Brand Transformation Plan for Starbucks: SWOT, STP, and Communication

This report presents a brand transformation plan for Starbucks, beginning with a SWOT analysis identifying the company's strengths, weaknesses, opportunities, and threats. Key strengths include strong brand recognition and customer loyalty, while weaknesses involve high prices and over-reliance on the US market. Opportunities lie in emerging markets and technological expansion, but threats arise from intense competition and changing customer preferences. The report identifies high-income and business-class individuals as the primary target market, focusing on those aged 25-40. Starbucks is positioned as a meeting place for college students and business professionals. The plan proposes a brand value proposition centered on creating an uplifting customer experience, potentially through the addition of in-store book libraries. Effective communication strategies, including verbal interaction, email, social media, and feedback forms, are crucial for attracting and retaining customers.

BRAND TRANSFORMATION PLAN

SWOT Analysis of
Starbucks
Strengths:
 Strong market position as well as global brand recognition
 High quality services
 Location and Aesthetic appeal of stores
 Positive brand image
 Customer Loyalty
 Diverse product mix
Weaknesses:
 High prices
 Overdependence in United State market
 Negative large corporation image
 American and European coffee culture does not exists with other countries

Cont.….
Opportunities:
 Expansion in new and emerging market due to the positive
brand image
 Technological expansion
 Brand extension
 New distribution channels
Threats:
 Intense competition in the market
 Changing customer taste and preferences
 Developed countries and market situations
 Developed countries economy

Drivers of Brand
Choice
There are several factors which customer considers before buying a
product or using any service. With respect to Starbucks there are
several factors which customers taken into consideration before
utilizing their services such as:
 Prices
 Ambience
 Culture
 Service quality
 Taste
Company further need to take customer insights in order to enhance
their service quality and provide appropriate taste as per the needs of
consumers. By taking feedbacks and suggestions Starbucks can easily
improve their services.

Market Space and
Audiences
Appropriate market space that is most feasible to target and own
is high income and business class people. Under thus, they
consider men and women belongs to age 25 to 40. Another major
goal of company is to identify all its opportunities that are
financially attractive and also available to capture. In addition to
this, they wants to become the premier purveyor of the finest
coffee in the world. For the same, they are trying to overcoming
with their existing threats and grab the total existing
opportunities. Starbucks position itself as a place where college
students can hand out and business class people can meet each
other.

STP
Segmentation
Segmentation :
Demographic factors
Children's (13-17)
Young Adults (18-24)
Adults (25-40)
Matured (Above 40)
In addition to this they are targeting both males and females from
the low, middle as well as high income class.
Geographic factors
Main cities

Targeting
Age groups: 18-40
Occupation: Business class people, college students
Gender: Both male and female
Income: High and middle income as well
Location: Main city hubs

Positioning of
Starbucks

New Direction
An appropriate brand value proposition for the Starbucks is a
perfect cup of coffee to create an uplifting experience of
customers. The brand is presented everywhere where customers
can easily access the services. Moreover, they can add the
services of book library with the same store. Here, customers can
enjoy the coffee with the books and boost up their mood. It is the
most effective way to boost up the brand equity and easily attract
more number of customers.

Communication plan
In order to attract more number of customers Starbucks need to
communicate all their customers with the help of appropriate
communication strategies. Starbucks use to communicate with
their customers through formal as well as informal
communication methods. These methods are as follows:
• Verbal communication as well as face to face interaction at
their physical store.
• Via E-mails
• Social networking sites
• Internet
• Feedback form etc.

REFERENCES
• Keller, K., 2011. Marketing Management. Prentice Hall.
• McDonald, M., 2012. Market Segmentation: How to Do It and
How to Profit from It. John Wiley & Sons.
• Blankson, C., 2000. Positioning strategies in business markets.
Journal of Business & Industrial Marketing. 15(6). pp.416 –
437.
• Doyle, P., 2009. Value-based marketing: Marketing strategies
for corporate growth and shareholder value. John Wiley &
Sons.
• CEO, S., 2004. How Starbucks works with NGOs. California
Management Review.