Starbucks Marketing Strategy Analysis

This assignment requires an in-depth analysis of Starbucks' marketing strategy. You need to identify their target audience, examine the effectiveness of their campaigns, and discuss the social impact of their business practices. The analysis should also propose potential strategies for Starbucks' future growth and success.

Task 1 – analysis of marketing campaigns
1. I
1.Introduction...................................................................................................................................2
2.Analysis of the differences in campaigns across two different geographical markets - the
United Arab Emirates and the UK ..................................................................................................2
3.The evaluation of the success of the campaigns...........................................................................4
TASK 2 - Marketing Communications Plan ...................................................................................5
4.Introduction summary...................................................................................................................5
5.SOSTAC Framework:...................................................................................................................6
a)SMART Communications objectives......................................................................................8
b)Target market segments.........................................................................................................10
c)Communications strategy.......................................................................................................11
d)Media plan.............................................................................................................................11
A detailed media plan is reflecting the specified characteristics of the target audience.....11
e)Communication schedule, budget, and control......................................................................14
Gantt chart´s showing the schedule, costs, and key performance indicators of planned
marketing activity......................................................................................................................14
6.Conclusion..................................................................................................................................16
7.References .................................................................................................................................17

Task 1 – analysis of marketing campaigns
1. Introduction
Marketing communication refers to the way in which the organization will interact with the
customer body the different promotion and advertisement. As Starbucks has been expanding
their businesses in the United Arab Emirates and the United Kingdom which bofy the SMART
objectives (Belchand and et al., 2014). It is essential for Starbucks to set their target audience
for their culture, lifestyle, race, gender, and age so it will be easy to attract their customer. From
the Gantt chart of the Starbucks from their essential indicator performance and activity of the
schedule will be applied to the 6-month communication plan (Milovanovic and Ivanisevic 2014).
In addition to this, it can be said that the timing of the campaign with all the activities is to be
completed within six months. The activities will decide the total budget plan of the campaign,
and it is to be allocated as per the particular task.
Overviews of the organization: Starbucks is the world leading coffee organization and the chain
business of the coffee. Starbucks maintains its coffee’s taste and quality and its customer
experience by using its goods and services. It has 23,768 locations worldwide which provide all
the services according to their commitment.
2. Analysis of the differences in campaigns across two different geographical markets - the
United Arab Emirates and the UK
Starbucks has a brand personality that comes through in every communication. No matter
where you are in the world, the logo, storefront and store presence all have a familiar look and
feel. In each nation, Starbucks has the same Logo design and quality of their products, but they
use the different marketing campaigns (Joseph Ruiz. 2011). When it comes to marketing,
Starbucks has usually relied on word-of-mouth and social media to raise awareness about its
products. And in many markets, the sheer ubiquity of the brand’s logos and locations has kept
the need for paid advertising in print and especially on TV to a minimum.( Huffington Post)
Starbucks did not rely on traditional advertising to grow from its humble beginnings to the giant
it is today. The company has invested significant amounts into its social media presence and
values customer feedback across its online platforms. Starbucks has always favored WOM style
marketing over traditional advertising. (By Hensen19)
Comparison UAE vs. the UK:
Middle East – UAE Strategies Europe – UK Strategies
Objectives of the promotion :To aware
about the brand with better advertisement.
Television: Starbucks reduces its paid
advertising especially in TV to a minimum.
Objectives of the promotion: To maintain
the relation with stakeholders.
Television: A TV ad was launched in the
U.K. 2012 may signal a shift in Starbucks'
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No TV ads were existing for the UAE and the
Middle East markets.
Social media: Starbucks Extended its social
Media presence through Starbucks Middle
East Facebook and Instagram pages. As
these are the most critical communication
tools for Starbucks’ to keep its relationship
with the public.
Promotion: As they had used the radio to
target the local UAE customer with their
promotion offer and jingle to recognize
about the brands.
