Marketing Analysis and Strategies of Starbucks

This assignment delves into the marketing strategies of Starbucks, analyzing its market position, target audience, and competitive advantage. It examines the company's use of the marketing mix (product, price, promotion, and place) to create a unique brand image and appeal to customers. The document also explores how Starbucks' marketing efforts have contributed to its success in the global coffee market.

Understanding
Marketing and Events

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
Special events..............................................................................................................................1
TASK 2............................................................................................................................................2
SWOT analyses...........................................................................................................................2
TASK 3............................................................................................................................................3
Role of marketing mix.................................................................................................................3
TASK 4............................................................................................................................................4
Marketing strategy of Starbucks..................................................................................................4
Creating marketing strategy.........................................................................................................4
Monitoring and control................................................................................................................5
Other marketing strategies...........................................................................................................5
CONCLUSION................................................................................................................................5
REFERENCES................................................................................................................................7

INTRODUCTION
Marketing events are acting as a principal vehicle for brands which connects the
organisation with clients in direct way. Most of organisation are using event marketing concept
as a promotional strategy which involves face-to-face contact among customers and companies
(Nicholls, 2012). Present report is based on Starbucks which is largest beverages company is
world. The manager of this are trying to represent their coffee “second wave coffee” which itself
distinguish from other venues in terms of taste, quality or customer experience. The aim of this
company is to create culture warmth and belongings, where everyone is welcome and to deliver
best quality of services to their customers. In this, marketing strategies of company is discussed
along with this; role of marketing mix. Further, SWOT of company has been analysing with their
scope and impact on their competitors.
TASK 1
Special events
Special event is defined as any occasion where large number of people are brought
together to participate in activities or to watch. Events are helpful for organisation in making new
strategies or target new customers to beat their competitors in competitive market. There are
countless types of events which are demanded by customers on frequently basis and these are;
Conferences – These are considered as very popular and important business events. It is
responsibility of employee to conduct this conference where different types of people are
gathering together to discuss plans of organisation in order to increase the sale of company.
Seminars – This event can also be conducted by Starbucks to provide training to
employees and manager about their work. In today’s information-saturated marketplace, there
are many employees who are expected to gain new information quickly.
Meetings – This is a common event in business where board of directors are discussing
about their operational and financial strategies (Khoo and Engelhorn, 2011). In this group
discussion is done basically to achieve the aim of organisation.
Team building event – This event is used by leaders to motivate and encourage team in
order to work properly. These events are done for building a trust, relationship with employees,
increase productivity.
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TASK 2
SWOT analyses
SWOT analyse of Starbucks helps to organisation in identifying internal and externals
factors which are affecting their objectives. The manager has to set objectives after analysing
SWOT. This will allow organisation to achieve goals and objectives which are set for customers.
Through this they can find out that what strategies are adopting by their competitors to attract
customers (Haskova, 2015). Main scope of analysing this is that company came to know about
their position in market.
Figure 1: SWOT analyses
(Source: Starbucks Coffee Company, 2017)
Strengths
 It is famous brand visibility. It is
biggest coffee chain in world in terms
of stores also.
 Ambiance of coffee shop of Starbucks
is fantastic which also includes
premium appeals.
 Average sales per day of this company
Weaknesses
 Premium price and images may also
result in fewer target audience.
 The category of food item is very less.
 It is mainly depend upon its main key
outputs which is coffee beans and
determine profit on this basis.
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is $50,000 which is high as compared
with Café Coffee Day.
 Strong financial performance which is
resulting in occupying one spot among
beverages and coffee retailers.
Opportunities
 Having opportunity to expand their
supplier network to whom they are
sourcing their inputs.
 Company can expand products which
are offering to customers and retail
stores to capture large market share.
 Expand of brand name with offering
new products in different business line
with the use social media network.
Threats
 The company is facing threats from
rising in price of coffee beans which
also becomes risky in supply chain
management (Aminattaheri, Sorooshian
and Aghabakhshi, 2013).
 Facing intense competition from local
coffeehouse as there are many
competitors of their organisation Café
Coffee Day.
TASK 3
Role of marketing mix
Marketing mix of Starbucks are helpful for them in capturing large market share. The
mission of this company lies in Fair Trade and they have signed licensing agreement to purchase
coffee beans in ethical manner. Their aim is to provide customers more than one cup of coffee.
Marketing mix includes price, place, promotion, product.
Product – This company provides premium products to their customers which gives an
unforgettable experience to them (Davari and Strutton, 2014). Position of this company is
continuously innovating their products and deliver high quality of services to them. To maintain
momentum and satisfy customers, cited company has expanded categories in coffee and food.
Price – It is used to identify the value of products which are offer by organisation. The
company has to put best prices to their products because customers are buying best quality of
