Starbucks: Marketing Analysis of New Outlet in Southampton Report

This report provides a comprehensive market research analysis of Starbucks, focusing on its potential expansion into Southampton. It begins with an introduction to market research, its importance, and the market research process, including a six-step model. The report then details the design and justification of a questionnaire aimed at understanding customer preferences and opinions regarding a new Starbucks outlet in Southampton. The core of the report examines Starbucks' marketing mix, including detailed discussions on product offerings, promotional strategies, place considerations (location and distribution), and pricing strategies. Each element of the marketing mix is analyzed in the context of Starbucks' operations and expansion plans. Furthermore, the report includes a critical self-reflection on the analysis process. The report also includes references to books, journals and online resources.

Starbucks

Contents
MARKET RESEARCH......................................................................................................................3
Introduction to market research.........................................................................................................3
Market research process....................................................................................................................3
Questionnaire design.........................................................................................................................3
REFERENCES....................................................................................................................................5
Introduction to product......................................................................................................................6
Application to Starbucks....................................................................................................................6
REFERENCES....................................................................................................................................7
PROMOTION.....................................................................................................................................8
Introduction to promotion..................................................................................................................8
Application to Starbucks....................................................................................................................8
REFERENCES....................................................................................................................................8
PLACE.................................................................................................................................................9
Introduction to Place..........................................................................................................................9
Application to Starbucks....................................................................................................................9
REFERENCES....................................................................................................................................9
PRICE................................................................................................................................................10
Introduction to Price........................................................................................................................10
Application to Starbucks..................................................................................................................10
REFERENCES..................................................................................................................................10
MARKETING MIX: OVERALL RECOMMENDATION............................................................11
Introduction to Marketing Mix........................................................................................................11
Application to Starbucks..................................................................................................................11
REFERENCES..................................................................................................................................12
CRITICAL SELF-REFLECTION...................................................................................................13

MARKET RESEARCH
Introduction to market research
Market research is a study of organisation’s customer, their rivals and marketing
campaign effectiveness (Susanty and Kenny, 2015). Although market research is vital to a
small and large scale business, it is also useful to raise profits for the existing and new
companies. Now a days, each and every organisation implement this process before offering
their services in the target market.
Market research process
The process of market research is define as a systematic approach which designed to
inform business decisions (Taecharungroj, 2017). The process of the research includes
analysis, assessing, finding and reviewing the knowledge in order to support your research
question for generating and sharing business ideas. The process of research can be broken
down into seven phases that making it easier to understand and more manageable.
Figure 1: The Market Research Process: 6 Steps to Success. 2020
Questionnaire design
Questionnaire is a structured technique of gathering a data which consisting a set of
questions that the respondents need to answer in order to describe their views, opinion,
knowledge and actions towards the research topic. In this report, this questionnaire is used to
analyse opinion towards the services of Starbuck as well as their views upon organisation’s
desire to open a new store in Southampton.
Questionnaire of Starbucks

Q1. Do you think that Starbucks should open a new outlet in Southampton?
a) Yes
b) No
Q2. At what location company should open their store?
a) In food court of a Shopping Mall
b) Near SeaCity Museum
c) Outskirt of city
Q3 How often you visit Starbucks?
a) Daily
b) At least four times in a week
c) Twice a week
d) Never been to Starbucks
Q4. What do you like most at Starbucks?
a) Food & drinks
b) Ambience
c) Atmosphere of outlet
Q5 What is your favourite food item at Starbucks that you would like to have at new
store?
a) Brewed Coffee
b) Espresso drinks
c) All day breakfast roll
d) Something else
Q6 What kind of improvement would you like to see in new outlet of Starbucks?
a) Better quality of drinks
b) Better quality of food items
c) Improved Ambience
Q7 How much time (on an average) do you have to wait for you order?
a) At least 10 mins
b) 10-20 mins
c) more than 30 mins
Q8 Who, according to you, is better than Starbucks?
a) Costa Coffee
b) Caffe Nero
c) None of the above

