Marketing Intelligence of Starbucks - Assignment
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Added on 2020-01-16
Marketing Intelligence of Starbucks - Assignment
Added on 2020-01-16
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Marketing Intelligence
TABLE OF CONTENTSINTRODUCTION...........................................................................................................................3TASK 1............................................................................................................................................3TASK 2............................................................................................................................................62.1 Market research techniques....................................................................................................62.2 Using sources of secondary data............................................................................................62.3 Validity and reliability of market research findings..............................................................72.4 Marketing research plan.........................................................................................................7TASK 3............................................................................................................................................93.1 Market size trends..................................................................................................................93.2 Competitor analysis...............................................................................................................93.3 Evaluation............................................................................................................................10TASK 4..........................................................................................................................................114.1 Techniques for assessing customer response.......................................................................114.2 Customer satisfaction survey...............................................................................................114.3 Survey review......................................................................................................................13CONCLUSION..............................................................................................................................14REFERENCES..............................................................................................................................152
INTRODUCTIONMarketing is an essential component for every business organisation. Developed productsand services can attain greater value in international and national markets when marketingstrategies are implied. This report is based on different aspects which are related to products ofStarbucks whenever a person decided to purchase. From stages of purchase decision making tofactors that can affect buyer behaviour will be elaborated in this assessment. The effectiveness ofa proposed strategy for marketing products and services of Starbucks increases when theconcepts and theories described in this report are applied. In addition to this, a customersatisfaction survey will also be provided and reviewed for the organisation in order to get a deepunderstanding for techniques involved in assessing customer response. TASK 11.1 Stages of purchase decision making processPurchase decision making process is at the end of buyer. Every individual who thinks ofbuying a product from Starbucks has to go through all these five stages. To understand completeprocessing easily, an example of a person thinking about drinking coffee at Starbucks is stated asbelow:Need Recognition: Needs are something that can be generated because of any reason beit personal factor or some sort of influence. Once, the concerned person is confirmed that hewants to drink coffee, he will proceed to next stage.Information search: Consumers conduct market research and collect information fromall possible sources (Malaval, Bénaroya and Aflalo, 2014). From the above example, person willsearch for various cafeterias and restaurants that provide coffee and its variables. The consumercan take support from information sources like internet or advertisements. Evaluating alternatives: The market is full of competition. Large number of options areacquired from the information that is collected by purchasers in the second stage. Consumer hasto evaluate these options and then make a choice of the company from which they will fulfil theirneed (Moutinho and McCabe, 2014). The person who had a desire to drink coffee has selectedStarbucks as the prime option. 3
Purchase decision: At this stage, customer has evaluated that selected option is viable formaking purchase and he paid required amount to company for acquiring respective product andservice. The person here drinks coffee and pays billing amount to Starbucks.Post purchase evaluation: The final stage of purchase process includes acquisition offeedbacks from customers by company (Saleh, Ali and Julian, 2014). After getting the product orservice, if consumers are happy and satisfied, tendency for repeat purchase increases.When the customer goes through all the stages of purchase decision making process, themarketer has to play respective roles. Right from the initial stage, the marketer should be able tomeet the needs of customers. Features or attributes of products should be communicated in sucha way that purchase decision of customers is in favour of Starbucks. 