Analysis of Starbucks Marketing Strategies and Environmental Factors

This report provides a comprehensive analysis of Starbucks' marketing strategies, encompassing macro-environmental factors, ethical considerations, and customer segmentation. It begins with an introduction to the importance of marketing strategies for organizational goals, followed by a detailed examination of macro-environmental factors using PESTLE analysis, including political, economic, social, technological, legal, and environmental aspects, and addresses related ethical issues. The report then delves into Starbucks' customer segmentation approaches, such as mono segment positioning, adaptive positioning, and standby positioning, and explores the implications of these strategies. Finally, it examines the implementation of various marketing strategies, including the Growth-Share Matrix, to enhance business growth and profitability. The analysis provides insights into how Starbucks adapts to market changes and maintains its competitive edge.

MARKETING

Table of Contents
INTRODUCTION..........................................................................................................................3
TASK 1............................................................................................................................................3
Macro environmental analysis and various ethical issues ..........................................................3
TASK 2............................................................................................................................................5
Segmentation of customers done by Starbucks .........................................................................5
TASK 3 ...........................................................................................................................................6
Implementation of marketing strategies by Starbucks................................................................6
CONCLUSION................................................................................................................................8
REFERENCES ...........................................................................................................................10

INTRODUCTION
Marketing strategies plays an important role in order to accomplish goals and objectives
of organisation. Every organisation has certain strategies which is implemented by marketing
manager for growth and expansion of business firms. There are various factors which are applied
by organisation in order to promote their brand in marketplace. It helps to sustain a strong place
in marketplace (Armstrong, and et. al., 2014). There are different approaches of marketing is
implemented by management of organisation in order to maintain the productivity of different
products. There are various factors which hinders the performance of organisation. In order to
inculcate with these hindrance management of organisation tries to implement new and
innovative methods in order to increase the performance of organisation. This research project
concerned with different marketing strategies implemented by management of Starbucks. This
organisation is based on selling of coffee. It is termed as second wave coffee which provide
service of different flavour of coffee for its loyal customer.
TASK 1
Macro environmental analysis and various ethical issues
There are various types of micro and macro environmental factors which affect the
performance of organisation. In order to solve various issues management of organisation
implement various approaches of analysis to determine those issues and find effective solution in
order to solve these issues. As these macro environmental factor are uncontrollable by the
management so organisation apply pestle analysis in order to determine these uncontrollable
factor. Starbucks also tries find various ethical issues and implement different strategies in order
to solve those ethical issues (Buttery, and et. al 2011). The detailed explanation of pestle
analysis is given below:
There are six factor which affect business of Starbucks such as political, economic, social,
technological, legal, environmental.
Political factor:
This factor includes about the policies of government which is imposed by government
of UK. Various types of rules and regulation hinders the performance of organisation. The
organisation is being blamed by employee working in organisation that the management have

violated the rules of wages which is made by the government. They have filed the suit in court.
Starbucks uses raw material to carry out its daily operations and in order to maintain continuous
supply. It is greatly affected by the laws that are made by the government towards supply for this
industry. Political bodies of developing companies are becoming more cautious about their
polices which restrict the profit margins for referred enterprise.
Economic factor:
This is most essential factor in al operation of organisation is being done. These
economic factor include inflation rate, import laws, exchange rates, and interest rates. As
organisation import coffee from different nations it remains effected by the prime external
economic drivers which is the rate of inflation for Starbucks raw material. Management should
recognise the changes which is being done by government in import laws reduce the quantity of
importing. It also remains effected by the rise in labour and operations cost as it directly impacts
the operational cost for the referred enterprise.
Social factor:
Starbucks is committed with its loyal customer in order to provide better quality of
coffee. For this organisation implement different types of methods in order to provide better
quality of service to its loyal customer. It is also concerned to gain different views of customer in
order to know the desire of customer which helps to attain the goals and objectives of
organisation (Chan, and Guillet, 2011). Organisation should follows the norms of government
which is made for protection of society. It also helps to give opportunities to local people in
order to give opportunity of employment. It is difficult to sell coffee at much high price as it may
lead to a compromise with the quality of services. This is one of the most common issue which is
faced by the start-ups. The referred enterprise needs to remain updated with the change in trends
and the variations in customer’s preferences.
Technological factor:
Management of organisation needs to implement various new and innovative methods in
order to improve its services at the cafe. In order to provide qualitative service to its loyal
customer management of Starbucks implement different types of new and innovative
technologies methods in order to enhance the growth of organisation. These innovative
technologies help to improve skills and knowledge of employees working in organisation. It
leads to enhance the productivity of organisation. These innovative technologies help to

