Marketing Essentials Report: Starbucks Corporation Marketing Analysis

This report provides a comprehensive analysis of the marketing essentials within Starbucks Corporation. It begins by outlining the key roles and responsibilities of the marketing function, emphasizing market analysis, market segmentation, and pricing strategies. The report then explores the interrelationship between the marketing function and other organizational units, such as human resources, production, research and development, and finance, highlighting the importance of coordination for achieving business objectives. Furthermore, the report includes a comparative analysis of the marketing mix (7Ps) of Starbucks and Costa Coffee, evaluating their product offerings, pricing strategies, and overall marketing approaches. Finally, the report presents an evaluation of a basic marketing plan for Starbucks, offering insights into its objectives and vision. The report aims to provide a detailed understanding of Starbucks' marketing practices and their impact on its business performance.

Marketing Esentials

Table of Contents
INTRODUCTION...........................................................................................................................3
LO 1.................................................................................................................................................3
Key roles and responsibilities of the marketing function............................................................3
Interrelationship of roles and responsibilities of marketing function with other functions of
organization..................................................................................................................................6
Comparison of marketing mix of two organizations...................................................................7
Basic Marketing plan for organization......................................................................................11
CONCLUSION..............................................................................................................................15
REFERENCES..............................................................................................................................16

INTRODUCTION
Marketing essentials comprises all those activities that are related to the marketing
function of the organization that helps the company to generate the product sales revenue
through promotion and distribution activities. This report is based on Starbucks Corporation Plc,
which is an American Coffee company and coffee-house chain in Washington, U.S. Starbucks
serves different types of coffee and tea products and beverages along with bakery products like
cakes and pastries. The company has 28,218 locations and serves its products worldwide.
Starbucks has the revenue of US$ 24.71 billion and consists of 2,91,000 of the total employees
working for it. This report will highlight the key roles and responsibilities of marketing function
of the company. The report will include the interrelationship of marketing function with other
functional units in the organization. The report will also include the comparison of marketing
mix of two different organizations and analyse how it helps them in accomplishing business
objectives. The report will also include the evaluation of basic marketing plan for the
organization.
LO 1
Key roles and responsibilities of the marketing function
Marketing- Marketing is a process of influencing the customer through different activities and
ideas of promotion in order to make them buy a particular product. Marketing involves activities
such as promotion, advertising, selling and distribution of products as well as make them
available to consumers(Muller, 2019). It is a technique that involves activities to initiate
customer satisfaction and building relationships with them.
Importance of marketing for Starbucks- Starbucks is a prime coffee-shop located in the
different countries in the world consisting of its 28,218 locations all over. It is mainly famous for
its dark roasted coffee along with the taste, customer preference and experience, quality and
mainly the company is considered as “second wave coffee”. I order to maintain the revenue and
expand its customer base Starbucks needs and effective marketing department in its organization.
Marketing has promoted Starbucks brand and enhanced its sales all over the world and had
helped the company top build strong customer relationships by presenting them their demands
and preferences(Malhotra, 2015). Marketing has turned out to be the biggest source of revenue
generation for Starbucks as it operates in different economies and culture across the world.

Marketing has enabled the company to generate revenue of US$ 24.71 billion along with net
income of US$ 4.51 billion, comprising its total assets of US$ 24.15 billion. The marketing of
Starbucks has led the company to deliver its products and services in different countries as well
as survive in cross-cultural markets in the world. Hence, it can be said that marketing function
has highly facilitated the growth of revenues for Starbucks.
Marketing functions and its roles and responsibilities in Starbucks Plc-
Market analysis- Market analysis is used for notifying the current trend and the dynamics
of the market to the company so that it can plan out and frame its marketing strategies as per
these conditions for best outcomes. Starbucks operates in more than 70 countries across the
world and has to operate as per the different cultural dimensions of these countries. Market
analysis helps Starbucks to determine the factors such as Market size, Growth of the market,
Revenues to be generated, trends, Preferences of customers, Target areas, profitability of the
company, return on invest etc(Larson and Draper, 2015). It helps Starbucks to determine all
these factors and helps to frame strategies and objectives to overcome them on the basis of
current position of the company. The following are the different roles of this function for
Starbucks-
 To initiate the market research and identify the areas of operations in the market.