d) Starbucks is best
Q9 Do you think Starbucks should reduce prices of their offerings?
a) Yes
b) No, prices are fine.
C) Yes, but not too much.
REFERENCES
Books & Journals
Susanty, A. and Kenny, E., 2015. The relationship between brand equity, customer
satisfaction, and brand loyalty on coffee shop: Study of Excelso and
Starbucks. ASEAN Marketing Journal. pp.14-27.
Taecharungroj, V., 2017. Starbucks’ marketing communications strategy on Twitter. Journal
of Marketing Communications. 23(6). pp.552-571.
Online
The Market Research Process: 6 Steps to Success. 2020. [Online]. Available through: <
https://www.mymarketresearchmethods.com/the-market-research-process-6-steps-
to-success/>.

PRODUCT
Introduction to product
An item being used for sale is known as product and it may be recognise in terms of
service or commodity (Karman, 2015). A product is manufactured at a cost and is sold at a
specific price. Product has an ability to provide satisfaction to customer on the basis of their
requirement and need. The major benefit for an organisation to developing a product
marketing mix to analyse their distribution capability by which they gain competitive
advantages from target market.
Application to Starbucks
 Total Product Offering: This is an evaluation of customer that take place before
making a purchasing decision for any specific thing. The total product offerings of
Starbuck include Hot and iced espresso beverages, cold brew, Fresh-brewed coffee,
Frappuccino coffee, Starbucks refresher and so on.
 Product Development: This is process that take place at the time of new product
management. Starbucks implement strategic process in which they identify desire of
their customer after that offering them similar services.
 Managing the product lifecycle: As per the Product lifecycle process, Starbucks gone
through different stages as development, introduction, growth and at last maturity
stage.
 Managing the Boston Matrix: According to Boston Matrix, growth strategy of
Starbucks classified through its different products as its Beverages falls in the
category of cash cow, Food items of Starbucks are Stars, Coffee beans of Starbucks
fall under Dogs and its Merchandise in the question mark.
Figure 2: Starbucks - Growth–share Matrix Boston Consulting Group SWOT Analysis Starbucks. 2020

REFERENCES
Books & Journals
Karman, M.A., 2015. The impact of social media marketing on brand equity toward the
purchase intention of Starbucks Indonesia. iBuss Management. 3(2).
Online
Starbucks - Growth–share Matrix Boston Consulting Group SWOT Analysis Starbucks. 2020.
[Online]. Available through: < https://favpng.com/png_view/starbucks-growth-
share-matrix-boston-consulting-group-swot-analysis-starbucks-png/AixCYVHx >.

PROMOTION
Introduction to promotion
In terms of marketing, promotion take a place in order to create awareness or to
convince target audience about the product, service, brand, its benefits and issues (Datta and
et.al., 2017). Promotion is aimed at increasing awareness, creating curiosity, generating sales
or building brand loyalty. Now a days numerous organisations uses this process in order to
spreading information about their services in order to maximise business sales that helps in
increasing profitability.
Application to Starbucks
Starbucks uses a number of promotional strategies to communicate with the
stakeholders concerned. It has a 'Starbucks Rewards' scheme for its loyalty customers. This
approach assist them develop a strong customer base by providing them numerous surprises,
gifts and benefits (Al Iradah, 2018) Another powerful mechanism which Starbucks often uses
is corporate social responsibility. These kind of practice assist them to promote their brand
effectively in target market. Starbucks invest a less amount in promotions, thus now a days
they focuses to communicate directly with target customers on the basis of its social media
presence. The communication strategy of Starbucks is implemented by launch deals,
publicity, sales promotion, social support, public relations and so on.
REFERENCES
Books & Journals
Datta, H. and et.al., 2017. How well does consumer-based brand equity align with sales-
based brand equity and marketing-mix response?. Journal of Marketing. 81(3). pp.1-
20.
Al Iradah, M., 2018. AN ANALYSIS OF COMMUNICATION TOOLS TOWARDS
BRAND TRUST ON GREEN MARKETING ASPECT (CASE STUDY:
STARBUCKS).

