Starbucks Market Research Strategies

This assignment delves into the market research strategies employed by Starbucks. It examines the company's use of both primary and secondary research methods, categorizing them as internal and external, as well as qualitative and quantitative. The analysis focuses on how Starbucks gathers data to understand customer needs, preferences, and market trends, ultimately shaping their business decisions.

Introduction to Marketing
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Table of Contents
INTRODUCTION ...............................................................................................................................3
TASK 1.................................................................................................................................................3
1.1Describe how marketing techniques are used to market products in two organisations............3
1.2 Describe the limitations and constraints of marketing...............................................................4
TASK 2 ................................................................................................................................................5
2.1 Describe how a selected organisation uses marketing research to contribute to the
development of its marketing plans.................................................................................................5
2.2 Use marketing research for marketing planning........................................................................6
TASK 3 ................................................................................................................................................7
3.1 Explain how and why groups of customers are targeted for selected products.........................7
3.2 Develop a coherent marketing mix for a new product or service..............................................8
CONCLUSION ...................................................................................................................................9
REFERNCES ....................................................................................................................................10

INTRODUCTION
Marketing is the one of the important tool that is used to do marketing of the firm products
and services. There are number of tools and methods that are used for doing marketing of the firm
products and services. In this regard first of all analysis of market is done and through segmentation
it is classified and on that basis targeted customers are identified. In the current report, different
marketing techniques are disused in detail. Along with this, way in which groups of customers must
be targeted is determined. At end of the report, marketing mix is developed for products and
services.
TASK 1
1.1Describe how marketing techniques are used to market products in two organisations
Starbucks and Nintendo are two different businesses and will be evaluating about the
marketing techniques that they do to attract more customers to increased their sales.
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 businessperson that sells high-quality coffee beans and equipment.
Starbucks sells cold and hot drinks, sandwiches, pastries and snacks. Starbucks mainly target
customers are men and women that is from aged 25-40 because they almost account for half of their
business (McCaughey, and Ayers, eds., 2013).
Starbucks Marketing Techniques:-
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 (San Lim,, and Cheah, and et.al., 2016).
Brand Extension- Starbucks used to sell only coffee products but they expanded their
businesses by taking the risk of producing new products such as making tumblers and mugs. This
made Starbucks to expand more of their business products because brand extension has helped them
in meeting their marketing objectives (Reed, K., 2016).
Nintendo
Nintendo is a successful organisation in the field of gaming business industry and it was
founded by Fusajiro Yamauchi and the name of the business used to be known as Nintendo Koppai
until they adopted the name Nintendo. He started his business 2rd September 1889 in Kyoto, 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
(Lambrecht, and Tucker, 2013).
Nintendo’s Marketing Strategies:-
Diversification :- 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 (Ross, 2014).
Product Development:- 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. As a result, Nintendo would make more profits because of further development of their
products (San Lim, and et.al Cheah, 2016).
Market Penetration: Nintendo has developed a Game Cube game so their targeted market is
where people own a Game Cube. The main goals of market penetration is to protect the control of growth
markets, to increase the number of people of customers and to drive out other competitors such as
making promotional campaigns or pricing wars (Ross, 2014).
1.2 Describe the limitations and constraints of marketing
Describe the constraints and limitations of marketing operate, making use of examples
Sales of Goods:- Act affects 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 (Ross, 2014).
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. For
example, banks, such as HSBC, deliver information about their customers’ bank account such as
monthly statements to their customers for the customers to know how much money has been taken