Sales promotion will be more aggressive in
the domestic region of UAE which will help
to increase the revenue from this market.
Internet: In fact, the Customer is aware of
the new products and discount offer by the
organization, and it can be informed
through the mail in which the customer
meet can be possible. It can be done when
the customer had given their identity by
mail. Starbucks’ use of email is less
influential on customers (Järvinen, Töllmen
and Karjaluoto, 2015).
Public Relation: Starbucks Middle East UAE
shows how effective marketing supports
brand development and business growth.
marketing priorities. The ad was part of a
huge advertising push in Europe, the
Middle East, and Africa. It’s not the first
time Starbucks has aired TV commercials.
Back in 2007, the coffee chain debuted
its first national TV campaign in the U.S.,
part of a big to revive lagging sales
(huffingtonpost.com, 2012).
Event sponsorship by the Starbucks to
attract more Target customer in the UK.
Social Media: Starbucks UK Facebook site
is well established with a fan base of
more than 450,000. Globally, Starbucks
has over 30 million Facebook fans,
making it one of the most successful
brands in social media.
Promotion: Storytelling is the key to the
Starbucks culture in the UK. The success
of the company’s communication
strategy is rooted in its partners‟ passion
for and involvement in its innovative
product and experience.
Public Relation: Starbucks UK shows how
effective marketing supports brand
development and business growth.
Starbucks has also changed its marketing
mix over time, reinforcing the need for
the business to evolve and maintain
competitiveness.
The timing of campaigning: For every organization, it is vital to campaign to influence the
customer by six months.
Total cost of the campaign: the overall cost incurred 180.000 AED Dirham
3. The evaluation of the success of the campaigns
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Marketing
Instrumen
t
Local Market UAE UK
Advertise
ment
Starbucks spends 3% of revenue on ads for Advertisement. But
spends more on ensuring customer satisfaction to increase word of
mouth. Personal Selling Public Relations Sales Promotions
Passionate employees, customer satisfaction. Events, public
performances, green initiatives philanthropic endeavors. Store
decoration, viral videos, sample vans, billboards, newspaper,
magazines and social media. The way Starbucks is advertising to
attract customers is satisfactory to visit the outlet from the reviews
of customers on Starbucks’ social media, which shows that
Starbucks has a strong connection with the customer (Parente and
Strausbaugh, 2014).
While in
the UK
Starbucks
had done
a
tremendo
us
presenter
of the
advertise
ment with
4%
income on
the
promotion
which
help to
gives
better
outcomes
in the
firm.
Social
Media
Social media: Starbucks Extended ist social Media presence
through Starbucks Middle East Facebook and Instagram pages.
Growth is mainly due to the emergence of a new generation, born
between 1977 and 1997 and representing 40% of the MENA
population, which is extremely active online and in social networks
(Booz & Company, 2012). Most active Facebook users reside in
Egypt, Saudi Arabia, Morocco. Algeria, UAE, etc. Arab Spring” and
the recent societal and political transformations have further
empowered large segments of the MENA populous to be active on
the Social Media and become “netizens” (Mourtada & Salem,
2012). Number of Facebook Users in Arab Region (Source:
www.arabsocialmediareport.com)
UK
Starbucks
has impact
the huge
presence
on the
social
media to
target all
the types
of
customer
as per the
region.
Internet Starbucks now uses the Starbucks App to allow customers to place UK
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App: their orders. This part of Starbucks’ marketing mix shows how the
firm adapts to changing technologies (Richard D. Pace. 2015).
Starbucks in general and specially UAE is leading the way in the
mobile experience, which makes complete sense when you
consider their product. At a basic level, you can view their content
from a smartphone. Email communications are optimized for the
mobile experience, so it's easy to consume the information while
you're on the go. The Starbucks app is one of the more powerful
features in their marketing arsenal. Once the app is downloaded,
one can use the phone to pay for products, reload funds on a card,
and find stores.
