Marketing Plan Australia Assignment 2022

MARKETING PLAN
STUDENT DETAILS

Marketing Plan 1
Executive Summary
Selected company for this assignment is “Starbucks”. In this assignment, various part
related to the marketing strategy of this company will be discussed. Marketing plan of the
company includes their segmentation, targeted market, positioning map, value proposition,
7p’s of marketing mix, budget and controls. High-end consumers are the targeted audience of
the company because they offer premium class services and satisfy their customers need
which includes atmosphere, connectivity of electricity and Wi-Fi, customer hospitality, etc.
As compare to its competitors they charge premium prices for their products. Positioning map
shows that the company stand on high price and quality axis. The brand is counted among the
most successful coffee brand around the globe but they had face huge loss in Australia. They
had to shut down stores in the year 2008. Still, they are making efforts by opening new stores
on convenient locations. Starbucks uses premium price strategy to fascinate their customers
and they also sell various mechanized. To enhance their market size in Australia they can also
add beer in their menu. Management should keep their employees in training period for long
time to help them in understanding deeply about the coffee making and customer hospitality.

Marketing Plan 2
Contents
Introduction................................................................................................................................3
Segmentation..............................................................................................................................4
Positioning Map.........................................................................................................................5
Value Proposition.......................................................................................................................6
Marketing Mix...........................................................................................................................9
Budget......................................................................................................................................12
Controls....................................................................................................................................13
Recommendations....................................................................................................................14
Conclusion................................................................................................................................15
References................................................................................................................................16

Marketing Plan 3
Introduction
The marketing plan is the report which provides a framework for the business that
outlines the marketing strategy for the company. It is the plan which outlines the marketing-
related strategies of the company and it includes the description of current marketing
strategies pursued by the company, timeline for completing the task, key performance
indicators and description of business’s targeted market and audience. Selected company for
this assignment is "Starbucks". Starbucks is an American coffee company and it is the largest
coffee chain in the world. As of 2019, the company operates in more than 30,000 locations all
over the world. The headquarter of the company is situated in Washington, United States.
Starbucks is known for its premium roasted coffee in the world (Cameron, 2019). For this
assignment, Starbucks’s Australian operations will be considered. The company came into
the country in the year 2000 and after a few years, they had to close around 60 stores
(Cameron, 2019). This resultant in the loss of millions of dollars. Since the closures of 2008,
the company still inaugurated new stores in the market (Dudovskiy, 2017). In this
assignment, there will be a discussion regarding the marketing plan of the company. The
marketing plan will include a value proposition, 7p's of marketing mix, positioning map,
segmentation and targeting population. In the end, recommendations will be made for the
future growth of the company.

Marketing Plan 4
Objectives
The objective of this is to make marketing plan which should consists information about the
marketing mix, segmentation of the market based upon various factors, making positioning
map for showing where the brand stands in market and making value proposition.
Marketing Strategy
Market strategy is the research which helps Starbucks in deciding how they can divide
their customers based on their age, priorities, common interest, income level, behaviour or
psychological traits, personality traits, demographic level, preferences, etc. In other words, by
understanding the marketing segmentation, Starbucks can also use this research in product
promotion and advertising.
Segmentation
The demographic segmentation of the company between the age of 25 to 45 year.
Psychological segmentation related that the customers of Starbucks belong to the upper-
middle-class category (Mooij, 2018). They also target those locations which are easy to reach
by coffee lovers. Initially, Starbucks targeted the elder age people then as their business starts
approaching towards growth, they added more segments like targeting teenagers and younger
age people. As already discussed, the main target market of the company is men and women
age between 25-45, they bring 49% of the total business. They also target adults age between
18-24 which bring around 40% revenue (Cameron, 2019). The targeted location includes
specifically high-class locations, the place near corporates and the college campus. The stores
provide to work with having electricity for connecting laptops and mobiles (Bernarda &
Smith, 2014). Thus, they target their group through the utilization of technology and
innovative ideas. The needs of their targeted market include premium class customer
hospitality, quality products which are beneficial to their health like usage of specific milk

Marketing Plan 5
and having a peaceful atmosphere (Hanif & Rodrigues, 2018). These all are the need of the
targeted market of the company and they are satisfying their needs. Customers always ready
to pay high prices because according to them their expectations are getting fulfilled (Dwivedi,
Kapoor & Chen, 2015). Starbucks targets those market where they can generate a greater
number of customers and sustain them for a longer period.
Positioning Map
(By Author)
Positioning map is the diagrammatic techniques used by the asset manager to
illustrate the company's positioning as compared to its competitor. The axis of the positioning
map includes low price, high price, low quality and high quality (Dwivedi, Kapoor & Chen,
2015). According to this positioning map, Starbucks stands on high quality with a high price
because the company tries to establish their brand image as the premium category in the
coffee industry (Mooij, 2018). They brought dark-roasted, whole bean coffee like Sumatra,
Ethiopia and Costa Rica. Utilization of non-fat milk in the coffee enables the company to
make a significant move in the Australian market (Hussainy, Hakim & Khan, 2014).
Dunk in’
Donuts7 Eleven
Mc Donald’s
Starbucks
Caribou
Low Quality
Low Price High Price
High Quality

