This marketing plan discusses the strategies and analysis for Starbucks Australia's plan to launch a new outlet in Perth. It includes a situational analysis, PESTLE analysis, SWOT analysis, market analysis, mission and objectives, segmentation, targeting and positioning, and the marketing mix of Starbucks.
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Marketing Plan Case Study of Starbucks Australia
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Executive Summary Starbucks is one of the leading coffee chain companies in the world. It is spread over number of locations in the world and has gained huge success. However, in Australia Starbucks has not been able to succeed and hence this stands to be an extremely important aspect of analysing its business strategy. Marketing is an extremely important aspect for a business especially when expanding a business in a new market. Starbucks as an organisation planned to launch a new outlet in Perth, Western Australia. The consumers in Perth have European coffee culture and the organisation needs to understand the taste and preference effectively. From the market analysis it has been found out that consumers are looking for new products and is willing to experiment. The immediate competitors of Starbucks in Perth are McCafe, Costa Coffee, etcetera. The marketing mix of the organisation has been implemented effectively to focuson concentration and premium pricing for the targeted market between the age group of 18-55. The study has focused on analysing the marketing strategy which has helped to address the objectives.
Table of Contents Executive Summary.....................................................................................................................................2 Introduction.................................................................................................................................................4 Situational Analysis of Starbucks................................................................................................................5 PESTLE Analysis....................................................................................................................................5 SWOT Analysis.......................................................................................................................................6 Market Analysis..........................................................................................................................................8 Mission, and Objectives of Starbucks..........................................................................................................9 Segmentation, Targeting and Positioning....................................................................................................9 Marketing Mix of Starbucks......................................................................................................................10 Tactics and Actions...................................................................................................................................12 Conclusion.................................................................................................................................................12 References.................................................................................................................................................13
Introduction Success of a business stands on the effective strategic marketing. Marketing stands to be extremely important for an organisation because it not only helps the organisation to reach its target audience in the market but also helps to analyse the market in the best possible manner for effective sustainability in the market. In a highly competitive business environment, marketing stands to be the differentiating factor. All the top multinationals in the world have focused on their marketing strategy which has helped them to develop a strong hold over the market that in return increased the market share of these organisations. Starbucks is one of the leading coffee chain organisations in the world which has gained worldwide popularity for its excellent products and services but the organisation has largely failed in its first attempt to get into the Australian market. The organisation doesn’t have effective presence in the Australian market which clearly shows the amount of competition the company will have to face once it launches in certain locations of the country. This is where the importance of marketing plan comes into the picture (Goworek, McGoldrick and McGoldrick, 2015). The present study would focus on discussing the key aspects of marketing plan with reference to Starbucks launching an outlet in Perth where the coffee culture is tad different as compared to the other places in Australia.
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Situational Analysis of Starbucks Situational analysis is an extremely important tool for an organisation that is looking to expand its business in a new market. It cannot be denied that analysing the market is important before expansion but before analysing the market it is important for an organisation to understand the core strengths and weaknesses and opportunities and threats so that the organisation could effectively develop a strong strategy. Understanding internal and external environment of an organisation is extremely important (Baker, 2016). Expanding its business in a new market like Perth could be tough if Starbucks is not able to understand its business environment properly. Tools like PESTLE and SWOT helps to do that effectively. In the present case analysing the PESTLE factors would help the organisation to further develop its goals and objectives in Australia. PESTLE Analysis Political: Australia is a politically stable country. The country is open to foreign companies operating in this market. New business policies especially for foreign organisations have changed to some extent where the foreign organisations do receive significant leverage which helps foreign companies to sustain in the market. Economic: Economic factors are extremely important to be analysed and understood for an organisation before launching an outlet in Perth. One of the major problems that presently loom over Australia and over its major cities like Perth is the economic policies set by the current government. After the Great Depression which affected almost all the countries in the world has had significant impact on Australia too. The economy since then has more or less recovered but problems like inflation has led people to spend less even though they have ability to spend. The unequal distribution of wealth in the country has increased the rift between the rich and the poor which is also an important aspect to be kept in mind (Lamb et al., 2015). Social: In the last few decades Education is considered as one of the major aspects in Australia. The government takes significant interest on education and invites different companies to contribute to the development of education in the country. Australia’s population is ageing and this largely affects the workforce because getting quality and skilled employees become tough and hence Starbucks have to keep this mind as well. Apart from that talking specifically about
