except the research has been collected
before. Both primary and secondary research have their uses and limitations. The research can be
used to make sure that Starbucks make the right decisions and to see how they are doing over a
certain amount of time. The limitations are a bit more complicated, cost effectiveness might be a
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big one for a smaller company this is because the research may not tell them any more than they
already know.
Qualitative and quantitative research
Research can be qualitative, quantitative or both. Qualitative research involves an opinion being
expressed in a non-numerical method, the research is subjective and allows companies to delve
deeper into these opinions to understand them better (Palmer, 2012). Quantitative research is
usually objective and is involves numbers and can establish relationships and causation,
quantitative research is a lot quicker to understand because all the research is measurable and
sticks to the intended purpose of the research.
Starbucks market research
Starbucks are market orientated meaning that they develop products based on the needs and
wants of the market. Starbucks carry out market research so they can plan ahead, meaning they
can look into what products they should developing to fill future needs. Carry out market
research also means that Starbucks can attempt to strengthen their product range to ensure that
they beat competition.
P4
SWOT analysis:
Strengths
 They will not have a lot of competition due to how unique it is. Each event has its own
different theme which means that the company can reach out to lots of different people; they
cater for all different types people.
 The tickets are affordable for everyone; the company makes a good profit without charging
extortionate prices.
 No other company is quite like them
Weaknesses
 The company is very out there in the way they expect people to dress, this could be quite
daunting to certain types of people so they might not bother going.
 The business only appeals to a particular age group which means they are missing out on a
potential rise in profits
Opportunities
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 They could start catering for children, for example by having an earlier start time, serving no
alcohol and only allow under 18s in to keep them safe
 They could expand to other areas of the UK or even beyond
 They could offer ‘calmer’ themes that are not so daunting for people
Threats
 Due to geographical restrictions people may not be able to justify spending money on travel
and costumes which can be very costly (Papasolomou and Melanthiou, 2012).
 With all companies, competition is always a threat that could affect the business this is
especially if a new company comes along and offers different parties.
P5
Market segmentation is an idea of how the market is made up of different groups (segments) of
people. These different segments include different groups with the same wants, purchasing
power, geographical location, buying attitudes or habits. Segmenting a market helps a business to
design products that these different segments want to buy to ensure that they can get the
maximum profit possible, they also can figure out how much they would be able to sell the
product for which would increase demand. There is a typical way that businesses may segment
their market and this is by dividing the consumers into geographic, demographic, psycho
graphic, socio-cultural. Geographic is to do with the location of the customers, is either to do
with rural or urban or regional/national boundaries (Peter and Donnelly, 2011). Demographic is
to do with age, sex, race, economic status, and so on. For example, a business that offers
rejuvenating creams that (targeting older people). Psycho graphic is about the lifestyles or beliefs
of their customers. For example, a business can target groups of people that are unable to eat
gluten or dairy by providing product that do not contain this. Socio-cultural is mainly to do with
the class of the customers. For example, people may see trends in what people spend their money
on and act on it to ensure that they provide services all different people in the UK that may have
different cultures to one another. and different hotel options which have different prices.
Demographically Starbucks focuses on families that generally have children aged 4-12, also
outside of the school holidays Starbucks needs to keep people coming to the shop so they would
want people with either younger than school age children or adults.
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P6
Marketing mix is an apparatuses by which organization can have the capacity to control a few
components that can impact operations and elements of it.
Products- It is extremely fundamental for an association to create those items and
administrations that are in pattern and clients need it. On the off chance that organization
produces items which are not in market require then there are chances where it can confront
difficulties and dangers to support in the market. Centre esteem and administrations must be
profited in items that is been produced and advertised.
Price- Value Prices set for items must be exceptionally powerful, alluring and aggressive as to
contend with different organizations of market. Items has worth when shoppers will pay that sum
which is set by firm for a result of administrations.
Place- The most vital angle is that organization must have the capacity to benefit its
administrations and item to its objective clients, henceforth it is extremely vital for it to find its
store at reach of its clients.
Promotion- As items and administrations are recently created it turn out to be exceptionally
important to pass on related data to general society with the goal that they can get mindfulness
about new things of the firm.
People- All the individuals who are included in exchange with the firm is said to be as
individuals. Labour of the organization are delegates of it they are the person who has coordinate
associations with clients, they most think about buyers decisions and inclinations, subsequently
while delivering another item and administrations their feeling are extremely should to be
considered by the organization (Peter and Donnelly, 2011).
Process- The strategies and steps required in giving administrations and items to a definitive
clients and to make them fulfilled is an extreme assignment to be performed by the organization .
In this manner it is exceptionally basic to select the right technique to accomplish the consumer
loyalty's.
Physical evidence- As administrations as to be given any physical component or substantial
nearness is not there consequently the encounters and process through which a clients has
experienced are to be considered in this perspectives.
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CONCLUSION
From the above report it is been concluded that distinctive advertising procedures is been
utilized by two of diverse association. In addition to that restrictions and imperatives of
promoting is seen with an goal that organization can conquer them in compelling way and can do
its operation in suitable way. that how organization utilize promoting research for making
successful arrangements. targetted clients are chosen on the place of various classifications of
items and administrations given by Starbucks and Nintendo. On its premise fragmented markets
are targetted with the goal that clients can have the capacity to achieve fancied administrations.
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REFERENCES
Books and Journals
Anda, M. and Temmen, J., 2014. Smart metering for residential energy efficiency: The use of
community based social marketing for behavioural change and smart grid introduction.
Renewable Energy. 67.
pp.119-127.
Bhattacharya, C.B. ed., 2010. Introduction to the special section on stakeholder marketing.
Journal of Public Policy & Marketing. 29(1). pp.1-3.
Hallahan, D.P., Kauffman, J.M. and Pullen, P.C., 2011. Exceptional learners: An introduction to
special education. Pearson Higher Ed.
Malhotra, N.K., 2012. Basic marketing research: Integration of social media. Boston: Pearson.
McKenzie-Mohr, D., 2013. Fostering sustainable behavior: An introduction to community-based
social marketing. New society publishers.
Mentzer, J.T. and Gundlach, G., 2010. Exploring the relationship between marketing and supply
chain management: introduction to the special issue. Journal of the Academy of
Marketing Science. 38(1).
pp.1-4.
Molesworth, M., Scullion, R. and Nixon, E. eds., 2010. The marketisation of higher education.
Routledge.
Palmer, A., 2012. Introduction to marketing: theory and practice. Oxford University Press.
Papasolomou, I. and Melanthiou, Y., 2012. Social media: Marketing public relations’ new best
friend. Journal of Promotion Management. 18(3). pp.319-328.
Peter, J.P. and Donnelly, J.H., 2011. Marketing management: knowledge and skills: text,
analysis, cases, plans. Plano: Business pub., INC.
Online
Tesco SWOT Analysis. 2016. [Online]. Available through:
<http://research-methodology.net/tesco-swot-analysis/>. [Accessed on 7th June 2017].
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