Marketing Management Report: Starbucks Corporation Market Analysis

This report provides a comprehensive analysis of Starbucks Corporation's marketing strategies, focusing on its potential expansion into the Nigerian market. It begins with an executive summary outlining Starbucks' global presence and key products, followed by an introduction emphasizing the importance of marketing management. The main body delves into the 7Ps of the marketing mix, adapting and standardizing them for the Nigerian context, and then explores the Customer-Based Brand Equity (CBBE) model to build a strong brand. The report also covers integrated marketing communications (IMC) and how Starbucks can measure its marketing success. The report concludes with a summary of the key findings and recommendations for Starbucks' marketing efforts in Nigeria. The report also discusses the importance of adapting marketing strategies to the local market, considering factors like consumer behavior, income levels, and cultural preferences. The report is a valuable resource for students studying marketing management and provides insights into real-world business practices.

Marketing Management Report
and Presentation

Table of Contents
EXECUTIVE SUMMARY.............................................................................................................1
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................2
Different elements of the marketing mix................................................................................2
Customer Based Brand Equity model....................................................................................7
Concept of integrated marketing communications (IMC)....................................................10
How to measure marketing success to improve in the future...............................................12
CONCLUSION..............................................................................................................................14
REFERENCES..............................................................................................................................15

EXECUTIVE SUMMARY
Starbucks Corporation is one of the most famous coffee and coffee house business chain
operates in 28,218 locations worldwide. It is an American coffee company founded in Seattle,
Washington in 1971. The company CEO is Mr. Kevin Johnson and founders are Gordon
Bowker, Jerry Baldwin and Zev Siegl. It is the third largest fast food restaurant chain by number
of locations in the world. There are almost 2,38,000 employees in firm. High quality Arabica
coffee is used by Starbucks for its espresso drinks made with the finest coffee beans in the world.
Different products and services are offered by firm such as coffee beverages, tea, smoothies and
other fast food items. The initial purpose of this report is to provide information of operational
activities and future operations of Starbucks. In addition, different elements of the marketing
mix, concept of integrated marketing communications and measurement of Starbucks marketing
success will be discussed. The main objective of business is to establish Starbucks as the most
effective, respected and recognised brand of coffee in the world.
INTRODUCTION
Marketing management is crucial for every business in order to expand business in a new
country or to launch a product or service. The report will cover an executive summary of
Starbucks corporation. In addition, different elements of the marketing mix and Customer Based
Brand Equity model will be discussed in order to expand market in Nigeria. The report will also
demonstrate concept of integrated marketing communications and how business is able to
measure its marketing success to improve in the future.
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MAIN BODY
Different elements of the marketing mix
Marketing Mix
Marketing mix is a model that helps to take new or existing products or services into a
new market effectively. This will help to describe the market options for Starbucks in terms of
product, price, promotion, people, process, physical evidence and place which help to meet
specific requirements and demand of customers. In simple words, putting the right product in the
right place, at the right price, at the right time (Babin and Zikmund, 2015).
Illustration 1: Marketing Mix 7Ps
(Source: The Marketing Mix 4P’s and 7P’s Explained, 2015 )
A lot of hard work is required to find what customers actually want in a new market of
Nigeria. Marketing mix analysis will help to discover the new markets as well as to produce an
effective and successful marketing strategy. It is a general phrase which is used to define
different ways from which Starbucks is able to bring a product or service in Nigerian market.
The 7Ps of marketing mix are described as below:
Marketing Mix 7Ps Starbucks Nigeria
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Product Starbucks analyse certain factors such as
customer’s demands and requirements and
what will satisfy these needs in order to
determine which product or service should be
launched in the new market effectively. There
are other coffee shops available in the Nigeria
market that business must make differentiation
of its product and services to compete others.
Price Price is the most important aspect of every
business that value of product or service to
customer will analyse and determined (Mason,
Cole and Goza, 2017). The net income of
people living in Nigeria, competitor’s price
and other factors should be evaluated that help
to establish effective price points for both
business and consumers in the market. Pricing
strategies such as small decrease in price to
increase market share or small increase be
indiscernible to gain extra profits.
.
Place Place is where the customers purchase
products and services offered by business or
buyers look for services. The initial market of
Nigeria should be analysed such as location of
store, special boutique, via catalogue, online
or direct. The access for right distribution
channel is important for firm in order to
maintain production and profitability.
Management of sales force, online submission
requirement and strategies from other
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competitors will help to decide a place where
customers can easily purchase items
Promotion Promotional activities are required to provide
marketing message to target market (Nigeria).
This will help to reach customers and
audiences through advertising online. TV,
radio, press or on billboards. This can be done
by direct marketing mailshots on the internet
or through PR (Alexander and Abdellatif,
2018). The best time for promotion of product
or service should be analysed according to
seasonality in market, environmental issues or