Perth the social culture of Perth that is Western Australia is largely like European culture which also reflects on the coffee culture of this place. Technological: From the point of view of technology this country is quite forward and Starbucks as an organisation has been effective in constantly changing its IT strategy. It is important for the organisation to be consistent enough to keep with the technological needs and wants of the consumers (Atwal and Williams,2017). Environmental: Australia is a country that is known for its varied range of flora and fauna. It focuses on the indigenous areas of the country and hence as an organisation Starbucks has to be focused on contributing to the overall development of the environment. Starbucks have set benchmarks in terms of carbon emission reduction and developing green management strategy in business which sets them up for a challenge in the new location. Legal: There are certain key aspects that organisations operating in Australia have to abide by. The employment laws and operating rules and principles have to be conformed with in order to avoid any kind of legal implications. From the present analysis it is extremely important for Starbucks to understand the social and economic issues in Australia which would help to develop a strong marketing strategy for the organisation (Lamb et al., 2015). SWOT Analysis Analysing strengths, weaknesses, opportunities and threats needs to be effectively analysed by the organisation in order to encash on the strengths and improve the loopholes to meet the weaknesses. The opportunities would help to expand the business and gain overall sustainability in the market. Strengths ď‚·Excellent brand image. ď‚·Great market presence. ď‚·Strong capital structure. ď‚·Strongest franchise in the world with highest number of licensed shops.
Weaknesses ď‚·One of the biggest weaknesses of the organisation is the costliness of the products. ď‚·Failed to explore Australian markets properly. ď‚·Weaker online strategy. ď‚·Staff issues. ď‚·Higher dependence on the domestic market (Kotler and Armstrong, 2018). Opportunities ď‚·Expansion opportunities in countries like Australia. ď‚·Better product strategy and business focus. ď‚·Diversification. ď‚·Improving online business. Threats ď‚·Increasing global competition. ď‚·Global economic crisis affects purchasing power of consumers. ď‚·Emerging coffee chain organisations. ď‚·Increasing dependence on the online market by most organisations (Morden,2016). From the present analysis it is clear that the organisation needs to work on number of aspects to be successful in Australia again. It has to not only understand the taste and preference of the consumers, but also strengthen its overall strategy especially to expand its business in the foreign markets. Market Analysis Market analysis is extremely important for an organisation to understand the competition in the market. Australia is a vast country with different kinds of people all across. Coffee is a popular beverage and widely drank beverage which clearly shows that the market is likely to be highly
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Mission, and Objectives of Starbucks The present mission of Starbucks is to “become the “go to” coffee shop for people in Perth”. The mission has been strategically developed by the organisation as it would help to focus on addressing all the key aspects of competition in the market. It is essential for an organisation like Starbucks to be able to compete in a market which would help the organisation to sustain in the market for a long time. The main focus of the organisation is to create the awareness of the brand in the market. It is a renowned brand but consumers in Perth are focused on assessing the quality of the product and service as well which ultimately helps to decide on which brand to pick (Armstrong et al., 2014). Based on the above mission the organisation has framed relevant objectives which are discussed below: To launch six more outlets across Western Australia by the end of 2019. To recruit around 50 employees for these restaurants by the end of November 2019. To achieve the 5million mark in terms of revenue by the end of 2020. To develop a strong online portal for Western Australia by the mid of 2020. Segmentation, Targeting and Positioning Segmentation, Targeting and positioning stands to be extremely important tools that underpin the marketing plan effectively. Segmentation is a strategy which helps to identify the relevant customerbaseforanorganisationbasedoncertainkeyaspectslikedemographics, psychographics et cetera. Analysing the target segment is important to understand their needs and wants and the taste and preference in the best possible manner. In the present case Starbucks segments its market based on age, income et cetera. It also focuses on psychographics like lifestyle choices. Hence, the target age group of the organisation is 18 to 55 who have higher income and are able to afford the same. The organisation has changed its demographics to fit in the needs of the people in the most effective manner (Kotler et al., 2014). The target market involves youths, middle aged people. The targeting is done in a concentrated manner which helps the organisation to present youths and middle aged customers with higher options. The youths want lively product choices whereas the middle aged ones want to stick to their brands and do not want to experiment. Hence the organisation has targeted its people and
developed its products in such a way that helps to meet the needs and wants of both these classes (Burns, Bush and Sinha, 2014). Positioning is done in a focused manner which helps to position the organisation effectively. The organisation serves high class consumers which are its primary target and hence the products have to have luxury features that provide sense of superiority. Hence Starbucks provides high value proposition for both the targeted age group youths and adults. When the adults get high value proposition through hygiene and quality products then youths get high value proposition through price and varied product range (Brunswick, 2014). Fig 2: Brand Positioning Starbucks (Kotler and Armstrong, 2018) Marketing Mix of Starbucks Marketing mix consists of product, place, promotion and price which are important for the organisation to take into account. Product: Starbucks core product is coffee. The organisation is the largest coffee chain company in the world. The augmented product that Starbucks offers is the design of the cups and the way the products are presented. It is important for the organisation to have effective European approach towards the development of the product which would help the organisation to create a loyal customer base (Kotler and Armstrong, 2018).