 To determine the needs, demands and preferences of customers in the market.
 To determine and collect the information related to customer's perception for Starbucks,
their purchasing power, tastes and choices for coffee.
 To estimate the market growth rate and forecast the profitability for the company in a
particular market.
 To identify the current position and stand of the company in the market.
 To evaluate the proportions and success estimates for the new product launch in the
market by Starbucks.
 To analyse the economic factors that includes inflation rate, currency exchange rates,
taxation rates for the company's operation in a particular country market.
Market Segmentation- Market segmentation is a process related to the diversification of market
on the basis of customers. Starbucks consists of 28,218 locations of coffee shops across the
world. Hence, in order to satisfy each and every customer at all places is quite difficult for the
company thus it divides the market into different segments of the customer. Segmentation is
done on the basis of psychographic segmentation that includes interests, perception, culture and
lifestyle of people, behaviouristic segmentation that includes the customer loyalty towards the
brand and the other one includes geographic segmentation that consists division on the basis of
different areas in the market(Pike, 2015). The following roles presented relates the segmentation
function of Starbucks marketing unit-
 To identify groups of people on the basis of their age and gender.
 To understand the culture and preferences of the people in the market.
 To identify the customers demand and to find out what products will be allocated in that
market to satisfy and influence them.
 To make decision regarding the market segmentation by company on particular basis.
 To determine the attitudes of the people related to their coffee choices and Starbucks.
Pricing- Pricing is the important element in the marketing function as the prices of the
products determine their value and profitability for Starbucks. Starbucks influence its customers
by providing the best quality and taste for its products at reasonable prices which can attract the
customers to buy the products. Prices of Starbucks products is mostly higher as due to its
exceptional quality and brand in the market(Hunt,2018). Prices turn out to be source of revenue
for the company as well as determines its profitability. Starbucks follows the premium prices for

its products due to high technology and the varieties it offers with the best customer experience.
However, the company also provides the low cost range of products in its few outlets to satisfy
the need of the customers that are not attracted by higher prices. Hence, it can be said that the
company follows the competitive pricing as well as relative pricing strategy to influence its
customers. The following are the roles of pricing function of marketing in Starbucks-
 To determine the prices of products considering the cost of production, profitability and
all other indirect cost incurred by the company.
 To calculate the cost of production comprising all the direct expenses as well as find out
total cost by adding up all the indirect cost, advertisement cost, promotion expenses etc.
 To study the competitor's p[rices and to frame the product price on its basis.
 To determine the price segment which will act more profitable for Starbucks products in
the market.
 Responsible for the price structure and price strategy of the organization.
Interrelationship of roles and responsibilities of marketing function with other functions of
organization
Marketing function play vital role in Starbucks and through this they create relationship with the
satisfying customers. This function of Starbucks understand to needs and wants of customers and

provide beverage, tea and other drinks according to choice and needs and of them. Marketing has
interrelation with other organizational function.
Marketing with human resource :-
Marketing function has relation with human resource because they do advertisement
about vacant position and helps in attract to skilled and efficient employees for Starbucks. So
skilled and knowledgeable employees always increase sales of coffee (Atwal and Williams,
2017). Human resource also interrelate with marketing because it recruits high educated and
skilled d candidates for make effective marketing. It is important for this interrelationship in
order to get the best marketing personnel from HR functions and initiate the further marketing
activities.
Marketing with production :-
It has interrelationship with production function because marketing function of Starbucks
understand needs and wants of customers through research and development time to time and
provide data about users of coffee, tea and other beverages. Marketing of Starbucks also provide
attractive advertisement in market to increasing sales. It also analyses competitors products and
provide information to production function, so they produce products according to needs and
wants. They also change to products to attract customers and increase sales of organization.
Interrelationship between operations and marketing is important to manage the demand and
supply of the products in the market along with the quality and preferences.
Marketing with research and development :-
Research and development is very important function of Starbucks and marketing closely
interrelate with this function because day by day technologies and innovations increasing so it
researches to market about the latest technology. Starbucks get helps through technologies
because through innovations' production department produce more products with less cost. This
helps to increase sales and profit (Katsikeas, 2016). Research also provide helps to evaluate
marketing condition and competition. So production process improve and develop through latest
technologies and customers attract. It is important for the interrelationship between marketing
and research department to be aware regarding the current trends in market and accordingly
initiate the marketing activities.
Marketing with finance :-

Finance function of Starbucks interrelate with marketing function because marketing
increase sales and profit through promotion of coffee tea and beverages and provide satisfaction
to customers. These things help in increase capital of finance department and this department
also very essential for marketing because it provides capital and funds to all functions for run
business. Marketing get funds from finance department for advertisement, promotions and
provide offer to customers and this thing helps to increase sales and profit. Marketing makes
good image and reputation in market so finance function take loan easily and investors attract. It
is important to maintain interrelationship between marketing and finance for fulfilling the
financial requirements of the marketing team to conduct its activities.

Significance of interrelation between marketing and other functions :-
In Starbucks organization interrelationship of marketing and other functions is important
because they can not operate business without each other. Through interrelationship, they put
focus on research of market and understand needs choice and wants of customers about coffee,
tea and beverages so this thing helps in provide satisfaction and increase sales and profit.
Production function also produce products according to gather informations through marketing.
So these interrelation helps to making decision in an organization (Erevelles, Fukawa and
Swayne, 2016). Without coordination no one can operate business of Starbucks. Through
interrelationship profit and sales increase, customers attract and increase reputation and image in
market.
Comparison of marketing mix of two organizations
Marketing Mix
(7Ps)
Starbucks Costa
Objectives and
Vision
“To inspire and nurture the human
spirit- one person, one cup and one
neighbourhood at a time”
“To save the world from Mediocre
Coffee”
Product Starbucks has remarkable experience
in the variety of its product dealings.
The main speciality product of
Starbucks Is coffee but the company
deals in other varieties as well.
Starbucks provides whole-bean coffee,
hot and cold drinks, pastries, espresso,
tea products, fresh juices, chips, hot
and cold sandwiches, pre-packaged
food items, ice cream coffee and even
wine and beer. It can be observed that
along with coffee products, Starbucks
also items of drink-ware such as mugs
Costa coffee is the most popular
among the coffee chain outlets ion
the world. The company offers a lot
of varieties and flavours in coffee.
Most popular products are
Cappuccino, Latte, Flat white,
Americano, Mocha Expresso etc. It
also offers ice blended products such
as coffee cream, Mocha cream
Frostino, Lemonade etc. Costa coffee
also sells its products ton business
such as it sells vending machines to
corporate offices and colleges under