subsequent promotions. The best option to
find correct way and time for promotion is to
evaluate competitor’s promotional activities in
Nigerian market.
Process Starbucks operates primarily through joint
ventures and licensing arrangements with
consumer products business partners.
Starbucks accepts store license applications
online, with the initial information centring on
the type of operation being run by the
applicant.
Physical Evidence In Nigeria, Starbucks which located at 16
Akin Olugbede St. | Victoria Island, Lagos
101241 is the currently operating Starbucks
café. Furthermore, they have loads of
branches in Lagos and are Nigeria’s best
Starbucks Café.
People People refers to the manpower in marketing
mix theory. As Starbucks is operating at large
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scale, there are number of employees currently
working. There are more than 2,50,000
employees including manager working in the
cafe
Adaptation & Standardization of Marketing Mix with justification.
7 P's UK NIGERIA JUSTIFICATION (WHY.?)
PRODUCT Starbucks is a coffee
shop famous for selling
the best coffee’s in the
world and also provide
different products such
as tea and snacks.
STANDARDIZATION
Starbucks will sell
similar products and
services in Nigeria as
well as in UK.
Consistency.
It will be easy for the firm
to provide training
programs as well as
inductive books to
employees effectively.
There is an opportunity for
business to make
international exchange of
their workers
PRICE Pricing strategy is
useful to make extra
profits that new market
will be fresh to extend
market share as well as
production. Pricing
strategy will be made
according to the
income and social class
of people.
ADAPTATION
In Nigeria prices for
products will be different
and will be adopted
according to the social
class and income of
people.
Currency will be exchanged
so the price will be different
in Nigeria and will be
cheaper than in UK and
especially in London.
PLACE Convenience stores,
grocery stores and
warehouse clubs.
Franchising market
STANDARDIZATION
Place, location.
Consistency of market
Recommendations from
CW1 as franchising market
in Nigeria, place will be
common for UK as well as
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will be chosen for the
entry of Starbucks
according to the CW 1
in London. Nigeria place for
business will be decided
according to the best
population area.
PROMOTION Starbucks card,
Starbucks gift cards
ADAPTATION
Different people requires
various dealing strategies
that promotion will be
adopted through
Nigerian promotional
media platform.
Nigerian culture and
consumer behaviour is
different so methods of
promotion will be different
for Starbucks such as if
people believes newspaper
news more than TV than
Newspaper will be the best
platform for business.
PROCESS 3 minutes waiting time.
Payment methods –
cash, cards (debit,
credit, maestro)
STANDARDIZATION
Same method and same
process will be used.
Payment methods and
waiting time will be same to
keep Starbucks standards.
PHYSICAL
EVIDENCE
Cup holders,
furnishing, carrier
bags, etc.
STANDARDIZATION
Spreading in other
countries.
Accessories will also
remain same for Starbucks
that people can easily
recognize and identify
brand.
PEOPLE Training and
development programs
for staff.
The consistency of
appearance of staff.
STANDARDIZATION
Greater control.
This will be same because
of the same working ethics
and consumer service
standards.
The overall justification for marketing mix elements will be based on people living in
Nigeria in terms of their social class, income, working ethics, tastes, preferences, beliefs,
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products adoptions etc. it can be said that a market analysis of Nigeria is very important for
Starbucks in order to place strategies in order to make business successful and effective in order
to earn profitability (Susanty and Kenny, 2015).
The model will help to decide how to operate in a new market and also, to test existing
marketing strategies. Starbucks should test offer from customer perspective by asking some
consumer focused questions such as:
 Does it meet their requirements? (Product)
 Are they able to find shop? (Place)
 Are they considering price favourably? (Price)
 Will the marketing communication reach to them? (Promotion)
These questions should be asked to make changes in marketing mix until the firm gets
satisfied that they have optimised marketing mix to produce facts and figures they actually want.
There are some elements which require changes such as products or services according to the
ever changing competitive environment (Kumar and Pradhan, 2018). Thus, the review of
marketing mix is necessary in a regular interval to increase production and profitability in
Nigerian market effectively.
Customer Based Brand Equity model
Keller's brand equity model is used to build a powerful brand that there are many factors
affect the strength of Starbucks brand. By understanding these influencing factors, Starbucks is
able to launch its products and services n Nigerian market. The model is also known as customer
based brand equity (CBBE) model. The model was developed by Kevin Lane Keller and
published it in his “Strategic Brand Management” textbook.
The concept is very simple behind this model that to build a strong brand, Starbucks must
shape how consumers feel and think about their products and services. The firm should build
right experiences around brand to improve customer positive thoughts, opinions, feelings and
perception (Arrigo, 2018). A strong brand equity will help to attract customers and also they will
recommend others that they are now loyal and trusty consumers for brand. There are four steps,
Starbucks should follow to build a strong brand equity which are described below:
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Step-1. Brand identity (Who are you.?)
It is the first step where the goal of Starbucks is to create awareness in Nigerian market.
The business should ensure that it will stand out and consumers will recognise as well as aware
of it effectively. The brand will not only create awareness but also try to ensure that perceptions
towards brand is correct at key stage of buying procedure (Keller and Richey, 2017).
Application: The firm should conduct research of Nigerian market to know who are their
customers in order to explore different market segments with various needs and relationship with
brand. Customers thinking and awareness should be addressed to make choices between
Starbucks and other competitor brands. In addition, unique selling proposition will be a satisfied
set of customers requirements.
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Illustration 2: CBBE Model of Starbucks