Marketing Plan 6

Marketing Plan 7
Value Proposition
The value proposition of Starbucks focused on brand strategy. It compromised of three
components. The company uses the phrase “live coffee” because Starbucks wants to keep the
national coffee culture alive in Australia. From the retail perspective, the company wants to
establish its taste and ambiance in the general public so they can regularly approach to the
Starbucks coffee house (Nichols, 2013). The first component of the brand strategy implies the
“Quality of Coffee”. As the company offers premium quality of coffee in the world while
maintaining the supply chain (Liaukonyte, Teixeira & Wilbur, 2015). The second component
is service, it is also referred to as “Customer Intimacy”. It includes very simple behaviours
like remembering the customer’s name, drinks, etc. The last component is “Atmosphere”.
People visits to the Starbuck for having coffee and kind of atmosphere they are getting in the
stores. Therefore, it is extremely important for providing a kind of atmosphere that allows a
sense of community (Osterwalder, Pigneur, Bernarda & Smith, 2015).
(By Author)
 Quality of Coffee: It is about the nature of the espresso. Starbucks deliberately chose
their espresso beans from the best wellsprings of espresso all around the globe. By
along these lines, Starbucks was known for its "highest-quality espresso on the
Customer Intimacy
Atmosphere
Quality of Coffee

Marketing Plan 8
planet" to offer to their clients (Whittaker, Montgomery & Acosta, 2015). While most
people prefer coffee as part of their morning breakfast. Thus, is important that their
beverage should be made with the premium quality of beans. An espresso bean is a
seed of the espresso plant and the hotspot for espresso. It is the pit inside the red or
purple natural product frequently alluded to as a cherry. Much the same as common
cherries, the espresso natural product is additionally a purported stone organic product
(Percy, 2016). The pea-berry (seeds) happens just somewhere in the range of 10 and
15% of the time and it is a genuinely normal (yet logically doubtful) conviction that
they have more flavor than ordinary espresso beans (Graebig, Erdmann & Roder,
2014).
 Customer Intimacy:
For Starbucks, extraordinary administration quality signifies "Customer Intimacy".
The cordial connection between the baristas and clients (Buczkowski, 2012). It
implies that baristas did not just get ready beverages to clients yet in the manner in
which they like. The baristas were additionally prepared with soft-spoken abilities to
chatter with clients to set up an individual altered espresso cups that meet customers'
desire (Sanje & Senol, 2012).
 Store Atmosphere:
Starbucks offers its customers a "third spot" outside their work spot and their home.
This makes a Starbuck’s store a sanctuary spot to escape from this present reality. The
inside stylistic theme, the music, the light, the format, etc was intended to welcome
the client to remain longer in the store (Mooij, 2018). To facilitate client solace,
comfort and social communication, most Starbucks stores blend upholstered seats and
couches around the table. Most Starbucks stores offer free power to their clients with
the goal that they can connect their PCs and they also offer Wi-Fi access (Dwivedi,

Marketing Plan 9
Kapoor & Chen, 2015). The stores highlight a books library and game rack to urge
clients to settle in and spend time with their companions. To maintain the coffee taste,
Starbucks employees are restricted from wearing solid aromas because it may meddle
with the espresso smell and almost all Starbucks around the globe are non-smoking
inside (Dwivedi, Kapoor & Chen, 2015). The protection of the espresso coffee was
the reason that Starbucks surrendered its fleeting invasion into serving breakfast
sandwiches (Hanif & Rodrigues, 2018).

Marketing Plan 10
Marketing Mix
The marketing mix is the foundation model of the business. In this part, the marketing
mix of Starbucks will be discussed. This marketing mix will find out about the company's
main components. Starbucks uses the marketing mix plan for developing its reputation and
brand popularity in the market (Hussainy, Hakim & Khan, 2014). The company changes its
marketing mix plan to respond to new challenges and problems. This marketing mix will
consist of 7p’s:
 Product:
This product mix of Starbucks focuses on what products or services the company
offers in the market (Liaukonyte, Teixeira & Wilbur, 2015). It is recommended that
the company should focus on coffee beverages. The organization includes or adjusts
its product offerings with the point of extending its market reach and developing its
market share in the industry. The product mix of the company contains:
o Coffee
o Baked coffee
o Smoothies
o Frappuccino
o Mugs
o Other food items
 Place:
This component decides the venue or location where its customers can visit easily.
The company uses those channels which helps them to reach out to their targeted
audience effectively and efficiently. Their channel includes coffeehouses, cafes,
retailers and mobile applications (Dwivedi, Kapoor & Chen, 2015). Initially,

