Marketing Essentials Report: Starbucks Company Analysis and Strategies

This report provides an in-depth analysis of Starbucks' marketing strategies, focusing on key aspects such as the marketing function, roles, and responsibilities within the organization. It explores how Starbucks implements market research, product development, corporate marketing, and strategic marketing to maintain a competitive edge. The report also examines the marketing mix, including product, price, place, and promotion, comparing Starbucks with Costa Coffee. Furthermore, it delves into the importance of sales support, customer satisfaction, and brand loyalty in driving business growth and expansion. The report highlights the different departments within the organization and how they work together to achieve company objectives. It also explains how the marketing department develops strategies and works with the finance, distribution, and sales departments. The report emphasizes the importance of market research and expansion strategies to attract customers. The comparison between Starbucks and Costa Coffee's marketing mixes offers insights into how both companies position themselves in the market.

MARKETING ESSENTIALS

TABLE OF CONTENTS
Introduction......................................................................................................................................2
LO2..................................................................................................................................................5
LO3..................................................................................................................................................9
REFERENCES..............................................................................................................................12
1

Introduction
Marketing function is an important part of organisation. Organisation should support and take
help from the marketing functions which will provide them useful insight. By implementing
the marketing functions, company is able to make great consumer satisfaction and gain more
revenue. This report deals with Starbucks company who delivers coffee to its customers at
reliable price and obey all the quality standards which are needed to perform the marketing
functions so that it may be able to earn more revenue in long run. The report deals with key
roles and responsibilities of marketing function which helps to make and implementation
marketing tactics in a better and positive way.
LO1
Marketing function is important function in an organisation. It is responsible for gaining overall
revenue and profit to firm which helps it to grow and diverse in providing quality goods and
services to customers.
Marketing function means to implement and promote the ideas, concepts to differentiate the
products over its rivals. This can be done by maintaining public relations.
The Starbucks company who is market leader offering quality coffee to its customers is required
to follow a marketing function to flourish in its desired aims. The roles and responsibilities
of marketing function are as follows:
Market research is vital task to an organisation as it helps it to maintain and improves its
customer base. It also helps ton have an edge over its competitors strengths and weaknesses.
It also helps company to maintain and attain customer needs by fulfilling marketing
research. It can be derived from customer data accessed from internet, going through past
records, surveys of customers regarding their desires and attitudes.
After marketing research, product is formed. This is the stage which initiates the product's
life and its survival in the competitive market. The marketing department deals with internal
and external product development teams to alter existing products or to invent new ones.
The marketing function analyse the current situation of the existing products and identify the
gaps which can be filled to increase the sale of the product with new modifications.
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Marketing employees provide data to teams so that customer needs can be identify and
implementation can be done to provide customer satisfaction. Later, company can decide the
price of the product and launch it in the market.
Marketing function deals with corporate marketing also. This function is responsible to
develop brand standards and define global infrastructure for public relations. It includes
relation with investors, advertising of the product and event strategies. This function is
responsible for setting brand standards and brand image and reputation. It means that its a
vital function as it develops brand reputation in better and positive way.
Strategic marketing is essential for company like Starbucks as it maintains and makes those
strategies which makes company more vibrant and reliable in the market. It makes strategies
which help them to have a competitive edge over its rivals in that way which enhances its
customers base and more consumer satisfaction is maintained. This helps company to be
competitive enough and i able to make more revenue in totality. It helps to perform filling in
gaps in the required strategies which are unable to grasp consumer's preferences and their
tastes. It also creates and develops partner programs. It helps to manage key relationships to
support technical, business needs. These are very essential from the competency view of the
organisation.
Product marketing is essential as consumers will not be able to purchase the products for
which they have no knowledge. Consumers are informed about the products so that they
purchase it . This is known as product marketing. Products need to be marketed so that
consumers are able to purchase it. This will automatically gain more profits to firm. It
should provide tactics for product and services, sales and training programs. For new firm,
product marketing is essential because they want to establish their brand name and image of
it in the minds of consumers.
Field Marketing is responsible for execution of the product of the firm to its customers. This
functions have the key role so that products and services are delivered to customers in
efficient way which increases revenue for the firm in long run in it survival. The main
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emphasise is on marketing the products of firm through marketing programs, organising
campaigns so that in single shot, consumers are informed. This helps organisation to flourish
and it maintains its cost and additional costs are cut down too much extent. This is a direct
marketing channel which informs consumers about company's product in effective way. It
also makes company product oriented to consumers n effectual manner.
Sales support are important part of marketing function as it correlates with different
departments. Coordination between sales and marketing department is essential so that firm
never lack in satisfying consumer's needs and demands. The marketing department can
provide speedy sales to sales department by implementing heavy advertising which include
a reply mechanism. It also includes such as reply mechanism such as coupon or by
encouraging customers to visit on company's website to register on it to avail special
discounts. Marketing function also helps and prepares presentations for sales team so that
sales can be increased to maximum extent for the firm. These tactics help Starbucks
company to flourish in its business and expand its customers.