Starbucks
has also
utilize the
better
applicatio
n through
the major
online
order
tracking
by their
operation
team. As
the
Starbucks
get its
36%
online
sales all
over the
nation.
TASK 2 - Marketing Communications Plan
4. Introduction summary
The Starbucks marketing communication plan will help stabilize the bends and identify the need
for the organization with different strategies adopted by them. To better determine Starbucks'
situation in the specialty coffee industry, it is important to look qualitatively and quantitatively
at its current Marketing Communication Strategy. An analysis of the company's strengths,
weaknesses, opportunities, and threats, SWOT analysis, and a strategic issues analysis will break
down its strategy and provide positive and negative feedback on the company as a whole
(Lauren Roby, 2011).
Starbucks is currently one of the top contenders in the coffee industry.
Various innovative Starbucks products:
 Starbucks Refreshers
 Espresso beverages
 Non-coffee blended beverages
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 •Smoothies
(Bevnet.com, 2017)
5. SOSTAC Framework:
SOSTAC is a widely used tool for marketing and business planning developed by PR Smith in the
1990's. It is an acronym and stands for Situation, Objectives, Strategy, Tactics, Actions, Control.
(Digitalmarketingvtos.wordpress.com, 2017)
As per the view of Pr. Smith, this framework is beneficial to have expert marketing planning
which is used to implement the market communication plan for the business enterprise. To
make this all process in the efficient manner the firm selected to adopt the framework of
SOSTAC as the communication planning. To this, they need to develop the six-month market
communication plan in the following manner are as:
SOSTAC Acronym for the six essential elements of the Marketing Plan:
 Situation Where are we now?
 Objectives Where do we want to get to?
 Strategy How are we going to get there? – The Big Picture
 Tactics How are we going to get there? – The Detail
 Actions Who is going to do what and when?
 Control How can we control, measure and develop the process?
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Situation analysis: In this, the company needs to adopt the current market position in the
market. With the help of SWOT, they can make identification of the current status, and there is
the understanding of the strength, weakness, opportunities, and threats to develop the market
communication plan.
SWOT analysis of Starbucks:
Strength:
 They are providing premium product to the customers which attracts high customer
base.
 The firm is taking steps to provide sufficient training facility to the customers.
 They have regular expansion of the company from the amount in which they derive
longer profitability.
 The intangible strengths of Starbucks include its top of the mind recall among consumers
and by virtue of its brand, which symbolizes excellence, and quality at an affordable rate,
the company enjoys a dominant position in the worldwide market for coffee and
beverages.
Weakness:
 The product is at a very high rate.
 There is one of the lacking points concerning the unique products in the market.
 The company must immediately diversify its product range if it has to compete with full
spectrum competitors like McDonald’s and Burger King in the breakfast segment which
is rapidly growing as a consequence of compressed schedules of consumers who would
like to grab a bite and drink something instead of making it at home.
Opportunities:
 This is the multinational coffee chain they should take an active step to have more global
expansion.
 They should take innovation process so that number of the customer can get attracted
towards it.
 Starbucks also has the opportunity to expand its product offerings to take on the full
spectrum food and beverage retailers like McDonald’s and Burger King as the consumer
segment which these retailers target is expanding leading to more business
opportunities for Starbucks to take advantage of.
Threats:
 In the market, there is a lot of competition within the big firms.
 This enterprise is having prone to feel the effects of rises in the coffee, tea, etc.
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 Finally, as mentioned earlier, Starbucks faces significant challenges because of its global
supply chain and is subject to disruptions in the supply chain because of any reason
related to either global or local conditions.
6. SMART Communications objectives
This is the second step which is related to the identification of the objectives of the
Starbucks enterprise. This firm has following vision, mission, and corporate objectives to
have the increment in the growth and success of the company.
Vision:
 Portfolio- with the help of the portfolio they can provide quality products and
satisfy the need and desire of the people.
 Partners- with the help of functional networks they can frame effective
strategies.
 Profit- the primary motive of this firm is to the maximisation of profit mainly.