Marketing Plan 11
Starbucks starts selling coffee through their coffee houses after that they started
selling their products and merchandise through online stores. This implies that the
company adapts to changes their technology, market conditions and setup for copying
with the market scenario. It is recommended that the company should can also open
new coffee stores in the colleges and schools (Nichols, 2013).
 Promotion:
This marketing mix component will explain about the advertising and communication
strategies of the company. Starbucks company promotes its products through internal
personal relations and communications. As the promotion mix includes:
o Online promotion
o Banners
o Public relations
o Mouth-to-mouth marketing
The company becomes popular primarily through mouth-to-mouth publicity. They
offer premium class service to their customers, so customers started talking positively
about the brand (Keegan & Rowley, 2017). It’s helped the brand in getting free and
positive publicity which enhances the brand image. Apart from this, the company also
advertise their brand over the television and internet (Osterwalder, Pigneur, Bernarda
& Smith, 2015). The company should force more on the online means of promotion.
 Price
The company uses premium price strategy because this strategy works on the people
tendency of the premium price for premium products (Shareef, Mukerji, Dwivedi,
Rana & Islam, 2019). In general, Starbucks products and beverages are much more
expensive than their competitors (Osterwalder, Pigneur, Bernarda & Smith, 2015).

Marketing Plan 12
Through this, the company can maintain its high-end specialty image. It is
recommended that this strategy also succours the brand in maintaining its premium
brand image (Percy, 2016).
 Process:
Starbucks mainly functions through joint ventures and licensing arrangements. Apart
from this, on their online website and mobile application, they design a section where
users are allowed to share their feedbacks (Whittaker, Montgomery & Acosta, 2015).
It is recommended that this the company should empower their human assets
(Papadas, Avlonitis & Carrigan, 2017).
 Physical Evidence:
The company provides detail information about its products, mergers, partnerships,
career opportunities, etc on their official website. It is recommended that the company
should not change its famous logo. (Osterwalder, Pigneur, Bernarda & Smith, 2015).
 People:
The chairperson of the company is Howard Schultz. The company always tries to
keep a low employee turnover rate (Whittaker, Montgomery & Acosta, 2015). It is
recommended that should also focus on a happy customer's cycle (Graebig, Erdmann
& Roder, 2014).

Marketing Plan 13
Budget
In this section, the key line items of the company will be analyses with their annual
sales. Keyline items of the company include coffee, fresh baked cookies, salads, grain bowls,
oatmeal, fruits cups, and merchandise. Management of the company alters the price by
analyzing the supply and demand in the market. In the year 2018, the company incorporated
the gross profit of 14545 million dollars in Australia. In the year 2017, the incorporated the
gross profit of 13348.6 million dollars in Australia (Pardo, 2018).
Below is the marketing budget of the company, incorporated in Australia:
(By Author)
This marketing budget of Starbucks – Australia has 6 components. Staff personal, sales
support, advertising cost, public relations, research and miscellaneous. This plan is from
April 2019 to July 2019. All the dates the beginning of weeks and all figures are imaginary.
This marketing budget plan is the roadmap which highlights the marketing expenditure of the
company in Australia (Cameron, 2019).

Marketing Plan 14

Marketing Plan 15
Controls
In these sections, key measures to track the marketing performance will be discussed.
Starbucks has various control measures to track the performance of their marketing goals.
Below are the measures:
 Website analytics:
Through this, the company can analyze and track the data or traffic of customers.
Whenever any customer visit on the official website then their data (IP address of
their system) stores in the database (Serrat, 2017). The company can, later on, judge
the place, time, audience, etc by their web analytical tool (Buczkowski, 2012).
 Social media analytics:
Every social media page consists of the data of the visitor who clicks on the links. By
this, it gives the idea to the company about the overall weekly traffic on their social
media page, most popular posts, new followers, likes, shares, etc.
 Page rank:
When more and more users visit on the particular webpage then automatically through
the search engine optimization the ranking of the page increases (Hanif & Rodrigues,
2018). Starbucks promotes its page over the different platforms to fascinate the users
to visit on the website. Thus, higher page rank is the parameter which can help the
company in analyzing the growth of their social media performance (Dwivedi,
Kapoor & Chen, 2015).