1.2 Buyer behaviour theoriesBuyer behaviour theories help in understanding the mechanism which supports in makingspecific choices. Rationale model of buyer behaviour is based on attributes of consumers thathelp them in making choices which are oriented towards maximum benefits. Starbucks is amultinational company that runs a chain of coffee shops. The customers who perceive thisorganisation for fulfilling their needs expect good quality eatery with excellent services (Rani,2014). Rational behaviour theory helps in understanding attitudes of individuals in marketplace.Purchasers with rational attitudes will choose Starbucks only when they perceive it as apractically viable option. Cognitive Dissonance theory of buyer behaviour is based on the attitudes and personalityof consumers who have conflicting thoughts. For example: a person is facing a dilemma ofhaving some coffee at nearby cafe. Dilemma occurred because he has two options that is eitherto go to Starbucks or Costa. The cognitive dissonance theory is based on this origin of thoughts.Consumer decisions are driven by their inner thoughts and beliefs rather than practical facts(Schiffman, Paladino and Carlson, 2013).1.3 Factors affecting buyer behaviourBuyer behaviour is reflected when a person takes decisions regarding purchasing aproduct from Starbucks. The factors that can influence this behaviour are described as below:Cultural: The society and community which surrounds a consumer from the culturalfactors affect buyer behaviour. For example: a person wants to drink coffee from Starbucks but4
his community doesn't believe in supporting foreign brands. At this point, consumer behaviour isinfluenced by the culture.Social: Reference groups or social classes are the components of social factors thatinfluence purchasers. The motivation or inspiration provided by social factors help purchasers indeciding whether they will buy a product from a company or not (McQuarrie, 2015). Forexample: if a person has some bad experience with Starbucks and he is a significant contributorto the welfare of society, many people who are influenced by thoughts and beliefs of thisindividual will be affected whenever purchasing from Starbucks will be concerned. Personal: Age, life-cycle stage, occupation, education and personal circumstances are theelements of personal factors. Consumers' decisions are highly influenced by their personal spaceand its current conditions. Psychological: Motivation, perception and learning of a consumer are considered aspsychological factors. If an individual is not motivated to make purchase from a particularcompany then he won't buy any product or service until and unless the firm gives anextraordinary offer (Malhotra, Birks and Wills, 2013). Negative perception and disbelief alsoinfluence buying decisions of consumers.Economic: Income levels and choice of lifestyle with pricing strategies of companycontribute as economic factors that affect the buyer decisions and behaviour of consumers. 1.4 Brand loyalty, corporate image and repeat purchasingBrand loyalty: Positive attitude towards a brand which influences a consumer to makepurchase solely from one company is regarded as brand loyalty. Starbucks has gained a lot ofbrand loyal customers across various operational centres. Corporate image: The nature of thoughts or images in a person's mind whenever acompany or brand is referred is known as the corporate image. Basically, multinationals use thisconcept for understanding their reputation in the eyes of common people (Jacob and Weiber,2015). Starbucks' positive corporate image has developed over years after the success of strategicbusiness expansion. Repeat purchasing: When an individual is satisfied by the products and services ofStarbucks but makes purchase decisions only occasionally, then repeat purchasing takes place.5
The mind set of repeat purchasers is quite fluctuating because they can switch over other brandsany time. All these three terms i.e. brand loyalty, corporate image and repeat purchasing areinterrelated. Starbucks uses these parameters in measuring the brand awareness and reputationfrom customers' point of view. When customer is satisfied by the purchase decisions thenprobability of repeat purchasing increases. Continuous reception of the best quality products andservices convert repeat purchasing into brand loyalty and positive corporate image. TASK 22.1 Market research techniquesMarket research is a process through which information is gathered regarding success andfailure of a strategy or product. The purpose behind running market research is to get knowledgeabout customer satisfaction as well as company position in the competitive markets. Theimportance of market research is felt when business organisations wish to expand or targetpotential customers on the basis of their current products and services. There are two types ofmarket research discussed below:Primary research: The primary researches are divided into two types that is quantitativeand qualitative. Quantitative market researches are collection of statistical or observeddata which is gathered by computational techniques (Barnham, 2015). On the other hand,qualitative techniques are methods which are employed for getting valuable informationwithout considering their size and volumes. Primary market research is entirely newinformation. The use of quantitative research is realised when Starbucks wants largersamples with appropriate validity while qualitative research is used when company aimsto develop an insight about opinions and attitudes. Secondary research: When existing sources of information are to be used for conductingmarket research then secondary research techniques are employed (Ormston and et. al.,2014). 2.2 Using sources of secondary dataThe data can be gathered by either the primary sources or the secondary sources. In thisresearch, the data collection is being done. Primary data is the data that has been collected by theperson for the first time and secondary data means the data that has been already collected by6
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