PLACE
Introduction to Place
Place is described as a specific location or area that is normally occupied by
something. Furthermore, place mix is known as a combination of factors which a company
can control to influence consumers in buying their own products (Li, 2018). In an
organisational context, place mix play an essential role in order to ensure that their products
are in the right place at the appropriate time. These practices assist in managing flow of good
as well as its distribution.
Application to Starbucks
Starbucks is offering its products and services via Starbucks Café. According to an
analysis, Starbucks operates 76 countries in which company has around 31,000 stores. In
order to reach at target customers, it has also developed a range of applications for busy
customers who are wishing to walk and go in select stores. Starbucks implements a
centralized structure in six continents to handle its supply chain and logistics network. With
the help of this process, firm efficiently manage its multiple global distribution centres with a
desired control.
REFERENCES
Books & Journals
Li, C.Y., 2018. Consumer behavior in switching between membership cards and mobile
applications: The case of Starbucks. Computers in Human Behavior. 84. pp.171-184.

PRICE
Introduction to Price
A price is an amount of payment or reward provided by one person to another in
exchange for goods or services (Kang and Namkung, 2018). This may include manufacturing
cost and demand amount for a product. Price of a product can be set by a monopolist or may
be placed on the business on market terms.
Application to Starbucks
Starbucks implements premium pricing strategy because it has renowned for its richly
flavoured coffee and premium products as well as services. The customers of Starbucks
believes that quality of goods come at high prices thus they always admire its product quality
without complaining for its pricing policy. Numerous clients regularly reach an inference that
quality items accompany a significant expense. Starbucks has utilized this discernment and
set premium evaluating as the organization's estimating technique.
REFERENCES
Books & Journals
Kang, J.W. and Namkung, Y., 2018. The effect of corporate social responsibility on brand
equity and the moderating role of ethical consumerism: The case of
Starbucks. Journal of Hospitality & Tourism Research. 42(7). pp.1130-1151.

MARKETING MIX: OVERALL RECOMMENDATION
Introduction to Marketing Mix
Marketing mix refers to a strategic process of an organisation that they uses as an
action or tactics in order to discover their brand sustainability (Shirdastian, Laroche and
Richard, 2019). This process offers a right guideline to an organisation by making a proper
market analysis.
Application to Starbucks
 Product: At the times of business expansion in Southampton, Starbucks can improve
its product line by implementing new innovative ideas. One major aspect as Starbucks
roasted coffees in their own plan that could assist them in delivering quality services
to customers.
 Promotion: Starbucks did not invest a huge amount in the promotional practices.
Thus, they needs to implement social media as well as a digital presence in order to
promote their products and services in target market.
 Place: Starbucks needs to analyse new and emerging market in which customers are
more likely to take their services. Furthermore, they can also focus to open their
outlets in the busy streets.
 Price: The strategy of Starbucks is to offer premium products on relative as well as
premium prices (Kraak and et.al., 2017). Thus firm needs to implement moderate
pricing policy which can be beneficial for them in order to attain customer’s loyalty at
the time of business expansion.
 Physical evidence: Starbucks offers numerous services to their clients who visit its
outlets as proper sitting, hygiene consideration and easy to order facility etc. But the
firm has a great customer line thus in order to reduce maximum traffic from
individual outlet, firm needs to open another stores in different locations which are in
the reach of customers.
 People: Starbucks has a great workforce thus they needs to implement training
session of them in order to enhance their capabilities and skills to serve
professionally.
 Process: Starbucks requires to implement customer services process in which they
can serve quality services to customer on the basis of their first in first out process.
Through this they can serve as efficiently as possible to service users.

REFERENCES
Books & Journals
Shirdastian, H., Laroche, M. and Richard, M.O., 2019. Using big data analytics to study
brand authenticity sentiments: The case of Starbucks on Twitter. International
Journal of Information Management. 48. pp.291-307.
Kraak, V.I. and et.al., 2017. A novel marketing mix and choice architecture framework to
nudge restaurant customers toward healthy food environments to reduce obesity in
the United States. Obesity Reviews. 18(8). pp.852-868.