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coffee beans. Through this they can make sure that staff are trained efficiently and effectively.
The prices of coffee are not cheap.
Place – Cited company is using more than one channel of distribution in order to provide
best quality of coffee to customers. They are importing coffee beans from finest garden and
selling it under their own brand name. Moreover, they are having own supply chain throughout
the world.
Promotion – This company is not investing lot of money in advertisement instead of this
they are using funds in finding and acquiring new places for opening their outlets. Promotional
activities of Starbucks are printing information on mugs and tee shirts which are served by them
(Magnusson and et. al., 2013). Further, they are promoting their brand name through gift cards
which are giving to customers. This idea is not attracting their loyal customers but also inviting
new customers which helped them in free advertisement.
TASK 4
Marketing strategy of Starbucks
Marketing connects customers and company which also influence their consumption
habits. Organisation have to use latest technologies in making value addition and increase
revenue. Starbucks has adopted brand differentiation strategy through product uniqueness in
order to maintain strong position in market. This company has positioned itself in market by
providing attractive stores in designs, unique ambiance along with elegant taste and high quality
of coffee beans.
This company is differentiating their products which is firstly based on image and
secondly itself. While considering international markets, it would be difficult for company to
differentiate quality of products their alone (Bhattacharjee and Pallavi, 2012). Moreover,
advertising strategies which is used by organisation is also a key success factor. They are
advertising their products and services at local level rather than national. With the help of
advertising, they are targeting new customers who likes such these kind of coffee.
Creating marketing strategy
Segmentation – Market segmentation of Starbucks should be done on the basis of
geographic, demographic, psychographic and behavioural. The outlets of this company should be
opened in metro cities where they can attract large number of customers. Along with this;
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behaviour of employees should be loyal towards them and positive attitude should be there. In
demographic, manager have to target those customers who are between 22 to 60 age people
because they are liking to taste different kind of coffee beans (Afif, Hardiyanto and
SUWANDARI, 2016). In Psychographic, it segments market according lifestyle of customers
which influence on purchase behaviour of customers.
Targeting and positioning – They have to target those group of people who are coffee
lovers. Specially they have to target young people with the help of growth in new technology and
innovative ideas. The new idea will help them to target new customers who are belonging from
different countries. The market positioning of this company is not only describes primary
benefits but also the products which are offer by them. It will help to organisation in
differentiating their products from their competitors.
Monitoring and control
The plans which are made by manager also involves monitoring them on regular basis
which will ensure to meet management expectations. Manager has to take feedbacks from
customers which will help them to make more strong position in market. Along with this
manager have to carry out the evaluation plan to identify those areas where they can improve
their quality of services (Roy and Chau, 2011). Moreover, activities which are performing by
employees should be monitor in order to improve the skills of employees.
Other marketing strategies
There are lots of methods which are available in marketing and can be used by
organisation. But using of community events which is also a sound good and more beneficial to
administration. Local events include such as outdoor concerts, sidewalk sales, holiday markets
which can also be used by Starbucks. Running a business in competitive market requires
appropriate marketing strategies what kind of customers they are targeting and many more
(Naylor, 2017). These all should be analysing by organisation for conducting a small community
event.
CONCLUSION
It has been concluded from above report that events are playing essential role in
promoting the brand name of organisation. While conducting any kind of event, higher authority
can discuss about their targets and aims in group of member to achieve fruitful result. Further,
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analysing of SWOT will aid to organisation to identify their competitors and what strategies they
are adopting to target their own customers. Moreover, analysing of marketing mix will help to
organisation in targeting new customers. In addition to this, with the help of segmentation,
targeting and positioning Starbucks can make strong relation with customers and open their
outlets in different place to target new customers.
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REFERENCES
Books and journals
Afif, N. C., Hardiyanto, N. and SUWANDARI, L., 2016. The Influence of Market Strategy and
Marketing Mix Toward The Brand Image of Pertamax and The Implication Toward The
Consumer’s Decision Making of Purchasing Fuel in Jakarta. Siyaset, Ekonomi ve Yönetim
Araştırmaları Dergisi. 4(4).
Aminattaheri, H., Sorooshian, S. and Aghabakhshi, N., 2013. Marketing Plan: Starbucks Case
Analysis.
Bhattacharjee, S. and Pallavi, P., 2012. A Study of Anti-branding Antecedents with Special
Reference to Redbulls, Starbucks, Adbusters and Walmart. Global Journal of Research in
Management. 2(1). p.51.
Davari, A. and Strutton, D., 2014. Marketing mix strategies for closing the gap between green
consumers' pro-environmental beliefs and behaviors. Journal of Strategic
Marketing, 22(7). pp.563-586.
Haskova, K., 2015. Starbucks Marketing Analysis. CRIS-Bulletin of the Centre for Research and
Interdisciplinary Study. 2015(1). pp.11-29.
Khoo, S. and Engelhorn, R., 2011. Volunteer motivations at a national Special Olympics
event. Adapted Physical Activity Quarterly. 28(1). pp.27-39.
Magnusson, P., and et. al., 2013. The role of cultural intelligence in marketing adaptation and
export performance. Journal of Marketing Research. 21(4). pp.44-61.
Nicholls, J., 2012. Everyday, everywhere: alcohol marketing and social media—current
trends. Alcohol and Alcoholism. 47(4). pp.486-493.
Roy, R. and Chau, R., 2011. Consumer-based brand equity and status-seeking motivation for a
global versus local brand. Asia Pacific Journal of Marketing and Logistics. 23(3).
pp.270-284.
Wolfe Sr, M. J. and Crotts, J. C., 2011. Marketing mix modeling for the tourism industry: a best
practices approach. International Journal of Tourism Sciences. 11(1). pp.1-15.
Online
Naylor, T. J., 2017. Marketing Your Small Business at Local Community Events. [Online].
Available through: <https://www.allbusiness.com/marketing-your-small-business-at-
local-community-events-17611-1.html>. [Accessed on 19th July 2017].
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