out or added in their bank accounts.
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
information.
TASK 2
2.1 Describe how a selected organisation uses marketing research to contribute to the development
of its marketing plans
It is being importantly for business into developing a pan of marketing for knowing the
business direction which he wants into going, which are the market needs and how the market It is
offering well the products. In order for fully understand the business market the business needs into
doing research which could be done by them or hiring an agency of marketing.
Primary and secondary research
Starbucks is using differently market researches types, those methods are being split into
segments which are different; research which are primary and secondary. Starbucks is having
apartments of marketing which are checking continuously the market they are operating currently
into the identifying the markets which are new with an appropriate prospective. For example if
Starbucks is making a statement regarding the share of the market being increased within time they
might develop for re using last year figuring or even ones which are older (Marketing, 2017).
The primary research it is going into more depth. Just such as the secondary research the
primary one it could be divided into the external and internal and within the qualitative (tending into
looking within the individual opinion, information in depth) and quantitative (the information
generalized).
Starbucks is keeping the customers' data on differently aspects of the consumers; personal
(sex, age, occupation, size, dress), data of transactions (where and when some ones are purchasing
some products) and data of communication (which consumers where researching within campaigns
and how they are responding within it). This is having all for doing with the research of marketing
and it could be qualified within the internal research of marketing (Ross, 2014).
Starbucks is also carrying out the research qualitative with the aim for gathering information
which is giving a customer insight regarding their satisfaction, taste for coffee how they are feeling
regarding the communication of Starbucks. Products are tested with the group focus for seeing how

tasty the coffee is and how they are feeling regarding it. People customer’s opinions are being
appreciated always (Marketing, 2017).
2.2 Use marketing research for marketing planning
PESTLE Analysis
This section is analysing the influences from the company internal and external influences
on Starbucks as being known as macro environment. The analysis which is called PESTLE is being
an acronym of Political, Economic, Social, Technological, Legal and Environmental and is detailing
the issues which are affecting how the organization is operating and it is influencing the world
within it. Starbucks is using the information for determining the company promotions and the
strategies of marketing are with the government rules whether they utilize the technology available
and how the organization it appears to the public generally (Reed, 2016).
Political:-
 Starbucks is having the need of adhering to the regulations and laws within the countries
which is operating and from where it is sourcing its materials raw. This it is being
necessitated because of the activism and the politically awareness’s which is increased into
the countries developing which is forming a base for Starbucks strategies sourcing.
Economic:-
 The foremost economical externally driving for Starbucks is the global ongoing economic
recession which it is being explained into the introduction having dented the company
profitability.
 Studies have showed that customers instead to cut down their consumption off coffee which
shift to the prices lower alternatives into which there are opportunities for Starbucks.
Socio-Cultural:-
 Starbucks is offering alternatives which are cheap, it is having into doing it with the quality
sacrificing and this is the key socio culturally challenges which the organization is facing as
the consumers expanding base which is including the customers from the middle and low-
tiers of the pyramid income.
 Apart of that the ethically chic and green consumers which are fret regarding the
environmental and social costs regarding brands they meaning the consumers which
Starbucks are having into being trend cognizant.
Technological:-

 Starbucks it is poised appropriately for reaping benefits of the mobile emerging wave and it
is being tied up with Apple for introducing the app based with coupons discounts which is
expecting for riding wave mobile with ease.
Legal:-
 Starbucks is having the need for ensuring that it does not running a foul of the regulations of
laws into countries from which there are sourcing the materials raw as well as the market
home into UK.
Environmental:-
 There are various concerns regarding the practices of business of Starbucks from activists,
groups internationally advocacy and customers themselves. For that, Starbucks is having
into taking into account the concerns if it is having the holding continue on the trust which is
enjoying with costumes.
TASK 3
3.1 Explain how and why groups of customers are targeted for selected products
Market Segmentation:-A segment orientated approach of marketing is enabling decisions
about marketing approaches intensity for some segments which are particular and is the primary
basis to develop targeted and efficacious plans of marketing. There are an advantages range for both
the clients and the company (San Lim and Cheah et.al., 2016)
Better to serve needs and wants of serving: the company may market particular products,
specifically tailored to the needs of clients. Some companies are doing this through to
Separate their products within categories, and advertise them to the age group, or lifestyle they are
suitable for (Ross, 2014).
Higher profits:May developing some segments which are premium in that clients is accepting
a higher level of price. These segments should feature additional services/extra products, sale points
which are exclusive and product variations.
Opportunities for growth:Companies may creating their own niche products and thus is
attracting additionally groups of clients. A strategy based on loyalty of client, attracting some clients
which are new with starter products also as to move some clients which a re regular to more
products which are premium and services
Consumer Market Segmentation:-A basis for segmentation is a factor which varies among
groups into a market, but which is consistent into groups. The optimally basis on that for
segmenting the market depend on situation that is particular and are usually determined by research