 Productivity- with the help of this they can be highly efficient and fast-moving
organization.
The Mission is defined in the following manner are as:
 To provide the quality product to have sustainable growth in the market.
 To refresh the people with the unique products.
 To inspire the moments of the optimism and happiness.
Corporate objectives:
With the help of the vision, mission, and values road map of the Starbucks enterprise
which is very helpful to achieve the set target and goals.
There are the following suitable communication objectives are as:
 To have an increment in the brand awareness by the 10% in the next six months.
 To rise in the attitude of the firm by the 10% in next two months.
 The increment in the advertising cost by the 20% in the next six months.
The above SMART objectives of the organization can be fulfilled in the one month to
achieve the organizational objectives are the main aim of the Starbucks. As the set
objectives as the increasing the brand aware will be the most important aspect for the
Starbucks to get the higher sales in the next six month. While the Rise in the attitude of
the organization in the next two month will give benefit to cover the market share on the
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basis of Starbucks customer will bring the trust on their services. Also it will help to get
the competitive advantages with the right attitude of the organization. At the end
increasing in the advertisement cost by the the 20% in the next six month will help to
bring the various promotional activity to get the higher volume of customer attraction
raise the profits of the firm.
7. Target market segments
For every organization, it is essential to target market segments according to
demographic, geographic and psycho-graphic.
Demographic: It is the best way to identify the target market segmentation through age
and gender of the customer can be helpful for the organizations to meet the customer
needs can be easily targeted. As the age can bring the clearer idea to whom Starbucks
have been targeted customer which can be the youth (Keegan and Green2015). The
culture will also help to segment target market in which the values and ethics of people
to build better relationship have to considered by Starbucks.
Geographic segmentation: For the target market segmented the geographic location
can be the dominant role in attracting the customer. The size of the population will
affect the availability of goods and service to that area will helpful for the Starbucks to
target their market. That’s why the outlet of the Starbucks is available at the premium
location. Also, the culture of the customer will be an influence on the target market
such as in the diverse culture available in the location will be either benefited or not
which is depends on Starbucks’ different techniques that are used to attract the
customer.
Psychographic: For the Starbucks, it is the better way to target the market
segmentation according to the psychographic condition of the customer which can be
included the lifestyles. As the change in the lifestyle of the customer is also the primary
role played in the promotion and advertised for the organization which has the better
way to deal with the diverse types the customer needs.
Through this analysis, it can be said that Starbucks’ primary target market is men and
women aged 25 to 40. They account for almost half (49 percent) of its total business.
Starbucks’ appeal to this consumer age group through hip, contemporary design that is
consistent in its advertising and decor, and working to keep its products current as
status symbols. Customers tend to be urbanites with relatively high income,
professional careers and a focus on social welfare. This target audience grows at a rate
of 3 percent (Renee O'Farrell. 2014).
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8. Communications strategy
In this, the market communication portfolio is the very helpful to determine the various
kind of the combined areas advertising, personal, sales, promotions and public relation.
There all are defined the following manner are as:
Pull strategy: With the help of this kind of approach, there can be an increment in the
gathering the attraction of the customers. This is very useful for the mass marketing
firm like Starbucks. With the help of the product differentiation, they can attract the
number of the customers.
Push strategy: With the help of the active promotion strategy, the product can directly
offer to the customers.
Starbucks can develop a push strategy in the following manner:
With the help of an increment in the supply chain of the firm. Decrease the product
price and the distributor's cost - this is a direct marketing concept.
9. Media plan
A detailed media plan is reflecting the specified characteristics of the target
audience.
The media plans have the objectives to bring all the parameter regarding the target
audience that can be the youth customer of the organization. As the Starbucks have the
media plan to promote the products according to the target audience. This is very
effective to encourage and send the message to the target audience. With the help of
this, they can enhance their profitability and the productivity. There is the proper
communication mix to achieve set targets.
