Marketing Strategies for Starbucks Success

This assignment analyzes the effectiveness of various marketing strategies for Starbucks. It emphasizes the need for innovative approaches to target new customer segments. The document delves into a detailed marketing mix analysis, including a SWOT assessment, and proposes strategies for organizing successful marketing events. It concludes by highlighting the importance of adapting marketing strategies for sustained success in a competitive market.

Understanding Marketing
and Events

Table of Contents
INTRODUCTION...........................................................................................................................1
1. Definition and classification of special events........................................................................1
2. SWOT Analysis......................................................................................................................2
3 (a) Marketing mix of Starbucks...............................................................................................2
(b) Marketing strategies and resources that Starbucks would use..............................................3
CONCLUSION................................................................................................................................4
REFERENCES................................................................................................................................6

INTRODUCTION
Needs and wants of customers regarding their experience with various products plays a
major role in developing business. Marketing totally relates to functioning of company in
accordance with customers’ needs and wants which is further used for boosting the sales so as to
earn revenue. Merchandising and its events include using various promotional techniques in
order to reach at the goals of company which are being set. Starbucks is a well-known beverage
organisation which is operating in 50 countries around the globe. This project is a complete study
for understanding marketing and its events with regard to Starbucks.
1. Definition and classification of special events
Definition
Special events are marketing techniques which include bringing together a large number
of audience so as to convey plenty of information at the same time (Armstrong and et. al., 2015).
In other words, they are the events which are organised to gather people in order to convey them
substantial information regarding products of company which it is launching or going to launch
in the coming future.
Classification
It relates to diversification of events in sub categories according to their organisation and
the purpose for which they are formed. Marketing events are divided into various categories and
they are listed as follows:
Corporate Events
They are basically organised to market their services to a wide range of people through
organising an event. They are done to boost the sales and earn more profit by selling products in
market. They are majorly related to business and corporation with an aim which is being set that
has to be obtained as a result of these events.
Glamour Events
They are the marketing events which consist of merchandising through ceremonies,
weddings etc. There are many traditional and cultural activities involved in this kind of event (De
Mooij, 2013). Further, there is an involvement of rituals and they are often organised at the time
of festivals. For example- Glastonbury Festival which includes music, circus and comedy among
other activities.
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2. SWOT Analysis
SWOT analysis of Starbucks:
Strengths
 Quality in service and products
 Good brand image
 Employee treatment is good Efficient and consist of reinvestment
strategy
Weaknesses
 Pricing is very high
 Lack in unique products
 Diversification of products is low
 Limited to food and coffee only
Opportunities
 International expansion
 New products with innovation can be
introduced Enhancement in co-branding
Threats
 Competitors who sell cheaper products
 It is working for a specific market
 Huge challenge of pricing technique
It can be assessed from the internal analysis of Starbucks that company is having high
scope in the market and there are major impacts of external threats and opportunities which
company can get (Geereddy, 2013). Company with its strengths can expand its business further
keeping in mind its weaknesses in order to improve its share in market and penetrate in people's
mind who are not connected to its products. Further, the threats from competitors is majorly with
regard to the pricing policies which may put a direct impact on a large scale as they have very
low prices in comparison to others operating in same market. So, Starbucks can also diversify its
business in a new range which is cheaper in cost. Marketing strategy of competitors is more
related to promotional events like McDonald uses television advertising in many countries and
Starbucks do not use any such kind of technique (Wymer, 2011s). Also there are events like
birthday parties which are highly conducted by people at McDonald which can be adopted by
Starbucks as well in order to organise glamour events.
3 (a) Marketing mix of Starbucks
Starbucks is the largest coffee brand with a well-established business across globe. It has
spread its business in a very good manner which is developing more and more day by day. Main
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aim of Starbucks is to provide more than just a cup of coffee with offering high quality and a
good experience.
Product
The positioning of products of Starbucks is done in such a way that it provides high
quality coffee with an unforgettable experience. Also, they have launched some food categories
which people can take with their coffee (Ottman, 2011). Company has made a complete
scrutinizing of coffee and its production before establishing its business. It has been making
many innovations in its coffee since years ago by adding more flavours so as to offer a wide
range of products to target market.
Price
Pricing of product is very high in Starbucks as compared to other brands and competitors
