Starbucks Marketing Plan

This document presents the marketing plan of Starbucks, including its SWOT analysis, target market, competitive analysis, budget, and marketing channels. The franchise aims to provide the best quality coffee to its customers and build a regular base of customers who will be repetitive. It targets college students, human resource offices, and residents of the area. The franchise follows an economical pricing strategy and believes in inspiring the human spirit and nurturing the growth of humanity as a whole by providing a completely customer-oriented service.

STARBUCKS
Marketing Plan [TEMPLATE]
Author(s) of Document
[Email address]
Our Objective
Our Objective is to provide the best quality coffee one can taste in lifetime
COMPANY LOGO
Table of Contents
1. Business Summary
o Company Name
o Mission Statement
o SWOT Analysis
3. Target Market
o Industry Name
o Competitive Analysis
4. Market
Strategy
o
Product
o Price

o Promotion
o Place
o People
o Process
o Physical Evidence
5. Budget
6. Marketing Channels

Business Summary
Our Company
The Starbucks Corporation is and has become one of the most frequented destinations for lovers
of coffee. With its inviting atmosphere that takes their consumers from their day to day stress, it
is a place that provides a comfortable atmosphere for a meeting between friends or for leisurely
activities like reading a book with a cup of richly brewed and expertly roasted coffee. the
franchise of Starbucks located near the Murray hill area is planning on capitalizing the areas
proximity to Manhattan Academy for Arts and Languages Campus and residents from other
campuses thus building a regular base of customers who will be repetitive. these customers will
be provided with the best quality of coffee that will be complemented with other snacks. he
Franchise will operate on a 2'200 sq. ft. store that will be located just outside various campuses
around the Murray hill area (Zavyalova, Pfarrer&Reger, 2017). Owners of the franchise have
secured the area with a 5 year plan of lease agreement with options of extension. the funds that
were provided for the startup was 130,000 dollars from a total of 255,000 dollars in which the
remaining capital was to retrieved from loans of commercial nature from the Bank of America.
In the financial year of 2018 the stream of revenue for the franchise is expected to grow from
484,000 dollars to 807,000 in 3 consecutive years. also the franchise of Starbucks will try and
maintain a margin of profit of 75% with its own operating expenses and thus having a net growth
of profit that will be in the range of 90,000 dollars to 115,000 dollars (Johnson, 2016).
SWOT Analysis
Strengths
● Build stores that are attractive visually
attractive
● Employees trained efficiently with the
best techniques of preparing coffee.
Weaknesses
● Legal expenses will require a
significant amount of investment that
will have no collateral guarantees
● Marketing strategies are already in pace
that can ba strong base of regular
● Direct competitors will have an adverse
effect on the brand value of products

customer (Abdel-Basset, Mohamed
&Smarandache, 2018)
and prices will have to adjusted
accordingly which may incur losses in
the long run
Opportunities
● Providing innovative recipes and a
highly customizable menu give an edge
over other similar competitors gives
them an edge.
Threats
● The need for a high profit margin will
affect the pricing of products and thus
will affect the competitive strategy of
the franchise.
● Enticing offers for students will create a
regular base of customers who will
frequent the store if the quality of
service is efficient (Basset, Mohamed,
Sangaiah& Jain, 2018).
● Other similar franchises open up in the
vicinity providing an unhealthy
competition.
Target Market
The Starbucks tends to target:
Manhattan Academy of Arts and Languages other postgraduate students who can build a group
of regular attendees of the shop (Mason, Cole &Goza, 2017)
Human Resource offices
Residents of the area
Competitive Analysis
The brands who will provide a direct competitor to this franchise are
● McDonalds McCafe
○ Hot drinks
● Costa coffee
○ Chocolava cake
● Cafe Coffee Day
○ Cold drinks, lime fresheners
● Dunkin Donuts
○ Desserts especially made of cashews and walnut