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Price: The organisation will follow the premium pricing strategy which would help to increase the self satisfaction of the consumers who come in the outlets. It also helps to continue its brand positioning which is effective to draw targeted audience in the market. The premium pricing will provide a separate importance to the organisation in terms of its class and quality (Lamb et al., 2015). Promotion: The organisation will follow the promotional mix strategy where it focuses on reaching clients directly through direct marketing, online marketing through social media, websites and open forums. Apart from that it offers customised choices which would help consumers to get their preferences properly and finally with discounts and freebies every time consumers use Starbucks services. The organisation has planned to introduce loyalty cards which would help to get different offers and notifications about the organisation and its products across the targeted regions (Morden, 2016). Place: It is an important part of marketing mix. The organisation opens its outlets in posh and well connected regions which helps the consumers to get access to the services effectively. Apart from that Starbucks also has third party distribution tie-ups for online order delivery and meeting the consumer needs through the online platform. It develops excellent visual merchandising through decorations and furnishing the outlets in the best possible manner (David, David and David, 2017). Tactics and Actions The organisation will implement all round web-marketing approach as well through social media and website marketing which would help to develop excellent bonding with the consumers. This will also enhance the consumer communication and help to meet the consumer expectations properly.
The organisation has developed a ten staff panel to meet the marketing needs of the company to launch its outlets in Perth, Western Australia. The marketing plan would be analysed at regular interval and would be changed if needed based on the results of the marketing process applied (Lamb et al., 2015). Conclusion Marketing planning is an extremely important tool for an organisation to either expand or launch a new product. The present study has discussed the key aspects of marketing process attached with the launch of a new outlet in Perth. References Armstrong, G., Adam, S., Denize, S. and Kotler, P., 2014.Principles of marketing. Pearson Australia. Atwal, G. and Williams, A., 2017. Luxury brand marketing–the experience is everything!. InAdvances in luxury brand management(pp. 43-57). Palgrave Macmillan, Cham.
Baker, M.J., 2016. What is marketing?. InThe Marketing Book(pp. 25-42). Routledge. Brunswick, G.J., 2014. A chronology of the definition of marketing.Journal of Business & Economics Research (Online),12(2), p.105. Burns, A.C., Bush, R.F. and Sinha, N., 2014.Marketing research(Vol. 7). Harlow: Pearson. David, M.E., David, F.R. and David, F.R., 2017. The quantitative strategic planning matrix: a new marketing tool.Journal of Strategic Marketing,25(4), pp.342-352. Goworek, H., McGoldrick, P.J. and McGoldrick, P.J., 2015.Retail marketing management: Principles and practice. Pearson Education Limited. Kotler, P. and Armstrong, G.M., 2018.Marketing Mix: Selected Chapters From: Principles of Marketing, Philip Kotler and Gary Armstrong. Pearson. Kotler, P., Armstrong, G., Harris, L.C. and Piercy, N., 2014. Principles of Marketing, 4th European edition.Financial times/Prentice hall. Lamb, Charles W & Hair, Joseph F, (Author.) & McDaniel, Carl, (Author.) & Summers, Jane, (Author.) & Gardiner, Michael, (Author.) 2015,EBook: MKTG3, 3rd ed, Cengage Learning Australia, Southbank McDonald, M. and Wilson, H., 2016.Marketing Plans: How to prepare them, how to profit from them. John Wiley & Sons. Morden, T., 2016.Principles of strategic management. Routledge.