The business organization has many departments that functions in different practices of
the company and are able to attract customers to achieve their objectives and goals of the
company. The different departments of organization such as financial, administration, human
resource management and sales and marketing and promotion as well. These departments need to
work with different departments to achieve the organization objectives. Marketing department of
the company needs to develop strategies so to work with the different departments. The
marketing department of Starbucks comes together to increase the sales and they have different
business roles and responsibilities in the market.
Sales and operational department- They work to give the best outcomes in the market and
in the best possible manner. To reach the every consumer in the market it is essential for
them to satisfy their needs and also their demands and is very helpful so to increase their
sales in the company(Armstrong and et.al,. 2015). Marketing department need to conduct
more research with various techniques and need to provide adequate research and
information to the sales department.
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Finance department- Marketing department in the company needs funds so that they are
able to promote the products and make their business functions grow. The finance
department is responsible to distribute the funds to the different department and the
marketing department as well. They are responsible to carry out the business policies and
make proper arrangements so that marketing and promotion department are able to attract
more customer's. They need to develop effective strategies and advertise their product in
the best way so to attract customers.
Marketing and distribution department- Distribution department and the marketing
department are the department that need to work in group and so that they are able to
attract more customers easily(Campbell and Martin, 2015). They need to work in
combination and attract new customers and develop a healthy environment and increase
their skills and abilities more effectively. These two department are in the combination to
carry out their functions with more effectiveness. These have to choose the most suitable
location and the target market and attract more consumers.
Increasing satisfaction among customers- The main emphasis of marketing in Starbucks
is related to enhance the customer's satisfaction level. This is related in the best possible
manner and to grow in the business market and can be attained with the success of
attracting customers. In these regards the higher quality of the product can be reached and
also satisfy the customer needs and demands. They can satisfy the customer with more
marketing techniques and in the most suitable manner.
Expansion in business scope- The market research is essential to carry out the business
activities and it is required so that it is possible to make expansion in the business.
Therefore, there is a need to expand the business in the market and attract customers. The
business can be expanded with entrants of new businesses strategies in the market and
developing the scope of the business and ensuring to make it available to all its customers
as well(Huang and Sarigöllü, 2014).
Enhancement in loyalty of brand- The brand can be enhanced in the market by
developing various new strategies and ensuring to increase the satisfaction of the
customers and promoting the sales of the company and quality of the product in the best
ethical and fair way and creating healthy working environment in the company. It is
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essential for the company to develop new strategies and maintain a good relation with the
customer's.
LO2
Starbucks and Costa coffee
Marketing mix : Marketing mix is a set of marketing tools which describes the main points of
marketing of a particular company. Which includes place, price, product, and promotion.
Company name : Starbucks
Starbucks is a big brand for coffee lovers who loved the coffee and want different flavours.
Starbucks is coffee providing company which is established in Seattle Washington in 1971.
Product : Starbucks famous for its coffee beverages. The company core product is coffee in
Italian style. Also, they provide cold and premium teas which includes following flavours
lemonades, lattes, iced teas, hot and cold. Also, they provide cappuccino in latte with more
foam(Keller and et.al., 2014). It's also provide spicy black tea with black pepper. Starbucks is the
company where you can take n numbers of drinks with different flavours. – In contrast Costa
Coffee provide variety of flavours in coffee like cappuccino, flat white, latte, Americano,
Mocha cream Frostino, Lemonade etc
Price : The price of the coffee is depended upon the variety. Like the Starbucks tea price is not
depended upon the size it depends upon the number of tea bags. – Costa Coffee
In contrast, Costa Coffee Price is depended upon the quantity of the product
Place : Starbucks is established in different places like in Canada they situated in Toronto,
Ontario Starbucks capital asset company situated in Delaware. Starbucks coffee and teas were
available in wide number of stores which are situated across the globe. Cost Coffee Its outlets
generally found in airports shopping malls, costa coffee stores are available in 11 states of
India as well.
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Promotion : Starbucks started their company by its website which name is Starbucks idea to
collect the suggestions and feedback from the customers. They always prefer high quality upon
price. Starbucks use some promotional ideas like advertising in newspaper, hoardings, and also
they provide some membership cards to their regular customers and to attract or more customers.
Company name : Costa coffee
Another selected company i.e. Costa coffee is also the British MNC firm which operates
in the coffee industry. It is one of the major competitor of Starbucks and provide s its products
and services across the world. These are the marketing mix of costa coffee.
Product : It is highly popular coffee shop and has high brand image in the world. They provide
variety of flavours in coffee like cappuccino, flat white, latte, Americano, Mocha cream Frostino,
Lemonade etc. They provide their coffee products in the colleges as corporate places along with
the vending machines which is used to make coffee.
Price : The products provide by costa are priced at premium range because of its brand value.
Costa thinks that customer always focused on the quality rather than its price. They provide two
variant large and small. Price is depended upon the quantity of the product.