Some indirect competitors who cannot be included in the same segment but need to be
considered are
● McDonalds
● Other independent local chains of fast food nd bakeries.
Market Strategy
Product:
The business corporation of starbucks provides different customizations of coffee according to
the needs of the customers.
Price:
Follows the economical status of the society where it is situated.
Promotion:
The franchise believes that their mission involves inspiring the human spirit and nurturing the
growth of humanity as a whole by providing a completely customer oriented service. With
(Taecharungroj, 2017).
People:
Target mostly the college student and private sector workers
Process:
The product is currently on restaurant manner. In future home delivery will start
Physical evidence:
The product is displayed in the counter and in the banner outside the restaurant cafe
Budget

Marketing Expense Estimated Price
Legal expenses $1100
Promotional expenses $3600
insurance coverage $2300
Rent $14000
Salaries $22900
inventory $17027
cost of equipment $59170
Content Sponsorship [time period of campaign] $10000
Pay-per-click (Google) $500
Marketing Software $10000
Total $140597
Marketing Channels
[Website/Publication 1]

Purpose of channel: [Example: Brand Awareness]
Metrics to measure success: [Example: 50,000 unique page views per month]
[Website/Publication 2]
Purpose of channel: product transparency
Metrics to measure success: Increase in the sale
[Website/Publication 3]
Purpose of channel: Different product advertisement
Metrics to measure success: increase in profit rate by 15%
The franchise depends mostly on peer to peer recognition for promotion. It has some
promotional campaigns through billboards and ad campaigns but no such extravagant
promotional expenses have been utilised. Word of mouth promotion as a result of extraordinary
service has always been there with the other channel of promotion (Ottman, 2017).
Conclusion
The Starbucks fantasy has a pan to capitalize the market of Gourmet Coffee which is new
handful of opportunities. the availability of sufficient funds and a growing base of loyal
customers is being establihed thus enhancing the net worth of the whole franchise as an overall
brand. It plans on so being a one stop shop for lovers of coffee as a warm beverage. it will
achieve its objective of the current business plan is followed and withheld accordingly and the
service provide is exemplary..

References
Abdel-Basset, M., Mohamed, M., &Smarandache, F. (2018).An Extension of Neutrosophic
AHP–SWOT Analysis for Strategic Planning and Decision-Making.Symmetry, 10(4),
116. Retrieved from http://www.mdpi.com/2073-8994/10/4/116
Basset, M. A., Mohamed, M., Sangaiah, A. K., & Jain, V. (2018).An integrated neutrosophic
AHP and SWOT method for strategic planning methodology selection.Benchmarking: An
International Journal, (just-accepted), 00-00.Doi: 10.1108/BIJ-08-2017-0232
Johnson, R. (2016). Here’s What Starbucks Gets Right About Appealing to Millennials.
Retrieved from https://digitalcommons.theamericancollege.edu/faculty/494/
Mason, A., Cole, T., &Goza, N. (2017). STARBUCKS: A CASE STUDY OF EFFECTIVE
MANAGEMENT IN THE COFFEE INDUSTRY. Journal of International Management
Studies, 17(1). Retrieved from https://web.a.ebscohost.com/abstract?
direct=true&profile=ehost&scope=site&authtype=crawler&jrnl=19306105&AN=123797
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%3d&crl=c&resultNs=AdminWebAuth&resultLocal=ErrCrlNotAuth&crlhashurl=login.a
spx%3fdirect%3dtrue%26profile%3dehost%26scope%3dsite%26authtype%3dcrawler
%26jrnl%3d19306105%26AN%3d123797260
Ottman, J. (2017). The new rules of green marketing: Strategies, tools, and inspiration for
sustainable branding. Routledge. Retrieved from
https://www.bkconnection.com/static/The_New_Rules_of_Green_Marketing_EXCERPT
.pdf
Taecharungroj, V. (2017).Starbucks’ marketing communications strategy on Twitter.Journal of
Marketing Communications, 23(6), 552-571. doi:10.1080/13527266.2016.1138139
Zavyalova, A., Pfarrer, M. D., &Reger, R. K. (2017).Celebrity and infamy?The consequences of
media narratives about organizational identity.Academy of Management Review, 42(3),
461-480. Retrieved from
https://media.terry.uga.edu/socrates/publications/2017/09/Celebrity_and_Infamy_AMR_
2017.pdf