Marketing Strategy Proposal: Starbucks Corporation

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Marketing Strategy Proposal: Starbucks Corporation

Starbucks Corporation 1
Executive summary
The document analyses market operation and seeks to identify trends which impact the
market. The marketing audit is conducted to understand the strategic position of Starbucks.
To conduct audit the report has focused on the strengths and weaknesses of the Starbucks and
how these should help influence Starbucks towards opportunities and threats in the external
environment. With the help of PESTLE analysis; external factors which impact the marketing
strategy of Starbucks are also discussed.
Target market is one of the most important marketing decisions for most companies. Its goal
is to identify market segments for the company’s marketing plan. This report provides a
strategic and tactical marketing plan for Starbuck Corporation.
Starbucks is one of the oldest foodchains but it has adopted its marketing strategy from time
to time. With its expansion in developing nations Starbucks has to innovate more on its
product line. Starbucks has already penetrated the market by adding tea as well as various
food items in its product line. Now Starbucks has to customize its marketing with respect to
emerging new markets.

Starbucks Corporation 2
Contents
Introduction............................................................................................................... 3
Marketing Audit......................................................................................................... 3
SWOT Analysis...................................................................................................... 4
Strengths of Starbucks............................................................................................ 4
Weaknesses of Starbucks........................................................................................ 4
Opportunities for Starbucks..................................................................................... 4
Threats to Starbucks.............................................................................................. 5
PESTLE................................................................................................................ 5
Political Factors.................................................................................................... 6
Economic Factors................................................................................................. 6
Socio-Cultural Factors........................................................................................... 6
Technological Factors............................................................................................ 7
Legal Factors....................................................................................................... 7
Environmental Factors........................................................................................... 8
Marketing Objectives................................................................................................... 8
Strategic Marketing Proposal......................................................................................... 9
Tactical Marketing Mix Proposal.................................................................................. 11
Product............................................................................................................... 11
Place.................................................................................................................. 11
Price................................................................................................................... 12
Promotion............................................................................................................ 12
Process................................................................................................................ 12
Physical............................................................................................................... 13
People................................................................................................................. 13
Conclusion.............................................................................................................. 14
Reference List.......................................................................................................... 15

Starbucks Corporation 3
Introduction
Marketing Plan is a business plan which includes marketing strategies as its basis; good
marketing strategy includes identifying the target market; it also includes a plan of action to
convert them into customers, and retain them.
Marketing functions at two levels; first is strategic and second is tactical (Kotler, 2016).
Strategic includes identifying the market composition like market positioning and
segmentation. Tactical is the execution of the marketing plan. If it is carefully researched
evaluated; strategies help an organization to set goals and achieve results in a more holistic
manner. Leaving marketing decisions to intuition can be far more risky and expensive than
to develop a marketing plan (Herbert Sherman, 2010).
Starbucks is an American coffee chain famous for its premium coffee; Starbucks objective is
to create the best customer experience. To achieve this, Starbucks is expanding by innovating
new products in both developing and developed nations like the U.S., and major growth is
expected in countries like China. Starbuck operates in two ways which are company-
operated and licensed stores worldwide. Starbucks was formed in 1985; and currently
operating in 78 markets (Starbucks Corporation, 2018).
In this report firstly Starbuck corporation current market scenario is analysed with the help of
SWOT and PESTLE. With the analysis of external and internal factors which impact the
overall working of the company are analysed, market objectives are proposed on the basis of
which market strategies are recommended and the marketing mix of 7Ps which are Place,
Promotion, Product, Place, Process, Physical and Price is introduced.
Marketing Audit
Planning and preparation help in minimizing the risk and in developing a well-structured
marketing plan (Bruce Wrenn, 2014). To gather following information like market trends