of market, trends of market and managerial judgement (Ross, S.M., 2014). There are as well the
four primary bases on that for segmenting a market of clients based on individual:
Geographic Segmentation:- based on variable which are regional like climate, density of
population, region and growth rate of population.
Demographic Segmentation:-based on age, gender, ethnicity, education, occupation, income
and family status.
Psycho graphic Segmentation:- based on values, attitudes and lifestyle.
Behavioural Segmentation:- based on usage rate and patterns, price sensitivity, brand loyalty
and benefits sough
3.2 Develop a coherent marketing mix for a new product or service
The range of product which is used for this exercise purpose is the espresso. The espresso is
simply a coffee which is regular with no added milk, water or other elements.
Marketing mix
Product:-The espresso characteristics for students of university are the same with the
espresso that is regular:it is served for takeaway in some cups which are small which are having the
brand of Starbucks. The espresso is coming in two sizes which are differently: single and double. It
is served without added milk and water (McCaughey and et.al., 2013).
Price:-The espresso is the coffee which is the cheapest as it requires the least ingredients
number and is the coffee which is make the most quickly. The price of a regular espresso in
Romania is 6Lei, while the double espresso is having the price 10 Lei.
Promotion:-The espresso don’t having a special promotion as it is the basis for all coffees
which are produces with in the coffee shop. All the clients which are entering within the coffee shop
are expecting to have espresso in the range of product. However, a recent advertising campaign
promoted the use of Starbucks coffee from Kenya sources and showed a cup of espresso in
advertising. Starbucks coffee is promoted students through student publications and coffee shops,
which are located on campus. In addition, from time to time Starbucks offers special promotions for
students through loyalty card (Marketing, 2017).
Placement:-Placement of espresso is similar to the introduction of other Starbucks coffees
served. The coffee beans are sourced from approved list of importers and distributors, and the
coffee is produced and sold in the store.
CONCLUSION
On the basis of above discussion it is concluded that there is significant importance of
marketing for the business firms. There are number of tools in marketing that must be used by the

firms for advertising their products and services. Targeting and segmentation strategy are the one of
the main techniques that must be used by the firms for doing marketing of their products in the
market. It can be said that marketing pave way for success of an organization.
REFERNCES
Books and Journals

Hull, J., 2012. Risk Management and Financial Institutions,+ Web Site. John Wiley & Sons.
Lambrecht, A. and Tucker, C., 2013. When does retargeting work? Information specificity in online
advertising. Journal of Marketing Research. 50(5).pp. 561-576.
McCaughey, M. and Ayers, M.D. eds., 2013. Cyberactivism: Online activism in theory and
practice. Routledge.
Reed, K., 2016. Users Engage More with Interface than Materials at Welsh Newspapers Online
Website. Evidence Based Library and Information Practice. 11(3).pp. 91-92.
Ross, S.M., 2014. Introduction to probability models. Academic press.
San Lim, Y., Heng, P.C., Ng, T.H. and Cheah, C.S., 2016. Customers' online website satisfaction in
online apparel purchase: A study of Generation Y in Malaysia. Asia Pacific Management
Review. 21(2).pp. 74-78.
Online
Marketing, 2017. [Online]. Available through :< https://www.entrepreneur.com/topic/marketing>.
[Accessed on 17th July 2017].