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Marketing Planning of Starbucks Assignment

   

Added on  2019-12-03

22 Pages4909 Words158 Views
Marketing Principles

TABLE OF CONTENTSINTRODUCTION...........................................................................................................................5Task 1: .............................................................................................................................................51.1................................................................................................................................................51.2................................................................................................................................................7Task 2: .............................................................................................................................................82.1................................................................................................................................................82.2..............................................................................................................................................102.3..............................................................................................................................................102.4..............................................................................................................................................112.5..............................................................................................................................................12Task 3: ...........................................................................................................................................133.1..............................................................................................................................................133.2..............................................................................................................................................133.3..............................................................................................................................................143.4..............................................................................................................................................153.5..............................................................................................................................................16Task 4: ...........................................................................................................................................174.1..............................................................................................................................................174.2..............................................................................................................................................174.3..............................................................................................................................................18CONCLUSION..............................................................................................................................19REFERENCES..............................................................................................................................20BIBLIOGRAPHY..........................................................................................................................22

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·INTRODUCTIONAmerican marketing association has defined marketing as an activity, set of institutionsand process of creating, communicating and delivering offerings that have certain value forcustomers, clients, business partners and society as a whole. Marketing process starts fromidentifying customers needs and wants and completed by satisfying those needs and wants(Fitter, 2001). Marketing concept has evolved over a period of time as previously it was justlimited to production and sales but presently it revolves around value satisfaction to customers.Present research is undertaken to understand marketing principles that are applied by Starbucks,a leading coffee chain of UK. It was identified that company has more potential in internationalbusiness but it needs to develop appropriate marketing strategies to achieve organizational goals(MacDonald, 2007).·Task 1: ·1.1Elements of marketing process are described below:Scanning marketing environment:Environmental scanning is the first and foremost component of marketing which refers tothe process of auditing internal and external factors of a company. Starbucks is also affected byits environment therefore it is essential to scan environment to make vivid insights on its impact.SWOT analysis is useful tool for auditing factors that influence Starbuck’s business activities. Ithelps in understanding present situation of company so that Starbucks can identify its potentialand frame appropriate strategies. ·StrengthsOpportunitiesExtensive product line including coffee, premium teas, wholebeans, premium coffee etc. ·Low advertising cost incurred by company·Leading coffee chain ·Location and aesthetic appeal of its coffee stores.Increasing market share trough businessextension into emerging markets.·Expansion of product lines·Diversification for increasing profitability·More involvement in advertising activities·WeaknessesThreatsStarbucks is selling expensive products5

·Over dependency on home country as market share in UK is low·Negative corporation image because of maintaining strong control over labor·Not able to cope up with cultural differences between American and European market(Kumar and et. al., 2000).·Dynamic economic situations and price volatility because of commodity market fluctuations·Threat of substitute products as coffee is a beverage for which many substitutes are available.·Changing customers’ taste and preferences in European market·Strong competition by rivals such as Barista and Nestle. (Golding and Peattie, 2005).Developing marketing strategies:Starbucks develops its marketing strategies considering organizational objectives in viewso that marketing plan of the company can become more effective. By considering itsenvironmental objectives company develops segmentation, positioning and targeting strategy.For developing these strategies Starbucks has adopted marketing orientation approach whichhelps it to give maximum value satisfaction to customers (Gaudio, 2003).This approach focuseson market needs for developing such strategies.Marketing mix development:Its marketing mix is composed of four P’s; product, price, place and promotion which iskey element for Starbucks. Company has to take decisions regarding each of the elements likewhich product to sell at what price, distribution of services and promotional activities to beundertaken (Hawkins and Mothersbaugh, 2009).Implementation and control:Execution of above discusses stages and strategy is the last step in the marketing processtaken by Starbucks. It has to implement entire marketing plan within the limitations ofmarketing concept. High production cost, unskilled labor, ethical issues are few limitations ofmarketing planning process which are faced by Starbucks. 6

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