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Media Plan:
(Rosaria Cain, 2017)
Starbucks can use the following methods:
 Banner- With the help of a good banner they can start the campaign. The banner
advertisement is needed to be done with the public transport so that all can become
aware of that.
 Promotional promotions: In this, there are two kinds of the methods can be used as-
firstly manufacture dealer and second for manufacture to the customer.
 Online promotion: With the help of the online advertising, updates on the brand, prices
and new promotions methods are available through the website. This promotion is not
only based on the product itself but also on the image based on the brands.
 Joint ventures: The primary target audience for this kind of firm is young people because
they always use to connect with social media. This is the easiest way to promote the
brand in the market. This is very cost effective and time-consuming process.
Elements of Marketing Communication mix which could be considered as well:
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(2012books.lardbucket.org, 2017)
The marketing communications mix consist of some combination of the following
significant modes of communication: advertising, sales promotion, events and experiences,
public relations (PR) and publicity, direct marketing, interactive marketing, word-of-mouth
communication, and personal selling (Philip Kotler and David Lane Keller, 2009).
10. Communication schedule, budget, and control
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Gantt chart´s showing the schedule, costs, and key performance indicators of planned
marketing activity.
Activity Scheduled Cost (In
Pound)
Key Performance
Indicators
Channel
A 2.5 Month 82000 SMART Objectives Advertisement
B 1 Month 25400 target market segments Sales Promotion
C 1 Month 32000 Marketing
communications strategy
Digital Marketing
D 1.5 Month 32500 Media plan Digital Marketing
Key Performance Indicators Channel
SMART Objectives Advertisement and high promotional through
the social media campaign will be help full to
increase the customer attraction towards the
organization.
target market segments Sales Promotion: From the target market
segmentation will help to increase their sales
by Target various customer.
Marketing communications strategy Digital Marketing: Starbucks will communicate
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to the customer by digital marketing through
Facebook ad other social media campaign.
Media plan Digital Marketing: these can be the key
indication performance of the firm in will
focus to cover the market on with effective
media plan as per the digital marketing
promotional activity.
From the above Gantt chart´s it can be easily seen that 6-month communication plans in
which the activity A is the most important for the Starbucks which can be the critical
performance by SMART objectives which can be completed around in the 2.5 months.
On the other hand, it will be better implementations of the activity B which can be the
target market segment and the customer will attract according to the demographic and
geographic which must be completed in the one month. As the organization needs to
plan which location is better for them. It is more the better organization with the media
plan which had to complete in the 1.5 months, and it is the activity B manage the
Starbucks on time. The most important aspect is the activity c to bring the different
marketing communication with the help of promotion and advertisement of the
organizations which is completed in the one month to set better sales for the
organization (Van Dam, K.H., van der Sanden 2014).
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11. Conclusion
To be successful in its international growth and expansion strategy, Starbucks needs to
have a healthy innovation mindset and the ability to customize its product offer and positioning
of its stores locally. The brand has taken rapid strides towards implementing an organizational-
wide innovation strategy by investing in recent technology, redesigning store layouts and
investing in new concept stores. From the report marketing communication, it is concluded
that Starbucks had expanded their business in two-different locations; one is in the United Arab
Emirates and other in London. With the various methods of the marketing communication such
as 4ps that can be the products price, place and promotion will help to attract the customer
more to target audiences. The company, without doubt, is a successful global marketer with
considerable experience in entering and establishing themselves in new markets. From the
media plan, it is essential for the organization to have better brands recognition and set the
target audience for the value and ethics, the lifestyle of the customer. As they are the better
way to recognize the logo of the Starbucks. Last but not the least, it needs to evolve and
elevate the customer experience of drinking coffee in its stores continuously. So, a brand
experience that is superlative today may just become a regular one tomorrow. Starbucks must
stay on top of this curve to be continuously competitive and differentiated in the eyes of the
customer (Martin Roll, 2017).
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12. References
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Martin Roll. 2017. The Secret to Starbucks’ Brand Success. [online] Available at
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