Step-2. Brand meaning (What are you.?)
Performance and imagery are two building blocks of this step to identify and
communicate meaning of brand. Performance describes the satisfaction of customer needs.
Performance is divided in five categories such as features and characteristics: product durability,
reliability and serviceability: Service efficiency, effectiveness and empathy: design and style and
finally price. Imagery defines customer satisfaction on a psychological and social level (Boateng,
2016).
Application: Customer experience with brand is a direct result of products performance. The
products and services offered by Starbucks must meet their expectations in order to build loyalty.
This is about customers and their vision about our company. Performance describes the
satisfaction of customer needs. Imaginary describe the way how they saw the company.
Step-3. Brand response (What I think or feel.?)
There are two categories of customer response towards brand such as feelings and
judgements. Consumer make judgements about brand products or services and these also falls in
four categories such as:
 Quality: Every customer judges product based on its quality (Ramaswamy and Ozcan,
2016).
 Creditability: There are three dimensions of creditability such as expertise, likeability and
trustworthiness.
 Consideration: Relevancy of product according to their unique requirements.
 Superiority: Brand superiority is compared with other competitors.
Feelings are expressed through fun, social approval, enjoyment, warmth, self-respect and
security.
Application: Customer response and judgements are provided from which Starbucks is able to
improve and develop its quality and creditability of brand. Market strategy will help to assess
relevancy of products according to customer needs (Parsons, Maclaran and Chatzidakis, 2017).
The feelings are expressed by customers towards products and services which should be fulfilled
by brand towards a customer in order to make a strong brand in Nigeria.
Step-4. Brand resonance (How much effective connection we have.?)
Brand resonance is one of the most difficult and desirable level to reach for a business
that it sits on the top of pyramid. Brand resonance is achieved when business is able to make a
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deep and psychological bong with customers effectively. There are four categories of brand
resonance such as:
 Behaviour loyalty: Repeat and regular purchasing with brand.
 Attitudinal attachment: Customers love products and services of Starbucks and make
special purchase (Chowdhury, 2016).
 Sense of community: Consumers feels sense of community with employees of brand
including representatives of firm and other customers. Active engagement: In this stage, consumers are actively engaged with business and
become loyal towards brand. For an example, participation in online chats, events,
following brand on social media etc.
Application: The goals of firm is to provide strengthen to all stages of pyramid. For an example,
Starbucks can encourage behaviour loyalty by considering loyalty programs and gifts with
purchase. Reward system is also the best example to increase involvement of customers with
products and services.
From the CBBE model it can be understood that Starbucks would be able to enhance its brand
image. As from the above illustration, it is clear the Starbucks have immense brand image which
helps the organisation to sustain in the competitive environment (Wei, 2016).
Concept of integrated marketing communications (IMC)
Integrated marketing communications (IMC)
IMC helps to recognise the value of a comprehensive plan that evaluates the strategic
roles of a variety of communication disciplines advertising, public relations, personal selling, and
sales promotion and combines them to provide consistency, clarity and impact of maximum
communication.
Integrated marketing communication is a simple concept. It will help to ensure that all the
form of messages and communications are linked to each other effectively. It is crucial for
Starbucks to promote their brand in order to survive in this competitive world. It is analysed that
promotion of brand will help to increase awareness, sales, revenues and profits for the firm in
terms of enhancing production. It is necessary to understand brand communication before taking
integrated marketing communication (Ronald and Amelia, 2017). Brand communication is an
initiative taken by organizations to make their products and services popular among the end-
users. Brand communication promotes services and products offered by firm towards target
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