as they offer very high value products to its customers. Best quality of coffee beans are used in
the preparation of beverages. This is being reflected in their price that a Starbucks coffee is not
cheap as it offers a wonderful experience (Roby, 2011). It works on a simple formula that it
targets customers who want premium products and they would not mind paying more.
Place
Direct supply chain by its stores are used by Starbucks in order to build relationship with
its consumers. Training to staff is provided in order to give its customers a valuable experience.
They also have some agreements with hotels, airlines and office coffee suppliers to cater a large
market.
Promotion
Advertising is something which is not very much considered by Starbucks as compared
to its competitor, McDonald. It rather invests in acquiring and finding the best places for its
outlets. Printing information is majorly used by it in the form of tees and mugs. They are also
coming up with smart partnership for promoting their products.
(b) Marketing strategies and resources that Starbucks would use
Segmentation
This a technique by which the population in the universe is divided into parts by
specifying them into sub categories (Ryan, 2016). Starbucks can divide the whole lot of
population in categories according to which it can decide what kind of product is popular in
which section of population. According to the data it can produce a strategy to target the market
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and produce a product according to that. In this company will require information and
communication technology to gather and collect data in order to analyse them.
Targeting and Positioning
Starbucks have to make appropriate strategies in order to target and position in market
and mind of people. Targeting relates to approaching a segment of population in order to sell
products and services of company (Tu, Wang, and Chang, 2012). Positioning relates to
developing an image of the company in the mindset of people as well as building a brand image
of the organisation in market. This can be initiated by various techniques like- producing
products according to demand, pricing policy etc. for this company need to acquire suitable raw
material for producing product to sell in market.
Risk Management
This is management of consequences which might rise in the lifetime of a company's
operations. Before any strategy of marketing is launched by Starbucks it need to identify the
market by doing a research about scope of doing business in it on short as well as long term
basis. After that using appropriate measures company can launch its marketing strategy which
will have least chances with a back up plan to fail.
In regards to organise a small community event the strategy for Starbucks would be that
it needs to tie up with some hotel or an event organiser (Wang and Pizam, 2011). This would
help it to attain an entrance in the event which is going to be held. The small community event
would be organised at a hotel as well as Starbucks would serve its coffee and beverages to the
people who are present there. This will help in marketing its product simultaneously with an
event which is going on. Hence, the company will successfully achieve its marketing strategy
through targeting the proper community event in accordance to its products and services. This
will help Starbucks to make more people aware about its products and services who are present
there in community event at its partner hotel which is organising it.
Hence my strategy for the small community event would be analysing the type of people
coming in it (Wolfe Sr and Crotts, 2011). Accordingly targeting them with the appropriate
product with ascertainment of risk of successfulness of the whole strategy.
CONCLUSION
It have been concluded by the above report that there is a huge need for marketing by
various kind of strategies in order to bring innovation in the same course of action. Starbucks is
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well known company which have to target many kind of more customers who are not jointed
with company so as to obtain success and positioning in market. The organisation of events for
marketing the product of organisation have been a result of this report. Strategy for marketing
event have also been included in the above document which will help a business firm to obtain
success through its operations. Marketing mix of company have also been given in the above
report to know its functioning in the market where it is situated. Also an inclusion of SWOT
analysis for the formation of merchandising strategies have also been justified.
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REFERENCES
Books and Journals
Armstrong and et. al., 2015. Marketing: an introduction. Pearson Education.
De Mooij, M., 2013. Global marketing and advertising: Understanding cultural paradoxes. Sage
Publications.
Geereddy, N., 2013. Strategic analysis of Starbucks corporation. Harward [Електронний
ресурс].–Режим доступу: http://scholar. harvard.
edu/files/nithingeereddy/files/starbucks_ case_analysis. Pdf.
Ottman, J., 2011. The new rules of green marketing: Strategies, tools, and inspiration for
sustainable branding. Berrett-Koehler Publishers.
Roby, L.R., 2011. An Analysis of Starbucks as a Company and an International Business.
Ryan, D., 2016. Understanding digital marketing: marketing strategies for engaging the digital
generation. Kogan Page Publishers.
Tu, Y.T., Wang, C.M. and Chang, H.C., 2012. Corporate brand image and customer satisfaction
on loyalty: An empirical study of Starbucks coffee in Taiwan. Journal of Social and
Development Sciences. 3(1). pp.24-32.
Wang, Y. and Pizam, A. eds., 2011. Destination marketing and management: Theories and
applications. Cabi.
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.
Wymer, W., 2011. Developing more effective social marketing strategies. Journal of Social
Marketing. 1(1). pp.17-31.
Online
Marketing mix of Starbucks, 2016. [Online]. Available through:
<http://www.marketing91.com/marketing-mix-of-starbucks/>. [Accessed on: 4th August
2017 ].
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