manufacture new flavour of coffees which helps to compete different rivals present in
marketplace. Improvements in agriculture, biotechnological growth also has their positive impact
on Starbucks as this way it gets more opportunities to grow.
Legal factor:
There are various legal factors such as health and safety of employee, fluctuations in
laws or trading, necessity of firms in order to recycle the products. Starbucks put its efforts to
follow all legal factor which is imposed by government (Christopher, Payne, and Ballantyne,
2013).
Environmental factor:
Organisation implement different strategies in order to implement fuel efficient tools and
also calculation of gases. Organisation have environmental issues by serving coffee in cups
which are made by paper. There are various initiatives steps in order to manage different issues
which aids to increase effectiveness of work in organisation. There are different steps in order to
save environment (Cova, Dalli and Zwick, 2011). Environmental rules and regulations
Environmental disasters in countries which produce coffee beans and Global warming and other
ecological issues in a global level are the different ways through which the referred enterprise
remain effect. Starbucks has promised to produce 100% recycling coffee cups which shows that
it is effectively making polices for improving the present environmental condition.

Figure 100% Recyclable Cups
Source: SEATTLE. W., 2018
Different types of ethical issues which is faced by organisation like management have to
maintain standards of products in order to maintain healthy relationship with customer.
Organisation should determine the pricing strategy of different flavour of coffee which is launch
by the different rivals present in marketplace. Because it reduces rate of sales of coffee in market
place. The management of Starbucks are put its efforts in order to solve different business ethics
and implement new and innovative strategies in order to solve those ethics which hinders the
performance of company. These ethical issues tend management in order to change the strategies
in order to enhance the rate of sales of products in marketplace.
TASK 2
Segmentation of customers done by Starbucks
In order to increase sales of different products Starbucks implement broad range of
segmentation in order to provide different products to all age group people. The management of
Starbucks includes different marketing decision to identify the taste of different group of people
among the general public as the future customer for expansion of business Starbucks uses

different types of segmentation like mono segmenting positioning, Adaptive positioning,
Standby positioning. Before analysing the different strategies adopted by the referred enterprise
it is first important to understand the customer profile of the Starbucks. Its objective
demographic is city and wealthy, often on-the-go white-collar professionals looking to take their
caffeine fix with them to the office. People who are educated and belonging to average age
around 42 are considered to be potential clients of this brand (Lamb, Hair and McDaniel, 2011)..
Mono segment positioning:
The coffee chain giant targets those premium customer who want high quality of coffee
and they pay extra money for that specific coffee. Organisation position these types of customer
and accomplish their demand in stipulated time period. Because they pay extra money in order to
avail qualitative products.
Adaptive positioning:
Due to awareness about the consumer’s health Starbucks develop new and innovative
types of beverages which do not harm the health of consumer such as Chai Tea Latte Caffe
Misto and Iced American. Management put its efforts in order to communicate by different
medium in order to get them aware about the different products. So it help to increase the rate of
sales of products in effective manner (Hudson, and Thal, 2013).
Standby positioning:
There are various types of beverages like frappuchino had to await modification in the
marketplace for the certain period of time to determine the rate of demand. There are many other
beverages which have been discovered by organisation in order to maintain the productivity of
organisation.
There are various implications which is faced by management of Starbucks such
as do not properly right size the customer in effective manner. Management of organisation do
not able to determine the demand made by customer. Howard scultz put its efforts in order to
expand business of Starbucks in order to expand business in other area. This person put its
efforts in order to expand business in various different area. It helps organisation in order to
provide different long chain of products to customer which help to build long term relationship
with them. There various types of implication to expand its business in different area.
Organisation have to follow rules and regulation of government where organisation wants to
explore the business in other nation. Organisation have implications in finding the appropriate