and tumblers which make the company
dealings in quite huge product line.
its name of Costa express. However
the main aim of the company is to
influence its customers through its
main product coffee.
Price Starbucks adopts the premium pricing
strategy for its products as it deliver
exceptional quality that creates the
best customer experience. In order to
maintain the competition Starbucks
also have introduced its low cost
products for the customers that are not
attracted with the high prices. This
makes the Starbucks adopt competitor
pricing as well as relatable pricing
strategy for its business(Hugos, 2018).
Costa initiates diverse price offering
in its price marketing mix, even after
being influenced by its competitors
the prices are a bit of premium. The
prices are charged at premium due to
the high brand value and quality. The
company believes that the price is the
secondary option for the customer
and focusses on delivering the good
quality products. The prices of the
products are directly proportional to
its quality. The vending machine sold
by costa has competitive prices in
relation to its competitors like
Starbucks, cafe coffee day etc. The
prices also varies on extra varieties
added such as extra chocolate, cream
etc. This describes the price mix of
Costa Coffee.
Place Starbucks operates in more than 70
countries and along with the continents
of Africa, North America, South
America, Asia and Europe. The
company has maximum outlets in
USA and also have a well-designed
website that contains the information
Costa company operates in 3300
outlets across 31 countries in the
world. The company has more than
2100 coffee shops in UK itself and
remaining 1200 outlets across the
world. The outlets are mainly found
in shopping malls, airports etc. due to

related to coffee making and other
menus of Starbucks over it. The
company has about 5000 licensed
locations all over the world.
its primary target on the upper middle
and rich class of people. These
activities describes the place mix of
Costa Coffee.
Promotion Starbucks promotes its brand and
products through online
advertisements, TV, printed ads etc.
The company has the huge range of
customer network and always
performs its responsibilities towards
the customers by providing various
benefits for the price being paid by
them(Rowley, 2016). The company
has focussed more on its CSR
activities by using environmental
friendly techniques such as- recyclable
cups, green building etc. Starbucks
have conducted promotions like
“tweet-a-coffee” campaign, a feedback
system by “My Starbucks Idea”, a
loyalty program that included gift
cards given to the customers including
free Wi-Fi, no charge with the selected
coffee and the milk options. The other
facilities such as Starbucks prepaid
cards, table top power mats for
charging attracted more customers and
driven up their interest towards
Starbucks. This describes the
promotion mix of Starbucks.
Costa coffee is not dependent on TV
advertisements and print media. But
the company does the promotional
strategy by launching new products
and distributing them as free samples
to the customers in order to get the
reviews related to it and also
influence their purchasing behaviour.
Costa coffee also uses the digital
media in order to promote its
campaigns and communicate with its
customers. The company undertakes
number of CSR activities such as
launch of loyalty program that
includes discounts and offers on the
products to the frequent customers on
their purchase. The another
promotional campaign that includes
ShakeUpSummer to promote the cold
coffee products of Costa. In this way
the Costa company initiates its
promotion mix for marketing(Hair
and et.al., 2015).

Physical
Evidence
The physical evidence includes
Starbucks stores, coffee mugs printed
with its logo, aper napkins etc.
The outelts of Costa Coffee serve as
physical evidence for the company.
The company operates in 31 countries
consisting of 3300 outlets across the
world. Also, the cups and mugs in
which coffee is served contains the
logo for the company that act as a
physical evidence for the company
People Starbucks consists of 2,91,000
employees working for it. The
beautiful ambience and the setup
maintained by Starbucks in its stores
throughout the world makes the
company to stand above the
competition(Sombultawee and Boon-
itt, 2018). The company also writes
the names of the individuals on their
coffee cups which creates unique idea
of customer satisfaction.
Costa Coffee has its prime focus on
its people that includes its employees
and customers. The employees are
being trained to follow a high
professional and polite behaviour
with the customers(Blythe and
Martin, 2019). The company treats
its every customer with high regards
and the overall experience and
service of the coffee shops is totally
dependent on the employees. The
employees of Costa also interact and
communicate with the customers in
regional language apart from English
to make them more comfortable in
service and presence. Thus, all these
activities describes the people
strategy of the marketing mix of
Costa Coffee.
Process The supply chain management that
includes procurement of coffee beans
to the delivery of coffee at the store is
Costa Coffee includes the standard
and simple procedure as that of big
coffee shops. The outlet has a good