Place : Costa coffee have nearly 33000 outlets all over the 31 countries. The company has more
than 2100 coffee restaurants in the UK country and over 1200 outlets are spread overseas. Costa
coffee attracts generally high class and rich profile customers. Its outlets generally found in
airports shopping malls, costa coffee stores are available in 11 states of India as well.
Promotion : Costa coffee itself is a big brand in the world of coffee. Costa marketing strategies
is to promote their brand image and attracts number of customers. Costa coffee believe in mouth
publicity instead of advertising on T.V or print media. They also focus on digital marketing to
promote their product and attracts maximum customer pool(Łopaciuk and Łoboda, 2013). They
promote their new products by providing free samples to the customers and take suggestions
from them. One of the promotional campaigns followed by the company is shake up summer in
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which company promote their cold coffee products. Also they use their own company logo on its
cup.
Camparising between marketing mix of Starbucks and Costa coffee.
Starbucks
Product : lemonades, lattes, iced teas, hot and
cold. Frappuccino, pumpkin spice latte, beer,
appetizers, Starbucks brand ice cream, micro
ground instant coffee.
Price : iced coffee : $2.65, Caramel
Frappuccino : $3.75
Place : More than 70 countries in Africa,
North America, Oceania, South America, Asia
and Europe. And maximum outlets in USA.
Promotion : Starbucks promote their products
in shopping mall, on airports through online
channels, T.V, prints ads.
Costa
Product : American, Mocha cream Frostino,
Lemonade, Flat white, cappuccino.
Price : Cappuccino (Massimo) :
Place : 33000 outlets over 31 countries and
1200 outlets are spread overseas. And more
than 100 stores in 11 states in India.
Promotion : Costa Coffee use digital
marketing platform and believe in mouth
publicity. And the strategy of new products
they give free samples to the customers and
take suggestion from them. And run costa
coffee club for frequent customers.
With the use of 7 ps company can easily promote its product and services at different
places such as at social networking sites so that it large number of people get aware of it. Further,
company can modify its product and services and sales quality product to its customers. Further
physical stores should be attractive so that it can grab the attention of customers.
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LO3
In this competitive era and to increase the interest of the individual and the competition it
is required to carry out best marketing plan for the company. Starbucks has developed a new and
improved marketing plan to conduct the business plans. There is a basic need to make good plans
so that it is easier for business to make changes and attract customers in the company. Today
people are more concern about developing new strategies and their taste and preferences and to
make better customer relations.
Situational analysis- In this analysis it is necessary for the business to carry out SWOT analysis
so that company's opportunities or chances as well as threats can be analysed in proper way.
Further, it supports for analysing the existing as well as upcoming conditions of the market and
needs to improve in the market.
Strength- The strength of Starbucks is that they have a good brand value and image in the
market. They have variety of coffee taste preferences for their customer's and can easily conduct
their business. They have bring more product for the coffee lovers and in the best suitable
manner.
Weaknesses- Their weakness is that people assume that these coffee companies have more
coffee disadvantages for the people who have developed interest in the coffee. The coffee they
use is harmful for the health of the people and rumours are that they make these coffees in
extreme conditions(Parlan, Kusumawati and Mawardi, 2016). They also do not have stores in
many places and are lacking to attract more customer's in the market.
Opportunities- They have opportunities to attract new groups of market and also make possible
result in the business. The company Starbucks has opportunity of business expansion where it
can provide innovative coffee items. Moreover, through online promotional activities it can
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enhance its sales. They need to develop new strategies to make sure that it is essential for the
business and attract customers.
Threats- Their threats is their competitors in the market and the rumours that are always spread
about excessive drinking of coffee. It is cleared in the market that many entities focus on
resolving the issues that are in the concern of these problems.
Objectives
 To aware huge number of people and customers about new or innovative coffee products.
 To boost up level of sales and revenue by 15% in 2018.
 To raise market share in coffee industry by 12% at the end of next year.
Strategies:
Strategies and tactics which can be considered or applied by Starbucks in order to
achieved above stated are such as follows:
Market development
As per this stated method, the company Starbucks enter in new market by considering
those products which are provided currently. Here any additional kind of goods are produced by
the firm.
Market penetration; Another strategy which will support to meet the above framed
objectives is market penetration. As per this, the firm sell its existing products in currently
operated market. It is mainly used to capture whole existing market and enhance market share of
coffee industry.
Promotional activity : At the last, those methods which are supportive to make
advertisement of the products and services in the market is considered as promotional activities.
Under this, social as well as traditional these two ways are come into consideration. Starbucks
company will consider social or modern promotional approaches due to people using internet on
daily basis. Under this, Facebook as well as Twitter will be the most suitable through which it
can meet its objectives (Star, 2011).
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Allocation of resources Under this stage, required resources are allocated to the
department or segment of the chosen company i.e. Starbucks. The resources which will be
allotted are like human, financial, physical, raw materials etc.
Budget
Monitoring and controlling; Once the business strategy executed at the workplace then
authorised person go for monitoring as well as controlling it. On the basis of this stage of
marketing plan the management able to know that whether strategy applied is helpful for meeting
goals and objectives of Starbucks firm. If not then corrective actions are to be taken.
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