place to situate the plant for providing services to customer. Organisation needs to take
permission to the government bodies in order to situate the plant. There are other factors which is
faced by organisation in order to manage various factors which helps to expand growth of
business. It also gives employee to local people.
TASK 3
Implementation of marketing strategies by Starbucks
Management of Starbucks implement different marketing strategies in order to increase
the sales of different products in marketplace. These strategies aid to maximise the level of profit
of organisation. Manager uses different approaches in order to manage various operation in
effective manner. It also helps to attain goals and objectives of organisation. In order to enhance
the rate of sales of products which helps to develop organisation. There are various types of
marketing strategies in order to enhance productivity of coffee firms. The management of
organisation take various initiatives steps to develop and expand the business in different area it
leads to enhance profitability of organisation (Kotler, 2011).
Starbucks implement strategies of Growth share matrix in order to enhance growth of
business of coffees. This growth share matrix is a tools which was developed by the Boston
Consulting Group in 1960 to management of Starbucks to determine the preferences and
different allocation of resource Ii order to proper utilisation of different resource. It provides an
estimate which helps to proper allocation of funds for different operation perform in
organisation. As per growth matrix business divided into four parts. They are termed as cash
cow, star, dog and question mark these parts helps to develop the skills and development of
coffees business firms (Lamb, Hair and McDaniel, 2011). It also brings consciousness of
different manager in order to perform different types of operation of organisation. There are two
axes of matrix which are concerned with market share which helps to generate large number of
revenue for organisation.
BCG matrix is an important tool through which organisations can formulate strategies for
the future. There are four quadrants in which descriptions of each is given below:
Cash cows:
Cash cows are types of business which are used to have large market share by generating
lots of cash by Starbucks by discovering new and innovative products for its loyal customer.

These cash are kept for those condition of market when companies face heavy losses due to
different factors. In past decade management of products in order to give qualitative services to
the customer it segment the customer in order to snatch the customer from other rival
organisation present in market place (McDonald, and Wilson, 2016). It is the initial stage of any
business. Starbucks at this time needs to invest more and the returns are less. Intensive strategies
need to be formulated so that the strengthening of companies positioning can be done.
Stars:
It possesses high growth of organisation it reveals that Starbucks also put its effort in
order to expand its business in different field which helps organisation to generate large amount
of revenue and maximise profit of organisation. These efforts help to capture large market share
in the market. Organisation put its effort in order to know desire of customer by taking feedback
from customer while serving various coffees at cafe. It also segment customer in order to
provide better services in order to manage different demand made by customer (Pulizzi, 2012).
Substantial investments are done at this stage in order to maintain the relative market share.
Dogs:
It is concerned with those products of which are categories according to the low selling
values of products but they are consistently play a significant role in order to maintain profit
organisation. As Starbucks faces various problems in existence of coffee shops it expands its
business in different area such as providing wi fi network to the various organisation. There are
many other products which have different products which have low sale values by they take part
to increase the level of profits of organisation. On reaching to this stage growth becomes low and
may also lead towards towards liquidation. At this level Starbucks can opt for retrenchment as
this helps enterprise in re gaining the same level of efficiency and improvements in resources can
be done.
Question marks:
It is related those products which are provided to the customer I order to maintain the
productivity of organisation but these products do not possess to capture low share in
marketplace. Like Starbucks provide a quality of coffee which have very superior quality but for
attaining those superior quality of coffees customer has to pay more money with respect to
normal quality of coffee. Organisation put its efforts in order to maximise the growth of different
products (Umiker-Sebeok, 2012).

These factors play a significant role in determining the condition of market and as per the
market management of organisation decides different price of products as per the condition of
market. It helps to transfer the extra revenue which is generated by selling of different types of
products. Starbucks explore its market in order to generate huge revenues for organisation.
These factors play an important role to find the position of organisation in marketplace. It helps
to implement new and innovative technology to enhance the productivity of products for
organisation. This strategy aids to find various types of threats which reduce the sales of
products in marketplace. So management uses these strategies in order to maintain sustainable
position in marketplace.
Starbucks also implement this matrix in order to create lots of opportunities for people
and helps to implement different strategies in order to solve various types issues which are arises
during performing various operation in organisation. This strategy plays a significant role in
maintaining maximising the profit of organisation. This strategies is most essential tools in
order to build strong brand in marketplace so that it can drag large number of customer in order
to manage the different activities of organisation (Papadopoulos, and Heslop, 2014). This is the
tools which recognise future perspective of organisation also helps to implement various
initiatives steps in order to development of organisation. It also plays an important role in
expanding different business operation of organisation. It also proper estimate of investing
capital in expansion of business in other nation.
CONCLUSION
As per above mentioned report it has been assumed that for attaining growth and expand
business in different area. Organisation have to implement different strategies for attaining goals
and objectives. Management of organisation needs to take proper initiative steps in order to
maintain the effectiveness of operation in organisation. These strategies play a significant role in
order to expand the business in different operation it helps to maintain the efficiency of
organisation. These effective strategies aids in developing the future perspective plan for facing
challenges of future and also help to maintain a sustainable position in marketplace. These
strategies help to manage different activities of organisation in order to attain goals and
objectives of organisation. It also helps in maintaining the quality of work in organisation.

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