Marketing Plan 16
Recommendations
Starbucks has facing failure in the Australian Market. However, Australian culture is
discouraging Starbucks due to various issues. To achieve success in the Australian market, it
is recommended that the company should start including beer as the option to meet with the
local taste and preference. For example, the company should introduce beverage in the happy
hours to fascinate the interest of the customers (Hussainy, Hakim & Khan, 2014).
Offering premium customer service is the prime objective of the company. In reality,
baristas are the people who interact with customers. The company should primarily focus on
enhancing its customer service by ensuring that their baristas are the delivery excellent
quality of service (Osterwalder, Pigneur, Bernarda & Smith, 2015). To motivate the
employees, Starbucks should increase the monetary benefits to them. It is the reality the
money is the best motivation and by providing more remunerations the company can expect
better performance from the employees. On the other hand, if the management creates
pressure on the employees without providing any extra benefit then, unfortunately,
employees will leave the company. Employees should spend more time in the training
process to learn deeply about the coffee beans, process to make different kinds of coffees,
soft-spoken skills, etc (Liaukonyte, Teixeira & Wilbur, 2015).

Marketing Plan 17
Gantt Chart

Marketing Plan 18
Conclusion
It has been concluded that Starbucks targets people between the age of 25 to 45. Their
customers mainly belong from upper middle class or higher-class category. To satisfy the
customer's needs they make efforts to fulfilling their exception by offering a peaceful
atmosphere and premium class hospitality. On the positioning map, the company lies on high
quality and high price segment. Starbucks is counted among the most successful coffee chain
around the globe but somewhere they fail to capture the Australian market. In this
assignment, recommendations for their future growth is also explained. Starbucks should
include beer in its menu in order to fascinate the interest of Australian people. The company
should extend the training time of their employees, through these employees can understand
even better about the coffee-making process, history, types of coffee, different kinds of coffee
beans. They can also enhance their knowledge of customer hospitality.

Marketing Plan 19
References
Bernarda, G., & Smith, A. (2014). Value proposition design: How to create products and
services customers want. New Jersey: John Wiley & Sons.
Buczkowski, A. (2012). Location-Based Marketing. Oxford: University Press.
Cameron, S. (2019). Starbucks Marketing Strategy. Retrieved from:
https://bizfluent.com/info-7753520-starbucks-marketing-strategy.html
Dudovskiy, J. (2017). Starbucks Marketing Strategy – Communicating the message of quality
via multiple channels. Retrieved from: https://research-methodology.net/starbucks-
marketing-strategy-3/
Dwivedi, Y. K., Kapoor, K. K., & Chen, H. (2015). Social media marketing and
advertising. The Marketing Review, 15(3), 289-309.
Graebig, M., Erdmann, G., & Röder, S. (2014). Assessment of residential battery systems
(RBS): profitability, perceived value proposition, and potential business models.
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Hanif, H., & Rodrigues, C. (2018). Evaluating the impact of promotional activities on brand
loyalty. Journal of Marketing. 63(1), 56-65.
Hussainy, S. K., Hakim, S. L., & Khan, M. A. (2014). Measuring the Correlation between
Ethical Dimensions of Advertisement and Development of Society. KASBIT Business
Journals (KBJ). 7(2), 23-35.
Keegan, B. J., & Rowley, J. (2017). Evaluation and decision making in social media
marketing. Management Decision, 55(1), 15-31.

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Liaukonyte, J., Teixeira, T., & Wilbur, K. C. (2015). Television advertising and online
shopping. Marketing Science, 34(3), 311-330.
Mooij, M. (2018). Global marketing and advertising: Understanding cultural paradoxes.
California: SAGE Publications.
Nichols, W. (2013). Advertising Analytics 2.0. Harvard Business Review, 91(3), 60-68.
Osterwalder, A., Pigneur, Y., Bernarda, G., & Smith, A. (2015). Value proposition design.
Oxford: Oxford Publisher.
Papadas, K. K., Avlonitis, G. J., & Carrigan, M. (2017). Green marketing orientation:
Conceptualization, scale development and validation. Journal of Business Research, 80,
236-246.
Pardo, G. (2018). Starbucks’ marketing is genius. Retrieved from:
https://www.sbstatesman.com/2018/09/22/starbucks-marketing-is-genius/
Percy, L. (2016). Strategic advertising management. Oxford: Oxford University Press.
Sanje, G., & Senol, I. (2012). The importance of online behavioral advertising for online
retailers. International Journal of Business and Social Science, 3(18), 45-78.
Serrat, O. (2017). Marketing in the public sector. Knowledge Solutions. Singapore: Springer.
Shareef, M. A., Mukerji, B., Dwivedi, Y. K., Rana, N. P., & Islam, R. (2019). Social media
marketing: Comparative effect of advertisement sources. Journal of Retailing and
Consumer Services, 46(2), 58-69.
Whittaker, J. A., Montgomery, B. L., & Acosta, V. G. M. (2015). Retention of
underrepresented minority faculty: Strategic initiatives for institutional value

Marketing Plan 21
proposition based on perspectives from a range of academic institutions. Journal of
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